What Is Customer Relationship Management?

Customer relationship management (CRM) is also referred to as CRM, is a method which aims to increase customer satisfaction and loyalty through making experiences that are unique to each person. This is accomplished through a combination of processes, technology, and collaboration across departments.

In decades past, maintaining these relationships was a tedious and manual process. Businesses used to keep customer contact information on rolodexes, filing cabinets or spreadsheets. These weren’t shared with other departments and frequently resulted in miss opportunities to sell and the inability to communicate. Maintaining relationships has become much simpler and more efficient with the advent of modern marketing technology platforms that provide a central database for customer information. These are referred to as CRM systems.

CRM tools simplify and centralize customer data making it easier for teams to collaborate to cultivate leads and improve the overall funnel for sales and marketing. In addition to tracking lead and customer interactions, CRMs help companies find the most qualified leads by scoring and prioritizing them so that salespeople only communicate with prospects who are qualified. This can result in more conversion rates and greater purchase values, and can dramatically reduce the time required to close a deal.

Personalization is a key element of a CRM practice which shows customers that their business is valued. From sending a personalized thank you note after an acquisition, to tailoring a product or service to satisfy a particular need and creates a sense of trust that motivates the purchase of more products and brands, as well as brand loyalty.