Which of the following are the main issues to be tackled by the conceptual component of the Customer Relationship Management (CRM) Programme?

(A) Processing all customer requests coming in through multiple channels.
(B) Setting out the CRM objectives in clear terms.
(C) Creating a good product and mass marketing it.
(D) Putting customers first.
(E) Segmenting the market on the basis of occupations.

Choose the correct answer from the options given below:

Correct option is A

The conceptual component of Customer Relationship Management (CRM) focuses on understanding customer needs, setting strategic objectives, and ensuring customer-centric policies to improve long-term relationships with customers. It helps businesses retain customers, enhance satisfaction, and increase profitability.

The correct statements are:

1. (B) Setting out the CRM objectives in clear terms – Correct

   • Any CRM strategy must begin with well-defined objectives that align with customer expectations and business goals.

   • Clearly defining CRM objectives helps organizations structure their efforts toward customer acquisition, retention, and service improvement.

   • Example: A company might set CRM objectives like "increase customer retention by 20%" or "enhance personalized customer interactions through AI-driven insights."

2. (D) Putting customers first – Correct

   • A customer-centric approach is the foundation of CRM. It ensures that all business processes, marketing strategies, and service delivery models prioritize customer satisfaction.

   • Example: Amazon focuses on customer convenience through personalized recommendations, hassle-free returns, and 24/7 customer support.

Thus, the conceptual component of CRM primarily deals with strategic planning and customer orientation.

Information Booster:

• CRM focuses on building long-term relationships with customers by understanding their needs and preferences.

• Setting clear CRM objectives helps businesses align customer service, marketing, and sales strategies.

• A customer-centric approach improves customer satisfaction, loyalty, and retention.

• Businesses that prioritize customers gain a competitive edge by offering personalized experiences.

• Companies like Amazon and Netflix use CRM to enhance engagement through data-driven insights.

• Strategic CRM differs from operational CRM, as it focuses on planning and long-term customer relationship management.

• Effective CRM implementation leads to better customer service, increased revenue, and stronger brand loyalty.

Additional Knowledge:

1. (A) Processing all customer requests coming in through multiple channels – Incorrect

   • This function belongs to Operational CRM, not the conceptual component.

   • It includes handling customer service requests via email, phone, social media, and chatbots, but it is not a core issue addressed by CRM strategy formulation.

2. (C) Creating a good product and mass marketing it – Incorrect

   • While product quality and marketing are important, they fall under general business and marketing strategies rather than CRM.

   • CRM focuses on customer relationships rather than product development or mass marketing.

3. (E) Segmenting the market on the basis of occupations – Incorrect

   • Market segmentation is part of marketing strategy, not CRM conceptualization.

   • While CRM may use customer segmentation for personalization, its primary concern is managing and improving customer relationships, not defining customer segments based on occupation.