The wild thing about Customer Relationship Management (CRM) tools is that many people within the workforce interact with a CRM and they don't even know it. CRMs have come a long way since the humble beginnings of the Rolodex. Yes, this is a form of CRM. What started as basic tools for managing client information has transformed into the cloud-based powerhouses businesses rely on today (i.e. Salesforce, HubSpot). I wanted to take a casual stroll through the history of CRMs and see what I could uncover and what started it all.
1950s: The Rolodex
Back in the 1950s, businesses had no fancy software to keep track of contacts. Instead, they relied on the iconic Rolodex, which sat on desks, spinning like a miniature Ferris wheel, filled with cards of handwritten contact information. I remember my mother had one sitting by our phone at home at all times.
What made the Rolodex so revolutionary was its simplicity. It gave people an easy way to stay organized in an otherwise chaotic business world. One of my favorite restaurateurs, Danny Meyer, famously used a Rolodex and even kept detailed notes about his guests’ preferences in order to grow his empire in New York City. This small but thoughtful effort helped him create unforgettable customer experiences revolutionizing the fine dining experience.
While I grew up in Austin in the 90s, the Rolodex was still a staple in offices. It might be old school, but it taught us the importance of knowing your customer and that concept is still at the heart of businesses and CRMs today.
1987: First CRM Changes Everything
Fast forward to 1987, the year I was born, and ACT! (Activity Control Technology) hit the scene, created by Pat Sullivan and Mike Muhney, founders of Conductor Software. This was the first software that allowed businesses to manage contacts and follow-ups digitally.
This innovation was a game-changer. Sullivan and Muhney took businesses from flipping through physical cards to having everything stored on a computer. Essentially, it was like going from a paper map to using a GPS.
When I only started working with CRMs in 2013, ACT! had already laid the groundwork for many of our modern systems. Today, tools like Salesforce and HubSpot take that same idea and amplify it with analytics, integrations, and automation, making it easier than ever for businesses, big and small, to connect with their customers.
Why It Matters: This was absolutely a turning point, as ACT! showed businesses how technology could simplify relationship management, and it planted the seeds for the CRM industry we know today.
1999: Salesforce Redefines the Industry
By 1999, Marc Benioff and the team at Salesforce took things to the next level. They introduced a revolutionary concept: cloud-based CRM. Instead of installing software on office computers, businesses could access Salesforce directly from the internet.
Growing up in Austin, I’ve seen how technology can disrupt and improve the way we work. Salesforce was one of those big ideas that shifted everything. Suddenly, companies of all sizes could afford a CRM because they didn’t need expensive servers or IT teams to manage the software.
What I admire about Salesforce is how it made CRM accessible, an egalitarian value I believe in for small business owners like myself. At Blossom Automation, we aim to help SMBs simplify their systems so they can focus on what they do best (shameless plug).
2000: The Dot-Com Bubble
When the dot-com bubble burst in 2000, much of the tech world was crumbling and many companies went bankrupt overnight. Some of those names might be familiar to you:
- Pets.com
- eToys.com
- Webvan
- TheGlobe.com
But Salesforce? It just kept growing. The key was their cloud-first approach. While other companies struggled with outdated on-premise systems, Salesforce offered something flexible and cost-effective. It became the lifeboat many businesses needed during uncertain times.
Salesforce’s success during such a turbulent time is an example that the best ideas can thrive even in the worst conditions. Although I'm a HubSpot fanboy, it’s a reminder that innovation often grows out of adversity.
2006: The Inbound Revolution
HubSpot entered the scene in 2006 and they were the ones, in my belief, to truly blend CRM with inbound marketing. This approach emphasized attracting customers through valuable content rather than intrusive ads. It was a refreshing change that resonated with businesses looking to engage meaningfully and ultimately throttling my career.
HubSpot’s vision inspired my approach to CRM consulting with Blossom Automation. Helping clients implement tools that fit their goals and values has been incredibly rewarding.
2010s: CRMs Go Social
The rise of social media gave birth to social CRMs. These tools integrated social media data, offering businesses a comprehensive view of their customers’ behaviors and preferences.
Individually, tools like Instagram or LinkedIn have become more powerful when combined with CRM. This has also led to a plethora of social CRM for the for-profit and non-profit space. Here are my favorite CRM/Marketing combos, just to name a few:
For-Profit:
- HubSpot
- Salesforce
- Attio
- Iterable
- Customer.io
Non-Profit:
- HubSpot
- Circle
- GiveButter
- Bloomerang
CRMs Are Smarter Than Ever?
Fast forward to today, and CRMs have evolved into powerful tools that do so much more than store contacts. They track customer interactions, provide insights into behavior, and even use artificial intelligence to predict what your customers need.
At Blossom Automation, I work with SMBs to help them harness the power of tools like HubSpot. Our mission is to equip you with the simple CRM strategies you need to thrive in your mission.
Fun Fact: The CRM market is projected to hit over $80 billion by 2025. That is a lot of businesses working hard to build better relationships with their customers.
Why This Story Matters
CRMs have come a long way since the days of the Rolodex. But at their core, they are still about the same thing: building strong relationships. Whether it’s a restaurateur jotting notes about his guests or a business using advanced AI to predict customer needs, the goal is always connection.
As someone who loves problem-solving and working with CRMs, I see every day how these tools can transform businesses. Knowing where they came from makes me appreciate them even more.
If you’re curious about finding the right CRM for your business, feel free to reach out to me at Blossom Automation. I’d love to help you grow your relationships, just like CRMs have helped businesses grow for decades.
🤜 🤛
Oscar Gonzalez
🌻Co-Founder & CEO