What is customer relationship management (CRM)?

Customer relationship management (CRM) encompasses the strategies and technologies that businesses implement to manage their interactions and relationships with customers. This can include a variety of practices, tools, and systems designed to analyze customer interactions throughout the customer lifecycle, with the ultimate goal of improving customer service, enhancing customer satisfaction, and retaining customers.

By leveraging CRM systems, companies can gather data from various channels, including their websites, phone calls, email, and social media, allowing them to create a comprehensive view of customer preferences and behaviors. This information helps businesses tailor their offerings, improve communication, and foster a more personalized experience, which can ultimately lead to increased customer loyalty and sales.

In contrast, the other options presented do not define CRM effectively. A collection of products marketed to a specific segment focuses on product marketing rather than relationship management. A financial strategy focused on cost reduction centers on financial operations, which is unrelated to customer relationships. Lastly, a system for employee performance evaluations is related to human resources management, not customer interactions.