CustomerRelationshipManagement

Customer Relationship Management (CRM) refers to the practices, strategies, and technologies that organizations use to manage and analyze customer interactions and data throughout the customer lifecycle. The aim is to improve customer service, support retention, and drive sales growth by delivering more personalized experiences.

CRM combines business processes, data, and technology to capture information from sales, marketing, and service interactions in a centralized database. It enables customer segmentation, targeted communications, and streamlined workflows such as lead management, case handling, and account coordination across teams.

CRM is commonly categorized into three functions: operational CRM, which supports front‑line interactions and process automation; analytical CRM, which interprets data to guide decisions; and collaborative CRM, which coordinates information sharing across departments and with partners and channels.

The concept evolved from contact management and sales force automation in the late 20th century and has expanded with cloud computing, mobile access, and social media. Modern CRM systems often integrate marketing automation, e-commerce, and customer service tools, sometimes under a single platform.

Benefits include improved customer satisfaction, higher retention, increased revenue, and more efficient service. Challenges include ensuring data quality, integrating with existing systems, managing privacy and compliance, and achieving user adoption.

Key metrics used to evaluate CRM effectiveness include customer lifetime value, churn rate, retention rate, net promoter score, and first contact resolution. Successful implementation requires clear objectives, data governance, stakeholder buy-in, and ongoing evaluation.