What Is Customer Relationship Management?

Customer relationship management (CRM), also known as CRM, is a process which aims to increase customer satisfaction and loyalty through creating experiences unique to each person. This is accomplished by the use of technology, processes and teamwork between departments.

In the past maintaining these relationships was a lengthy and manual process. Businesses kept customer contact details in filing cabinets and rolodexes, or in spreadsheets that were often not shared with other departments. This led to lost sales opportunities and the miscommunication of customers. Maintaining relationships has become easier and more effective with the introduction of new marketing technology platforms that provide a central database for customer data. These are referred to as CRM systems.

CRM tools help to streamline and centralize customer information which makes it easier for teams to collaborate to cultivate leads and improve the overall sales and marketing funnel. In addition to capturing informative post lead and customer interactions, CRMs assist companies to determine the most promising leads by scoring them and prioritizing them, ensuring that salespeople only get in touch with prospects who are qualified. This results in higher conversion rates and purchase values, and can dramatically decrease the time required to close a deal.

Personalization is a key element of a CRM strategy which shows customers that they are valued by the company. From sending a personalized thank-you note after an order, to modifying the product or service to satisfy certain needs and creates a sense of belonging that leads to customers to return to purchase and brand loyalty.