Realizing the Value of CRM
Successfully implementing a new CRM strategy requires much more than just installing a new piece of software. It requires a balanced effort with equal focus on the systems, people, and processes. Companies who view a CRM strategy as simply purchasing new CRM software typically fail to realize the desired value or return on their investment. These companies fail – not because the software didn’t work, but because they didn’t have a well thought out vision or strategy that took into consideration both their customer and employee engagement strategy. According to AMR research, companies that put a new CRM system in without analyzing and defining key business processes and objectives fail over 90 percent of the time!
Implementing CRM is commonly misunderstood to mean “installing CRM.” The problem with this view is that it fails to realize that in reality, CRM is a business strategy. Successful companies effectively leverage software and other technology to enable the CRM strategy and processes. Companies who fail at implementing a new CRM solution typically have spent significant amounts of money and time on technology without the proper vision, strategy, and processes being defined upfront.
A well-defined CRM strategy takes into consideration the entire organization’s customer engagement strategy. This includes a careful analysis of how existing customers are managed, customer service, and sales strategies to name a few. Defining how customers engage with an organization starts from prospective customers all the way through the customer life cycle. A successful CRM strategy will provide a system to support this full span. In addition, a successful CRM strategy takes into consideration the people within the organization. It includes change management, user adoption, organizational design and proper training. When these factors are included in the upfront and supported by technology, a CRM initiative will produce significant return on investment and competitive advantage.
Not only must a strong CRM strategy be defined, but it also must be supported and owned by the executive leadership team. People throughout the organization must hear from executives about how CRM is a critical initiative that generates significant return on investment and competitive advantage. Executives must stress that CRM is not just about technology, but about engaging customers to maximize customer profitability and long-term potential. A CRM initiative is not a short term project, but an ongoing commitment to perfect customer engagement. Executives must be ‘champions’ who push the organization to continually focus on improving customer strategies, reinforce objectives, and continually act as the messenger of the benefits to both customers and employees.