Trade press, business press, technology press - all proclaim the rise and rise of customer relationship management (CRM). According to DataMonitor, the sales of CRM software will grow to US$11.9 billion by 2002. Companies large and small are scrambling to find ways of using their customer data to develop stronger, longer-lasting, more profitable relationships. The problem with CRM, like numerous other technologies that have been dubbed "the next hot thing", is that the hype surrounding the area is scaring companies into leaping before they look. Companies are rushing headlong into deploying CRM without first understanding how the software will effect their business. The bottom line is that successful CRM first requires determining what success means, and this requires criteria to be set out by which this success should be measured. | |
Mediocre Track Record Yet a full 60 percent of CRM implementations end with the company reporting they saw no or only minor improvements in their business. Just 12 percent say they've seen significant improvements. That's a pretty mediocre track record for a technology that's been deemed a must-have for business survival. But there are many companies that do achieve CRM success, and the key to their success is the way they take small steps, measuring and adjusting as needed. To do this, these companies set specific objectives and measurements that together make up those big, general goals like increasing revenues and decreasing costs. Ensuring that the chosen vendor delivers at each of these steps avoids costly mistakes that might not otherwise come to light until it's too late. Companies should be wary of CRM solutions that require a 12- to 18-month implementation. Over that period, the goals originally set out are likely to have changed. Look instead for solutions that can be implemented fairly quickly and then gradually customised and expanded to deliver specific, measurable results that build toward that overall goal. When companies are sure they know what success is, when they can reach success one step at time rather than by a single giant leap, and when they understand what they can and should expect from CRM vendors, they can avoid costly white elephants. It turns out that going back to basics is the best bet for unlocking the true value of CRM solutions. |
Published: Monday, January 13, 2003
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