What is Customer Relationship Management (CRM) Software

Customer Relationship Management (or CRM) Software is designed to help you manage all your interactions with customers and prospects in one place. It centralizes and keeps track of things like contact details, communication history, and how they interact with your website and marketing.

This means you can track clients and prospects throughout the customer lifecycle, automate tasks like sending emails, and find insights and trends in your customer behavior.

Main benefits

  • One source of truth for customer data: Your team has one place to store and access contact details, activity history, and customer preferences.
  • Easy communication across teams: You can track conversations across sales, marketing, and support so everyone’s on the same page.
  • Smarter segmentation and targeting: You can group customers and leads by behavior, status, or demographics so you can tailor your outreach.
  • Automated outreach: Send follow-up emails, assign tasks, and move deals forward automatically.

Things to consider

Not all CRMs are built for the same kind of business. Here’s what to look for when choosing one:

  • Does it match your sales process? Some CRMs are tailored for ecommerce, while others are better for high-touch B2B sales. Make sure it aligns with how your team actually sells.
  • Can it scale with your business? Look for flexible user roles, automation features, and integrations that support growth. You want your CRM to be with you for the long term.
  • Will your team actually use it? A powerful CRM won’t help if no one logs in. Prioritize tools with intuitive interfaces, customizable views, and minimal training time.

A brief history

CRM systems started in the 1980s as digital versions of the Rolodex, storing basic customer information. Over time, they evolved to include email tracking, sales automation, reporting, and marketing tools. Today’s CRMs are cloud-based platforms that serve as the hub for most customer-facing teams.

Popular providers

  • Salesforce
  • HubSpot
  • Zoho CRM
  • Pipedrive
  • Microsoft Dynamics 365

How it fits into your tech stack

CRMs are often the core system for your commercial teams. They’re most powerful when they integrate with your product information, marketing tools, ecommerce platform, and support systems.

Know more

Frequently Asked Questions

What’s the difference between a CRM and a PIM?
A PIM manages product information; a CRM manages customer information. They serve different purposes but can work together to personalize customer experiences based on what you're selling and who you're selling to.
Can CRMs help with marketing, too?
Yes, many CRMs include email marketing, campaign management, and lead tracking tools, which are especially helpful for nurturing ecommerce customers or B2B leads.
Do I need a CRM if I sell through marketplaces like Amazon?
Maybe not. If you’re not managing direct relationships with customers, a CRM might not be a top priority. But if you also sell D2C or through B2B channels, a CRM can be a game-changer.