CRM meaning in business: CRM stands for customer relationship management. It refers both to the strategy of managing a company’s relationships with customers and to the software, called a CRM system, that stores contacts, conversations, deals and support history in one place.
What does CRM mean at work?
When coworkers say “log it in the CRM,” they mean the software. A CRM system is a shared database of everyone the business deals with: leads, customers, partners and their history with the company.
A CRM typically tracks:
- Contacts and companies: names, roles, phone numbers and emails
- Interactions: calls, emails, meetings and notes
- Deals or opportunities: what’s being sold, the value and the sales stage
- Support cases: customer issues and how they were resolved
- Marketing activity: which campaigns a contact has seen or responded to
The bigger idea behind CRM is that customer information belongs to the business, not to one salesperson’s inbox. If a rep leaves or is out sick, someone else can see the full history and pick up where they left off.
The 3 main types of CRM
| Type | Focus | Example use |
|---|---|---|
| Operational CRM | Automating sales, marketing and service tasks | Automatic follow-up emails after a demo |
| Analytical CRM | Analyzing customer data to find patterns | Seeing which customers are likely to renew |
| Collaborative CRM | Sharing customer information across teams | Support can see what sales promised a client |
Most modern CRM platforms combine all three.
Examples of CRM in emails and messages
Sales manager: “Please update deal stages in the CRM before Monday’s pipeline review.”
Slack: “Is the Acme contact in the CRM? I want to see our last conversation before I call.”
Support email: “I’ve added notes to the customer’s CRM record so the account team is in the loop.”
Job posting: “Experience with a CRM platform required.”
CRM vs ERP vs ATS
| System | Stands for | Manages |
|---|---|---|
| CRM | Customer relationship management | Customers, leads and sales |
| ERP | Enterprise resource planning | Finance, inventory, supply chain and operations |
| ATS | Applicant tracking system | Job candidates and hiring |
An ATS works much like a CRM, but for job applicants instead of customers.
How to use a CRM correctly
- Log activity the same day. A CRM is only useful if it’s up to date.
- Write notes for someone else. Assume a coworker will read them with no background.
- Use the fields, not just the notes box. Deal stage, value and close date power reports and forecasts.
- Avoid duplicates. Search before creating a new contact or company.
- Respect privacy. Store only what you need, and follow your company’s data policy.
- Review your pipeline weekly. Close out dead deals so forecasts stay accurate.
Related terms
Browse more short forms in our Workplace Acronyms hub.
FAQ
What does CRM stand for?
CRM stands for customer relationship management. It means both the practice of managing customer relationships and the software used to do it.
What is a CRM system used for?
A CRM system stores customer contacts, interactions, deals and support cases in one place so sales, marketing and service teams can work from the same information.
What are the three types of CRM?
The three main types are operational CRM (automating tasks), analytical CRM (analyzing customer data) and collaborative CRM (sharing information across teams).
Do small businesses need a CRM?
Many small businesses benefit from a CRM once they have more customers than one person can track in a spreadsheet or inbox. Simple and low-cost options exist.
What is the difference between CRM and ERP?
CRM manages customer-facing work like sales and service. ERP manages back-office operations like accounting, inventory and supply chain.
