Gartner: CRM is in trouble – and it could be worse than we think
CRM is in trouble! That’s the message from the analyst’s CRM Summit. But despite the doom and gloom it’s still “a great time to be in the CRM business”. Confused?
- Data proliferation – We are producing approximately 15 petabytes of data every day. In 2009 alone we produced more than existed in the entire history of mankind up to that date. And that will increase dramatically over the next few years. "We are drowning in a sea of data and one of the things that will feature largely in the story of CRM will be better analytics," said Prentice. "Analytics is going to be increasingly important. We need it so that we can see more clearly. We can understand what has been done and what needs to be done and when, and what is needed and where, and what is being wasted and where, and what needs to be achieved. But we are not yet used to the scale of data."
- People have more choice than ever – "Drucker said that when we look back in 200 years, what we will see with the benefit of hindsight is not the sweeping changes in technology, but the fact that people had more choice than ever before and chose to execute those choices. It is that power – to choose my world, my way – that is at the root of the problem for CRM."
- Your online reputation is in the hands of the "collective" – "Online reputation is incredibly important but you cannot control your online reputation because it is controlled by the "collective" – all the groups and communities, the YouTubes, the Facebooks, the Twitters. And it has a big impact on what people think… You cannot control the collective."
- People don’t trust large enterprises any more – "Trust is a long-term problem. The story of the financial crisis was not the collapse of the economy, the real story was the collapse in trust. In the US, Edelman recorded the largest single drop in trust between individuals and enterprises that they have ever seen. Keeping trust levels high is critical because an Edelman survey demonstrated that 7 out of 10 people say they are more likely to buy products and services from companies they trust. And they are just as likely to stop buying from companies they don’t trust. If you want to get more customers and retain existing customers and find new ones you have to have trust."
- Social computing – the "consumerisation" of IT has meant that computers are no longer the preserve of governments and large organisations. And the big story now is the way that we use those devices. "This is not about devices. This is about relationships. This is about the way people communicate and talk – and they are talking about you and your products. This has changed the balance of power."
- Relationships will no longer be company-controlled, but more company-guided – "Customers tell us which direction to take, we’re just going to guide it... more and more you’re going to give the customer the impression that they’re on their own, doing it themselves..."
- Rather than focusing entirely on employee empowerment we’ll be empowering the customer – "They’re going to write their reviews they may even select the price that they are willing to pay – Procter and Gamble is a great example. You don’t like the toothpaste at this price point, what price point would you like it at? Perhaps you don’t like the size..."
- Metrics are changing – Rather than how many times you answered the phone, how many orders you took, what were your gross margins, it will move to what was the experience.
- Corporate data and information will be more accessible - "We’re going to have to give customers more and more access to what used to be the ‘private’ information. No you’re not going to give out price sheets or privacy information, but more and more of your corporate data is going to be transparent to the customer. They are going to know why you ran a test or waited six months to tell the general public."
- The mode of ‘we tell you’ communications is changing to participation – "If you find your firm does not foster, encourage and manage participation with customers you’ll probably be out of business."
- Customer insight is going to drive a lot of what we do.
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Neil Davey is the managing editor of MyCustomer. An experienced business journalist and editor, Neil has worked on a variety of newspapers, magazines and websites over the past 15 years, including Internet Works, CXO magazine and Business Management. He joined Sift Media in 2007.