What Is Customer Relationship Management?

Customer relationship management (CRM) is also referred to as CRM, is a process designed to improve customer satisfaction and loyalty through creating experiences unique to each individual. This is achieved through a combination of technology, processes and teamwork across departments.

In decades past maintaining these relationships was a time-consuming and manual process. Businesses would store customer contact information in filing cabinets, rolodexes or spreadsheets. They were not shared with other departments, which often led to missed sales opportunities and confusion. With the advent of new marketing-technology platforms that provide an integrated database of customer data, keeping track of relationships is much simpler and more efficient. These are known as CRM systems.

CRM tools streamline and centralize customer information, making it easier for teams to collaborate to manage leads and improve the overall funnel for sales and marketing. In addition to keeping track of customer and lead interactions, CRMs assist companies to identify the best potential leads by scoring them and prioritizing them, ensuring that salespeople are only contacted with prospects who are qualified. This can result in higher conversion rates and purchase values, and may significantly decrease the time required to useful site close a deal.

Personalization is a key element of a CRM strategy that lets customers know they are valued by the company. From sending a personal thank-you note after an acquisition, to tailoring the product or service to satisfy certain needs that creates a feeling of connection that drives sales and brand recognition.