What is a CRM application? A CRM or Customer Relationship Management Application is nothing but special application software that uses advanced programming tools and algorithms to streamline business functions. The data related to the customer, his preferences and choices is built and fed into a database and is analyzed to draw conclusion that helps a firm to forge better relationship with a customer.

To understand this concept, an example of a car manufacturer can be taken .A typical CRM application deployed at manufacturer’s end would record data related to the sale of cars, like the names of customers who purchased cars, what were their colour preferences, what model they liked, in which season they purchased the car, did they opt for money finance for car purchase. Based upon the data gathered in this database, the car manufacturing firm could send customized purchase offers to the customers, that would appeal the customer more than the generic ones.

They could remind the customer about important deadlines like next car servicing date, car insurance date and usual maintenance checks. In this way long lasting business relationships with customers are formed as a customer perceives that he is given individual attention. CRM applications go a long way in giving customer a unique personal approach that enhances customer retention and loyalty.