Exam CSCP topic 1 question 180 discussion

B. Target them for higher margin services.

*C. Target them for greater attention.** A company focused on **customer relationship management (CRM)** aims to build and maintain strong, long-term relationships with its most valuable customers. For customers who have been profitable over time, the company is likely to prioritize **greater attention** to ensure their continued satisfaction and loyalty. This could include personalized service, exclusive offers, or dedicated account managers to strengthen the relationship and encourage repeat business. The other options are less aligned with a CRM-focused approach:

A company focused on customer relationship management (CRM) would most likely target profitable customers for greater attention. Explanation: CRM emphasizes building strong, long-term relationships with customers. For profitable customers, this means actively engaging with them, understanding their needs, and providing personalized services. This approach maximizes their lifetime value and minimizes the risk of churn.

A company focused on customer relationship management (CRM) would most likely target profitable customers with higher margin services or offers. Explanation: CRM emphasizes building strong relationships with customers to maximize their lifetime value. For profitable customers, a company would aim to retain them and encourage further purchases by offering tailored products and services that align with their individual needs and preferences.

Option A, reducing the cost of serving them, is not typically the primary focus in CRM for profitable customers. Instead, the emphasis is on providing high-quality service and building positive relationships. Option B, targeting them for higher margin services, may not align with the goal of building strong customer relationships if it involves upselling without considering the customer's needs and preferences. Option D, charging them for administrative services used, is not in line with the approach of fostering positive relationships with profitable customers; it might risk alienating them. Therefore, option C, targeting profitable customers for greater attention, is a more appropriate

C is correct. You segment based on margins. The overall purpose of CRM is to retain loyal customers, and you do this by giving customers attention.

C is correct

Wouldn't it be better to "Target them for greater attention." (Option C) and then decide whether to offer them higher margin services? We could generate a bad customer experience if they perceive that we are trying to make more profit without personalized attention.

It is B