CRM, or customer relationship management, encompasses the strategies, processes, and technologies businesses use to manage and analyze customer interactions and data throughout the customer lifecycle. The goal is to improve customer service relationships, assist in customer retention, and drive sales growth. CRM systems compile customer data across different channels, or points of contact, between the customer and the company, which could include the company’s website, telephone, live chat, direct mail, marketing materials, and social media. A robust CRM system provides a central location for all customer information, allowing businesses to gain a holistic view of each customer.
CRM Customer Relationship Management
Consider a retail company that utilizes a CRM system. When a customer makes a purchase, their details, such as name, contact information, and purchase history, are recorded within the system. This data is then used to personalize future interactions. The CRM can automatically generate targeted email campaigns based on past purchases, offering personalized recommendations or exclusive discounts. This tailored approach fosters customer loyalty and encourages repeat business.