CRM has evolved over time as business and marketing practices have changed. In the pre-industrial era, relationships between merchants and customers were personal and built on trust. During the industrial era, mass production led to less direct contact between businesses and customers, weakening relationships. Now in the information era, advances in technology allow businesses to better understand customers and strengthen relationships through more customized experiences.

1. 1
The Evolution of CRM

2. 2
Is CRM really a new concept?
 Relationship with the customer has existed since
the advent of trade and business.
 Barter Age
Customized product Age
Mass Production Age
Customer: Purchaser of goods/Service and not necessarily the one
consuming them, e.g. dealer / retailer/ wholesaler
Consumer: One who utilizes the goods/services to fulfill his need
Customization Age
.

3. 3
The Evolution of Relationship
Marketing

4. 4
The Evolution of Relationship Marketing
Pre-Industrial Era:
 practiced by merchant and traders.
 business was build on trust.
 interactions transcended the commercial
transaction and involved social interaction
 relationship exists in pre-industrial
market(traditional, small).

5. 5
Industrial era
Mass production, mass distribution and mass
communication
Intermediaries took on the responsibilities of
warehousing, transportation, distribution and
final sale to the customer.
Greater efficiencies' and lower cost.
Reduced direct contacts and negative impact
on the relationship.

6. 6
information era
JAGDISH SETH and ATUL PARVATIYAR has identified the
following factors for this shift in orientation:
 Advances in technology
 Intensive competition
 Growing importance of service sector
 Adoption of TQM programs