Google Digital Garage Certification Practice Exam 2025 – Complete Test Prep

The primary benefit of customer relationship management (CRM) is that it helps manage and analyze customer interactions and data. CRM systems are designed to improve business relationships with customers by streamlining processes, ensuring effective communication, and maintaining accurate records of customer interactions. This capability enables businesses to understand customer behavior, preferences, and trends, ultimately leading to better service and enhanced customer satisfaction.

By collecting and analyzing data from various touchpoints, such as social media interactions, support tickets, and purchase history, CRMs provide valuable insights that can help tailor marketing strategies and improve customer engagement. This comprehensive understanding of customers allows organizations to cultivate stronger relationships, increase loyalty, and drive repeat business.

The other options do not capture the core purpose of CRM effectively. For example, while CRM can indirectly affect inventory management and advertising strategies, it is not primarily designed for those functions. It also goes beyond just focusing on sales transactions, as its scope encompasses a full spectrum of interactions with customers throughout their journey with the company.