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What is a CRM

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In its simplest form, a CRM is a place to store information about the companies and people that you do business with. It helps you navigate them through various business processes, which become increasingly more complex over time. In the early days of a company, there is often a spreadsheet or Notion document that gives you a single place to get information about your customers and how your team is interacting with them. When the company starts to grow, the demands of multiple team members communicating over more channels starts to add pressure to the simple solution and many teams will transition to a dedicated tool that can offer robust deal tracking for their sales pipeline and their current customers. As your team grows more, it’s likely that you’ll want to start tracking leads earlier in the funnel so that marketing and sales can collaborate. Later still, you might hire a VP of Sales or Revenue Operations who wants to report on the data and set up more advanced automations that make your team more efficient and so on forever. This platform for revenue generation and reporting has collectively come to be known as a CRM. Over time, the CRM industry has attempted to standardize on a set of core concepts which, at first glance, generalize well to most businesses. We’ll explore in the subsequent sections where this assumption breaks down, but for now let’s dive into the basics.