The CRM Value-Add
The Issue: Organizations often lack an ongoing master data management strategy, with poorly documented,inefficient or fragmented customer-facing processes, and change them frequently in response to customer demand. Customers have poor experiences because their functionally fragmented processes fail to deliver a seamless macro process.
The Solution: CRM demands that the organization takes a fresh approach to business processes, rethinking how they appear to the customer, making them customer-centric and delivering greater value to customers and the organization.
Customer data, as well as the information derived from it, is key to a successful enterprise. CRMs allow data to be acquired, stored, analyzed, distributed and applied throughout the enterprise and, if necessary, to business partners in a timely fashion, thereby facilitating customer knowledge and effective cross-channel interaction.
CRM Strategy and CRM Failure
A CRM strategy outlines the project/program goals by delineating the connections between technology, skills, competencies, and organizational resources. In short, the CRM strategy is the link between the CRM vision to the direct value-add for businesses and customers.
The most common cause of CRM failures is an inability to conceptualize and execute a clear CRM strategy.
4 Steps to Curb CRM Failure
Set goals. These goals should complement corporate objectives.
Document your CRM processes and questions, but also ensure alignment with the CRM strategy.
Communicate the CRM strategy with regional, product, or business unit stakeholders to align their tactical requirements with strategic corporate objectives. Make sure to establish a clear communication plan in the early stages of planning.
Identify the relevant metrics for CRM goals, such as: acquisition, retention, profitability, customer satisfaction, and cost of service. Then, set baseline targets for each segment (by geography, if applicable) for the upcoming year. The goals and objectives vary from one customer segment to the next and, therefore, the metrics will vary too.
**Establishing metrics enables CRM managers to measure the success of segment managers, and to hold them accountable according to a more realistic outlook for that customer segment, rather than a standard set of metrics that may not be appropriate for every customer segment
Many organizations still view CRM as a technology deployment project. One must understand the importance of viewing CRM as a business strategy, rather than as a technology strategy.