In short, CRM stands for Customer Realtionship Management.
Gartner describes CRM as,
"A business strategy whose outcomes optimise profitability, revenue and customer staisfaction...
CRM technologies should enable greater customer insight, increased customer access, more effective customer interactions, and integration throughout all customer channels and back office enterprise functions".
My description would be,
"Customer relationship management means, better, more effective communications with your customers which equals better service and therefore more repeat business. To help you do this CRM software enables you to manage all customer interactions against a single customer record that is shared throughout your business."
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