How does Customer Relationship Management (CRM) impact sales growth?

Customer Relationship Management (CRM) significantly impacts sales growth primarily through managing customer interactions and improving relationships. CRM systems are designed to collect and analyze customer information, helping businesses understand their customers' needs, preferences, and purchasing behaviors. This understanding enables companies to tailor their marketing efforts, enhance customer service, and foster loyalty.

When organizations effectively use CRM to build and maintain strong relationships with their customers, they can provide personalized experiences, anticipate customer needs, and respond quickly to inquiries or issues. As a result, customers are more likely to repeat purchases, refer others, and engage more deeply with the brand, all of which contribute to increased sales over time.

While the other options may have some relevance, they do not capture the core purpose of CRM as effectively. For example, increasing the number of products sold per transaction is more about cross-selling and upselling strategies than the primary function of CRM. Streamlining communication between departments is beneficial but does not directly correlate to customer relationship management's focus. Focusing solely on marketing new products overlooks the importance of nurturing existing customer relationships, which CRM excels at fostering. Therefore, option C accurately reflects how CRM contributes to sales growth by enhancing the overall customer relationship.