What is CRM for Retail?
With so many choices available to consumers today, earning and keeping customer loyalty is a serious challenge for retailers. Shoppers are drawn to brands that know who they are, speak their language, and deliver experiences tailored to their preferences. And with online sales rising 1.7% in 2025, reaching the highest level since 2022, it’s now more important than ever for retail stores and online-based brands keep up with technology that is going to help boost customer loyalty and increase sales. And that’s where CRM (Customer Relationship Management) comes in.
So, what exactly is CRM in retail and why does it matter so much?
What is CRM in the retail industry?
Retail CRM systems collect and analyse customer data including purchase history, preferences, and communication behaviour, to help businesses better understand and serve their shoppers. The goal? Build stronger relationships, increase customer loyalty, and drive repeat sales. Whether your retail business is online, in-store, or both, utilising a CRM to send personalised marketing messages and tailoring customer service is essential to increasing brand loyalty.
Benefits of Retail CRM
Retail is no longer just about selling products; it’s about creating experiences. Gartner research revealed that 74% of customers expect more from brands, not only in their products and services, but also in how they treat their customers. A strong CRM helps increase trust from your customers by:
- Understanding customer behaviour
Know what your customers buy, how often they shop, and what channels they prefer (in-store, online, mobile). - Personalising marketing and offers
With a clear view of your customer’s behaviours and purchase history, your sales and marketing teams can tailor emails, product recommendations, and discounts to each customer’s interests and shopping habits. - Improving customer service
Provide faster, more informed support by having access to each customer’s history and preferences. With an all-in-one solution like SugarCRM, you can manage incoming customer service tickets directly from your CRM system. - Boosting customer retention
Happy customers are loyal customers. CRM helps you nurture long-term relationships by sending automated reminders for follow-ups and a visual overview of their recent activity. - Tracking sales and campaign performance
See what’s working (and what’s not) so you can adjust your strategy accordingly. With CRM, you can measure campaign ROI (return on investment) and when you integrate your email marketing system, you can see which customers engage with your emails and your website the most.
Key features of retail CRM systems
Most retail CRM platforms offer a combination of these tools:
- Customer profiles: Centralised records of all customer interactions and purchase history.
- Segmentation: Group customers based on behaviour, demographics, or value.
- Email & SMS marketing: Send targeted messages and promotions and integrate with marketing platforms including Mailchimp, Marketo and Mautic.
- Loyalty program integration: Reward repeat customers and track points.
- Analytics & reporting: Get insights into customer lifetime value, churn rates, and campaign ROI.
- Omnichannel support: Connect data from online and in-store shopping to build a 360-degree view.
Retail Stores and CRM:
If you’re a store-only retailer, you might think you don’t need to use a CRM to manage customers. However, with many competing stores already utilising CRMs, your business could be falling behind.
Retail stores use CRM systems to better understand and manage customer relationships. These systems help collect and analyse customer data such as purchase history, preferences, and contact information. By leveraging this data, retail stores can personalise the shopping experience, offer targeted promotions, and enhance customer service. CRM is especially valuable in brick-and-mortar retail for building customer loyalty, encouraging repeat business, and staying competitive with the convenience of online shopping.
Online Retail and CRM:
Online retail businesses heavily rely on CRM systems because digital platforms provide vast amounts of customer data. CRM tools help e-commerce companies track customer interactions, behaviour, and feedback across websites, emails, and social media. This data enables highly targeted marketing, personalised product recommendations, and automated customer support. CRM is crucial in online retail for increasing conversion rates, retaining customers, and managing large volumes of interactions efficiently in a highly competitive marketplace.
Choosing the right retail CRM
The best CRM for your retail business depends on your size, sales channels, and customer base. Look for platforms that offer automation, integrations with your existing systems (like POS or e-commerce systems like Shopify), and scalability.
But what’s our top pick as CRM experts? Our customers love SugarCRM for its bespoke flexibility and must-have features .
Learn why SugarCRM stands out as the market leader for retail businesses. Or, hear from The Shutter Shop, UK blinds and shutters retailer that utilises a bespoke Sugar system that improves their in-house operations.
Need help finding a retail CRM solution for your store or online company? enable.services are EspoCRM and SugarCRM partners and expert consultants, here to help your team find a solution that works best for you.
Book a no-obligation consultation today.
