Questions: Customer Relationship Management is best defined as: Multiple Choice A system used to connect a firm's suppliers with a firm's customers. A system used to manage and nurture a firm's interactions with its current and potential customers. A system used to track a customer's past purchases. A system used to advertise current items on sale to customers.

The answer is: A system used to manage and nurture a firm's interactions with its current and potential customers.

Explanation for each option:

1. A system used to connect a firm's suppliers with a firm's customers.

   • This option is incorrect. Customer Relationship Management (CRM) focuses on the relationship between the firm and its customers, not the suppliers. Connecting suppliers with customers would fall under supply chain management or a similar system.

2. A system used to manage and nurture a firm's interactions with its current and potential customers.

   • This option is correct. CRM systems are designed to help businesses manage and analyze customer interactions and data throughout the customer lifecycle, with the goal of improving customer service relationships, assisting in customer retention, and driving sales growth.

3. A system used to track a customer's past purchases.

   • This option is partially correct but incomplete. While tracking past purchases is a function of CRM systems, it is not the complete definition. CRM encompasses a broader range of activities, including managing interactions and nurturing relationships with customers.

4. A system used to advertise current items on sale to customers.

   • This option is incorrect. While CRM systems can be used to support marketing efforts, their primary purpose is not solely to advertise items on sale. They are more focused on managing customer relationships and interactions.

In summary, the most accurate definition of Customer Relationship Management is a system used to manage and nurture a firm's interactions with its current and potential customers.