How to measure customer relationship management success

Abstract

The term customer relationship management (CRM) can be best understood in contrast to database marketing (DBM). DBM began in the mid-1980s and was developed by marketers. CRM started in the 1990s and was developed by IT and sales staff. CRM uses massive and expensive data warehouses that keep all data available in a corporation. DBM uses inexpensive databases that just keep those data needed for effective marketing. DBM aims at improving customer loyalty. CRM aims at improving company targeting of communications. CRM aims at identifying actionable customer segments and reducing marketing expenses by focusing on those segments. DBM aims at increasing customer loyalty, retention, referrals, sales and profits.