The population of Taiwan has aged rapidly during the mid-1980s, and Taiwan formally became an ageing society in 1993. The elderly population of Taiwan reached 9.09% of the total population in April 2003. A significant need exists for medical and long-term care services for this aged population, especially nursing homes with professional care services. Consequently, nursing home care quality has become a major issue in Taiwan. This study establishes a customer relationship management (CRM) framework for nursing homes. CRM in nursing homes involves three aspects, namely case management customer relationships, information management customer relationships, and care management customer relationships. CRM in a nursing homes is further divided into nine sub-phases: interactive mechanism, assessment of demand model, customer data collection, data analysis, knowledge management, care design, care delivery, support from the related units, monitoring and feedback. This study also ranked the sequence of 84 indicators of CRM based on their importance. Focusing on these indicators can enable a nursing home to effectively improve its care quality.