Step Back In Time

To fully understand the workings of CRM, it is necessary for us to step back in time.

In the early 60's and 70's, things were more straightforward as we had fewer choices, but customer interactions were still prevalent. Take an example of shopping at your local corner store. Typically, the owner was a sole trader who knew everyone by their first names, and likewise, they knew him.

He would provide a one-to-one service, and over a period of time, would monitor your buying habits as to when you would come in, what you liked, enabling him to ensure items that you purchased on a regular basis would be made available to you at these times. The sole trader was almost like an extension to your family. Those amongst you who relate to the 60's and 70's scenario and who smoke, will recall this very clearly if we relate the same principle to your local newsagent, who ultimately always remembered the brand of cigarettes you smoked, which newspaper you enjoyed reading and how these were always ready for you as you stepped into the shop. As a result of this, customers remained loyal to their local shops.

Since then, the advent of superior economics of mass markets, chain stores, mass advertising campaigns aimed directly at us from all directions, and improvements in transportation has created a more attractive value added choice proposition to consumers than the strengths offered to us by sole traders. Because of this, we have witnessed the death of our local shop. Now, in the early part of the 21st century, CRM is making it possible to recreate an "old fashioned" customer service experience in every sector of the economy a reality. Technology has advanced to a point where companies

can track all of their customer's purchases, simply by applying predictive modelling to determine what a customer may want in the future. They can handle a lot more volume and not only track specific customer information, but also share that and other information across all departments within the organisation using CRM system.

Customers are the driving force in today's networked economy. The constant battle for market leadership and profitability can be won by those who have a deeper and dynamic understanding of customer needs and behaviour patterns and who can develop a long-term relationship, thus retaining customer loyalty. The advent of technology provides strategic opportunities for companies of all types. To realise CRM success, business and IT executives must implement a business strategy encompassing the fostering of employee behaviour that support synchronised and more effective customer interactions throughout all customer channels, coupled with the re-alignment of the companies initiatives such as sales-force effectiveness, e-business, customer service, Customer Relationship Planning (CRP), Enterprise Resource Planning (ERP) and Supply Chain Management (SCM), all centred around customer related value propositions.

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