In many cases, CRM system refers to the software solutions companies use in carrying out customer relationship marketing activities, such as data gathering, analysis and promotion. CRM system can also refer to the broader marketing process of developing and managing customer relationships with support of a software tool.
CRM is built on the premise of capturing customers and developing long-term, profitable relationships. Database software solutions enhance what marketers can do by collecting and organizing data on each customer. Analysis of data allows for better research on preferences of market segments. It also allows companies to develop more targeted promotional campaigns and customer service strategies.