Why does CRM attract attention?

CRM was born in the United States in the 1990s. At that time, it began by linking customer information and telephone support history and using it, it will be established as a method to change product development, sales promotion, customer support, etc. to a “customer-centric principle”.

Why does CRM attract attention?

Since ancient times, Japanese companies have taken it for granted to offer products tailored to customers and to communicate with customers in business. It is therefore not a particularly new concept for Japanese companies, but in recent years the situation has changed.

Starting in 2000, there was a change in customer buying behavior, and gradually the need to transform the business model emerged. That change is the explosive expansion of the Internet and smartphones.

As the Internet becomes more popular, customers will be able to obtain the information they want at will, and the effects of mass production and mass marketing will gradually diminish. In other words, the diversification of customer needs and purchasing behavior has rendered traditional business methods obsolete.

For example, product information obtained in a specific area came from limited information sources, such as television commercials, newspaper and magazine advertisements, mail order (TV shopping), etc., but customers can obtain information by themselves through the Internet. the range of product selection has increased dramatically.

In addition, the Internet shopping market expanded, creating an environment in which people could easily buy all kinds of products from all over the country as long as they had a computer and the Internet.

Rakuten Ichiba, Japan’s largest Internet shopping mall, started with only 13 stores when it was first established (1997-1999), but as of June 2018 it has expanded to 45 646 stores. Looking at this transition, you can read how the Internet has become part of life.

Smartphones have spurred these changes in customer needs and shopping behavior. Currently boasting a penetration rate of over 80% and with a full range of smartphone applications, it has formed a unique platform that allows users to get the information they want anytime, anywhere.

In today’s business, where customers have changed drastically, incorporating CRM into management, using CRM systems, understanding each customer’s needs and buying behavior, and performing appropriate marketing activities will be a great success for companies.