CRM stands for Customer Relationship Management. This allows you to keep track of when to follow up with a member about a phone call you had or a way to keep track of certain notes on a person. Categories enable you to set privacy rules that are visible to only certain people in the system. It also lets you organize the CRM's that are created in the system.
To create a new CRM Category go to My Lists from the Admin Menu located at the top. From there you will select CRM categories from the drop down provided. You will then see the following:
Type in the name of the new Category you wish to create.
Once you have done that you can then specify who this category is visible to. The list that is populated on that drop down is from the tags that are created in the system. Anyone who has the certain tag selected on their account will be able to view the information for this CRM Category.