Which of the following best describes Customer Relationship Management (CRM)?

Customer Relationship Management (CRM) is best described as a technology system for managing customer interactions. This definition encompasses the primary purpose of CRM, which is to help businesses create and maintain relationships with their customers. A CRM system consolidates customer information, tracks interactions, and collects data on customer preferences and behaviors, allowing organizations to optimize their marketing efforts, improve customer service, and ultimately foster long-term loyalty.

By leveraging CRM technology, businesses can have a holistic view of their customer interactions, enabling personalized communication and targeted marketing strategies. This approach enhances the customer experience by responding to their needs more effectively.

The other options do not accurately capture the full scope of CRM. For instance, CRM is not solely focused on acquisition; rather, it encompasses the entire customer lifecycle, including retention and relationship-building. Additionally, it is not merely about identifying potential customers or tracking sales trends, as these elements are components of broader marketing and sales strategies but do not define the comprehensive nature of CRM.