Why customer relationship management is finally realistic

The words 'Customer Relationship Management' (or CRM) have been on
the tip of techie tongues since the 1980s, but it's only very recently that the CRM ideal has been rendered realistic due to the advent of cloud-technology and the introduction of advanced CRM software.

So what is CRM, exactly? Broadly speaking, CRM is about organising interactions with customers, particularly sales transactions and client communication, using facilitating software. The overall goal is usually to find and maintain clients, while managing existing relationships and projects in one place.

In the past CRM has been used as a nebulous buzzword, reaching its management-speak zenith in the 1990s, but the software never lived-up to the hype due to poor usability and an inability to meet the complex demands that underpin a client relationship. Early examples were too clunky and unintuitive, too ambitious given the technological constraints, and too fixated on the grand CRM concept instead of being genuinely useful.

There's still a lot of rhetoric now but the need for perennial CRM remains stronger than ever, and recent efforts have been more successful. Cloud CRM systems (web based CRM software, hosted and accessed on-line), like the small business-focused Workbooks and the increasingly ubiquitous Salesforce are more intuitive, reliable and slick than the 'evolving' (but borderline incompetent) systems of the past.

These systems are more fit-for-purpose than before, but they’re also more affordable and reliable. The bare-bones offering of many packages is often free, with more advanced options and training requiring more investment. Set-up requirements are minimal too due to the software being hosted and maintained on someone else’s servers - in contrast to the error-prone CRM behemoths of the past.

Consequently, effective customer management is now a real opportunity, and Investment in CRM is increasing. Gartner forecasts the CRM software market to experience Continued growth through 2012 when revenue is forecast to reach $13.3 billion. To put that into perspective, that figure’s over 10 per cent of the predicted $100 billion of global digital spend in 2012.

To continue growing and developing, though, CRM has to reflect the changing digital surroundings. In the 1990s, many decision-makers forgot that CRM systems will only work if people are involved and interested. This point is even more pertinent today now that social media has amplified and normalised online communication.

Naturally, companies are trying to take part in this dialogue so many CRM systems are integrating with social networking sites, or including functionality that resembles a social network, such as Salesforce Chatter - which looks like one of Twitter's siblings. It's likely that the convergence of social media and CRM will continue and present an even more compelling case for adoption in the future.

For many business sectors, 2012 looks uncertain but CRM is almost certainly going to be one area that experiences growth in 2012.