CRM software is chalk full of best practices that will increase customer loyalty.
Unfortunately, that belief system is why so many CRM implementations fail. They are only implementing software. Just as in politics, marketing has been used very effectively by software companies, and resellers, to create a belief system based on sound bites. If you say it often enough, it becomes true, no matter how ridiculous it sounds.
CRM actually stands for "Customer Relationship Management." I don't see the word software in there, do you? CRM is actually a customer-centric way of doing business. It's a philosophy that if you truly know your customer, you will be able to deliver the products and services they need, instead of the products and services you need to sell. The end result should be more than customer satisfaction. It should be increasing customer loyalty.
But, a solid CRM strategy must also incorporate some cold hard facts about your customers as well. Which ones are truly profitable so you can focus your efforts accordingly. Do you know what their needs are? Do you know what the like, and don't like about doing business with you, or with a competitor? Your strategy for implementing CRM must address all areas that contribute to your revenue, costs, profitability and lost opportunities.
If you are considering that first step into the CRM abyss, or if your looking for some help getting out of it, start with this CRM Definition:
CRM is not software. CRM is your commitment to know your customer better. CRM requires you to develop a complete strategy to increase customer loyalty through a better understanding of those customers. CRM is about setting measurable economic goals, justifying the investment to achieve them and measuring them. CRM is about communicating a customer focused vision to your customer facing business units. CRM is about leading your customer facing business units to work together so your customer sees a clear and unified message. CRM is not about Sales. It's about Sales, Marketing, Customer Service and Customer Support working together.
And once you've done all of this, you will know what you need and don't need in a CRM software package. Don't develop a CRM strategy based on the features of some CRM software. Your requirements should be derived from your strategy, not from your software.
Unfortunately, that belief system is why so many CRM implementations fail. They are only implementing software. Just as in politics, marketing has been used very effectively by software companies, and resellers, to create a belief system based on sound bites. If you say it often enough, it becomes true, no matter how ridiculous it sounds.
CRM actually stands for "Customer Relationship Management." I don't see the word software in there, do you? CRM is actually a customer-centric way of doing business. It's a philosophy that if you truly know your customer, you will be able to deliver the products and services they need, instead of the products and services you need to sell. The end result should be more than customer satisfaction. It should be increasing customer loyalty.
But, a solid CRM strategy must also incorporate some cold hard facts about your customers as well. Which ones are truly profitable so you can focus your efforts accordingly. Do you know what their needs are? Do you know what the like, and don't like about doing business with you, or with a competitor? Your strategy for implementing CRM must address all areas that contribute to your revenue, costs, profitability and lost opportunities.
If you are considering that first step into the CRM abyss, or if your looking for some help getting out of it, start with this CRM Definition:
CRM is not software. CRM is your commitment to know your customer better. CRM requires you to develop a complete strategy to increase customer loyalty through a better understanding of those customers. CRM is about setting measurable economic goals, justifying the investment to achieve them and measuring them. CRM is about communicating a customer focused vision to your customer facing business units. CRM is about leading your customer facing business units to work together so your customer sees a clear and unified message. CRM is not about Sales. It's about Sales, Marketing, Customer Service and Customer Support working together.
And once you've done all of this, you will know what you need and don't need in a CRM software package. Don't develop a CRM strategy based on the features of some CRM software. Your requirements should be derived from your strategy, not from your software.
About the Author:
Mike Boysen is a seasoned CRM professional and the founder of www.effective-crm-consulting.com where you can learn much more than the definition of crm in this article.
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