| Over the last few years the buzz about CRM | | | | efficiently." |
| (Customer Relationship Management) has grown | | | | The problem with these companies is not that |
| extensively. It seems that every Sales & | | | | CRM automation fails to meet expectations. |
| Marketing executive is talking about it. A study | | | | There are several reasons why these systems |
| conducted by Jupiter Media Metrix found that U.S. | | | | don't always generate the desired results. And |
| businesses spent more than $5.2 billion in CRM | | | | most times, it has nothing to do with the |
| technology software in 2001, a number that is | | | | software. The biggest mistake that a manager |
| expected to rise to $8.7 billion by 2006. CRM | | | | can make is think that once the software is |
| spending has been growing considerably, especially | | | | installed, all problems will be solved. To be |
| in financial services, retail, and telecommunications. | | | | successful, a CRM initiative must be a |
| Many companies have invested in CRM systems | | | | company-wide strategic culture change and |
| to retain customers who demand more and | | | | process design. It entails getting all your |
| better services by the day, but why? Due to | | | | employees (not only customer service) to change |
| recent trends, consumer behavior has changed | | | | the way they perform their every day tasks so |
| dramatically in the last couple of years, and even | | | | that the appropriate information is collected and |
| more with current market conditions. According to | | | | used in a productive way. The software is just a |
| a study made by The Center for Customer | | | | tool that keeps things organized so that a |
| Strategy, consumers are less concerned with | | | | successful CRM is easier to accomplish. As any |
| minor price differences, but choose companies | | | | change in a corporate culture, this project requires |
| based on their value-added services. They want | | | | complete support from senior management. |
| to be able to get what they need, quickly. With | | | | One of the most common problems is that data |
| tools like the Internet, it's now a lot easier for | | | | collected isn't used. Great sums of money are |
| both consumers and businesses to compare | | | | invested in collecting all different kinds of |
| offers, and switch over if their needs aren't met. | | | | information on clients, yet many times this |
| This is especially true of high-value customers that | | | | information is never analyzed, never used to |
| produce the most profit for the business. | | | | understand the customer or provide all the |
| Businesses are scrambling for ways to retain | | | | benefits that CRM can deliver. |
| these customers, and attract new ones in the | | | | For better results, a company investing in CRM |
| process. So how is CRM an answer to keeping up | | | | must first evaluate their current situation. They |
| with these trends? CRM is a strategy (no, not | | | | should determine what problems need to be |
| software) to transform your business to be | | | | solved, and what type of data are needed. Since |
| customer, not product, focused. The CRM | | | | implementation is often a complicated process |
| software is just a tool that helps the company | | | | (especially in large companies), it is vital to get |
| carry out this strategy. Depending on its | | | | input from all departments. It is also a good idea |
| implementation, it can help your business identify | | | | to include your customer in the process to get a |
| who your customers are, what they need and | | | | better idea of what changes will be embraced. |
| anticipate what could want. It allows businesses to | | | | Often when a CRM initiative is left up to the IT |
| tailor offers to their current customers, building | | | | department, it is harder for other areas of the |
| closer relationships that make them feel valuable. | | | | company to accept any changes in processes |
| It can help eliminate contact and data overlap | | | | (which are usually substantial). To be successful, |
| between departments and improve consumer | | | | the initiative must take place throughout the |
| service. For example, Leah Holzman, Marketing | | | | entire company. Employees must be trained to |
| Manager of TradeCard Inc, explained how the | | | | function with the new technology and processes. |
| marketing and sales departments in her company | | | | When considering a vendor and/or product, it's |
| had problems tacking each others' progress and | | | | imperative that any software, system or |
| customer data. They spent "hundreds of hours | | | | processes implemented are flexible. They can |
| managing disparate data across multiple systems. | | | | then adapt, along with a company, to changing |
| That is, until they implemented a CRM initiative | | | | times and trends. This is especially useful in |
| with the help of Overall, CRM can make your | | | | growing businesses, where needs might change as |
| company more efficient and customer-friendly to | | | | client bases grow and business expands. |
| capture greater market share, increase customer | | | | No matter what precautions you may take when |
| loyalty, and attract more customers. | | | | planning and implementing a CRM initiative, the only |
| So far, CRM sounds like a dream come true. Yet | | | | thing that can assure its success for the company |
| studies show that more than half of CRM | | | | are your people. After all, the whole concept of |
| initiatives fail. Despite rising spending in CRM, a | | | | CRM is based on relationships. And those can't be |
| survey of 1,200 businesses executives conducted | | | | completely automated. There is no technological |
| by the Data Warehousing Institute showed that | | | | substitute for a friendly voice or face that |
| 41% considered their CRM project "a potential | | | | understands a customer's troubles and is willing to |
| flop." Only 16% were satisfied with their CRM | | | | go above and beyond to provide the best service. |
| software implementation. As one senior marketing | | | | CRM can only help a company manage these |
| executive claimed, "We turned a manual mess | | | | relationships to provide a more personalized |
| into an automated mess, and as a result we just | | | | service to loyal customers. |
| made the same mistakes faster and more | | | | |