Customer relationship management (CRM) is a multifaceted process, mediated by a set of information technologies, that focuses on creating two-way exchanges with customers so that firms have an intimate knowledge of their needs, wants, and buying patterns.

In this way, CRM is intended to allow companies to better anticipate and match customer needs and desires and through this process, create more value for the customer and for the firm.

Functions that support this business purpose include sales, marketing, customer service, training, professional development, performance management, human resource development, and compensation.

CRM initiatives often fail because implementation was limited to software installation without providing the appropriate motivations for employees to learn, provide input and take full advantage of the information systems.