miller
01-21-2008, 01:23 PM
By Richard F. Gerson, Ph.D., CMC, CPT
Making CRM successful is both an art and a science. In many cases, it also involves risk taking and gambling. Quite often, companies are unaware as to why their CRM has either worked or failed. What we do know, though, is that there are 3 HUGE mistakes every CRM implementer makes if their program is either failing or not proving to be as effective as they hoped. Once you overcome these mistakes, you'll find all your CRM efforts to be more successful.
MISTAKE #1: No CRM Value Proposition
Every business needs one. A value proposition tells a client why you are different from a competitor, what makes you special, and why they should do business with you.
Where CRM is concerned, you have to develop a compelling reason for customers to want to establish a relationship with you. You must find out what your customers value. Some will value a close relationship with you while others want only a transactional relationship. Your value proposition must be flexible enough to satisfy both these groups. If you use your CRM technology to “force” customer service on a customer who only wants a certain type of relationship, they will view your actions as “an invasion of their privacy”.
This will bring your CRM efforts with this customer to a halt. Develop a flexible value proposition that is adaptable for each group you serve and you’ll develop customer loyalty through your CRM program.
MISTAKE #2: Failure to Match Your CRM Technology to the Way Your Associates Work
Too many CRM implementations are technology led instead of being process or performance led. Companies purchase what they believe is the latest and greatest technology package that will make them “more efficient”. Then, they want their sales and service people to adapt to the way the technology works.
Overcome this mistake by mapping the sales and service processes first, and then purchasing CRM technology that will match those processes as closely as possible. The less your people have to adapt their entrenched behaviors, the more likely they will be to adopt the CRM implementation. You are dealing with both behavioral and culture change here, so make sure that your associates are kept in the loop before you buy.
MISTAKE #3: Treating All Customers Alike in Your CRM System
This mistake actually has two parts. The first is that we think we actually know who are customers really are. The second is that we treat every customer the same.
You will never totally know all your customers. No matter how many “fields” you put into your CRM application, you will never totally know your customers. They will always keep something from you, either intentionally or unintentionally.
Your goal is to learn as much as you can about your customers and develop your programs and services so they are specific to each customer’s needs. This leads directly to the fact that you must treat each customer differently. You have heard that you must treat each customer as if they were your last or only one. The reason is that they all have different needs. That's why you have to learn as much as you can about them, develop customized approaches to dealing with them, and then create and deliver programs and services that solve their problems.
Develop your CRM efforts by focusing on avoiding these three potent mistakes and you'll find yourself with more business than you can handle. You’ll also have more loyal customers who will generate greater profits and more referrals for you. Now, your only problem will be how can you and your CRM system handle the new capacity?
And wouldn't that be a nice problem to have to resolve?
http://www.crm2day.com/editorial/EEEFFAFlpECETLweDI.php
Making CRM successful is both an art and a science. In many cases, it also involves risk taking and gambling. Quite often, companies are unaware as to why their CRM has either worked or failed. What we do know, though, is that there are 3 HUGE mistakes every CRM implementer makes if their program is either failing or not proving to be as effective as they hoped. Once you overcome these mistakes, you'll find all your CRM efforts to be more successful.
MISTAKE #1: No CRM Value Proposition
Every business needs one. A value proposition tells a client why you are different from a competitor, what makes you special, and why they should do business with you.
Where CRM is concerned, you have to develop a compelling reason for customers to want to establish a relationship with you. You must find out what your customers value. Some will value a close relationship with you while others want only a transactional relationship. Your value proposition must be flexible enough to satisfy both these groups. If you use your CRM technology to “force” customer service on a customer who only wants a certain type of relationship, they will view your actions as “an invasion of their privacy”.
This will bring your CRM efforts with this customer to a halt. Develop a flexible value proposition that is adaptable for each group you serve and you’ll develop customer loyalty through your CRM program.
MISTAKE #2: Failure to Match Your CRM Technology to the Way Your Associates Work
Too many CRM implementations are technology led instead of being process or performance led. Companies purchase what they believe is the latest and greatest technology package that will make them “more efficient”. Then, they want their sales and service people to adapt to the way the technology works.
Overcome this mistake by mapping the sales and service processes first, and then purchasing CRM technology that will match those processes as closely as possible. The less your people have to adapt their entrenched behaviors, the more likely they will be to adopt the CRM implementation. You are dealing with both behavioral and culture change here, so make sure that your associates are kept in the loop before you buy.
MISTAKE #3: Treating All Customers Alike in Your CRM System
This mistake actually has two parts. The first is that we think we actually know who are customers really are. The second is that we treat every customer the same.
You will never totally know all your customers. No matter how many “fields” you put into your CRM application, you will never totally know your customers. They will always keep something from you, either intentionally or unintentionally.
Your goal is to learn as much as you can about your customers and develop your programs and services so they are specific to each customer’s needs. This leads directly to the fact that you must treat each customer differently. You have heard that you must treat each customer as if they were your last or only one. The reason is that they all have different needs. That's why you have to learn as much as you can about them, develop customized approaches to dealing with them, and then create and deliver programs and services that solve their problems.
Develop your CRM efforts by focusing on avoiding these three potent mistakes and you'll find yourself with more business than you can handle. You’ll also have more loyal customers who will generate greater profits and more referrals for you. Now, your only problem will be how can you and your CRM system handle the new capacity?
And wouldn't that be a nice problem to have to resolve?
http://www.crm2day.com/editorial/EEEFFAFlpECETLweDI.php