What Does CRM Really Mean?

Having spent almost 50 years involved in directmanagement responsibility. I fear today's top
marketing, I have always thought CRM was themanagement have come up through the ranks as
acronym for... Customer Retention Marketing.a specialist. They never learned their craft by
Today it has evolved into meaning... Customerbeing the "chief cook" as well as "the bottle
Retention Management.washer".
So, changing "marketing" to "management"Years ago we built a creative retention marketing
doesn't sound like that much of a change.plan... then applied the technology of the day to
But, in truth, it's enormous.that plan. Today's top management must take a
Today's definition of the "management" part ofstep back and look at the big picture they are
the acronym seems to center around thetrying to accomplish. It boils down to one thing...
software and technical structure on maintainingincreasing sales from your customer database. It's
the database for a company's "customernot just having software with all the bells and
retention" program. In the company's conferencewhistles. If top management did their job
room a lively discussions ensue on why theproperly, they'd become horrified on how their
technical aspects of ACT is better than Right"technocrats" have become the "tail that wags
Now or eCometry... or visa versa.the company dog". Yes, proper technical software
Forgotten is the "art" to customer retention in themanagement is a vital part of CRM, but it's one of
first place. This is a symptom of today'smany parts to ensure more sales from a
corporate America. Just as in the practice ofcompany's database.
medicine, everyone has a "specialty". This createsHere's a good case in point. One of my associates
marketing managed by committee. The result isasked me to contact his nephew, an owner of a
very ordinary customer retention creativity with acandy wholesale company. He felt I could help the
highly technical piece of software having all thecompany grow exponentially with the proper
"bells and whistles". However, in the long run, itCRM. It was a $6 million a year operation. All their
doesn't creatively work for putting together asales came from their internet catalog. They
brilliant marketing plan. That's what happens whennever once had sent out a reorder mailing, let
everyone is a specialist.alone a reorder e-mail. I sent letters, e-mails and
My comments are not targeted at those whoeven had the owner's uncle call on my behalf. Did
handle the management of the technical aspectsI hear a word? No. Not a peep. Not even a
of the database software. I am speaking to top"thanks but no thanks". Here's a company where
company management, especially when thea good CRM plan could more than double their
company is in the $3 to $7 million range in salessales in a year's time.
and can't yet afford several levels on