CRM is an acronym for customer relationship management, a broad business marketing system that combines database technology with marketing principles to establish, analyze and better market to customer relationships. DM is an acronym that has a few different meanings with regard to CRM.
Basics of CRM
Though initially perceived as technology-driven, CRM is more an evolution of customer loyalty. Aspects of CRM have been around longer, but CRM as a recognized separate business function emerged in the early 21st century. It leverages the data storage, retrieval and analytic capabilities of databases to help businesses to better know customers and to market more efficiently and effectively for long-term customer relationships.
Database marketing is a term used hand in conjunction with CRM. It denotes the strong correlation between the marketing principles of building customer relationships and the significant improvements to storage and use of customer data through databases. The phrase "marketing to your database" is sometimes used to describe using customer data to develop marketing campaigns.
Data mining is likely the least commonly used DM acronym related to CRM but it does describe a common feature of CRM programs. Data mining describes the analytical process of digging through your CRM database using searches and queries to garner useful information on customer markets, profiles or tendencies.
When you see the acronyms CRM and DM used in combination, the DM acronym often refers to document management. This is the feature of CRM programs and technology whereby companies that utilize many internal documents, either for service or distribution, organize those documents systematically using specific DM software programs or tools.