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CRM (Customer Relationship Management)

An acronym for Customer Relationship Management, CRM is a term originally defined and designed to improve customer service. Today it almost relates to an entire business strategy. So while the term refers to a systematic approach to handling customer relationships, it also includes a holistic approach to business strategy.

Customer refers to an entity that acquires or consumes goods or services from a desired firm (through the process of purchasing or renting) for a mutually decided price. The customer has the ability to choose between different products and suppliers.

Relationship in business refers to a state involving mutual dealings between people or parties. It involves interactions with customers or prospects to better understand their requirements and to build an expectation through different channels of communication. The more one interacts, the more chances to build a strong business relationship on the basis of proper understanding of customers.

Management refers to the managing of customer interactions. This does not merely mean customer support, but in its true sense aims at mobilizing the entire organization towards management of all interactions with the customers, thus creating a customer-centric thinking and acting.

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