What is a CRM system, and what does it mean?

Written by: Camilla Therese Øino -

Reading time: 3minutes

Do you want your business to make better decisions, win more sales, drive upselling, and prioritize the customer? Then, a CRM system is the perfect tool for you. With a CRM solution, you can easily and efficiently manage customer relationships, increase sales revenue, and enhance the customer experience. Read our CRM guide to learn more about how you can take your business to new heights


CRM stands for Customer Relationship Management, and it plays a crucial role in managing customer data for businesses. A robust CRM system brings together information about the company's contacts in one place, providing valuable insights into customers and contacts.

CRM systems support sales management, deliver valuable insights, integrate with social media, and contribute to more transparent communication within a team. This enables employees to make quicker and more informed decisions regarding upselling and cross-selling. These systems customize and deliver communication according to your needs, ultimately improving the quality of communication with customers, making them feel better taken care of.

Why is a CRM system important for your business?

With a CRM system, it becomes easier for businesses to have control over customer management – from establishing new customer relationships to retaining and strengthening existing ones. A CRM system helps businesses keep customer contact information updated, track every customer interaction, and manage customer accounts. The CRM system is an integral part of the company's ERP system.

A CRM system primarily offers three major benefits for your business:

1. Easy access to customer data allows you to quickly search for customer or prospect information anytime, anywhere.

2. Streamlined processes through automation help standardize workflows related to sales, marketing, and customer service.

3. Valuable data and insights provide a comprehensive overview and analysis of the company's performance and customer behavior. This allows businesses to create reports that assist with customer segmentation, revenue tracking, and managing marketing activities.

Why should you invest in a CRM system?

By utilizing a CRM system, you can ensure efficient organizational processes across sales, customer service, and marketing. The system's functionalities can strategically serve important initiatives and goals across departments. Having access to organized customer management data will also help the business grow.

A CRM system ensures that you have customer data readily available at all times. With the right and modern system, you can also add notes and schedule follow-ups. This ensures better customer follow-up, increasing the chances of cross-selling and upselling.

How to choose the right CRM system?

When choosing a CRM system, there are many options available on the market, and every business has different starting points and needs. Therefore, it is important to find the system that best suits your company and its specific requirements.

When selecting a CRM system, it is wise to consider the needs of the sales team and how the system will potentially integrate with other systems.

There are several features that are highly useful for a CRM system:

Costumer register 

A customer register ensures that vital customer data related to each contact is always updated and accessible. A contact is unique and can be utilized throughout the system, which improves personalization and can be a key factor in customer satisfaction.

All information related to a contact's projects, finances, order history, activities, and communication is gathered in one place.

Sales opportunities and lead management 

A fundamental aspect of a CRM system is having a comprehensive overview of what constitutes customers and leads by collecting data from external sources. This allows the system to be tailored to the company's sales process, and you will have full control over sales opportunities, pipeline, and statistics from start to finish.

It is also beneficial to be able to add notes and documents, which strengthens the efficiency and productivity of the sales team by providing valuable insights, allowing them to focus their time on the right customers and leads.

Key metrics and reports 

Having real-time access to statistics and reports enables the company to make data-driven decisions. It becomes easy to access and monitor the company's pipeline and sales funnel, allowing the company to use the data to create better sales campaigns, for example.

Build solid reports around sales opportunities so that the company has an accurate foundation for predicting sales and revenue.

Task management and templates 

A CRM system helps the company structure customer information, enabling employees to efficiently optimize the customer journey. As part of this, a CRM system makes it easy to link tasks to contacts to ensure a smooth flow in the processes related to each contact.

Not only that – the ability to design custom templates and reuse them in the sales process will save the company a lot of time.


As mentioned earlier, there are many alternatives to choose from. Make sure to select a system that is cloud-based so that you have access to all the key features mentioned above, right from your mobile and tablet.

Remember to have a stategy

No matter how good a CRM system is, it alone will not do the job for you – it requires the company to have a strategy in place. Technology and business strategy go hand in hand. A CRM system is all about putting the customer at the center, and a clear customer strategy must be based on clear goals and a clear vision.

Remember, the best customer relationships are the ones that win!