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What is CRM? Understanding the CRM system and its role in business management

1/19/2026

What is CRM? This article provides a comprehensive analysis of the concept, development history, structure, and role of the CRM system in customer relationship management and business growth.

What is CRM? Understanding the CRM system and its role in business management

What is CRM? Understanding A-Z about customer relationship management systems

CRM Concept

CRM, short for Customer Relationship Management (Customer Relationship Management), is a system that helps businesses manage, store, and analyze all information related to customers throughout the interaction process.

Instead of using multiple spreadsheets, disparate databases, or individual applications to track customer information, CRM consolidates all data into a unified platform. This system enables businesses to monitor all communication and interactions with potential and current customers, including registration forms, emails, messages, calls, and meetings.

As a result, CRM helps businesses manage customers systematically, reducing reliance on personal memory and enhancing operational efficiency.

History of CRM Development

CRM is not a new concept and is not just a management trend that has emerged in recent years.

In the period of 1992 - 1993, the term Sales Force Automation (sales force automation) was first used with the goal of assisting the sales team in tracking opportunities, managing leads, and optimizing the sales process. This is considered the precursor foundation for modern CRM systems.

In the following decades, CRM continuously expanded its functionality, from sales management to customer care, marketing, and data analysis. To date, CRM has been integrated with artificial intelligence (AI), allowing the system to handle large volumes of data and make predictive recommendations.

AI helps CRM enhance capabilities:

  • Analyzing customer behavior
  • Automating emails and conversations
  • Suggesting appropriate actions for each sales stage

As a result, businesses can personalize customer experiences better and increase conversion rates.

CRM is not just software, but a management strategy

A common mistake is that many businesses view CRM merely as a technology tool. In fact, CRM is a combination of three core elements:

1. Customer-Centric Strategy

Businesses identify customers as the focus of all activities.

2. Customer Management and Care Processes

Including how to collect data, track interactions, and process customer information.

3. CRM Technology Systems

Software plays a role in supporting and automating the designed processes.

Only when these three elements are implemented synchronously can CRM maximize its effectiveness.

Main Functions of a CRM System

1. Customer Data Management

This is the foundation of every CRM system, including:

  • Customer personal information
  • Customer sources
  • Interaction history
  • Status in the purchasing journey

Centralized data storage helps businesses easily retrieve and analyze.

2. Sales Process Management

CRM supports businesses in tracking the entire sales pipeline, from leads to closing deals. This helps:

  • Reduce reliance on individuals
  • Increase transparency
  • Standardize the sales process

3. Customer Care Management

CRM allows businesses to track history of support, feedback, and post-sale care, ensuring a consistent and professional customer experience.

4. Automation and Scheduling Reminders

A modern CRM system often integrates:

  • Scheduling follow-ups
  • Automated reminders
  • Minimize human errors

The Role of CRM in Modern Enterprises

CRM plays a central role in:

  • Customer Management
  • Supporting Sales and Marketing
  • Enhancing Service Quality
  • Data-Driven Decision Making

Businesses that implement CRM effectively often have a better scalability capacity and maintain more sustainable customer relationships.

Conclusion

CRM plays a foundational role in modern customer management, helping businesses manage centralized data, standardize sales processes, and enhance customer care efficiency.

Based on these principles, OneXBots CRM has been developed to fully meet the core requirements of a modern CRM system, supporting businesses in managing customers through each stage, tracking interaction history, and automating follow-up activities consistently and effectively.

👉 To learn more about how OneXBots CRM is implemented in actual enterprises, please contact hotline +84 338 385 251.