Customer Relationship Management (CRM) is an information industry term for methodologies, software, and usually Internet capabilities that help an enterprise manage customer relationships in an organized and efficient manner. In many cases, an enterprise builds a database about its customers. This database describes relationships in sufficient detail so that management, salespeople, and customer service reps can access information; match customer needs with product plans and offerings; remind customers of service requirements; know what other products a customer had purchased; etc.

CRM, an acronym for Customer Relationship Management, is a business strategy to create and maintain better relationshipswith customers, by understanding their unique needs and behaviors. Initiating CRM within an organization entails setting company-wide policies and practices, along with implementing a CRM system (software) that integrates information from various internal and external sources to give a holistic view of individual customers in real time.

CRM used to refer to only the software component, but the concept has now evolved into a customer-centric philosophy that affects all aspects of an organization’s operations. In modern business, along with the technological component, two other aspects of a successful CRM initiative are people and processes. These three key components are the foundations of successful CRM implementation within an organization, and they must be aligned with the customer-centric philosophy. In establishing true CRM, an organization must first choose the right CRM system that is easy to operate and gives employees timely and relevant data.