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If you are a business owner or a sales manager, youâve probably heard the term âCRM.â But what does CRM do? Defining CRM. C-R-M stands for Customer Relationship Management. What is CRM? At its simplest definition, a CRM system allows businesses to manage business relationships and the data and information associated with them. With CRM, you can store customer and prospect contact information, accounts, leads, and sales opportunities in one central location, ideally in the cloud so the information is accessible by many, in real time.