CRM, or customer relationship management, encompasses the strategies, practices, and technologies businesses use to manage and analyze customer interactions and data throughout the customer lifecycle. The goal is to improve customer service relationships and assist in customer retention and driving sales growth. CRM systems compile customer data across different channels, or points of contact between the customer and the company, which could include the company’s website, telephone, live chat, direct mail, marketing materials and social media. CRM systems can also give customer-facing staff detailed information on customers’ personal information, purchase history, buying preferences and concerns.
CRM Customer Relationship Management
Consider a national coffee chain with millions of customers. Without a CRM system, managing individual customer preferences and interactions would be incredibly challenging. A CRM system allows the company to track each customer’s purchase history, including their favorite drinks, frequency of visits, and preferred locations. This data can then be used to personalize offers, such as discounts on their favorite beverages or promotions for new products they might enjoy.