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.