What Is CRM (Customer Relationship Management)?

CRM stands for customer relationship management, which is a system for managing all of your company’s interactions with current and potential customers. The goal is simple: improve relationships to grow your business. CRM technology helps companies stay connected to customers, streamline processes, and improve profitability.

When people talk about CRM, they’re usually referring to a CRM system: software that helps track each interaction you have with a prospect or customer. That can include sales calls, customer service interactions, marketing emails, and more.

CRM tools can unify customer and company data from many sources and even use artificial intelligence (AI) to better manage relationships across the entire customer lifecycle, spanning departments like marketing, sales, digital commerce, and customer service interactions.

So why is CRM important, and who can benefit? Let’s take a look.

What we’ll cover:

• Who is CRM for?
• Why is a CRM system important for your business?
• What are the benefits of CRM?
• What does a CRM system do?
• How much does a CRM cost?

CRM software is used by companies and industries of all sizes. It benefits large enterprises that need to easily track customer activity in one place and share it across departments, small businesses that often need to do more with less, and startups looking to be nimble and efficient. No matter your industry, or even if you’re a nonprofit, if you communicate with customers — and your employees rely on information about those customers — a CRM system can help.

Customer relationship management software can benefit virtually any department at your company, from sales to service, IT, marketing, and more. Whether you want to start big or start small, it's easy to get started.

Doing business has become complicated. The average organization uses close to 900 different applications — but only 29% of these apps are integrated.

To stay ahead, your company needs to be centered around your customers and supported by the right technology. But getting up-to-date, reliable, and actionable information can be tricky. How do you translate the many streams of data coming in from sales, customer service, marketing, and social media into useful business information?

With a CRM solution, of course. Here are just a few reasons using a CRM database is important for your business.

Customer relationship management software like Salesforce CRM can give you a clear, unified customer profile — a single, simple, secure, and customizable dashboard with a customer’s purchase history, order status, outstanding customer service issues, and more. This information can be invaluable, especially since 82% of service professionals say customer expectations are higher than ever.

Whether customers have previously reached out via phone, chat, email, or social media, a single source of truth ensures everyone at your company can provide the expected level of service.

Having a single source of truth for management systems is also crucial for AI solutions to quickly surface insights and take relevant actions based on your customer data. No matter where your data lives, you can seamlessly bring it into one CRM, eliminating the need for costly and hard-to-manage data pipelines.

Having a single source of truth doesn’t just benefit customers: It keeps companies organized and focused on revenue-generating activities. Sales teams generate a flood of data while talking to prospects, meeting customers, and collecting valuable information.

Storing all of this information — call notes, customer contacts, sales leads — in one accessible location for your entire team helps prevent errors and boosts productivity. Digital workers can help extend these management savings by automating data entry, minimizing operational overhead, and reducing repetitive manual tasks like writing sales emails, generating reports, and following up on leads.

And if someone leaves the company, unless their contacts and notes are saved in a CRM, that information — and business — may disappear along with them.

Using a CRM system means less administrative work and more time to focus on building personal relationships with your customers, which can translate to more sales.

A CRM brings your teams together by sharing information that makes everyone’s job easier.

For example, marketers can use CRM tools to manage campaigns and lead customer journeys with a data-driven approach. CRM software provides visibility into every opportunity or lead, showing you a clear path from inquiries to sales. Then, commerce teams can serve up personalized offers on your website while customer service already knows a customer's history if they reach out with questions.

Some of the biggest gains can come from combining CRM with the power of agentic AI. This allows you to quickly gain insights about a customer to personalize every interaction. This can boost employee productivity, especially when using AI agents that can take action autonomously based on your instructions and assigned guardrails.

Autonomous agents take productivity to the next level by responding to service inquiries, scheduling follow-ups, or generating custom CRM reports. AI agents can help speed up labor-intensive tasks like drafting sales emails, crafting marketing messages, and writing or localizing product descriptions — all of which can free teams to focus on more meaningful work.

AI CRMs also enable employees to make more accurate predictions in forecasts like quarterly sales targets, ecommerce sales, or the best time to send a marketing email.

There are many benefits of using CRM software — especially when your business combines CRM with AI and data you can trust. Here are just some of them:

The ability to easily share data across your teams is a huge benefit to both your customers and your business. A CRM provides everyone at your company with a simple, customizable user interface with real-time updates they can use to serve customers. So when a customer calls in with a question, the service rep can see their entire history, past marketing offers, and previous purchases. The CRM can even offer suggestions for new products the customer may like based on trends and insights uncovered by AI.

Introducing a CRM platform has been shown to produce real results across a business. It helps employees save time, work more efficiently, unlock opportunities, and serve customers better. Using Salesforce products, global customers across all business sizes have a proven track record of success, including:

Becoming an agentic enterprise that embraces AI and intelligent agents will help your business grow. It can make your employees more efficient, serve your customers better, and find new opportunities you may not see on your own. AI agents can help employees be more productive and serve customers better, with the ability to autonomously provide 24/7 customer service, engage with prospects, provide personalized product recommendations, and more.

Adding AI automation to your enterprise helps your employees do even more, like streamlining complex, multiuser processes into simple workflows. Plus, fully integrated productivity platforms such as Slack provide a single place where employees can collaborate right in the flow of work and automate processes. Combining your CRM with AI in Slack brings even more time-saving opportunities with auto-synchronization to prevent app-switching, enterprise-level searches with natural language, and instant conversation summaries and digests.

Today's customers expect fast, personalized support at any time of day or night. A CRM system can help you provide the high-quality service that customers are looking for. Your service representatives can quickly access a customer’s record of all past interactions so they can provide quick, informed answers and service.

A good CRM system will gather information from a large variety of sources across your business and beyond. In addition to providing information about individual customers, it can serve as a listening engine. Using AI can give you unprecedented insights into how people feel and what they are saying about your organization. This helps you improve your offerings, spot problems early, and identify gaps.

CRM lets you store customer and prospect contact information, identify sales opportunities, record service issues, and manage marketing campaigns, all in one central location that’s available to stakeholders at your company. It does this by organizing customer and prospect information in a secure, easy-to-use digital record with information like a contact‌’s email, telephone number, social media handle, all previous interactions with your company, and more.

CRM helps you find new customers, win their business, and keep them happy. With automation, CRM can help you collect even more information, faster — like news about your accounts — so that everyone stays up to date. AI agents can serve as an extension of your team, using CRM data to take action throughout the customer journey.

Customer relationship management software provides businesses with tools that help them communicate better — both internally and with customers. Here’s how:

Unlike the early days, today’s CRM software lives in the cloud, giving you the ability to safely save and access all your customer data from anywhere at any time. That means every employee has the same information in real time and can make updates wherever they are. With mobile CRM, your information is always accessible.

Shifting to a cloud CRM also means CRM implementation is easy. There’s no costly hardware to maintain, and software management is straightforward for IT teams with no version control concerns or updates to schedule. With a cloud-based CRM, you only need to pay for the number of seats and features you use. You can add more as your business grows, so your CRM can easily scale with your plans.

Moving to the cloud has changed CRM in countless ways. Anyone can work from anywhere on any device, boosting collaboration and bringing down costs. Plus, it offers enhanced security, so your customer and company data are always safe.

With a consolidated view of every prospect and customer, CRM software can manage day-to-day customer activities and interactions. For marketing, this means engaging your prospects with the right message at the right time through targeted digital marketing campaigns and journeys. Sales reps can work faster and smarter with a clear view of their pipeline and accomplish more accurate forecasting.

Commerce teams can quickly launch and scale ecommerce — from online orders to curbside pickup — for their consumer shoppers (B2C CRM) and business buyers (B2B CRM). And service reps can respond to customer needs on any channel — from their office, at home, or in the field.

As mentioned, the average company uses close to 900 apps — most of which can’t talk to each other. A CRM platform can connect with other business apps that help you to develop customer relationships. CRMs integrate with your favorite business tools, such as document signing, accounting and billing, and consumer surveys so you get a true 360-degree view of your customers.

The latest CRM systems have built-in intelligence and trusted AI. They use your customer data to create customizable, predictive, and generative AI experiences that automate administrative tasks like data entry and lead or service case routing. That's why it's important to use responsible and trusted AI with governance and security at its core. This way, agents operate within clear guidelines and maintain data privacy.