Customer Relationship Management
2.1. The Evolution Of Customer Relationship Management.
CRM must start with a business strategy, which drives changes inthe organization and work processes, which are in turn enabled byInformation Technology. The reverse does not work.The seeds of modern-day CRM were sown in the 1960s. Academicresearchers found that the "4 Ps" marketing framework--product, price, place and promotion was less valuable for industrial or service-centric businesses where ongoing relationships werecritical. By the 1980s, "Relationship Marketing" was used todescribe this new focus on understanding customer segments,delivering ongoing quality service, and achieving high customer satisfaction.Relationship marketing was about "putting the customer in themiddle of the business circle," in the words of Dick Lee, principalof St. Paul-based Hi-Yield Marketing. "As part of that earlyrelationship marketing movement, we had untold frustration because we didn't have the technology to support what we weredoing," Lee says. "It really wasn't until mid-90s that we had thetechnology we needed."