The history of CRM – Beyond the customer database

Customer relationship management (CRM) is one of those great concepts

who took over the business world in the 1990s with the promise of changing themselves forever

the way businesses large and small interact with their customer bases. In which

In the short term, however, it proved to be an unwieldy process that was better

theory than in practice for various reasons. The first was that it

was just so difficult and expensive to track and maintain the high volume

required records accurately and keep them up to date.

However, in recent years newer software systems have been developed and further developed

Tracking capabilities have greatly improved CRM capabilities and the true promise of

CRM becomes reality. As a price for newer, more customizable internet

Solutions have come to market; The competition has driven prices down

that even relatively small businesses benefit from some habits

CRM programs.

At the beginning…

In the 1980s came database marketing, which was just a catch

Expression to define how to set up customer service groups to speak

individually to all customers of a company.

For larger key customers, it was a valuable tool for maintaining

Open lines of communication and tailor-made service for the needs of the customer. In which

For smaller customers, however, more repetitive, survey-like offers

Information that cluttered databases and didn’t offer much insight. As

Companies began to track database information, they realized that the bare bones

were in most cases all they needed: what they buy regularly, what they

spend what they do.

Advances in the 1990s

In the 1990s, companies began to improve customer relationship management

by making it more of a one-way street. Instead of just collecting data for

They started giving their own use back to their customers, not just in terms of

the obvious goal of improved customer service, but in incentives, gifts and

other advantages for customer loyalty.

This was the beginning of the frequent flyer programs known today, Bonus

Credit card points and a host of other CRM based resources

Tracking customer activity and spending patterns. CRM was now used as

Opportunity to increase sales both passively and through active improvement

Customer service.

Real CRM is growing up

True customer relationship management as we imagine it today has really begun

seriously in the early years of this century. Started as a software company

Release of newer, more advanced solutions that were customizable across the board

Industries have been able to use the information in a truly dynamic way.

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Instead of feeding information into a static database for later reference,

CRM became a way to continually update and update the understanding of customer needs

Behavior. Branching of information, subfolders and custom functions

enabled companies to break information into smaller subsets so that they

were not only able to evaluate concrete statistics, but also information on motivation

and customer reactions.

The Internet has been a great boon to the development of these vast databases

by enabling offsite information storage. Where companies used to have difficulties

Supporting the enormous amounts of information that the Internet is newly making available

Opportunities and CRM picked up momentum as vendors began to move toward the Internet


With the increasing fluidity of these programs came a less rigid relationship

between sales, customer service and marketing. CRM enabled the development of

new strategies for more collaborative collaboration between these different departments

through shared information and understanding, leading to more customers

Satisfaction from the order to the final product.

Today, CRM is still most commonly used by companies that rely heavily on it

on two different characteristics: customer service or technology. The three sectors of

Companies that rely the most on CRM – and use it to great advantage – are

Financial services, a variety of high-tech companies and the

telecommunications industry.

The financial services industry in particular follows the customer level

Satisfaction and what customers are looking for in terms of changes and

personalized features. They also track changes in investment habits and spending

Patterns when the economy changes. Industry-specific software can give

Financial service providers really impressive feedback in these areas.

Who’s in the CRM game?

About 50% of the CRM market is currently split between five major players

in the industry: PeopleSoft, Oracle, SAP, Siebel and relative newcomers

Telemation, based on Linux and developed according to an old standard, Database Solutions,


However, the other half of the market falls to a variety of other players

Microsoft’s new appearance in the CRM market could soon lead to a shift. If

Microsoft can capture a market share, remains to be seen. However, hers

Familiarity with brand names can give them an edge with small businesses that a

first-time CRM package.

PeopleSoft was founded by Ken Morris and Dave in the mid-1980s

Duffield as a client-server based human resources application. in 1998,

PeopleSoft had evolved into a purely web-based system, PeopleSoft 8.

There is no client software to maintain and over 150 applications are supported.

PeopleSoft 8 is the brainchild of over 2,000 dedicated developers and $500

millions in research and development.

PeopleSoft branched out from its original staffing platform into the

1990 and now supports everything from customer service to supply chain

Management. Its user-friendly system requires relatively little training

inexpensive to use. .

One of PeopleSoft’s key contributions to CRM has been detailed analysis

Program that identifies and ranks the importance of customers based on numerous

Criteria including purchase amount, cost of delivery and frequency of delivery


Oracle built a solid base of high-end customers in the late 1980s,

then gained national attention around 1990 when, under Tom Siebel, the

The company aggressively marketed a CRM solution for small to medium-sized businesses.

Unfortunately, they couldn’t follow the incredible sales themselves

accumulated and ran into real problems in a couple of years.

Oracle ended up on its feet after a restructuring and its own reorientation

customer needs and by the mid-1990s the company was once again a leader in CRM

technologies. They continue to be among the leaders in the company

Marketplace with the Oracle Customer Data Management System.

Telemation’s CRM solution is flexible and easy to use, with a

Toolkit that makes changing features and settings relatively easy. The system

also provides a fast learning environment that newcomers will appreciate. It is

Uniqueness lies in that although it is compatible with Windows, it was designed as

Linux program. Will Linux be the wave of the future? We don’t know, but if

Telemation is ahead of the game.

In recent years…

In 2002, Oracle released its Global CRM in 90 Days package that promised

rapid implementation of CRM in all corporate offices. Offered with the package

was a fee-based setup and training service for core business needs. .

Also in 2002 (a stellar year for CRM), SAP America’s mySAP began using a

“Middleware” hub capable of connecting SAP systems to externals and

Front and back office systems for a unified operation that connects partners,

People, processes and technology in a closed-loop function.


consistently geared its business primarily to enterprise-size businesses

Investing millions in CRM systems that worked for them $2.1

Billions in 2001. In 2002 and 2003, however, revenue fell quite a bit

CRM companies joined the fray as ASPs (Application Service Providers). This

Companies including UpShot, NetSuite, and SalesNet offered CRM-style businesses

Tracking and data management without the high costs of a traditional CRM implementation.

In October 2003, Siebel launched CRM OnDemand in partnership with IBM.

Their entry into the hosted, monthly CRM solution niche was born

storm force. For some of the monthly ASPs it was a call to arms, for others it was a call

a sign of Siebel’s increasing confusion over brand identity and increasing loss

of market share. In a stroke of genius, Siebel acquired UpShot a few months ago

later to help them get started and ease their transition into the ASP market. It

was a successful move.

With Microsoft in the game now, it’s too early to tell

what the results will be, but it seems likely that they will get some of it

small businesses that typically buy based on familiarity and ease of use. will of ASP

also increasingly popular with medium-sized companies

Companies like NetSuite, SalesNet, and Siebel’s OnDemand will thrive. CRM on the

Web has grown up!

This article on the “History of CRM” will be reprinted


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