Learn in the textbookInformation Systems That Integrate Management Resources (CRM, SCM, ERP, Knowledge Management)
DefinitionCRM (customer relationship management) is a management approach that collects and analyzes information on each customer and raises satisfaction and revenue by keeping good relationships with them over the long term.
ExplanationCustomer-facing departments such as sales and support share each customer's attributes and purchase and inquiry history, then tailor proposals and responses to that person. The aim is not a one-off sale but being chosen by the same customer again and again. The total profit one customer is expected to bring a company over the whole time they keep buying is called customer lifetime value (顧客生涯価値), and growing it is one of CRM's goals.
AnalogyLike a neighborhood restaurant you visit often, where the staff remember your tastes and your last order and greet you every time you come in.
Memory hookR stands for Relationship. It manages the relationship with customers, hence CRM.