ACCA Strategic Business Leader (SBL) Practice Exam

Which of the following is NOT one of the three elements of customer relationship management?

1. Acquisition

2. Retention

3. Extension

4. Transition

The correct answer is: Transition

The elements of customer relationship management (CRM) typically focus on three key phases: acquisition, retention, and extension. Acquisition refers to the strategies and processes used to attract new customers to a business. It often involves marketing efforts to create awareness and draw potential customers into the sales funnel. Retention is about keeping the existing customers by ensuring their satisfaction and loyalty. Businesses implement various tactics such as personalized communication, customer service enhancements, loyalty programs, and feedback collection to maintain the relationship with their customers. Extension goes a step further by focusing on maximizing the value of existing customer relationships. This includes upselling or cross-selling additional products or services, enhancing customer engagement, and finding ways to provide greater value to customers over time. The term "transition" is not recognized as a standard element of CRM. While it might refer to changes in customer status or life-cycle management within a broader context, it does not fit into the main framework of customer relationship management like the other three elements do. Thus, the correct response identifies "transition" as not being a core element of CRM.