Beyond CRM - why connected companies need better customer relationship management

Written by : Tim Vasko | Published on May 05, 2010
Category: 1to1 Connection Tips and Tools

Everyone today knows that CRM solutions save money and make moving information between employees, customer and clients much easier. Between 1999 and 2005, it seemed everyone was jumping on the CRM bandwagon - and with good reason - who doesn't want to streamline their data capture and make more money? However, more than 10 years into CRM, some interesting statistics start to emerge:

  • "55% - 75% of all CRM installs failed to achieve results or even go live..." (source: HBR 2001)
  • "70% of large scale CRM projects - costing more than $50mm do not achieve objectives ..." (source: Gartners Study, 2005)
  • "One in every 5 users reported CRM not only failed to deliver profitable growth ... but damaged long-standing customer relationships" (source: J- Banis Annual Survey, 2001)

Is this really true? A member of the CMAEON staff shared a story with me about CRM software. She had just started with a large, well established natural resources company, which was using Peoplesoft to manage its mandatory safety training. One of the first things she had to do was learn how to use the system: "So, when you take your first aid classes, you'll have to enter your records into People stupid." "People. stupid?" "Well, it's called PeopleSoft, but it doesn't work very well." What happened? How did a piece of software designed to make processes better end up with such a bad reputation internally. With CRM, it's really a question of intentions: people are not managed, and neither are customers. What you should be managing are your processes. In other words, YOUR business processes that build YOUR relationships should talk YOUR talk and walk YOUR walk. If your CRM is only focused on features that capture information, ignoring what you do with it, the technology you use, or what your employees and clients like, chances are it's not going to work for you. When a company implements a CRM system, it should work with the company, not change the company to work with the CRM system. If the focus is adapting the system to how you walk, and how you talk, then you can start streamlining processes to you can do MORE of the RIGHT stuff better.

Tim Vasko

Copyright 2024 © Tim Vasko
All rights reserved