What is customer relationship management (CRM)?

Customer relationship management (CRM) is fundamentally about managing a company’s interactions with current and potential customers. This approach encompasses various strategies and technologies that companies use to analyze and manage customer interactions and data throughout the customer lifecycle. The goal of CRM is to improve business relationships, enhance customer satisfaction, and drive sales growth.

Effective CRM systems collect customer data from various channels, including a company's website, email, live chat, and social media, enabling personalized communication and tailored marketing efforts. By understanding customer needs and behaviors, organizations can foster loyalty, improve customer retention, and ultimately influence purchasing decisions.

This focus on the relationship aspect, which is central to both current and future customers, distinguishes CRM from other business strategies such as inventory management or employee engagement techniques, which target different operational facets of a company.