How To Get Microsoft Edge To Stop Styling Phone Numbers The History of CRM — Moving Beyond the Customer Database

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The History of CRM — Moving Beyond the Customer Database

Customer Relationship Management (CRM) is one such magnificent concept

that swept the business world in the 1990s with the promise of changing it forever

the way small and large businesses interacted with their customer bases. No

in the short term, however, it turned out to be an unwieldy process that was better

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

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

the necessary records accurately and constantly update them.

In recent years, however, newer and more advanced software systems

Tracking features have greatly enhanced the capabilities of CRM and the true promise of

CRM is becoming a reality. As the price of the newest and most customizable Internet

solutions have reached the market; competition drove prices down

that even relatively small companies are reaping the benefits of some custom

CRM programs.

In the beginning…

The 1980s saw the rise of database marketing, which was simply a scam

phrase to define the practice of creating customer service groups to talk about

individually to all customers of a company.

In the case of large key customers, it was a valuable tool to maintain the

open lines of communication and a service adapted to the needs of customers. No

in the case of smaller clients, however, I used to provide repetitive ones, such as surveys

information that cluttered the databases and did not provide much information. How

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

they were all that was needed in most cases: what they usually buy, what they

they spend, what they do.

Advances in the 1990s

In the 1990s, companies began to improve Customer Relationship Management

making it more of a two-way street. Instead of simply collecting data for

their own use, they began to return to their customers not only in terms of

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

other advantages for customer loyalty.

This was the beginning of the well-known bonus frequent flyer programs

points on credit cards and a number of other resources that are based on CRM

monitoring of customer activity and spending patterns. CRM was now being used as a

way to increase sales passively as well as through active improvement of

customer service.

Real CRM comes of age

It really started customer relationship management as it is thought of today

seriously in the early years of this century. How software companies got started

releasing newer and more advanced solutions that were customizable

industries, it has become feasible to actually use information dynamically.

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

CRM has become a way to continuously update the understanding of customer needs and

behavior Information branching, subfolders and custom functions

allowed companies to divide information into smaller subsets so that they

could assess not only concrete statistics, but information about motivation

and customer reactions.

The Internet has provided a great advantage to the development of these huge databases

enabling off-site storage of information. Where before companies had difficulties

supporting the enormous amounts of information, the Internet has provided news

possibilities and CRM took off as suppliers began to move to the Internet


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

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

new strategies for more cooperative work between these different divisions

through shared information and understanding, leading to increased customer engagement

satisfaction from the order to the final product.

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

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

Companies that rely heavily on CRM — and use it to great advantage — are

financial services, a variety of high-tech corporations and the

telecommunications industry.

The financial services industry in particular keeps track of the customer level

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

custom features. Changes in investment habits and spending also follow

patterns as the economy changes. Industry specific software can give

Financial service providers reviews really impressive in these areas.

Who’s in the CRM Game?

Approximately 50% of the CRM market is currently divided between five main players

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

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


While the other half of the market falls to a variety of other players

Microsoft’s new entry into the CRM market may soon bring about a change. Yes

Whether Microsoft can capture a share of the market remains to be seen. However, their

brand familiarity can give them an edge with small businesses considering a

CRM package for the first time.

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

Duffield as a client-server based HR application. In 1998,

PeopleSoft evolved into a purely Internet-based system, PeopleSoft 8.

There is no client software to maintain and it supports over 150 applications.

PeopleSoft 8 is the creation of more than 2,000 dedicated developers and $500

millions in research and development.

PeopleSoft spun off its original HR platform in the

1990 and now supports everything from customer service to supply chain

management. Its easy-to-use system required relatively minimal training

cheap to implement. .

One of PeopleSoft’s major contributions to CRM was its detailed analysis

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

criteria, including the amount of purchase, the cost of supply and the frequency thereof


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

then burst into national attention around 1990 when, under Tom Siebel, the

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

Unfortunately, they couldn’t keep track of the incredible sales themselves

harvested and ran into a few years of real problems.

Oracle put its feet after a restructuring and its own reorientation

customer needs and in the mid-1990s the company returned to being a leader in CRM

technologies They are still one of the leaders of the company

market with Oracle Customer Data Management System.

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

toolkit that makes it easy to change features and settings. The system

it also offers a fast-paced learning environment that newcomers will appreciate. his

the uniqueness lies in the fact that, although it is compatible with Windows, it was developed as one

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

i.e. Telemation is ahead of the game.

The last few years…

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

rapid implementation of CRM in all the company’s offices. It comes with the package

was a flat rate service for the creation and training for the basic needs of the business. .

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

“middleware” hub that was able to connect SAP systems to external e

front and back office systems for a unified operation that links partners,

employees, processes and technologies in a closed loop function.


has consistently based its business primarily on enterprise-sized companies that want

to invest millions in CRM systems, which worked for them at a value of $2.1

million in 2001. However, in 2002 and 2003 revenues fell as several

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

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

data tracking and management without the high cost of traditional CRM implementation.

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

Your entry into the monthly hosted CRM solution niche has hit the market

gale force For some the monthly ASP was a call to arms, for others it was

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

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

later to get them started and ease your transition to the ASP market. that

it was a successful move.

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

what the results will be, but it seems likely that they will play some part

small businesses tend to buy based on familiarity and usability. will of the ASP

continue to grow in popularity as well, especially with mid-sized businesses, so

companies like NetSuite, SalesNet and Siebel’s OnDemand will thrive. CRM no

the web has come of age!

This “History of CRM” article reprinted with


Copyright © 2004-2005 Evaluseek Publishing.

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