What Is Customer Relationship Management?

Customer relationship management (CRM), also known as CRM, is a strategy that aims to increase the customer’s satisfaction and loyalty by creating unique experiences for every person. This is accomplished by the use of technology, processes and teamwork between departments.

In the past maintaining these relationships was manual and laborious processes. Businesses used to store customer information on filing cabinets, rolodexes and spreadsheets. They were not shared with other departments, which often resulted in miss opportunities to sell and confusion. Maintaining relationships has become much easier and more effective with the advent of modern marketing technology platforms that offer central databases for customer data. These are referred to as CRM systems.

CRM tools are designed to centralize and streamline customer information to make it easier for individuals and teams to collaborate and nurture leads, enhancing the overall marketing and sales funnel. CRMs monitor lead and customer interactions and help businesses identify and prioritize the best leads. This enables salespeople to only contact qualified prospects. This can lead to better conversion rates, purchasing values and reduce the time it takes to close a deal.

Personalization is another crucial aspect of a CRM process that shows customers they are valued by the company. From sending a personal thank-you note after an order, to modifying an item or service to satisfy the needs of a specific customer and creates a sense of connection that encourages repeat purchases and brand advocacy.

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