CRM's Evolution - what you need to know

Barter Beginnings

What is the history of CRM? Customer Relationship Management originated years before the start of the first millennium in Mesopotamia. Farmers who were eager to sell their surplus produce became the first initiators of the customer oriented processes we are now familiar with.With the passage of time and the first millennium an accurate record of transactions was kept by the merchants accounting for what was sold and whom it was sold to. This list of customers provided the first comprehensive customer oriented data and proved to be the beginning of customer oriented strategies. The advent of the 1990's however saw a more refined customer oriented implementation taking place, laying the ground for the CRM strategy as we now know it.

How did this come about?

Tesco's Achievements

Tesco was instrumental in bringing this about. Dunnhumms collaboration with it due to the influence of Edwina Dunn and Clive proved to be the foundation for CRM. Since these two individuals had realized the importance of knowing and understanding their customers, they understood the supreme need for adopting the right customer approach.

Tesco the second largest grocer in the UK collaborated with Dunnhumm and implemented a customer loyalty program used in 12 of their stores. Known as the Tesco Club Card Program it focused entirely on the customer and implemented the necessary business activity changes with the customer in view. While doing this it assisted in the collation of the information about customer preferences and the net result was amazing.

Profits soared, competitors complained and Tesco reigned supreme. Its additional focus on customers proved to be the focal point of success.

Watching competitors realized that this was but the right approach to adopt and that it generated huge funds. They realized that customer retention and customer loyalty were but a natural by-product.

CRM's Launch

Realization that this approach was the right one and its subsequent implementation by Tesco was CRM's launch in the world wide market. From then on it was smooth sailing for CRM. Hailed as the customer strategy of the decade CRM was the new option for organizations.

The history of CRM states that initially CRM focused less on big industries and far more on small and medium industries. Since the revenue from large corporates was higher it was felt that these industries should be the focal point. With the passing of time this notion changed and the importance of focusing on medium and small industries was noted.

Today CRM solutions have turned CRM into a necessary commodity for medium to small businesses and are being implemented in a wide range of industries.Various vendor solutions have been improvised catering to a vast area.

CRM in Vogue

Proving absolutely rewarding the new trend of CRM -'on hire basis' has proven to be the new advantage. Initially, owning CRM was regarded as absolutely advantageous but with the passage of time it became imminently clear that CRM ownership is not as helpful to an organization as it could be. Owning a CRM solution was less beneficial than acquiring it on a hire basis. Clearly it is more practical from the cost covering aspect. With a hired model, phased implementation also becomes easier.

The history of CRM has yet another page added to it as CRM in the new millennium becomes a necessary tool for almost all industries aspiring to make their customers their focal point of success.

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