Mal's Musings: CRM: Where did it go wrong?
Business is about relationships, and better relationships mean improved loyalty, sales and profits.
By on Mar 20, 2010Business is about relationships, and better relationships mean improved loyalty, sales and profits. Over the last two decades, we have had an unprecedented growth in the capability and availability of technology. Much of this has driven the tools that are deployed to try and enhance relationship with customers.
But in the mix up and excitement about our ever growing technological know how, have we forgotten why we are deploying the technology? Have we complicated matters so much that we are struggling to make it work for our basic and clear needs?
CRM is going in the same direction as once useful tools that lost their way SWOT, Strategy, Segmentation, to name a few. There is still time to stop the bandwagon about CRM and remember what the C and R stand for.
We do not need a CRM tool, program or initiative. However, we do need to build stronger and more meaningful relationships with our customers. To this end, any tool and technology that aids our ability to do this is a welcome addition.
The aim of improved relationships with our customers must remain the focus, not a tool, process or technology. The premise here is that if we have better information about our customers through all the touch points they have with us, we can serve them better.
CRM philosophy is based on an assumption that better knowledge of customer behavior will translate into better deliverables and experiences for customers. To the extent that this occurs is the extent that value is derived from the approach, tool, etc. If knowledge does not turn into insight and action, then no benefits are gained.
For many CRM is a fad, partly because there is no clear vision for why they have taken the approach. Adopting technology for the sake of technology lacks emotion and purpose. A CRM mentality/program should be up and running long before a tool or technology is introduced. There are no tools that substitute for empathy, but many that can aid it.
Some leaders see CRM as a way of accelerating sales, which is fine as long as the part in the middle that deals with improving customer experience is elevated above that. The less for more mantra does not work with customers; the approach needs to deliver improvements. There is so much written and said about CRM but for the most part, a few million dollars later and customers can see no difference.
Sales people hate CRM but love their customers. What is the explanation behind this apparent paradox? Sales people are born with a good bullshit detector and they sort the wheat from the chaff effectively. They know you are more interested in monitoring their activities than delighting customers. So the process starts with trust missing.
Sales force effectiveness initiatives should be disguised as some sort of CRM. They will definitely throw the baby out with the bath water. It is about customers, therefore. We must be able to paint a convincing picture of how it helps us better meet customers needs.
To make CRM work, commitment from the top is required and it is important that the commitment is to enhance relationships and improve experience rather than just sales efficiencies. CRM did not go wrong; our perception of what it is did.