What is the primary purpose of customer relationship management (CRM)?

The primary purpose of customer relationship management (CRM) is to manage a company’s interactions with current and potential customers. CRM systems are designed to help organizations streamline their processes for engaging with customers, enhancing customer satisfaction, and building lasting relationships. This involves capturing and analyzing customer data such as purchase history, preferences, and feedback to tailor marketing efforts, improve service, and ultimately drive sales growth. By effectively managing these interactions, businesses can foster loyalty, increase retention rates, and ensure that they meet the evolving needs of their customer base.

In contrast, managing internal employee relations pertains to HR functions, overseeing supply chain logistics focuses on operational aspects, and tracking financial performance metrics relates to finance management—none of which align with the core purpose of CRM systems.