What type of software is designed to help businesses manage customer interactions?

Customer relationship management (CRM) software is specifically designed to help businesses manage their interactions with current and potential customers. It serves as a centralized platform where businesses can track customer information, monitor sales activities, manage customer support, and analyze customer data for better engagement and relationship-building. CRM systems facilitate effective communication and streamline processes related to sales and customer service, enabling companies to better understand customer needs and preferences.

This focus on customer interactions distinguishes CRM software from other types of business software. For instance, enterprise resource planning (ERP) software integrates various business processes across different departments, but its primary aim is to improve efficiency rather than specifically manage customer relationships. Accounting software centers on financial transactions and reporting, and project management software is geared towards planning and executing projects rather than handling customer interactions. Hence, the role of CRM software is uniquely tailored to enhance how businesses relate to and support their customers.