A customer relationship management (CRM) system functions by centralizing customer information, interactions, and data across various touchpoints. It allows organizations to manage and analyze customer relationships, leading to improved communication and enhanced customer experiences. CRM systems often include features such as sales tracking, contact management, and lead nurturing, empowering sales and marketing teams to tailor their strategies. By consolidating data in a single platform, CRMs enable organizations to access insights, fostering long-term relationships and optimizing customer journeys, ultimately driving business growth.