The History of Crm
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1-THE HISTORY OF CRM
Before 1993, CRM included two major markets:
1. Sales Force Automation (SFA) and
2. Customer Services (CS).
Sales Force Automation was initially designed to support salespersons in managing their touch points and to provide them with event calendars about their customers. SFAs meaning expanded to include opportunity management that is supporting sales methodologies and interconnection with other functions of the company such as production. The box below indicates the range to sales force automation capabilities currently available.
1.1 Sales Force Automation Capabilities
* Contact Management: Maintain customer information and contact histories for
existing customers. May include point in the sales cycle and in the customers
replenishment cycle.
* Activity Management: Provide calendar and scheduling for individual sales
people
* Communication Management: Communicate via E-mail and fax
* Forecasting: Assist with future sales goals, targets, and projections
* Opportunity Management: Manage leads and potential leads for new customers
* Order Management: Obtain online quotes and transform inquiries into orders
* Document Management: Develop and retrieve standard and customizable
management reports and presentation documents
* Sales Analysis: Analyze sales data
* Product Configuration: Assemble alternate product specifications and pricing
Marketing Encyclopedia: Provide updated information about products, prices,
promotions, as well as soft information about individuals (e.g., influence on
buying decisions) and information about competitors.
Compared to SFA, Customer Service (CS) is an after sales activity to satisfy customers. The goal of Customer Service is to resolve internal and external customer problems quickly and effectively. By providing fast and accurate answers to customers, a company can save cost and increase customer loyalty and revenue. As shown in the box below, customer services include call center management, field service management, and help desk management.
1.2 Customer Services Capabilities
* Call Center Management
o Provide automated, end-to-end call routing and tracking
o Capture customer feedback information for performance
measurement, quality control, and product development
* Field Service Management
o Allocate, schedule, and dispatch the right people, with the
right parts, at the right time
o Log materials, expenses, and time associated with service
orders
o View customer history
o Search for proven solutions
* Help Desk Management
o Solve the problem by searching the existing knowledge base
o Initiate, modify, and track problem reports
o Provide updates, patches, and new versions
Today, CRM includes all customer-facing applications, including:
* Sales Force Automation (SFA),
* Customer Service (CS),
* Sales and Marketing Management (SMM), and
* Contact & Activity Management [Emerging Market Technologies, 2000].
1.3 Major Vendors
The major vendors changed over time. In 1993, the leaders of SFA were Brock Control, Sales Technologies, and Aurum. Since then, Brock Control changed its name to Firstwa Technologies, Inc. In 1998, Sales Technologies merged with Walsh International and now is consolidated into SYNAVANT Inc. to provide pharmaceutical and healthcare industry relationship management service. Aurum was merged into Baan, which in turn was acquired by Invensys plc in July
2000. In the CS area, Scopus, Vantive and Clarify were the major vendors. However,
things also changed rather rapidly:
* Siebel merged with Scopus in 1995 and dominated the consolidated CRM
market with 68% market share.
* Vantive was bought by Peoplesoft in 1999.
* Clarify was bought by Nortel in 1999.
In 1998, the CRM market was divided by Siebel, Vantive (now PeopleSoft), Trilogy, and Clarify (now Nortel), and Oracle (in that order) plus fewer than 20 other companies with small market shares. At the beginning of 2000, Siebel Systems Inc. was the market leader with a 35% share. Vantive (PeopleSoft) and Clarify Inc. (Nortel) followed. SAP and Oracle Corporation were introducing new application to the market based on their software development capabilities. Recent entrants offering Web applications and services include Silknet Software, E.piphany, and netDialog.
1.4 Current Offerings
The current Siebel application provides a customer information system, a product information system, a competitive information system, and a decision support system with a large database.
Today, the rapid development of network and communication technologies leads each CRM company to move towards new technologies such as data warehousing, knowledge management, and portals on the web. [Howlett, 1999] In addition, a reverse movement took place as many companies in such fields as data warehousing and Enterprise Resource Planning (ERP) began offering CRM software.
2-DEFINITIONS OF CRM
Traditional marketing strategies focused on