CRM fails because of lack of strategy

MyCustomer.com
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The lack of clearly designed customer relationship management strategies within an enterprise reduces the effectiveness of deployment, according to US research firm Frost & Sullivan.

The report concludes that while though many companies have taken the first step of actually buying CRM technology, the software is then often underused internally. Many early users viewed CRM as the solution to all of their customer problems and were then let down when these overly high expectations were not met.

The main reason for failure to meet expectations was cited as being situations where the technology was not combined with a clear, enterprise-wide CRM strategy. Frost and Sullivan urges end users and vendors to communicate more and for training and education to play a larger part.

The study also found thatCRM has evolved from its original goal of making customer service representatives more efficient on the telephone, to making it easier for a customer to do business with a firm by providing more online self-service capabilities, knowledge transfer and information sharing.

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By admin
28th Jun 2002 23:34

As a professional in the CRM industry, one of the most common expectations I see from organizations investigating CRM is that the technology will somehow solve the challenges they are facing. While technology can certainly help, remember that technology is an enabler. If the business practices that the technology helps augment are poor, all the software does is help you execute those poor practices more efficiently.
Another primary reason for CRM failure is lack of dedication and buy - in from all levels within the organization. Implementing a CRM solution is not easy. Without 100% commitment to changing your business practices so that the customer is the focal point of your business the CRM initiative will have limited success.
CRM is about gaining an understanding of your customer’s needs and responding to those needs. Properly implemented, a CRM solution will help you identify your ‘cash cow’ customers and provide you with the tools to turn all your customers and prospects into cash cows. www.clientele.epicor.com

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avatar
By admin
28th Jun 2002 23:34

As a professional in the CRM industry, one of the most common expectations I see from organizations investigating CRM is that the technology will somehow solve the challenges they are facing. While technology can certainly help, remember that technology is an enabler. If the business practices that the technology helps augment are poor, all the software does is help you execute those poor practices more efficiently.
Another primary reason for CRM failure is lack of dedication and buy - in from all levels within the organization. Implementing a CRM solution is not easy. Without 100% commitment to changing your business practices so that the customer is the focal point of your business the CRM initiative will have limited success.
CRM is about gaining an understanding of your customer’s needs and responding to those needs. Properly implemented, a CRM solution will help you identify your ‘cash cow’ customers and provide you with the tools to turn all your customers and prospects into cash cows. www.clientele.epicor.com

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By admin
28th Jun 2002 18:12

Many firms take the software as an elixir. But before a firm commits some Milions of Dollars its the Top Management support, Clear Aims and Startegy they should work on.

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By admin
28th Jun 2002 18:12

Many firms take the software as an elixir. But before a firm commits some Milions of Dollars its the Top Management support, Clear Aims and Startegy they should work on.

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avatar
28th Jun 2002 16:11

My belief is that companies need to appoint a Chief Customer Officer (CCO) and give that person the strategic and tactical leverage necessary to implement a radical CRM change effort. As a change management and CRM change consultant, I've found that strategic planning efforts regarding customer service are not taken very seriously. CRM and service plans are given lip service in too many companies that claim they are on top of it. They are clearly not seen as strategic.

As long as top management does not understand the power and value of this strategy, they'll short change it. Hence, the crying need for top level education. To start, a book by Steve Diorio, Beyond "e": 12 Ways Technology is Transforming Sales & Marketing is essential. If top managers read this, they'll know why appointing a CCO is a crucial strategic choice.
The statistics of companies that strategically commit to CRM are mind boggling. Diorio and others document the best practices and measurable results of some of the best companies in the world.

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28th Jun 2002 14:29

CRM strategy is as rare as hens teeth.
I'm delighted that research confirms
this view.

The only thing I disagree with is that CRM
did not originate in call centres - and the view that it is equal to call centres or e-marketing or SFA is why there is often no enterprise wide CRM strategy in the first place!

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