Customer relationship management (CRM) helps companies understand and meet customer needs, leading to increased loyalty and financial health. By focusing on customer satisfaction and retention, businesses can improve sales and profits. CRM systems help companies better understand their customers and tailor their offerings accordingly. Cultivating loyal customers who are satisfied with products and services can lead to positive word-of-mouth and increased sales. Providing incentives for repeat purchases can help maintain customer loyalty. Overall, CRM is a crucial tool for businesses to build strong customer relationships and drive profitability.