Management Information |
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 ).
MORE RESOURCES: Unable to open RSS Feed $XMLfilename with error HTTP ERROR: 404, exiting |
RELATED ARTICLES
Collections Management How long does it take your customers, clients or patients to pay you for the products or services you have provided?Have you developed a consistent collection management program?Your answer to the above questions is a leading indicator as to how well you collection management is. Sending an invoice doesn't always result in payment. Cold Water Comments - What They Are and How to Manage Them! Cold Water Comments - What They Are and How to Manage Them! Cold Water Comments are those comments, phrases and ideas that are meant to discourage, disparage, discredit and generally douse your ideas! There are several things you can do to keep those comments in someone's bucket or warm them up once they've been tossed. Planning for the Cold Water - With Towels in Each Hand! Step 1 - Identify the Possible Cold WaterMake a list of all the comments you have heard in the past and might expect to hear now. Catch Your Staff Doing Something Right A long time ago, I learned something about being a manager that has proven to be one of the most valuable lessons I've ever heard.You can't manage people from inside your office. Making Your Workers Your Partners There is an inherent conflict between owners and managers of companies. The former want, for instance, to minimize costs - the latter to draw huge salaries as long as they are in power (who knows what will transpire tomorrow). Use QA As Your First Step To Outsourcing Quality Assurance, or QA, is often given short shrift in a software development organization, especially when budgets are tight. When debating the software development budget at one of my software companies, the CEO finally asked, "Well, do you really want to hire a QA guy, or a programmer to add features to the software?"It was a tough choice. Eliminate Performance Anxiety Forever You've had many years of training in your craft as a performer, singer, actor etc. but if you still feel haunted by the ravages of Performance Anxiety your career may be in serious jeopardy. Business Knowledge Management In the last few years a lot has been written about Business Process Management, and about technologies supporting it such as BPMS, SOAP and Web Services. Most of these theories, tools and techniques refer to processes of a highly structured nature. How to Approach Group Decision Making GROUP DECISION MAKING -- IDENTIFY THE PROBLEM: Tell specifically what the problem is and how you experience it. Cite specific examples. The Comfort Zone The Comfort Zone I have a friend named Gene, a serial entrepreneur who currently runs a software business. Like many people, last year was a tough one for his company. Innovation Management - Producing Great Products, Motivation Creativity can be defined as problem identification and idea generation whilst innovation can be defined as idea selection, development and commercialisation.There are other useful definitions in this field, for example, creativity can be defined as consisting of a number of ideas, a number of diverse ideas and a number of novel ideas. Performance Reviews That Actually Improve Performance Employee performance reviews are one of the most dreaded tasks by most managers. It is hard to win here - you can never say enough good things, and one word of criticism is generally the only thing they will remember. 11 Strategies on How to Work in An Open Plan Environment Many work environments now are open plan, with only a few senior managers having offices of their own. This style of work can have great benefits for team building - fostering cooperation and collaboration and can be wonderful for developing the social aspects of teams, but on the flipside, it can drive some people crazy and be damaging to productivity. Action Learning: Its More Than OJT For centuries companies have used on-the-job training (OJT). OJT works because it follows much of what we know about adult learning theory. Micromanagement and Delegation Micro-Management and Delegation Recently I had a long discussion with a friend of mine about Managers and managing. She is a former HR Manager for several major companies and was bemoaning the fact that training for managers has been cut back so significantly in recent years and that managers no longer receive the type of help, guidance and assistance that they received just a few short years ago. Leadership: Stoking The Success Train Everyone wants to succeed yet everyone has a different perception of what success means and what it will bring into their lives. It is a means of gaining financial freedom for some and for others it means a healthy, happy family life. Why Management Kills Creativity Ten or so years ago, an international consultant, specializing in employee involvement and team development, published a story relating to workplace communication that is heartwarming and damning at the same time. In 1981, Peter Grazer was working as the project engineer on a construction project to modernize a silicon manufacturing facility in St. Provisioning/User Management System Upgrades: Part I -- Ten Reasons Why Not To Do An Upgrade Tommy Sherman daily monitors a helpdesk-provisioning queue for a large company. The current provisioning/user management system was written with homegrown software. Are You the Culprit? Are you a business, non-profit or association manager who pretty much ignores your organization's important outside audiences?If that's you, do you realize how difficult you're making it to achieve the important behavior changes you really need and want? I mean changes that lead directly to achieving your department, division or subsidiary's objectives?I'm talking about achieving new levels of membership applications; growing the repeat purchase rate; capital givers looking your way; attracting new prospects; expanding the list of organizations officially specifying your service and products; or suppliers newly motivated to meet your strict quality and delivery requirements.Start operating in your own best interest by taking a closer look at the public relations work underway on behalf of your unit. Stop Waste, Fraud and Abuse Each year, businesses write-off six percent of revenue to waste, fraud and abuse. But why would managers throw all that hard-earned money away when there is a reliable way to eliminate waste, fraud and abuse using accounting policies & procedures to create internal controls. Measuring Creativity, DIY style Creativity measurement is often required in order to benchmark existing competencies, monitor improvement, increase output and generally provide tangible and useable processes and structures for clients.Individuals can measure their own creativity, the creativity levels of their group, department or organisation. |
home | site map | contact us |