Definition
The creation of long-term customer relationships as key skills, tools and processes that create sources of market differentiation.
In detail
Customer Relationship Management (CRM) is the set of key skills, tools, and processes that turn long-term customer relationships into a source of market differentiation. It covers customer data management, sales tracking, and service support, aiming to improve customer satisfaction and loyalty. In the system, CRM works with Sales Force Improvement (SFI) and Value Selling (VS) to form a complete customer management chain. It typically produces customer databases, sales funnel reports, etc.
Example in practice
A certain Company B2B has a high customer churn rate and implements customer tiered management and regular business reviews: customers are tiered by value, a regular follow-up cadence is established for high-value customers, and using software to record interactions is merely a tool that supports this key skill and process, not the goal itself. Customer satisfaction improves, and the data supports sales forecasting.