The History of CRM
CRM (Customer Relationship Management) history began in the 1980s in the form of database marketing that serves only to record customer data in order to interact with them. And evolved into a contact management tool which only the development of the existing database with improved features. In the 1990s, the company began to see the benefits to offer convenience to potential customers and was acquired in exchange for getting the relevant customer information or gain repeat purchases (Wingard, 2009)
In the 1990s, companies began to improve CRM by making it progressive in two directions. Not only taking data from customers, the company also gives something to their customers; both in the form of better customer service and incentives, rewards and other provisions to achieve customer loyalty (Elida & Elena, 2008).
Due to the optimized computer and all the tools and software support, CRM development is becoming so fast. Over the years, awareness has emerged that customer-related information must be integrated with existing knowledge and exploited in a coordinated way. So the growing need to be able to extract information not only from concrete statistics, but also information related to motivation and response from customers. This is done by performing data mining on customer data. Further comes the need to be able to store offsite customer data to enable access anywhere. The Internet plays an important role here. Then mobile device technology so rapidly also attracted both vendors and customers to take advantage of it. And finally developed a new philosophy called Customer Experience Management (CEM) which became the foundation for companies in implementing CRM initiatives. This CEM comes with an emphasis on putting customers first before talking about the application of technology (Shaun Smith, 2009).