A customer relationship management (CRM) system is a software tool that helps businesses manage their interactions with current and potential customers. It organizes customer data, tracks sales, and streamlines communication, allowing companies to better understand their clients' needs and preferences. By using a CRM system, businesses can improve customer service, enhance sales strategies, and foster long-term relationships. This system provides valuable insights through data analysis, enabling companies to make informed decisions and tailor their marketing efforts to specific customer segments.