What is a CRM? CX Basics

What is Customer Relationship Management? 

What is CRM

Published: July 5, 2021

Rebekah Carter

In the modern world of CX, there are various fantastic tools that can help to make your business more successful. These solutions are essential for collecting and analysing consumer data, tracking the outcomes of various engagement efforts, and more.  

However, with so many terms and acronyms to be aware of, it’s easy to get overwhelmed. Today, we’re going to be defining one of the most valuable tools in the customer experience landscape: The CRM. The term “CRM” stands for customer relationship management.  

When someone talks about a “CRM system” in the CX landscape, they’re referring to a software system that supports the way they manage and build relationships with customers.  

Defining the CRM  

Customers are the most valuable asset of any business. Initially, however, collecting information about those customers is different. Insights were scattered across the business landscape, from a sales rep’s inbox to the accountant’s invoices. That’s just not realistic today.  

As organisations grow, it becomes essential to have one place for all of this combined information so that that team leaders can pull insights from the trends in that data. Your CRM system, or Customer Relationship Management tool, collects all of the information you need to know about your customers in an aligned space, ensuring that you can create more relevant experiences.  

CRM tools give you a complete view of your target audience and ensure that team members in your business are all on the same page when it comes to serving clients. All kinds of companies use these services, from B2B brands serving other organisations, to B2C retailers who want to deliver the best possible service to their clients.  

Why is a CRM so Effective? 

Customer Relationship Management tools are an essential part of the business technology stack because they allow you to develop a behind-the-scenes view of your customer’s buying journey. The more you know about your audience, their likes and dislikes, and their unique requirements for your business, the easier it is to create experiences that keep them coming back. Your CRM solution can effectively create brand loyalty and open the door for business growth.  

The right CRM solutions also ensure that all of the information your team needs to better serve your target audience is available in the same place. You can create profiles for individual customers or use your CRM data to develop more effective buyer personas. Every time your employees need to interact with a client, the CRM data is there to ensure that they can provide the most contextual and personalized experience possible.  

In a world where consumers are constantly judging companies based on the quality of the experiences that they can provide; your business can’t afford to compromise on visibility for the buyer journey. Whether you have a basic software system that tracks details from your email conversations with clients, or a fully comprehensive CRM that connects with your contact centre and customer engagement platform, the CRM is one tool all businesses need to grow. 




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