A CRM (customer relationship management) database is a resource that contains all client information collected, governed, transformed, and shared across an organization. It is a tool that allows businesses to manage relationships with contacts and customers by centralizing information, creating a single source of truth for the team. CRM systems compile data from a range of different communication channels, including a companys website, telephone, email, live chat, marketing materials, and social media. The CRM database is the key to not only an effective CRM tool but also to optimizing customer data for new business insights.

A CRM database encompasses all the customer data that a business has collected, stored, and analyzed using its customer relationship management program. It includes marketing and sales reporting tools, which are useful for leading sales and marketing campaigns and increasing customer engagement. The contents of a CRM database can be all the personal details of a customer, sources of leads, all the interactions made with the customer, all the purchase histories of all the customers, and other information like the names of the customers’ kids (or of their pets), their favorite hobbies, their dream travel destination, or any other personal data that can help maintain a healthy, long-term relationship.

CRM databases have evolved a lot in the past 30 years, from a simple tool like a spreadsheet to sophisticated software databases that can connect to every tool that a company uses to engage its customers. CRM databases make it easy to improve the customer experience while giving the company the tools to increase sales and give their customers exceptional support. The right CRM database can make all the difference when it comes to creating context and consistency across a business.