What is customer relationship management (CRM)?

Customer relationship management (CRM) is fundamentally about managing customer interactions and relationships in a way that enhances customer satisfaction and loyalty. It involves using technology and strategic processes to manage and analyze customer interactions throughout the customer lifecycle, aiming to improve business relationships, retain customers, and drive sales growth.

By focusing on managing customer interactions, CRM systems help businesses collect, store, and analyze customer data in order to better understand customer needs and preferences. This knowledge enables organizations to tailor their marketing efforts, improve customer service, and create personalized experiences, which are central to maintaining a competitive edge in today’s marketplace.

Increasing product sales, social media advertising, and analyzing market trends are important elements of marketing strategies, but they do not capture the holistic and relational nature of CRM. CRM is fundamentally about building and nurturing long-term relationships with customers, which leads to customer loyalty and retention. Hence, managing those customer interactions effectively is the core essence of CRM.