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The history of CRM can be traced back to our paleolithic ancestors. Even before the discovery of currency, people were building long-lasting relationships with their customers. But the evolution of CRM can be attributed to three core elements:
- Buyers and suppliers
- Their location
- The products they wanted to trade
The CRM history begins from early humans who knew that selling to an existing customer is far more comfortable than to a new customer. When you look at the risks our ancients faced meeting new people, such as crossing oceans or traveling across deserts or jungles full of wild animals, you will understand why they insisted on strengthening existing relationships.
Scientists study the evolution of CRM by searching how early humans maintained records. They have found that they used notations, edicts, tablets, and accounting methods that varied from place to place. Customer relationships’ evolution began by maintaining customer databases and creating segmentation practices based on personal wealth and ability to pay. Customer relationship management has been in place since millenniums, and that’s how prosperous kingdoms, empires, businesses, governments, and countries came to power.
CRM in the 20th century
As data collection increased in the 20th century, different accounting practices were integrated, and globally accepted standards were created. Gradually, when record-keeping could no longer be manually done, commercial computers came into the picture. It was a massive transformation as it introduced automation. In the 70s, commercial computers became economical, spread across banks, government departments, and stock exchanges.
Businesses soon realized that automation could be helpful in other areas as well. The 1980s played a significant role in CRM history. It was the era when customer relationship management software, as we know it today, emerged. By the mid-90s, the sales of CRM software had broken all records. It was available in all shapes and sizes and had features that were beneficial to both — small scale industries and multinationals. The market became more competitive than before when ERP companies realized the importance of CRM.
CRM in the 21st Century
With the evolution of customer relationships in the first decade of the 21st century, the customer relationship management software introduced a new feature i.e., customization. It could be customized according to the company’s specific challenges. The following points explain how:
- Retail: The retail industry depends upon the positive feedback from customers and the meshwork of different departments, including finance, supply chain, and production. The CRM software seamlessly integrates various departments efficiently and also collects feedback from customers.
- Banking: The banking industry’s CRM software facilitates personalized handling of customers based on their individual needs and preferences.
- Financial services: The CRM software in the financial services industry differentiates customers based on their ability to pay. It also creates targeted offers for different segments and reduces the Total Cost to Ownership (TCO).
- Hotels: The CRM software in hotels maintain separate databases for regular customers and potential guests. They send automatic messages periodically detailing lucrative offers that help increase the customer database.
With the introduction of cloud systems, things changed yet again. Their ability to store vast swathes of data allowed CRM systems to store millions of data points for each customer. It helped companies make targeted marketing strategies and find potential leads.
In the second decade of the 21st century, social media came to the fore. With billions of Facebook profiles and millions of content creators on YouTube, companies could no longer afford to leave this arena. CRM software was quick to integrate chatbots, AI, and machine learning for creating a two-way communication channel between the company and the customer. It could predict market trends and conduct sentiment analysis to measure public opinion, conduct market research, monitor brand, and comprehend customer experiences.
Are you searching for a customer relationship management software to better deal with your customers? We can help you. At Sage Software, we are home to world-class CRM software that will solidify your business tech support fundamentals and help you build an employee and customer-centric organization. To know more about it, SMS SAGE to 56767. You can also write to us at firstname.lastname@example.org
Disclaimer: All the information, views and opinions expressed in this blog are those of the authors and their respective web sources and in no way reflect the principles, views or objectives of Sage Software Solutions (P) Ltd.
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