---
title: "CRM goals and customer channels"
subject: "Data Mining"
chapter: 7
key: "semester_7/data_mining:crm-goals-channels"
source: https://www.bctengineer.com/q/semester_7/data_mining/crm-goals-channels
site: BCT Engineering
---

# CRM goals and customer channels

Data Mining · Chapter 7: Advanced Applications

- Asked in: year not given, 2+5 marks
- Answer checked by Claude Opus 5.5 (high effort) on 2026-10-14
- Page: https://www.bctengineer.com/q/semester_7/data_mining/crm-goals-channels
- Whole chapter: https://www.bctengineer.com/md/semester_7/data_mining/chapter-7

## Question

What is CRM? List the goals of CRM in relationship marketing and channels used for customer approach.

## Short answer

CRM manages customer interactions to build long-term, profitable relationships. Goals include acquiring and retaining customers, increasing satisfaction and lifetime value, cross-selling, understanding customers, reducing costs and winning back lost customers. Channels include personal sales, phone, mail, email, web, mobile, social media, advertising and partners.

## Answer

**Customer Relationship Management (CRM)** is a business strategy and set of technologies for managing and analysing all interactions with customers over their lifetime, in order to improve relationships, retain customers and increase sales and profit.

#### Goals of CRM in relationship marketing
1. **Acquire** new customers by finding and attracting the right prospects.
2. **Retain** customers and reduce churn by building loyalty.
3. **Increase customer satisfaction** and provide better service.
4. **Increase customer lifetime value** through repeat purchases, **cross-selling** and **up-selling**.
5. **Understand customers**: know needs and behaviour (segmentation, profiles) for personalised offers.
6. Reduce the cost of marketing, sales and service through targeted campaigns and automation.
7. Win back lost customers and reward the best ones.
8. Build a single, complete view of each customer across the organisation.

#### Channels used to approach customers
| Channel | Examples |
| --- | --- |
| Direct personal | Sales representatives, branch/shop visits, retail outlets |
| Telephone | Call centres, telemarketing, IVR |
| Mail | Direct mail, catalogues, brochures |
| Email and SMS | Newsletters, promotional and alert messages |
| Web / internet | Company website, e-commerce, online chat, self-service portals |
| Mobile | Mobile apps, push notifications, mobile wallets |
| Social media | Facebook, Instagram, Twitter, YouTube, communities |
| Media advertising | TV, radio, newspapers, billboards |
| Partners and kiosks | Agents, dealers, ATMs and kiosks |

## Check yourself

The answer's key points as multiple-choice questions, with the correct option and why.

1. What is the main aim of CRM?
   A. Improve relationships, retain customers and increase sales and profit
   B. Reduce the number of customers
   C. Replace sales staff with servers
   D. Store only financial data
   Answer: A. CRM manages interactions to improve relationships and profitability. (Key point: CRM)

2. Which CRM goal is increased by cross-selling and up-selling?
   A. Customer lifetime value
   B. Churn
   C. Data redundancy
   D. Server speed
   Answer: A. Repeat purchases and extra sales raise lifetime value. (Key point: Cross/up-selling)

3. What does a 'single, complete view of each customer' mean?
   A. One customer per branch
   B. Combining all customer information across the organisation
   C. Only one channel is used
   D. Customers see one product
   Answer: B. CRM builds one view across the whole organisation. (Key point: Single view)

4. Which is a CRM channel for approaching customers?
   A. Call centres and telemarketing (telephone)
   B. Compiler optimisation
   C. Database indexes
   D. Firewalls
   Answer: A. Telephone, mail, email/SMS, web, mobile, social media, media ads and kiosks are channels. (Key point: Channels)

## Related in other subjects

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- [CRM plan for online shop](https://www.bctengineer.com/question.md?key=semester_8%2Finformation_system%3Acrm-online-shop-plan) — Information System, chapter 3
- [GSM traffic and control channels](https://www.bctengineer.com/question.md?key=semester_7%2Fwireless_communication%3Agsm-traffic-control-channels) — Wireless Communication, chapter 8, asked 4×
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