Description
Customer relationship management (CRM) is a technological system used for managing a company’s client relationships and interactions. It aids everyone in the business including sales, customer service, business development, recruiting, marketing, or any other line of business, in improving interactions and relationships as it allows companies to stay connected to clients to drive success. It also aids in streamlining a company's processes and enhancing profitability.
Example
A CRM tool like Salesforce or Hubspot lets a company store customer and prospect contact information, identify sales opportunities, record service issues, and manage marketing campaigns, all in one central location. It can also allow easy access to a variety of information (such as customer interaction) to anyone at the company who may need it.
Why it matters
A CRM is crucial in understanding the health of a company’s customers (both existing and potential). Management (especially at earlier stage companies) is laser-focused on growing revenue and one of the key components is a well-structured and efficient CRM system.