What is CRM?
An acronym for Customer Relationship Management, CRMs are designed to improve customer service. While the term refers to a systematic approach to handling customer relationships, it has also expanded to refer to a holistic approach to business strategy.
Customer refers to an entity that acquires or consumes goods or services from a desired firm (through the purchasing or renting) for a mutually decided price. The customer has the ability to choose between different products and suppliers.
Relationship in business refers to a state involving mutual dealings between people or parties. It involves interactions with customers or prospects to better understand their requirements, interactions that can come through different channels of communication. The more one interacts, the more chances to build a strong business relationship based on a better understanding of the needs of customers.
Management refers to the managing of customer interactions. This does not merely mean customer support, but entails mobilizing the entire organization towards management of all interactions with the customers, and creating a customer-centric mode of thinking and acting.