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FIGURE 1.0: CRM Components

How Has CRM Developed Over the Course of Time?

CRM emerged in the late 1950s and experienced steady growth until the 1970s.

During the 1980s, Database Marketing was initiated by sales representatives, signifying a
notable departure from direct marketing. It wasn't until the late 1980s that the groundwork
for today's CRM was established. Act and Goldmine contributed to the creation of the first
Contact Management Software and rudimentary CRM systems designed for Sales and
Marketing functions.

The late 1990s brought about the online transition of CRM, with Siebel introducing the first
Mobile CRM - the Siebel Sales Handheld. Nonetheless, the adoption of mobile CRM remained
limited due to the scarcity of suitable devices.

In 1999, Salesforce.com introduced the pioneer Software-as-a-Service (SaaS) CRM, while

Eloqua launched its initial marketing automation software, later acquired by Oracle.

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In the early 2000s, Paul Greenberg's publication "CRM at the Speed of Light" proposed a
more comprehensive CRM system capable of overseeing all facets of business relationships.

Over the past decade, CRM has become synonymous with trends like Open-Source and
Cloud-based solutions. The late 2000s ushered in the era of the "Hashtag Age," with Social
CRM redefining client relationship management from transactional to interactive.

The current and future prospects of CRM are promising, as Cloud-based and SaaS CRM
solutions gain prominence and become integral for businesses. Modern CRM software
concentrates on three primary domains: sales, marketing, and service, with an emphasis on
providing mobility.

FIGURE 2.0: The Evolution of CRM

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Pre-PC Era: 1950s through 1970s

Although pen and paper were adequate for keeping track of customer information, as the
company grew, it grew to be a major burden. In 1956, the Rolodex (rolling dex) was created to
house client information. A digital database was developed together with the development of
mainframe computers, laying the foundation for later CRM.

1980s to mid-1990s: CRM's infancy

The Contact Management System was created as technology improved. Names, email
addresses, phone numbers, and other information can all be stored here. However, CMS's
main priority was sales management rather than client interactions.

The 90s gave birth to developments that formed the basis of contemporary CRM. Sales Force
Automation (SFA) was introduced as its first phase. This made it possible to automate routine
everyday chores like tracking, recording, pipeline management, etc. As a result, production
increased as workers had more time and energy to devote to other crucial duties.

Do you recall the preceding reference to the Rolodex? The business, Conductor Software,
unveiled the ACT! electronic Rolodex. It was the first widely used contact management
application, which was fantastic news for small firms. One click was all it took to organize and
manage sales leads, client contact information, calendar events, etc.

Comprehensive CRM solutions first emerged with the 1993 founding of Siebel Systems. By
the late 1990s, operational CRM had developed to encompass sales, marketing, and customer
service as its primary functions. The old CRM started to disappear once Salesforce introduced
the first web-based CRM.

The decade between 2000 and 2020: CRM systems

As time went on, CRM technology evolved to meet the requirements of companies of
various shapes and sizes. Web-based CRM has started to gain popularity. To further simplify
daily operations, it was soon integrated with business systems and other platforms.

Social media also began to take off in the 2000s. CRMs began merging with social
networking sites like Facebook, Twitter, and Instagram before the decade's conclusion. Based
on likes and comments, businesses may be able to better understand customer demands,
preferences, thoughts, and other factors. Social CRMs are one of the essential elements of
CRM systems nowadays for companies looking to have a social presence. Mobile CRM versions

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emerged as CRM integration advanced quickly, enabling users—particularly sales

representatives—to access the application from anywhere.

In the late 2010s, artificial intelligence (AI) was introduced into the CRM system, allowing
CRMs to analyze huge amounts of data. The main advantages are enhanced sales tracking,
automatic chat and email content recommendations, and the creation of insightful customer
data for better decision-making. These aided teams that interact with customers in offering
individualized customer service.

In other words, AI makes use of client data, including profiles and previous encounters, to
offer a solution that exactly matches demands. As a result, managing customer inquiries is
made simpler, leading to prompt responses. AI driven CRM is still being influenced by the
evolving business requirements and technical developments.

Current CRM Software Market

Every time one of its applications is updated, the CRM software market expands,
demonstrating that the evolution of CRM is a constant process.

The CRM is being updated to include features like chatbots and virtual assistants. CRM
powered by AI is always developing with new technology.

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The CRMs of today serve as centralized hubs for employees to store and access information
across the company. They greatly reduce manual work through automation possibilities. To
manage everything from tracking data to brand loyalty, there are numerous technologies
accessible. These include customer assistance, analytics and reporting, lead management,
opportunity management, sales and marketing automation, and so forth. They collaborate to
improve customer satisfaction and user engagement.

CRMs merely enable you to complete tasks more quickly and with little human labor.
Increased efficiency, improved workflows, better pipeline management, individualized
services, precise sales predictions, etc.

Future of CRM

Looking back on CRM history, it has been an amazing journey from a digital database to the
development of contemporary CRM. The best thing, though? CRM is always evolving to meet
the demands of organizations of all sizes, and it always will.

CRM is set to get additional changes in the future thanks to AI and machine learning to
elevate the customer experience to entirely new heights. Improved data protection is another
benefit of this, which is essential for future CRM platforms to fend off any cyberattacks. CRM
has a bright future, without a doubt.

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● Customer satisfaction has replaced customer experience as the top sales metric.
● To meet customer-centric goals, CRM systems need to evolve with greater
precision and predictive analytics, as well as a focus on customer needs and
behavior.
● As AI becomes more prominent in the sales space, sales reps will transition to
more customer-care-focused tasks.
● CRM solutions act as a single source of truth for organizations looking to unify
operations across departments.
● Organizations seek to automate rudimentary, day-to-day functions to allow staff
to focus on more pressing tasks.
● As customers increasingly demand hyper-personalized experiences, CRMs are
adapting to deliver mass personalization at scale.

SOURCES:

Evolution of CRM - Infographic. (n.d.). Agile CRM.

https://www.agilecrm.com/crm/evolution-of-crm

The Evolution of Customer Relationship Management | Vtiger. (n.d.). Www.vtiger.com.

https://www.vtiger.com/crm/evolution-of-crm/

‌Adair, B. (2018, December 3). Future of CRM in 2020 | Intelligent, Integrated & Data-Driven.
Selecthub. https://www.selecthub.com/customer-relationship-management/future-of-crm/

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