Put simply, customer relationship management is the use of technology to try to manage customer relations more effectively. It uses technology to help firms do a better job of finding new customers and of keeping customers that the firm already has happy.
Customer relationship management involves gathering and organizing information from all parts of a firm. It uses that information to gain insights into the needs of customers. By building a very rich and detailed understanding of their existing clients, firms are better able to serve those clients and to create tighter and longer lasting relationships with them. Knowledge about customers/clients and their wants and needs also helps the firm be more effective in knowing how to market products and services to potential new customers.