What is customer relationship management?

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pohnpei397 | College Teacher | (Level 3) Distinguished Educator

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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.