What strategic approach does CRM emphasize?

Customer Relationship Management (CRM) emphasizes enhancing relationships with existing customers as its core strategic approach. This method prioritizes building long-term relationships, fostering loyalty, and understanding customer needs to create tailored experiences. By focusing on existing customers, companies can maximize customer lifetime value, encourage repeat business, and generate positive word-of-mouth referrals.

A successful CRM strategy involves collecting and analyzing customer data, which helps businesses better understand individual preferences and behaviors. This enables companies to deliver personalized marketing, improve customer service, and ensure that customers feel valued. Thus, enhancing existing relationships is not only beneficial for customer satisfaction but also crucial for the long-term profitability and sustainability of a business.

The other options do not align with the fundamental principles of CRM. While eliminating customer dissatisfaction can be a part of effective relationship management, it is not the primary focus of CRM. Additionally, marketing only to new customers or focusing purely on product features neglects the importance of nurturing current customer relationships, which is central to the CRM strategy.