Which of the following is an effort of a CRM system?

• A. Data collection (identity, transactional, lifestyle)
• B. Data analysis
• C. Targeted marketing
• D. Relationship building

Answer: (C)

CRM systems organize customer data and interactions to improve engagement and retention. They collect identity, transactional, and lifestyle information to understand who customers are and what they want, then analyze that data to uncover segments and likely responses. With those insights, they carry out targeted marketing—delivering personalized offers and messages to specific groups or individuals through the right channels at the right time. This is the practical marketing effort that CRM enables by turning data and analysis into tailored outreach. Data collection and data analysis are essential capabilities that support this, and relationship building is the broader aim, but targeted marketing is the concrete action driven by a CRM.