2. Customer Relationship Management
2.1 Evolution of Customer Relationship Management
The roots of CRM stem from the relationship marketing theory. Relationship marketing is the process of
identifying, developing, maintaining, and terminating relational exchanges with the purpose of exchanging
performance (Palmatier, 2008). According to Labus and Stone (2010) CRM is not just a software. In the past,
CRM was often seen as a quick fix information technology project proposal implemented by consultancies.
Mack et. al., (2005) claim that CRM evolved from total quality management in the 1980s. Schmitt (2003)
identifies the origin of the customer orientation movement in 1990s, whereas Newell (2003) recognizes the
strategic and technological focus of CRM. According to Chen and Popovich, (2003) The United States software
vendors took up relationship marketing to market CRM systems. Labus and Stone refers to the continued usage
of relationship marketing terminology, whereas Payne and Frow (2005, p.85) claim that CRM has “its roots in
relationship marketing”. Later, Payne addresses the significance of change management in achieving positive
CRM outcomes. Therefore, CRM thinking has evolved over the last decade, but there are differences of opinion
as to how.