Customer Relationship Management (CRM)

Customer Relationship Management (CRM) is a set of marketing and advertising strategies and practices that businesses use to manage interactions with their customers and potential customers through the entire customer lifecycle. The goal most CRM programs is to use direct communication channels (e.g. email, social media, phone calls) to increase sales by attracting more customers and improving the satisfaction, loyalty, and retention of existing customers through.

Most CRM programs are driven by CRM software that is used to manage customer interactions and data, including contact information, communication history, purchase history, and customer feedback. This data is used to personalize communication with customers, improve customer service, inform other marketing efforts, and ultimately build stronger, longer-lasting relationships with customers.

Common uses of CRM data

CRM programs generate a wealth of data that can improve how businesses understand their customers and drive efficiencies in sales, advertising, and marketing efforts. Some of the most common uses of CRM data include:

  • Customer segmentation: Segment customers based on demographics, geography, purchase history, and behavioral patterns to improve targeting, messaging, and personalization.
  • Predictive analytics: Use machine learning algorithms to predict customer behavior, such as likelihood to purchase, responsiveness to promotions, and potential churn to inform marketing strategies that proactively appeal to prospective customers and retain existing customers.
  • Personalization: Use customer purchase and review history to tailor product recommendations, target promotions, and customized communications. This can lead to higher customer satisfaction and increased loyalty.
  • Customer journey mapping: Map out the entire customer journey based on the data collected from initial contact through purchase and after-sales support to identify where customers are gained and lost and what areas of improvement will enhance the overall customer experience.
  • Lead scoring: Score prospects based on their likelihood to convert to a customer, using factors such as engagement, demographics, and past behavior to prioritize sales efforts and increase conversion rates.
  • Multichannel marketing: Determine the most effective marketing channels (email, social media, SMS, etc.) for reaching specific segments based on customer preferences and behaviors to focus marketing efforts on the channels that deliver the best results.
  • Social media monitoring: Track and respond to social media conversations around your brand and products to help identify potential leads, address customer concerns, and improve brand reputation. Finding ways to link customer social media accounts to their customer record can also help open up new opportunities to communicate more directly with customers.
  • Customer feedback analysis: Customer feedback collected through surveys, reviews, and social media can be sued to inform product development, marketing strategies, and customer service initiatives.
  • Sales forecasting: Historical sales data, along with predictive analytics, can be used to forecast sales and optimize inventory management, production planning, and pricing strategies.
  • Lifetime value optimization: The lifetime value of customers can help prioritize and target high-value segments for retention and up-selling campaigns using targeted promotions, loyalty programs, and exclusive perks.

Deeper Knowledge on Customer Relationship Management (CRM)

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Customer Relationship Management (CRM) Knowledge Graph