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What is CRM in simple terms?

CRM (Customer Relationship Management) describes a strategic approach through which companies systematically plan, manage, and develop their relationships with customers. The goal is to coordinate and improve all interactions with customers throughout the entire customer lifecycle. CRM does not only concern individual departments such as sales or marketing, but extends across the entire organization. Database marketing and specialized CRM software play an important role as central tools for managing customer relationships.

Fundamentals and Classification

Customer Relationship Management is based on several management approaches, particularly Relationship Marketing, Knowledge Management, and Business Process Management. This is complemented by customer-oriented technologies. Since CRM encompasses all interactive processes with customers throughout their entire lifecycle, it is not an isolated technique. Rather, CRM can be understood as a company-wide mindset or philosophy that must be firmly integrated into business processes. The goal of this orientation is consistent customer focus across all areas of the organization.

CRM Objectives

The central objective of CRM is to build and secure stable, mutually attractive customer relationships over the long term. At the same time, the costs for acquiring new customers and maintaining existing customer relationships should be optimized. Satisfied existing customers can also contribute to acquiring new customers through referrals. Effective relationship marketing relies heavily on dialogue and one-to-one approaches to promote interactivity and direct communication with customers.

CRM in the Customer Lifecycle

CRM measures begin even before the first purchase (pre-sales) and continue after the purchase in the after-sales area. Customer needs are analyzed and considered in all phases. The focus is on building deep customer loyalty based on satisfaction and trust—not solely on contractual obligations.

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