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Let's first define what exactly Customer Relationship Management is. The easiest way is to give an example: Every time you get in touch with a customer or prospect (still to be customer), you want to register the information regarding that contact. The more you know about your client, the better you can market your product or services in a personal way. You know exactly what your target customers need and want. CRM is a combination of strategies, methods and best-practices to gather this information and organize it in an accessible way.
In former days, it was hard to do, because you had to write it all down and use a rolodex for the contact information, cardboard files to store orders and bills and there were many different places you could archive data. You can imagine how hard it was to retrieve specific information about a client or even worse, make a list of all prospects of the last 3 years that you sent a brochure. It would be almost impossible to select all customers that lived in a certain area, were 35 years of age and had small children.
Nowadays this is much easier to do, thanks to the software we can use. All information is linked to the customer and with a few mouse clicks you can compose any list you want. The software you use to accomplish this is called CRM software.
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