What is the function of customer relationship management (CRM)?

The function of customer relationship management (CRM) is fundamentally centered around managing a company's interactions with its customers. This involves utilizing data analysis about customers' history with the company to enhance business relationships, streamline processes, and improve customer retention and satisfaction.

By implementing a CRM system, organizations can collect and analyze customer information, such as purchasing habits and preferences, which aids in personalizing communication, predicting customer needs, and providing a tailored experience. The ultimate goal is to maintain long-term relationships with customers, which is vital for driving loyalty and ensuring sustained revenue growth.

While increasing sales through promotions, conducting market research, and lowering operational costs are important aspects of business strategy, they do not encapsulate the essence of what CRM specifically aims to achieve. CRM focuses primarily on fostering engagement and communication between a business and its customers.