# What is CRM – Customer Relationship Management?

What is CRM – Customer Relationship Management? A system for storing customer data, communication history, and purchase history.

## How it works in practice

A CRM is the business's 'memory.' Without one, a rep doesn't know what a customer bought. With one: 'Hi Alex, you bought X a month ago — we have Y that complements it.'

## Related metrics

- Email Marketing — CRM feeds segmentation
- CDP — a more advanced version
- Customer Service — CRM is the foundation
- LTV — CRM enables accurate LTV calculation

## Common misconception

'Klaviyo is a CRM.' Klaviyo is an ESP with basic CRM capabilities. Stores with active service teams and B2B operations need a dedicated CRM.

## How to fix it

CRM underused? (1) Is data syncing properly? (2) Is the service team actually using it? (3) basic workflows: new customer, VIP, at-risk, (4) clean up duplicate contacts.

## Real-world example

A store with online and physical channels had separate CRMs. Connecting to HubSpot let the in-store rep see online history. In-store AOV rose 22%.

## Where to start

Choose by size: small → Klaviyo. Medium → HubSpot Free. Large → Salesforce. The key: syncing with the store, ESP, and service systems.

---

Category: Technology · From the [Jimmy OS KPI Glossary](https://jimmy-os.com/glossary/kpi.md) · Source page: https://jimmy-os.com/glossary/kpi/crm-customer-relationship-management