What is customer relationship management (CRM)?

Customer relationship management (CRM) refers to a set of strategies and technologies designed to improve the relationship between a business and its customers. The primary goal of CRM is to enhance customer satisfaction and retention by enabling businesses to manage customer interactions more effectively throughout the customer lifecycle. This includes capturing customer data, analyzing their preferences and behaviors, and streamlining communication with them.

By implementing CRM systems, companies can automate processes, track customer interactions across various channels, and provide personalized experiences. This helps organizations in building strong relationships with their clients, ultimately leading to increased loyalty and sales.

The other options do not accurately define CRM. For instance, generating sales reports is an activity related to analyzing business performance but does not encompass the broader scope of managing customer relationships. A financial auditing process focuses on reviewing financial records and compliance, which is unrelated to customer management. Lastly, lowering production costs pertains more to operational efficiency rather than the management of customer interactions or relationships. Thus, the definition of CRM as strategies and technologies used to manage customer interactions is comprehensive and captures its essence accurately.