What is CRM?

What is CRM?
CRM stands for Customer Relationship Management. That sounds quite self-explanatory but what does it really mean in practice?

It can be described as a business strategy focused on improving relationships with customers throughout their entire life cycle. From first contact and acquisition to developing customer loyalty, problem solving and business relationship termination. The goal of CRM is clear - to build a happy relationship with current customers and to gain new customers efficiently. 

If somebody asks you "How do you do CRM in your company?", you can understand it simply as "What do you do to make your customers happy and loyal?"

CRM is crucial for all companies which put customers first. Satisfied customers have a close relationship with your products and services and they won't leave for your competition. Through elaborate methods, CRM strategy seeks to maintain satisfaction in all stages of the company - customer relationship, for instance through:

  • what impression the brand makes on potential customers,
  • how salesmen address potential customers,
  • how companies care for their customers after they have made their first purchase,
  • how companies keep customer loyalty during further purchases,
  • and last but not least, how companies part ways with their customers.

The CRM area is connected with technologies which help to put CRM strategies into practice - these technologies are called CRM systems or CRM software. So, if we change the original question and you get asked "What CRM do you use?" this time around, they almost certainly mean "What CRM system/software do you use?"

Now that you know what CRM is, it is time to find out what CRM systems can help with.