Customer relationship management (CRM) is also referred to as CRM, is a technique designed to improve customer satisfaction and loyalty through creating unique experiences for every individual. This is achieved through a combination of processes, technology, and teamwork across departments.

In the past maintaining these relationships was manual and laborious processes. Businesses kept customer contact details in rolodexes and filing cabinets or in spreadsheets that were typically not shared with other departments--leading to sales opportunities being lost and ineffective communication. With the advent of new technology platforms for marketing that offer a central database for customer information, keeping records is much easier and efficient. These are referred to as CRM systems.

CRM tools consolidate and streamline the customer's data, making it easier for teams and individuals to work together and nurture leads, improving the overall funnel of sales and marketing. In addition to keeping track of customer and lead interactions, CRMs can help companies find the most qualified leads by scoring them and prioritizing them, so that salespeople only communicate with qualified prospects. This can lead to higher conversion rates, higher purchase values and reduce the time it takes to close a deal.

Personalization is a key element of a CRM practice that lets customers know that they are valued by the company. From sending a personal thank-you note following the sale, to customizing an item or service to satisfy certain needs that creates a feeling of connection that drives repeat purchases and brand advocacy.