Customer relationship management (CRM) is a model for managing a company's interactions with current and future customers. It involves using technology to organize, automate and synchronize sales, marketing, customer service and technical support.

CRM entails all aspects of interaction that a company has with its customer, whether it is sales or service-related. CRM is often thought of as a business strategy that enables businesses to:

  • Understand the customer
  • Retain customers through better customer experience
  • Attract new customer
  • Win new clients and contracts
  • Increase profitably
  • Decrease customer management costs

Customer relationship management solutions provide you with the customer business data to help provide services or products that your customers want, provide better customer service, cross-sell and up sell more effectively, close deals, retain current customers and understand who the customer is.

Technology and the Web has changed the way companies approach CRM strategies because advances in technology have also changed consumer buying behavior and offers new ways for companies to communicate with customers and collect data about them. With each new advance in technology -- especially the proliferation of self-service channels like the Web, tablets and smartphones -- customer relationships is being managed electronically.

Many aspects of CRM relies heavily on technology; however the strategies and processes of a good CRM system will collect, manage and link information about the customer with the goal of letting you market and sell services effectively.