CRM Glossary

AI, or Artificial Intelligence, refers to the ability of machines and computer systems to exhibit human-like intelligence.

API is a technical term that, simply put, describes a kind of bridge or translator between different computer programs.

Automation means that certain tasks or processes are performed by machines, computers, or software without human intervention.

An analytical CRM system is a component of Customer Relationship Management that systematically collects, stores, and analyzes customer data to gain valuable insights into customer behavior and value creation potential.

B2B customers are companies or organizations that purchase products, services, or solutions from other companies.

B2C (Business-to-Consumer) customers are end-users, i.e., private individuals who purchase products or services for personal use.

Cross-selling, also known as suggestive selling, is a sales strategy where additional products or services are offered to an existing or potential customer.

Cloud ERP is a modern form of enterprise software where all functions and data are stored in an external data center.

The "Cloud" is essentially a type of virtual storage space and data center on the internet.

Customer Lifetime Value (CLTV) is an important key figure for companies.

CRM stands for Customer Relationship Management. The focus is on shaping all relationships and interactions of a company with existing and potential customers.

CRM software manages all this customer data centrally and makes it accessible to all stakeholders. This not only facilitates organization within the company but also brings more transparency and efficiency to customer communication.

Customer Engagement describes the interactions and long-term relationship between a customer and a brand or company that goes beyond a mere purchase.

Customer Engagement Software helps companies better understand and retain their customers. Through central management of customer data, automated workflows, and personalized communication, the customer experience (CX) is sustainably improved.

A positive Customer Experience (CX) leads to higher customer satisfaction, stronger customer loyalty, and a higher likelihood that customers will recommend the company. 

Customer Experience Management refers to the strategic management and improvement of the entire customer journey – from the first interaction to after-sales support. This makes it possible to create personalized offers, respond quickly to customer inquiries, and improve the digital customer experience.

Customer Insights are data-driven insights into the behavior, needs, motivations, and attitudes of customers and potential customers. They result from the analysis of qualitative and quantitative data sources such as sales data, surveys, online reviews, and social media comments. 

Customer Lifetime Value (CLV) is a business metric that indicates the total financial value of a customer to a company over the entire duration of the business relationship. 

The division of customers into groups based on common characteristics such as behavior, demographics, purchase history, or interests. The goal is to communicate more targeted and create personalized offers.

Customer Service refers to all measures by which companies support customers before, during, and after a purchase.

A dashboard is a visual user interface that displays important CRM data such as sales figures, leads, activities, or customer interactions in real-time. It helps to maintain an overview and make informed decisions.

The deal pipeline shows the progress of sales opportunities (deals) through various phases of the sales process – e.g., "Lead," "Proposal," "Negotiation," "Close." It helps sales teams structure their activities and forecast revenues.

The digital customer experience (DCX) refers to the sum of a customer's interactions with a brand across digital channels and touchpoints. It encompasses all online touchpoints, from websites and apps to social media, and how the customer perceives and evaluates these experiences. The goal is to create a positive, consistent, and memorable digital experience that contributes to customer satisfaction and loyalty. 

Digital touchpoints are all online channels through which a customer interacts with a company – e.g., website, email, social media, chatbots, or apps. They are crucial for shaping the customer journey and customer experience.

Email marketing is a strategy in digital direct marketing where companies send targeted emails to a defined recipient list to promote products or services, build and maintain customer relationships, increase brand awareness, and boost sales.

Referral marketing is based on the trust that existing customers have in a company. Satisfied customers are a key resource, as their positive experiences can attract potential new customers. One way to encourage referrals is to implement loyalty programs that offer incentives for customers to make recommendations.

Using testimonials and customer reviews in marketing materials is an effective strategy to build trust and acquire new customers. Social media can be heavily utilized to increase the visibility of recommendations and reach a wider audience.

A positive customer experience is crucial to increasing the likelihood that customers will make recommendations. Referral marketing not only promotes the acquisition of new customers but also strengthens the loyalty of existing ones.

Optimize your marketing with Customer Segmentation. Divide your customers into relevant groups to create personalized campaigns, increase customer satisfaction, and sustainably boost sales.

ERP   is the abbreviation for Enterprise Resource Planning. It is a type of software that connects various areas of a company and thereby optimizes business processes. An ERP software thus helps in planning, controlling, and executing processes and monitors them. An ERP software can, for example, map financial management, production, warehousing, and customer relationships. By using ERP software, companies can streamline their business processes and increase their efficiency. The predecessor of today's ERP was software for material requirements planning and for the timely completion of goods. Over time, more areas were added before a fully integrated ERP software finally emerged. 

Which areas does ERP cover?

An ERP software is modular and divided into various areas: These include financial accounting, human resources, purchasing, marketing, CRM, sales, warehousing, production, and service management. All these areas are connected via a common, central database.

FCR (First Contact Resolution) is a metric in customer service that measures the percentage of customer inquiries that are fully resolved on the first contact. A high FCR rate indicates efficient service, high customer satisfaction, and lower operating costs, as customer concerns are resolved directly on the first contact with the company or customer service representative.

Forecasting refers to the prediction of future business developments, e.g., revenues or customer behavior, based on historical CRM data and current trends. It supports strategic planning and resource allocation.

Go-Live describes the commissioning of software (e.g., CRM software) under real conditions and thus the start of regular operation. If necessary, existing systems are replaced by new systems during the go-live.

The origin of the lead (Lead Source) refers to the source from which a potential customer (lead) originates after showing interest in a company's products or services and providing their contact details.

Inbound marketing is a customer-oriented marketing strategy that aims to attract and retain potential customers through valuable, relevant content, rather than interrupting them with intrusive advertising.

A journal entry in CRM is a record of a single customer interaction, such as a phone call, meeting, or email, recorded in chronological order. 

Collaborative CRM software promotes internal and external cooperation to achieve a unified view of customers and improve the customer experience. Collaborative CRM components include tools for efficient partner and supplier management, optimizing relationships and interactions with external stakeholders.

A structured collection of information, FAQs, guides, and problem solutions that helps customers and employees quickly find answers. Often part of self-service portals in CRM.

Customer acquisition refers to the process by which companies recruit potential customers and convert them into long-term customer relationships along the "customer lifecycle." This process is an essential part of Customer Relationship Management (CRM), as it forms the basis for all further interactions with customers. 

A customer relationship refers to the sum of all interactions and bonds between a company and its customers. It goes beyond mere transactions and includes building trust, communication, added value, and emotional connection.

An effective CRM solution supports customer relationship management in the key areas of sales, marketing, and customer service. This allows your company to track and manage all customer touchpoints, thereby gaining a complete and accurate view of their respective needs and customer relationships.

High customer retention is a crucial success factor for a company. Companies that manage to satisfy their customers and gain their trust benefit from higher customer satisfaction and stronger brand loyalty compared to others. 

Customer loyalty describes the repeated and voluntary attachment of a customer to a company or brand. It is a lasting, positive relationship that goes beyond mere satisfaction and often involves an emotional connection. Loyal customers consistently prefer a specific brand or company over competitors, often even with similar offers or lower prices. 

A clear strategy for maintaining, managing, and updating address data within the company helps all users and promotes customer orientation. 

Lead generation is the process of identifying potential customers (leads) and collecting their contact information to pique their interest in products or services and target them specifically in the marketing and sales process. 

Lead Nurturing offers support in cultivating and developing leads, which is achieved through personalized communication and relevant information. Automated email campaigns are of great importance here, as they regularly send relevant content to potential customers.

This is Microsoft's CRM system. The focus is on shaping all relationships and contacts of a company with existing and potential customers. Contact data and leads can be stored and managed in a CRM system.

With the Dynamics 365 Customer Insights solution, you gain a 360-degree view of your customers (and customer interactions), thereby offering tailored experiences that meet or even exceed customer expectations.

Marketing Automation automates marketing tasks such as emails, SMS, and push notifications to save time and increase marketing personalization.

Measures the likelihood that customers will recommend the company.

User adoption refers to the willingness and ability of employees to actively and effectively use a CRM system. It is a central success factor for the introduction and operation of a CRM system, as even the best technology brings no added value without everyday acceptance.

An operational CRM system supports direct interaction with customers in sales, marketing, and customer service.
It maps daily business processes related to customers, from lead capture and proposal processes to complaint handling.

Outbound marketing refers to classic methods by which companies actively approach potential customers – for example, via TV commercials, cold calling, direct mail, or radio advertising.

The Microsoft Power Platform is a cloud-based platform for developing business applications, automating workflows, and data analysis.

Quality control in CRM ensures that customer data is maintained completely, correctly, and consistently. It includes regular checks of master data, duplicate cleansing, and validation of input fields.

A quality feature in CRM describes a specific characteristic of a product, service, or customer contact that is used for evaluation and segmentation.

A release update refers to the scheduled update of a software solution, introducing new functions, improvements, bug fixes, or security-related adjustments.

A sales funnel is a tool in CRM that visually represents the entire process from the first contact with a potential customer (lead) to the actual sales close.

An SLA is a contractually agreed-upon agreement between provider and customer regarding the services to be rendered – e.g., response times, availabilities, or support levels. In the CRM context, it serves quality assurance in customer service.

Triggers can be various events. Examples include clicking a link or filling out a form. Once a trigger is activated, the system initiates a series of actions tailored individually to your customers.

The degree to which employees actually use a new CRM system and integrate it into their daily work processes. High user adoption is crucial for the success of a CRM implementation.

User stories are short, structured descriptions of requirements from the end-user's perspective, used in CRM projects for planning and implementation. They help to formulate functions and processes in the CRM system in an understandable and practical way.

A sales opportunity (Opportunity) in CRM refers to a potential business opportunity where a prospect or customer shows concrete interest in a product or service. It is a central component of the sales process and forms the basis for quotation and order processes.

Workflows are predefined processes, more precisely, a predefined sequence of actions triggered by specific events.

An XML port is a technical tool for structured data transfer between a CRM system and external applications or data sources. It is often used to import or export data such as customer information, sales opportunities, or invoices.

Yield Management is a strategic method for revenue optimization, where prices, capacities, and offers are dynamically adjusted.

Central Address Management refers to the unified, digital recording, maintenance, and organization of address data in a central database. It enables companies and organizations to manage all information about contacts, relationships, and events in one place.