CRM is a very versatile and powerful tool that provides a comprehensive customer perspective. However, a CRM can only function effectively in the presence of high-quality data, and the customer database is where that data resides. The customer database is the central point for the collection, organizational analysis and distribution of lead and customer information. The database collects personal data and customer interaction in order to better serve customers. Therefore, a CRM database contains sociodemographics, purchase history, details of past interactions and lead sources. All this is collected to provide a single view of each customer.
A CRM database has significant advantages over spreadsheets, previously the preferred method of storing data. With CRM, data collection and organization processes can be automated to save time and eliminate errors. Then the data can be shared between departments or analyzed for strategic planning and decision making. Optimal customer database management offers unlimited possibilities for personalization and lead generation. In addition, it saves time and increases productivity in all business departments.