Which term describes the ongoing process of managing customer interactions to improve retention and profitability?

• A. Competitive positioning
• B. Customer relationship management
• C. Brand equity
• D. Market segmentation

Answer: (B)

Managing customer interactions across the lifecycle to improve retention and profitability is customer relationship management (CRM). CRM focuses on building long-term relationships by gathering and using customer data to tailor communications, anticipate needs, and provide consistent experiences across sales, marketing, and service. The aim is to keep customers engaged, encourage repeat purchases, and maximize value over time through personalized, timely, and relevant interactions.

The other concepts don’t fit this ongoing, relationship-focused idea. Competitive positioning is about how a brand differentiates itself in the market, brand equity refers to the perceived value of a brand in consumers’ minds, and market segmentation is about dividing the market into groups to target distinct needs. CRM uniquely centers on managing interactions to improve retention and profitability.