Customer relationship management (CRM) is an organizational strategy that focuses on increasing customer satisfaction and loyalty by delivering experiences that are unique to each individual. This is accomplished by a combination of processes, technology, and collaboration across departments.

In the past maintaining these relationships was a time-consuming and manual process. Businesses stored customer contact information in rolodexes and filing cabinets or in spreadsheets that were often not shared with other departments, which led to lost sales opportunities and the miscommunication of customers. With the advent of modern marketing-technology platforms that provide an integrated database of customer data, keeping track of relationships is much easier and effective. These systems are called CRM systems.

CRM tools centralize and streamline the customer's data, making it easier for teams and individuals to work together and nurture leads, enhancing the overall sales and marketing funnel. In addition to analyzing customer and lead interactions, CRMs can help companies determine the most promising leads by scoring them and prioritizing them so that salespeople are only contacted with qualified prospects. This could result in higher conversion rates, purchase values and cut down on the time it takes to close a deal.

Personalization is a key element of a CRM process that lets customers know their business is appreciated. From sending a customized thank you note following the sale, to customizing an item or service to meet certain needs that creates a feeling of connection that drives repeat purchases and brand advocacy.