What is customer relationship management (CRM)?

Customer relationship management (CRM) primarily refers to the strategies and technologies that organizations utilize to manage their interactions with current and potential customers. This approach places emphasis on understanding customer needs, improving service, and fostering strong relationships to enhance customer satisfaction and loyalty.

CRM systems compile customer information across different channels, enabling businesses to streamline processes for acquiring, retaining, and engaging customers effectively. By leveraging CRM tools, organizations can analyze customer interactions, track sales, and tailor marketing efforts based on customer preferences, ultimately leading to more personalized experiences and better customer retention.

In contrast, the other options focus on different aspects of business management. For instance, methods for product design relate to the development and innovation of products rather than customer interactions. Financial forecasting tools emphasize predicting future financial scenarios rather than enhancing customer relationships. Public relations strategies are focused on managing a public image and communications with the media, which is distinct from the core functionalities of a CRM system.