What Is CRM?

CRM stands for Customer Relationship Management. It refers to software that helps a business track and manage its interactions with leads and customers — from the first point of contact through follow-ups and, ideally, a closed sale.

A CRM typically organizes leads into pipeline stages, such as New, Contacted, Converted, or Lost, so a sales team can see at a glance where every relationship stands. Many CRMs also include follow-up reminders to prevent leads from being forgotten, and some use AI to score leads based on how likely they are to convert.

CRM is often one part of a larger business management system. When connected to invoicing, a converted lead can move directly into billing without re-entering their information in a separate tool.