The history and origins of the RCMP
The history of Customer Relation Management is not as recent as you might think. It dates back to the origins of commerce, but was never theorised. Read all our articles on what is CRM?
CRM, a marketing technique used throughout the ages
During the age of dazzling Egypt, during the period of predominance of ancient Rome or even during the Middle Ages, merchantsants and craftsmen, without applying highly advanced CRM techniques, tried to take care of their customers and understand their expectations so as to meet them as best they could. For example, a blacksmith or a baker would be keen to provide the best possible service to his customers, in order to build loyalty and enhance the image of his business.
Monopolies disrupt customer relations
The relationship between business and customer has also evolved considerably over time.
More recently, in the 50s and 60s, customers were prepared to wait months or even years for a product they had ordered! This was because companies generally had a monopoly in their sector of activity and geography, and exercised a game of domination over their customers. If a customer wanted a product, for want of an alternative, they had to take that of the dominant company, regardless of its level of product and service quality.
In the 90s, the situation changed with the opening up of trade to competition. Companies lost the influence they had over their customers. Customers no longer hesitate to compare or test other companies if the service, product quality or customer relations are not satisfactory.
The customer becomes the ROI, CRM indispensable
When the market opened up to competition, the game was reversed, with the customer becoming king.
Companies understand that taking care of their customers is essential, or risk seeing their sales fall and their image tarnished.
Customer service became the driving force behind the company, and the different departments had to work together to respond as effectively as possible to the customer's needs and expectations. Follow-up is personalised. Information is gleaned to get to know customers better and analyse their habits. Entrepreneurs have realised that winning over a prospect or future customer is much more costly and complicated than retaining a customer who is already with them. By taking into account the history of exchanges and remembering purchases already made, they know their customers a little better and can better support the next act of purchase but also offer products that might interest them. CRM was born.
Article translated from French