Glossary
What is CRM?
Customer relationship management describes both the software and the strategy for managing, analysing and improving interactions with current and prospective customers across their lifecycle.
What a CRM is for
A single record of the relationship. Every interaction — sales conversations, support tickets, purchases, campaign contacts — attached to one customer, so that anyone dealing with them knows what has already happened.
The value is mostly in avoiding the failures of not having one: contacting a customer about something they already resolved, two people pursuing the same account, a renewal missed because nobody owned it.
Why implementations fail
Almost never for technical reasons.
Nobody updates it. A CRM is only as good as the data entered, and entering data is work that benefits someone other than the person doing it. Systems that do not capture information automatically decay within months.
It becomes a reporting tool. Once the CRM's primary function is management visibility rather than helping the person doing the job, the incentive shifts from accuracy to appearance.
Over-configuration. Every field someone might want, added, until the entry form is a deterrent.
No integration. A CRM disconnected from the product and marketing stack holds a partial view that contradicts other systems.
CRM and first-party data
The privacy transition made CRM more strategically important than it was. As third-party targeting collapsed, the customer data you collected yourself became the durable asset — the one thing that does not depend on an identifier a platform can withdraw.
That raises the stakes on data quality. A CRM full of stale, duplicated and unverified records was previously an operational annoyance; it is now a limit on your ability to reach your own customers at all.
Common questions
What is the difference between a CRM and a CDP?
A CRM is oriented around managing relationships, largely with human interaction recorded against accounts. A customer data platform unifies behavioural data across systems for activation and analysis. They overlap and are optimised for different jobs.
Does a small business need a CRM?
Once relationships exceed what one person can hold in their head, or more than one person deals with the same customers. Before that it is overhead.
More in marketing practice
The disciplines and roles around a campaign.
- Ad agency
- Advertiser
- Call to action (CTA)
- Campaign optimization
- Click-through rate (CTR)
- Conversion
- Conversion rate
- Conversion rate optimization (CRO)
- Customer experience (CX)
- Geofencing
- Marketing automation
- Marketing engineer
- Mobile marketing
- Paid search
- Personalization
- Remarketing
- Retargeting
- Search engine optimization (SEO)
- STP
- Targeting
- User-generated content (UGC)