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The Contemporary Marketing Management Glossary

Customer Relationship Management

Short Definition

A strategic approach and technology system for managing an organization’s relationships and interactions with current and potential customers.

Context

The concept of Customer Relationship Management emerged in the 1990s from relationship marketing theory (Berry, 1983) and the evolution of database marketing. It integrates insights from service-dominant logic (Vargo & Lusch, 2004) and customer lifetime value models, emphasizing long-term relationship building rather than transactional exchange. With the rise of digital tools and data analytics, CRM evolved into a core component of strategic marketing and customer-centric management.

Extended Definition

Customer Relationship Management (CRM) refers both to a business philosophy and to the technological systems that support it. Strategically, CRM focuses on understanding, anticipating, and responding to customer needs to build loyalty and maximize value over time.

Operationally, CRM software collects and analyzes data on customer interactions across touchpoints—sales, service, marketing, and social channels—to deliver personalized experiences and informed decision-making.

Contemporary CRM systems integrate AI, predictive analytics, and automation, turning customer data into actionable insights. They play a vital role in aligning marketing, sales, and customer service around a shared goal: sustainable growth through meaningful relationships.

Contemporary Example

Platforms like Salesforce, HubSpot, and Microsoft Dynamics use AI-driven analytics to predict customer behavior, automate marketing campaigns, and personalize offers. In sustainable business contexts, CRM tools help track stakeholder engagement and support transparency in communication and reporting.

See also

Part of chapter: Glossary