CRM Database Definition

by Neil Kokemuller; Updated September 26, 2017
Databases make analysis and interpretation of customer data much more practical and useful.

A customer relationship management, or CRM, database is a technology used for the collection and analysis of customer data as part of a CRM marketing program. Many customer- or client-centered companies rely on them as a major component of business operations.

Basics

A CRM database is often referred to as the heart of a CRM program. The business system known as CRM evolved from basic customer retention and loyalty principles at the turn of the 21st century. Database technology provided the means necessary for massive collection and interpretation of customer data.

Data Collection and Analysis

Prior to database technology, companies had to collect and retrieve customer and business data using conventional filing systems. With a capable CRM database, a company can collect infinite fields of data on limitless amounts of customers. More importantly, retrieval of data through a process known as data mining is extremely efficient. You can perform queries to pinpoint customers or data through defined parameters.

Marketing and Advertising

Sometimes referred to as database marketing, CRM is generally regarded as a model for marketers to create more individualized and targeted marketing and advertising campaigns. CRM data retrieved from the database is analyzed and interpreted for target market identification, pattern and trend recognition, and eventually used for marketing, advertising and loyalty programs.

About the Author

Neil Kokemuller has been an active business, finance and education writer and content media website developer since 2007. He has been a college marketing professor since 2004. Kokemuller has additional professional experience in marketing, retail and small business. He holds a Master of Business Administration from Iowa State University.

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