What does customer relationship management (CRM) focus on in retail?

Customer relationship management (CRM) focuses primarily on strategies and technologies designed to manage and analyze customer interactions throughout the customer lifecycle. This encompasses every touchpoint a customer has with the business, including purchasing, feedback, and support, with the goal of improving customer satisfaction and retention.

By leveraging CRM, retailers can better understand customer preferences and behaviors, which allows them to personalize communication and marketing strategies. The data collected through CRM systems enables retailers to build stronger relationships with their customers, ultimately leading to increased loyalty, repeat purchases, and overall enhanced customer experiences.

In contrast, tracking employee performance, optimizing supply chain management, and managing discounts and promotions, while important aspects of retail operations, do not capture the core purpose of CRM, which is fundamentally about enhancing customer interactions and relationships.