Customer Relationship Management (CRM) is a strategic approach that focuses on nurturing relationships with existing customers while also aiming to expand the customer base by converting prospects. The primary objectives of CRM include enhancing customer retention, boosting their spending habits, and fostering loyalty. This practice involves the use of advanced CRM systems to organize and track comprehensive information such as detailed records of customer interactions, signals of potential purchases, and complete purchase histories.
CRM goes beyond mere data collection; it leverages analytics to gain actionable insights, enabling personalized engagement with customers. This insight-driven strategy facilitates the identification of opportunities for cross-selling and upselling on an individual customer basis, providing tailored experiences that can lead to increased customer satisfaction and revenue growth.