What is CRM? - Explanation & Meaning
Learn what CRM (Customer Relationship Management) is, how customer data is managed, and why CRM systems like Salesforce and HubSpot are essential for sales.
Definition
CRM (Customer Relationship Management) is a strategy and technology for managing all interactions and relationships of an organization with existing and potential customers. CRM systems centralize customer data to optimize sales, marketing, and customer service.
Technical explanation
CRM systems provide functionality in three core areas: operational CRM (sales automation, marketing automation, service automation), analytical CRM (customer data analysis, segmentation, predictive models), and collaborative CRM (communication channels, customer interaction history). Salesforce dominates the enterprise market with an extensive platform and AppExchange ecosystem. HubSpot is popular with SMEs with a freemium model and strong inbound marketing tools. Microsoft Dynamics 365 integrates closely with the Microsoft ecosystem. CRM architecture is evolving toward API-first platforms that connect via integrations with email, telephony, social media, and other business systems. AI features in modern CRMs offer lead scoring, churn prediction, and next-best-action recommendations. Custom CRM solutions are built when standard platforms do not align with specific sales processes or industry needs. Data quality and deduplication are crucial for effective CRM usage.
How MG Software applies this
MG Software integrates CRM systems into the applications we build and develops custom CRM solutions when standard software is insufficient. We build API integrations with Salesforce, HubSpot, and other platforms, create customer portals directly connected to the CRM, and develop custom dashboards for sales teams. For clients with unique processes, we build tailored CRM modules.
Practical examples
- A B2B company implementing HubSpot to track leads from first website visit to closed deal, with automated nurturing emails and sales notifications.
- A service company having a custom client portal built that displays real-time project status, invoices, and communication history via the Salesforce API.
- A retail company combining CRM data with purchase history to create personalized product recommendations and targeted marketing campaigns.
Related terms
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