Specifically, these technologies are designed to automate sales and service functions, aggregate customer information into data warehouses and data marts, and manage collaboration with customers through an expanding number of "points of interaction."

The CRM universe can be broken down into three discrete but interrelated functional categories:

• Operational CRM: Customer-facing applications that integrate the front, back, and mobile offices, including sales-force automation, enterprise marketing automation, and customer service and support.

• Analytical CRM: Applications that analyze customer data generated by operational tools for the purpose of business performance management. Analytical CRM is inextricably tied to a data warehouse.

• Collaborative CRM: Collaborative services such as personalized publishing, E-mail, communities, conferencing, and Web-enabled customer interaction centers that facilitate interactions between customers and businesses. Collaborative CRM is used to establish the lifetime value of customers beyond the transaction by creating a partnering relationship.

• Provide a consistent and unified view of each customer for every customer interaction;

• Enable a customer to have

• a complete view of the company regardless of the way the customer contacts it;

• Let front-office staff perform sales, service, and marketing tasks more efficiently as a team, reducing costs and boosting efficiency.

The core functionality of a CRM product is its ability to maintain a single, cohesive view of the customer for the customer-facing functions of sales, service, and marketing. This distinguishes them from older and less-functional sales automation, customer service, and marketing automation software.

CRM software must have the ability to support sales processes, opportunity management, and pipeline management. It examines forecasting, territory management, and team-selling capability. CRM vendors must also focus on sales-productivity tools, including sales configuration and quote generation.

Marketing performs two functions that require capability from CRM software: campaign management and prospect generation. Companies look for the ability to both manage and execute a campaign at all stages, from planning to determining its success rate. Companies that are evaluating CRM software must examine how prospect generation is linked and related to sales.

CRM software must have the ability to run a customer-service or -support operation, including the capability to record interactions with the customer, as well as being able to provide differentiated service according to the terms of a contract.