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Establishing and maintaining good relationships with customers provided few problems in the past when businesses were small and customers were identifiable by sight rather than by an ID number or code. The Manager of the small business knew each of his customers, understood their value to him in terms of how much they spent and how often, remembered their idiosyncrasies and their preferences. Customer relationship management was a term unknown but a practice adhered to if business was to be successful.
Today, the sheer size of businesses and organizations and the wide range of customers means that good customer relationships must be explicitly managed if they are to be successful. Thus, the concept of Customer Relationship Management or CRM has arisen. Customer Relationship Management may be defined as: ...a management strategy that enables an organisation to become customer-focussed and develop stronger relationships with its clientele. It helps piece together information about customers, sales, marketing effectiveness, responsiveness and market trends.
Soutiman Das Gupta (2005)
One way that large businesses can have at hand the necessary customer information needed to maintain good customer relationships is through the use of technology. There are, indeed, many sophisticated CRM systems that attempt to manage customer data and even the customer experience.
CRM technology enables
• information about the customer to be stored in databases
• businesses to analyse that data, pull out customer preferences and make clear their behaviour
• easy access to that data across departments that may be widely geographically dispersed
• easy access for customers in terms of online transactions
• speedy personalized communications that enable the customer to feel valued and special even though in reality they may be just one of hundreds of thousands of customers

The three parts to CRM – technology, processes and people
In a sense, the technology

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