Customer relationship management (CRM) is an enterprise strategy that is geared towards increasing customer satisfaction to be open with your clients about your goals and loyalty through creating experiences that are unique to every individual. This is achieved by using technology, processes, and teamwork between departments.

In the past, maintaining these relationships was a laborious and manual process. Businesses would store the contact details of customers on rolodexes, filing cabinets or spreadsheets. They weren’t shared with other departments and often resulted in the loss of sales opportunities and miscommunication. With the advent of modern technology platforms for marketing that offer an integrated database of customer data, keeping track of relationships is much easier and effective. These are referred to as CRM systems.

CRM tools streamline and centralize customer information, making it easier for teams to collaborate to maintain leads and improve the overall funnel for sales and marketing. CRMs monitor lead and customer interactions and help businesses identify and prioritize the best leads. This lets salespeople only contact qualified prospects. This can result in greater conversion rates and higher purchase values, and can dramatically reduce the time needed to close a deal.

Personalization is another crucial aspect of a CRM practice which shows customers that they are valued by the company. Sending a personal note of thanks after an order or modifying the product or service to satisfy a specific need will encourage returning customers and brand recognition.