What is CRM and How Does it Work?

What is CRM and How Does it Work? | Salesforce

CRM stands for Customer Relationship Management. It's a technology that helps you keep track of everything about your customers and your potential customers so you can build great relationships with them. CRM used to be all about sales, but not anymore. CRM is for every department: sales, marketing, service, commerce, and IT.

A great CRM helps you do amazing things by centralizing all your important customer information and company data in one place. This enables your teams to have the right information to deliver the easy, connected experiences customers expect.

Take Carol for example. Carol owns a network of scooter dealerships and has a lot of customers. One of her customers, Celeste, configured the scooter of her dreams 43 times. Because Carol’s CRM tracked this activity, her marketing team knew it, which led to Celeste receiving an automated email that got her off her couch and into a dealership to take a test drive.

When Celeste arrived, the scooter was already waiting for her along with some accessories that the sales team knew she would love. Next thing you know, Celeste is buying herself a scooter, a snazzy helmet, and some really nice accessories. But it’s not just the sales and marketing departments that know Celeste. Thanks to Carol’s CRM, every department knows her because every team has a shared view of Celeste and all her information.

Before Celeste has even made it back to her couch, the service department has already sent her tips to help her care for her scooter. Marketing uses built-in AI to predict what Celeste likes and suggests more great additions. Commerce uses the same insights to create an entire storefront customized just for her. Meanwhile, IT builds apps that connect her to an entire community of fellow scooter lovers, fostering brand love and loyalty.

Along the way, Carol’s CRM just keeps getting smarter and more helpful, serving up actionable analytics for everyone at Carol’s dealership. This makes Carol’s employees happier and helps them surprise and delight Celeste again and again. The right CRM helps businesses focus on their customers and unites everyone with one shared goal — make customers like Celeste happy.

Keywords

CRM
Customer Relationship Management
Sales
Marketing
Service
Commerce
IT
Customer information
Company data
Centralized database
Automated email
AI predictions
Customized storefront
Community apps
Actionable analytics

FAQ

Q: What does CRM stand for? A: CRM stands for Customer Relationship Management.

Q: Is CRM only for sales? A: No, CRM is for every department, including sales, marketing, service, commerce, and IT.

Q: How does CRM help businesses? A: CRM centralizes all important customer information and company data in one place. This enables teams to deliver easy, connected experiences and make customers happy by having the right information at the right time.

Q: Can CRM predict customer preferences? A: Yes, a great CRM uses built-in AI to predict customer preferences and suggest relevant products or services.

Q: How does CRM improve customer service? A: CRM allows different departments to have a shared view of the customer, enabling timely actions such as sending care tips, personalized marketing suggestions, and creating customized storefronts.

Q: Does CRM provide actionable analytics? A: Yes, a good CRM serves up actionable analytics that help businesses understand customer behavior and improve their services continually.