Significant changes have occurred in time, target market and the value prepositions have lead to the evolution of the CRM.

Mass Marketing (One to many interaction):

This business strategy was measured by the market share and relied on pushing the product and creating brand reputation among the masses. Various channels as Television, radio, newspaper and magazines served as the medium to communicate the identical sales and marketing message to masses. This business strategy was successful initially but marketing approach lost the impact with respect to customer loyalty and trust. Since this business strategy promoted only the excellence in operations and not excellence in serving the customer. The customer loyalty and customer retention resulted in smaller share of wallet and decrease in revenue.

Target Marketing (One to target group interaction):

This business strategy brought a revolutionary approach to telemarketing, direct mail and electronic mail permitted easier selection of target customers with the capability of receiving a direct response. Target marketing has improved results over mass marketing but now customers’ mailboxes are clogged and the ability to create the targeted outbound messages was diluted by the organization’s tendency to over-communicate. Marketing to the averages resulted in average marketing results. The final result of target marketing is that it is expensive, ineffective and irritating to the customers.

Customer Relationship Marketing (One to one interaction):

Studies have shown that “it is six time more expensive to gain a new customer than to retain an existing one”. This business strategy determined to qualify and justify development initiatives such as:

• Increasing the loyalty of profitable customer.

• Improving cost efficiency and effectiveness of marketing campaigns.

• Cross selling opportunities.

• Reducing customer attrition/churn.

• Provision of single point of contact with a customer.