What is a CRM (Customer Relationship Management)?

Definition

Customer Relationship Management (CRM) refers to both the strategies and technologies that companies use to manage and analyze all interactions and relationships with their current and potential customers. A CRM system helps organizations centralize customer data, streamline sales processes, improve customer service, and build stronger relationships, ultimately driving sales growth and customer retention.

Examples

• Sales Team: A sales rep uses a CRM like Salesforce to track their leads, log calls and emails, manage their sales pipeline, and get reminders for follow-ups.
• Marketing Team: A marketing manager uses a CRM like HubSpot to run email campaigns, segment customer lists for targeted advertising, and track MQLs as they move through the funnel.
• Customer Service Team: A support agent uses a CRM like Zendesk to view a customer’s entire history, including past purchases and support tickets, allowing them to provide faster and more personalized help.
• Management: A CEO views a CRM dashboard to see real-time sales performance, revenue forecasts, and team productivity.

Advantages/Benefits

• Centralized Data: Provides a single source of truth for all customer information, making it accessible to anyone in the company who needs it.
• Improved Customer Relationships: Allows for personalized communication and a deeper understanding of customer needs, leading to higher satisfaction and loyalty.
• Increased Sales Productivity: Automates repetitive tasks, streamlines the sales process, and helps salespeople prioritize leads and opportunities effectively.
• Enhanced Analytics and Forecasting: Offers powerful reporting tools that provide insights into sales trends and enable more accurate revenue forecasting.

Related terms

• Sales Automation
• ERP (Enterprise Resource Planning)
• SaaS (Software as a Service)
• Customer Data Platform (CDP)
• Lead Management
• Contact Management