What is a CRM? | HubSpot (2024)

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What is a CRM? | HubSpot (8)

Get started with HubSpot's free CRM or learn more about how customer relationship management can help companies of all sizes grow better.

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  • Learn why customer relationship management is more important now than ever before

  • Find out how a CRM can help your whole team

  • Explore the benefits of HubSpot’s Smart CRM

  1. What is customer relationship management?

    CRM stands for customer relationship management. As its name suggests, CRM software is a system for managing customer relationships.

    For many businesses, their most valuable and important asset is their customers. In the past, companies kept their contact information scattered across business cards, email records, and spreadsheets. But as businesses expand and change, having a central database for customer information becomes essential.

    Your prospects and customers will feel the pain when your team isn’t on the same page. From their perspective, they have a relationship with one company, not a collection of different people and departments. Everyone on your team needs context about every customer’s needs, wants, and current state so they can pick up the conversation where it left off.

    Having one central place to organize all lead and customer details makes it easy for your entire team to gain insight into your business and customer relationships.

    What is a CRM? | HubSpot (9)

  1. Who should use a CRM?

    Do you need better visibility into your sales team's process and productivity? Do you require a centralized database for lead and customer information? Do your customers often interact with multiple individuals or channels?

    If you answered yes to one or more of the questions above, your business could likely benefit from a CRM system.

    What is a CRM? | HubSpot (10)

  2. When is the right time to adopt a CRM?

    In short, the answer for most companies is pretty simple. While you may be able to get by for a while without a CRM system, adopting one sooner is often better than waiting until you feel the pain of an ad hoc solution you’ve outgrown.

    Jumping between the different places your data lives becomes cumbersome and slows your team down.

    Adopting a CRM has never been easier, thanks to HubSpot's free edition of its Smart CRM. It allows teams like yours to give a CRM a test run without the need for long-term commitments or upfront investments. You can explore if a CRM is beneficial for your needs without any financial obligations or expiration dates.

    What is a CRM? | HubSpot (11)

  3. The evolution of CRM

    What driving forces will define CRM’s future? Well, that depends on who you ask. Many experts agree that businesses will adopt CRM systems or alternatives that deliver tangible business results.

    At HubSpot, the future of CRM is something we think about a lot. From interacting with our customers, we've noticed common challenges they face with their CRM systems. Many CRMs are complex, demanding significant effort from sales teams without offering equal value in return. Also, traditional CRM platforms struggle to capture customer interactions across websites, social media, and other channels. As a result, it becomes difficult for businesses to create a seamless customer experience.

    With these realities in mind, in 2014, HubSpot launched our CRM. Designed to work seamlessly with the entirety of HubSpot’s other products and features, we went a step further to make it 100% free for anyone to try and use. No storage limits or expiration dates.

    Since then, we've expanded our customer platform by adding free features like live chat and meeting scheduling. Today, HubSpot's Smart CRM offers intuitive AI tools to boost team productivity and innovation.

    What is a CRM? | HubSpot (12)

  4. How CRM fits into growth

    With companies growing faster than ever and an abundance of new opportunities to engage with potential customers, it can be challenging to effectively track and monitor interactions with prospects. This problem is compounded when marketing and sales teams are overloaded with information and using different sales processes. As a result, leads can fall through the cracks and prospects may receive inconsistent or irrelevant information.

    Having a CRM helps solve these “growing pains” by organizing contact, company, and sales opportunity information, as well as capturing and organizing interactions across various communication channels. Marketing and sales teams in scaling organizations can improve efficiency and eliminate unnecessary tasks.

    What is a CRM? | HubSpot (13)

Have questions? Give us a call and we'll walk you through it.

+1 857-829-5060

If you’re interested in more about HubSpot's Smart CRM, these related resources may help.

  • How to Design Your Sales Process in HubSpot Smart CRM Find out how to get the most out of your CRM and use deals to track your sales. Read the blog
  • Manage your CRM database Understand the main components of HubSpot’s Smart CRM – objects, records and properties. Read the article
  • Supercharge your work with HubSpot AI Embrace the future of productivity and unlock limitless innovation with easy-to-use AI tools. Get started with AI

Frequently Asked Questions

  • Customer relationship management (CRM) is a system or software that helps track information and interactions between your company and your customers. This system is accessed and edited by multiple people to improve the customer experience, automate parts of the sales cycle, and improve communication.

  • The price of CRMs varies and there's no one-size-fits-all answer. Here are a couple of important things to keep in mind:

    • Many CRMs have per-user fees. For example, one user costs $50, two users cost $100, and so on.
    • Additional data charges can come in different forms. Some CRMs charge per record, where you pay for each additional set of 1,000 (or 10,000, etc.) individuals in your database. Others charge based on the size of data storage. For instance, you might get 5 gigabytes of free storage and then pay for each additional gigabyte.
    • Certain CRMs also charge for specific functionality. You could pay $50 per user per month for contact, company, and deal management, and an extra $50 for the "Enterprise" product that includes lead scoring and reporting.
  • A CRM system is used to store and track customer data and interactions. Some data might be entered manually, like when a customer gives you their email address, while other information is tracked automatically.

    Different groups access the CRM within your organization for various reasons. Sales might look at the type of company or previous orders, while marketing might be more interested in the CTR of different marketing campaigns targeted toward the client.

  • A CRM automates many mundane tasks such as data entry, cross-department communication, and tracking customer interactions. Many CRMs are cloud-based, allowing you to access this information anywhere. They improve the customer experience and allow for better communication between departments.

Popular Features in HubSpot's Smart CRM

Explore other features available in HubSpot's CRM platform. Explore additional CRM features below.

  • Free Live Chat Software Connect with your website visitors in real time to convert new leads, close more deals, and provide better customer support.
  • Business Insights Automatically populate contact records with company details from our database of over 20 million businesses.
  • Sales Pipeline Management Software Add deals with a single click, assign tasks, and track progress in your dashboards.
  • Chatbot Builder Software Qualify leads, book meetings, provide customer support, and scale your one-to-one conversations.
  • Team Email Connect your team email addresses to a universal inbox that makes collaboration more efficient.
What is a CRM? | HubSpot (2024)

FAQs

What is a CRM? | HubSpot? ›

CRM stands for customer relationship management. As its name suggests, CRM software is a system for managing customer relationships. For many businesses, their most valuable and important asset is their customers.

What is CRM in short answer? ›

Customer relationship management (CRM) is a system for managing all of your company's interactions with current and potential customers. The goal is simple: improve relationships to grow your business. CRM technology helps companies stay connected to customers, streamline processes, and improve profitability.

What does CRM stand for select the correct answer? ›

CRM stands for Customer Relationship Management. It's an acronym you may see before words like “software,” “platform,” or “solution.”

What is CRM in summary? ›

CRM (customer relationship management) is the combination of practices, strategies and technologies that companies use to manage and analyze customer interactions and data throughout the customer lifecycle. The goal is to improve customer service relationships and assist with customer retention and drive sales growth.

What is a CRM used for? ›

Customer relationship management (CRM) is a technology for managing a company's relationships and interactions with all of its customers and potential customers. The goal is simple: Improve business relationships. A CRM system helps companies stay connected to customers, streamline processes, and improve profitability.

What is CRM best defined as? ›

This is a simple definition of CRM. Customer relationship management (CRM) is a technology for managing all your company's relationships and interactions with customers and potential customers. The goal is simple: Improve business relationships to grow your business.

What is CRM with an example? ›

Customer relationship management (CRM) is a technology that allows businesses both large and small to organise, automate, and synchronise every facet of customer interaction. CRM system examples include marketing, sales, customer service, and support.

What does my CRM mean? ›

CRM stands for Customer Relationship Management. Businesses use CRM software as a repository to unite and streamline sales, marketing, and customer support activities.

What does CRM stand for in school? ›

Universities and colleges are increasingly using customer relationship management (CRM) tools to help them easily engage with their students, analyze and answer organizational questions, and improve their institution's ability to make information-based decisions.

What is the acronym for CRM? ›

The CRM acronym stands for Customer Relationship Management. The CRM definition is a software solution that manages customer and prospect information while tracking the customer journey. Most employees, including sales teams, marketing, and customer support, use the CRM data stored in a central location.

How do you explain CRM to a child? ›

CRM (Customer Relationship Management) is used by the sales team to keep a track of your leads and customers. A CRM tool gathers and then stores information such as email addresses, customers' names, phone numbers or purchase history.

How do you explain CRM in an interview? ›

Answer: CRM, or Customer Relationship Management, is a technology for managing a company's relationships and interactions with current and potential customers. It's vital because it helps businesses streamline processes, build customer relationships, enhance sales, improve customer service, and increase profitability.

What is CRM in a nutshell? ›

CRM software, short for customer relationship management software, is software businesses use to close more deals and build better relationships with customers, leads, and other contacts. CRM systems enable businesses to: Collect, store, manage, and analyze contact information.

What is CRM job role? ›

What Does a CRM Specialist Do? A customer relationship management (CRM) specialist manages the technology of a company to improve marketing. Their responsibility is to maximize the efficiency of the CRM data and software to improve customer care.

What is the CRM process? ›

The CRM process is a strategy for keeping every customer interaction personalised and meaningful that consists of five main steps. A customer relationship management system (CRM system) provides the data and functionalities your team needs to execute this strategy—and ultimately turn leads into customers.

What is the primary goal of CRM? ›

The goals of CRM are generally to create a better customer experience — and because of that customer experience, to get more sales. That's why it's called CRM (Customer Relationship Management) software, and if you focus on your relationships, you'll be on your way to your CRM goals.

How does the CRM work? ›

A cam is a notched device that's designed to convert rotary motion into linear motion. You can find them in different materials, sizes and styles. Nonetheless, they are all designed to convert rotary motion into linear motion. The rotary motion of a part will press against the cam, thus generating linear motion.

What is CRM and its advantages? ›

A CRM system should help your company improve its relationship with existing customers, find new ones, and win back former ones. This system is integrated into a software system that facilitates collecting, organizing, and managing the customer's information.

What is the different meaning of CRM? ›

Customer Relationship Management, or CRM, is broadly defined as the business process of understanding, collecting and managing all of the information in a business environment relating to a customer. The goal of CRM is to more effectively communicate with customers and improve customer relationships over time.

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