What is customer relationship management (CRM)?

Customer relationship management (CRM) focuses on managing an organization’s interactions with current and potential customers. It involves using technology and strategies to analyze customer data throughout the customer lifecycle, aiming to improve relationships and enhance customer satisfaction and loyalty. This makes managing interactions and data a central aspect of CRM, as it allows businesses to tailor their approaches based on insights gathered from customer interactions.

In contrast, developing new products pertains to product management and innovation rather than specifically to customer relationships. Conducting market research involves gathering information about customer needs and preferences to inform strategic decisions but does not directly represent the ongoing management of those relationships. Calculating business profits relates to financial analysis and performance metrics rather than the strategies and processes central to maintaining and enhancing customer connections. Thus, the focus of CRM distinctly aligns with managing interactions and utilizing customer data to foster stronger relationships.