By Ron Babin   CRM
has seen some dark days in 2002. Headlines in technology and business trades
from Canada to Japan have read, "CRM is Dead" or "No ROI on CRM." The backlash
has been particularly harsh on vendors. Many journalists and analysts have been
happy to blame the failure of CRM on vendors like Siebel, i2, SAP and others.
Backward-looking prophetic technology analysts have noted
that CRM implementations are failing at rates 50 percent and higher. However,
businesses should not run screaming from CRM—they just need to hold onto the
management of the process. The backlash against CRM has been unjustified. The
failures of CRM projects has very little to do with CRM itself. The failure of
implementing CRM has come from not understanding what the "C", "R" and "M"
encompass for business.
CRM is a corporate business initiative born out of a need
for businesses to get a competitive edge and get closer to the customer. After
all, a loyal customer base is usually a company's greatest asset—yet it is
rarely managed this way. C-suite executives must look beyond CRM as a
technology investment, as a way to completely change or transform business
processes. A CRM investment may not reap the financial rewards at the pace you
expect, but if implemented correctly CRM will provide business stability and a
customer-centric perspective.
Rather than transforming the customer experience, many
businesses have inadvertently created a fragmented marketplace in which sales,
service and marketing is at best inconsistent, and at worst, frustrating. CRM
looks to solve the current customer interaction problems and garner a
competitive edge. According to a recent Accenture survey, 91 percent of
executives said a greater focus on customer service and building customer
loyalty is critically important, not only in weathering the economic downturn,
but also in strategically positioning their business for its eventual upswing.
With holiday season in full swing, businesses have a
priceless opportunity to gain customer loyalty. For instance, a toy store will
have customers calling about the hottest toys of the year and want to make sure
it is available. Instead of simply looking to the shelf for the product and
taking a name and number, a toyshop can track that customer's purchases and
calls and through this information know what toys to suggest for a child. All
customer interaction from then on can become more personal, tailored to each
family or individual.
Here is a closer look at lessons learned and what businesses
should know about before stepping into the ring with CRM:
- Define the business problem then look for the
solution. We have seen some companies put the proverbial cart before the horse
thinking CRM would solve everything.
- CRM is
not a tool it is a new way of doing business. There has to be an overall
corporate change from training to culture for CRM to work properly.
- Start from the top down. Corporate executives and even
small business owners need to drive the CRM project in order for it to be a
success. Treat Customers like the biggest asset in the company and this will
make sense.
- Do not toss the CRM implementation
to IT alone. IT managers can help with the technical requirements but typically
do not articulate the revenue or business value as well as the people that face
customers daily.
- If you do it, do it well. CRM
has no half way. A vanilla implementation can lead to a great implementation of
CRM that helps no one. It is important to ensure that you are solving problems,
not making new ones.
Establish the links between customer satisfaction, loyalty
and profitability, and then make your biggest investment developing that area.
CRM joins ever-larger amounts of customer information with meaningful
relationships to reduce uncertainty and create predictable outcomes. And, let's
face it, in this market we all need a little predictability.
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