Everything You Always Knew About CRM But Never Dared To Say
For some years now I have been a very close observer of the CRM market – hype and all. Yet the more I read and see, the less I believe. To me CRM is like AIDS: nobody seems to be genuinely interested in the truth anymore; lies, politics and – above all – profits drive an insane PR machine that feeds on people and their tragedies in order to survive.
Back in 1999 the Gartner Group said that “more than 60% of all CRM initiatives fail”, and I believe this figure being closer to 90% in 2001. As I am writing this, CeBIT is in full swing here in Hannover, Germany, and nearly software vendor and consultancy booth has the letters CRM written all over.
If there really are so many experts out there, why such a massive failure rate? The simple answer is that CRM is first and foremost about You! It’s about rehumanizing the relationship between people, be they inside or outside the organisation. The resulting efficiencies and insights greatly contribute to a healthy bottom line, but they are usually found in places other than the call center or your direct marketing campaigns.
If you are really interested in CRM and need some helpful advice, I hope the following tips guide you in your journey towards true CRM.
CRM starts with yourself
We live in a world of quick fixes; speed rules! Deep inside we all know that these quick fixes merely address the symptoms, not the cause. So before you even start evaluating consultancies or systems, re-evaluate yourself. Do you live an energetic, healthy, holistic and sustainable life or is your tank empty, lights flashing red? Do you eat properly? Sleep well? Breathe deeply? Exercise regularly? Meditate? Spend enough time with the family? Take regular breaks?
No, this is not a fitness column, but the essential guide to successful CRM. We all seem to take our body and mind for granted, but the time has now come where we have to step back and address the real issues rather apply some Kool-Aid.
Our body and mind are of extraordinary strength and capacity, but if you continue to abuse them, don’t be surprised if they give up on you, too – never mind your CRM-related projects and, dare I say, results!
Holistic is in – myopic is out
Ok, one more time: CRM is not about sales force automation, call centers, data warehousing and fancy data analysis. Sure, they form part of the IT segment of a CRM model, but they aren’t the one and all. CRM is about a holistic view of the organisation and a holistic approach to business. Everything is connected, no matter how small or seemingly insignificant.
It’s laudable that your call center functions well, but what’s the point if the message of customer orientation and service hasn’t sunk in with your shop floor staff or branch manager?
What’s the point of even trying to establish customer loyalty if it’s not the managers or directors who are calling the shots, but institutional investors and their seemingly insatiable greed for higher returns?
A proper CRM strategy involves everying inside your organisation: from top management’s vision and guidance to relevant and efficient IT infrastructure; from the cultural and personal skills of your staff to remuneration and role responsibilities; from non-sales oriented customer service to a profitable yet socially responsible business model. Isolate IT at your own peril!
What you can get is not you see
As long as a customer’s their financial status is all you go by to determine their future value (life time value), then you will never reap the full benefits CRM can bring.
You have to look beyond the obvious, because behind a financially insolvent customer may lie a son or daughter with extraordinary talent, something that -if nurtured and cared for- can be of tremendous value to your company. Just don’t expect your database to spit out information like this. That’s something only a real personal relationship will reveal, and relationships, as we all know, are about trust, respect and openness, not money.
Question conventional wisdom
There’s a lot that needs to be said regarding conventional wisdom and AIDS, even more when it comes to CRM. “Who benefits?” is what you need to ask. Is it the vendors or the consultants, or both? Do you benefit, too, or are you left with a hefty fee and some complex software yet even less time and more stress? Proper CRM should leave you relaxed and informed, energetic and with more time than ever. If not, you are doing something wrong and should again step back and ask: “Who benefits?” You’ll be surprised what you will find.
Look in places you least expect
Everything technical and procedural about CRM is known, from 1-1 marketing campaigns to database structures. So why does CRM still fail on such a massive scale? Because companies continue to squeeze every possible cent out of their customers, slash work forces and deploy technology on a massive scale in order to make CRM happen, yet don’t seem to be worried at all about sky-rocketing staff turnover, ever-increasing medical costs, astronomical consultancy fees or a IT maintenance bill that equals the GDP of a small African country.
CRM is not only about the customer. In fact, although she should be at the heart of any company’s mode of operation, she plays the least significant direct role in CRM. Superior customer management and profitable loyalty is the result of a healthy organisation that sees itself as an asset to society instead of a liability.
Again, take a step back and look in places you would normally not relate to CRM. This is where the real treasures are hidden, especially when research has revealed that it costs about $50.000 to replace an employee. Maybe that’s where your CRM efforts should start.
Lateral thinking, peripheral action
CRM happens when you get a number of things on the periphery right. It happens when you don’t specifically aim for it; it happens when IT is just as important as anything else; but it happens first and foremost when you are true to yourself and place long-term customer loyalty and respect over short-term profit targets.
As long as companies try to rid themselves off a headache by popping a pill, you will be the victim of the side effects. It’s time you started looking at CRM with different eyes, and maybe one day there will be a 60 or even 90 percent success rather than failure rate.
