The concepts that define Customer Relationship Management (CRM) today have developed over more than a decade, stemming from very pragmatic and simple beginnings. If you were working in the 1950s, you were thrilled with the advent of the Rolodex for storing contact information. It had convenient flip-through cards that replaced the customer notes you kept on your desk. Fortunately, times changed, with direct marketing going on to evolve into database marketing. This has led to a higher emphasis on using statistical analysis of customer behavior to better reach out to consumers. From 1997 to 2001 there was significant speculation and growth in the usage of the Internet by businesses and consumers.
Why do businesses use CRM?
Businesses have continued to use CRM as it is both a business strategy and information system, which will increase the effectiveness of the implementation of the strategy. The technologies that drive customer relationship management may differ radically, but they all aim for the same goal. This is to know more about customers and to consistently provide experiences that delight them.
Shifting demands of the business industry
Given the shifting demands of business, CRM platforms have continuously improved their capabilities to keep the businesses that use them, profitable. This has expanded the CRM market from an interesting addition to an essential concept for modern businesses. Businesses, of all shapes and sizes, are using customer relation activities such as marketing sales, customer support, and data analysis as the basis for client retention strategies aimed at creating stronger product loyalty and enhancing future sales.
The advancements in CRM through the years were driven by changing market needs, the maturity of the business concepts from a mass of new ideas, and advances in technical approaches. The current platforms used by most businesses have created mega-trends in the industry, such as individualization, mobility, and digitization, all leading development of CRM.
Why is CRM so important in the future?
The importance of solid Customer Relationship Management software continues to grow year after year, and the market is expected to incur even more major changes over the next few years. As the industry evolves, the demand for CRM solutions has increased, forcing many companies to innovate at a rapid pace. CRM will continue to report key data and give insight for future action. However, leading experts see CRM evolving to measure sales and customer engagement while playing a huge role in the success of future businesses.
What is next for CRM?
In the next evolutionary phase of CRM, customer information will be exchanged and acted on in real-time. Consumer history will be recorded (and remembered) and the expectations of both parties will be met. Although, not every conversation will be profitable. But the series of conversations and the ongoing knowledge transfer will continue to grow, creating a differentiated customer experience and in the long run, a profitable relationship.