Customer Relationship Management (CRM) software products has been available since the late 1980's. Early generations of this type of software products were originally referred to as "contact management" products. As the technology has evolved, and vendors have introduced new versions which include major new application functionality, they have created new names for the overall technology. The current generation of these types of products are commonly referred to as Customer Relationship Management software products. There are currently hundreds of CRM products available for purchase.
These products are designed to mange all aspects of communication with the company's customers, or companies that the company targets to be their customers (prospects). Originally these products were used exclusively by sales or customer service functions. As their application functionality has expanded, they now can be used by any function, including the management staff, that has regular contact with customers or prospects. For an overview of the application functionality that is currently available with CRM products, see CRM Functionality.
Traditionally, there has been three major categories of these products available for purchase: 1) single user products that run on P/C's and offer a "base" level of functionality. Examples of products in this category are Outlook, and ACT. 2) multiple user products that run on a sever and offer an "intermediate" level of functionality. Examples of products in this category include Goldmine and Microsoft's CRM 3) multiple user products that run on a server and offer an "advanced" level of functionality. Examples of products in this categories include Siebel and OnContact.
During the early 2000's another category of these types of products began appearing. Products in this new category were primarily introduced to 1) improve the access to the CRM software when users are functioning outside of their company's network, and 2) improve communication with indirect sales organizations such as dealers, distributors, and/or independent Sales Reps. Products in this new category are web based applications, and are referred to as "On Demand" CRM products. Not only is the CRM applications available via the Internet but the vendors also take responsibility for hosting the application, managing each company's data base, in a very secured environment, and regularly implementing upgrades to the application software. Examples of products in this category include www.salesforce.com and www.salesnet.com.
Traditional CRM products are purchased by the software license, either by "named" user (can not be shared) or by "concurrent" user (can be shared). Companies using CRM products can purchase new versions of these products by either repurchasing the software license (P/C based products), or by purchasing an annual support and upgrade plan (server based products). On Demand CRM products are purchased by a monthly access fee by named user.