CRM systems automate and manage the relationship between the organization and its product or service offerings, and current and potential customers.

CRM compiles data from multiple communication channels with the goal of enhancing knowledge about their customers and how to meet their needs and fulfil them. CRM can be characterized into the following components:

• Sales force automation and optimization
• Marketing automation
• Service automation

CRM systems also provide analytic capabilities against customer behavior data and prescribe appropriate marketing responses. Another objective of CRM is the incorporation of external data from suppliers, vendors, and carriers to collect data for technical support and share customer information across the organization.

CRM use in IIoT includes proactive customer care--analyzing sensor and usage data to analyze how customers are using equipment, and when a service or upgrade is needed and proactively offer maintenance. Other applications include digital marketing, customer care, customer loyalty, improving customer and partner engagement, and managing the life cycle of products for the customer.

Advantages of CRM are as follows:

• Improve customer targeting
• Provide integration across sales and marketing channels
• Optimize pricing
• Customize products and services
• Improve customer satisfaction

Disadvantages of CRM are as follows:

• May lead to customer favoritism (CRM paradox)

As in ERP systems, hosted SaaS and cloud-based CRM systems provide similar benefits and risks in terms of low entry costs and off-loading the infrastructure, maintenance, upgradeability, and scalability.