What is customer relationship management (CRM)?

Customer relationship management (CRM) is fundamentally about establishing, maintaining, and enhancing relationships with customers. Specifically, it is a strategy designed to manage interactions with customers effectively. This involves not just tracking customer activities and preferences but also enabling businesses to understand customer needs, enhance communication, and personalize experiences.

CRM systems help organizations analyze customer interactions and data throughout the customer lifecycle with the goal of improving customer service relationships, assisting in customer retention, and driving sales growth. This holistic approach to managing customer interactions is crucial for fostering loyalty and ensuring satisfaction, ultimately leading to sustained business success. Therefore, characterizing CRM as a strategy for managing interactions with customers encapsulates its essential function and objectives comprehensively.