3 Reasons Why CRM Strategies Fail
Customer relationship management (CRM) is one of the most effective tools for improving customer relationships and therefore increasing revenue, customer satisfaction, and customer retention. Unfortunately, some CRM strategies fail. This leaves CRM vendors and their customers baffled, but there a few common reasons why a CRM strategy will fail. 1. Too much focus on the CRM vendor and technology. Some companies get too caught up in having the best possible CRM strategy out there. Some companies want entire call-centers, On-Demand CRM, Web-based, and Blackberry devices which allow their IT people to enter customer information wirelessly. While these technologies are extremely helpful, too much emphasis on them can lead any company astray. It is naturally very important to select the best CRM vendor for your company, but best does not always mean flashiest. 2. Not enough focus on the customer. Companies can focus too much on technology and strategy, and not enough on what is at the core of CRM: the customer. The first letter in CRM stands for "Customer" and so the customer should be first when thinking about any CRM strategy. A call-center can be wonderful if it is customer friendly. However, some call centers are too complicated and alienate the customer from the company. Alienation is the exact opposite of what companies want to achieve when implementing CRM. The real ROI of CRM is found in customer retention and the acquisition of new customers. In order to have success with CRM, a company must work towards building a strong relationship with its customers. CRM is the path through which the customer and the company can understand each other. Focusing on technologies and ignoring the basics of customer service will cause even the most technologically advanced CRM strategy to go wrong. 3. Rushing into CRM adaptation. Sometimes, company presidents get the idea of CRM into their head and decide that their entire company must be CRM-ready as fast as possible. Rushing into CRM is a recipe for disaster. IT workers need to understand the concept of CRM. Someone who understands the importance of CRM will be better suited to deal with customers and reach the company's goals concerning CRM. Rushing into CRM does not allow ample time for all IT people to be briefed on the basics of CRM and how it will be implemented within the business. Some companies implementing CRM have to create entire departments that never existed before. The greatest care must always be taken when creating an entire new section of a company. CRM should generally be implemented across the entire company. If this is rushed, it can lead to all sorts of compatibility issues, customer confusion, and even employee confusion. Data collected must be viewed across many applications, and ample time must be given for networks to be set up. Companies using CRM technology such as Blackberry devices, or Call-centers must be even more careful when implementing CRM for the first time. Technology is not perfect, and problems can occur at any time. Any company that sends their sales force out into the market with unchecked technology is asking for disaster. Some say that it is impossible to determine whether CRM is a success or a failure. The true ROI of CRM lies with the customer. A company that avoids the pitfalls of CRM implementation will notice a dramatic increase in customer satisfaction, retention, and acquisition. CRM can help any company significantly if it is used correctly, carefully, but still efficiently. CRM technology can also help companies if it is used thoughtfully and timely. The entire company must be prepared for CRM when it is implemented. A company cannot expect exact numbers immediately after putting CRM into effect. CRM is a long-term strategy that will help achieve long-term goals of a company. Customer focus is essential and will help any CRM strategy to become a success. Matt Hogansworth enjoys writing about CRM topics and CRM software vendors such as Salesforce ( http://www.salesforce.com ).
Related News
|
 |
|
|
RELATED ARTICLES
Choices in Appointing International Managers
Globalization is requiring companies to make important choices about how to deploy international managers. The costs of making the wrong choice are heavy both economically and in the emotional and physical toll it can take on employees and the impact it can have on the overseas branch.
Balance Your Managerial Life
We have only one life, but we live in three overlapping worlds-our business world,
our family world, and our other social world. Imagine bringing your spouse and kids
to a meeting with seven of your salespersonnel. Sitting off to your left, Miss Wright
asks the question on the minds of all her fellow sales colleagues, "Why did you bring
your family to our meeting today? Will they be playing any sort of role in our
discussion?" You simply respond, "No, they're just here so I can tend to their needs."
Budgets that Damage - The Downsides of Making the Numbers
In my organisational career, I had budgets from the age of 22 to 47. I lived and breathed them and many times, budgets, the gospel that they were, caused havoc, albeit within the corporate retailer framework that I worked.Here are two examples of the damage caused.
Tales From the Corporate Frontlines:The Importance of a Competitive Wage and Benefit Package
This article relates to the Compensation and Benefits competency, commonly evaluated in employee satisfaction surveys. It tells the story of a company that needed to attract new employees and discovered how a competitive wage and benefits package was integral to this process. The Compensation and Benefits competency focuses in detail on how your employees feel regarding their compensation and benefits packages. The questions included in this competency will help your organization determine whether your employees feel they are fairly paid for the work they perform when compared to a similar job at a different company. This competency also queries their feelings regarding the adequacy and quality of their benefits package. A fair and attractive compensation package is critical for hiring and retaining quality employees. A high satisfaction level in this competency requires that your compensation structure and benefits package be fair, balanced, and understood by your present employees.
Three Foundation Stones for Building Organizational Integrity
When the stock market crashed in 1929, there were a lot of people who lost everything they had. You would think that the result of that event would be complete and utter despair. And, in fact, there were those who reacted that way. There were numerous cases of people who committed suicide because they lost their life savings on that fateful day. They simply went into a depression and just couldn't bring themselves to go on with life.
People Are Our Most Important Asset!
How many times have you heard or uttered this phrase in the last 5 years or so. As a "reformed accountant" this phrase makes me cringe more than any other business euphemism being espoused today.
The Seven Cs: Partnership Danger Signs - The 4th C: Cumulative Money Problems
A series of articles exploring the seven critical areas that can indicate a partnership is in trouble.
3 Innovation Keys - Do Your Innovative Efforts Need More Power?
Recently, I attended a webinar with nearly 400 other Chief
Learning Officers - during one polling period, we were
asked what primary driving force pushes organization-wide
or individual innovation - the majority agreed that
leadership is that force.
Give Yourself a Boss? Day Gift
Become a better boss and reap the benefits
Employee Orientation: Get New Hires Off To a Great Start
The good news is that a new hire orientation program offers an opportunity to build a lasting impression of the new company. The bad news is that that is going to happen whether you plan it or not. So why not get new hires off to a great start? Here are seven ways.
Human Resource Employee Risk Profile - Management Risks Explained
Human Resource Employee Risk Profile
Five Tips for Analyzing an Income Statement
In today's article, we'll be looking at the income statement, which is the most deceptively simple of the major financial statements. I say simple because it's just a list of all the revenue, minus all the expenses, to calculate what's left over in profit. It's no more difficult than putting your family budget together, right?
Better Management Performance - The Easy 3-Step Way
Managers make three mistakes when they try to run businesses. They do too much,
they don't trust their people and they don't have enough skills. Here we
explore an easy 3-step process to get your business back on track and get a life.
Hire Winners: Ask the Right Questions
How do you as a manager, supervisor or team leader hire winners? One very successful interviewing technique is behavioral interviewing---selecting the right person for the right job using a job-related rather than a gut feel approach. A job-related approach is asking for a behavioral example of skills and traits that are required for a position.
Quick Tip - Effective Meetings Earn a Profit
Most people treat meetings as a free resource that can be used to deal with any
issue. As a result, huge amounts of time and money are wasted on trivia.
Regaining Control - Nine Steps for New Managers
My client had faced the same challenge, which was frustrating as well as intimidating for him as well - yet he was determined to break the mould.
Six Reasons to K.I.S.S.
Six Reasons to K.I.S.S.
Are you NICE or do you CARE?
Are you NICE or do you CARE?
Most people and most managers want to be nice. After all, it's easier to be nice than to not be nice. But when we talk about being a manager, there is a difference between being nice and being NICE. A NICE manager can be pleasant to be around. They're friendly and helpful and avoid even the most remote semblance to confrontation.
How do you spot a NICE Manager?
When someone brings them a problem, a NICE manager provides them with a solution.
When a report is late because the employee in question and their spouse went to a movie instead of completing the assignment, a NICE manager understands. After all, it's important to balance work and home.
When the presentation lacks clarity, or the conclusions aren't supported by the facts, a NICE manager thanks them for their efforts and doesn't dig any deeper.
And when the production numbers for the month are down for the 3rd consecutive month, a NICE manager clearly understands the reasons that are causing the problems and knows that they are not the fault of the employees.
A NICE manager avoids the controversy and confrontation that goes along with employees who are not quite performing up to par. A NICE manager defends their employees regardless of the situation, because there are always extenuating circumstances.
And that's the problem with a NICE manager. They always understand and always relieve the employee of the responsibility.
What does it mean to be a NICE manager?
N - Nothing
I - Inside
C - Cares
E - Enough
Nothing inside cares enough to hold the employee accountable for their own actions.
Nothing inside cares enough to tell the employee when they are falling behind or failing.
Nothing inside cares enough to be willing to upset the employee even if it is for their own good.
Nothing inside cares enough to help the employee achieve everything that they are capable of achieving.
Frankly, being a NICE manager doesn't really help the employee, because it leaves them without any accountability, and it does no good for the manager either, as they now have more work to do.
Being a NICE manager is a "lose - lose" scenario.
As a Manager, it is your responsibility to the company and to your employees to see that peak performance is achieved. You also have a responsibility to your employees to maximize their talents and growth, to see that they are ready for the promotions that may come their way, and to ensure that they learn the skills to achieve and succeed at higher and higher levels. You owe it to your employees to give them honest feedback on their performance so that they can develop their own skills and prepare for their future. And you can do it all in a positive, reinforcing manner.
That's the difference between being a nice Manager versus a NICE Manager.
Instead of being NICE, I suggest that you CARE.
A Manager who CAREs will coach an employee on a problem, not assume the work for him.
A Manager who CAREs will communicate with an employee when their work does not meet expectations and coach them until it does.
A Manager who CAREs will identify the talents in their people and help cultivate those talents to even greater levels and coach them in areas where they can still develop.
What does it mean to CARE?
C - Coaching
A - Allows
R - Real
E - Excellence
So you have two clear choices. You can be NICE to your employees, or you can CARE.
Which will you choose?
Tales From the Corporate Frontlines: Team Dynamics and Communication
This article relates to the Team Dynamics competency, which evaluates interpersonal communication, cooperation, and productivity between members of a single team, group, or department within your organization. In today's marketplace, in order for organizations to operate efficiently, it is essential that they understand how to create and utilize effective work teams at all levels of the organization. When well managed, teams improve productivity, innovation, and the likelihood of success. Ineffective teams lead to frustration and the loss of time and productivity. Evaluating this competency can be very useful if your organization is experiencing missed deadlines or low productivity levels.
Managing People - No More Mr Tough Guy
I believe the media and our culture sends the wrong messages
about how to manage people and this makes it difficult for
Business Owners and Managers.
|