Avoid the Four Perils of CrmTopic :Avoid the four Perils of CRM Why is CRM important? Makes gathering customer data swiftlyIdentify the most valuable customersIncreasing customer loyaltyHelps in creating customized products and services How successful is CRM and why? 55% of all CRM projects don’t produce resultsRanked bottom three for satisfaction of 25 popular toolsReason for failure is that the managers don’t understand  points -what they are implementing, the costs incurred and time spent on themCost of implementing CRM = an estimated $60 million to $130 millionTime taken to implement CRM = anywhere between 90 days to 24 months Definition of CRM CRM is NOT a software tool that will manage customers relationshipsCRM is the bundling of customer strategy and processes to build  customer loyalty and increase corporate profitability over a period of timeCRM may be supported by relevant software Peril 1: Implementing CRM before creating a customer strategy Softwares can help in solving problem provided that a traditional customer-acquisition and retention strategy has been conceived of and implementedEffective CRM is based on old-fashioned segmentation analysisCRM without segmentation is like building a house without an architectural planTechnology that affects customers must be aligned with an overarching strategyCase study :NY Times Peril 2: Rolling out CRM before changing your organization to match For better relationships ,Company needs to revamp the key business processes  that relate to customersEnsure changes in the customer-facing processes and the internal structures and systems before investing to CRM technology87% failed CRM programs have been attributed to lack of adequate change managementAdopt customer-centric philosophies, change the structure and processes and alter the corporate cultures accordinglyCase Study :Square D & GE CapitalPeril 3: Assuming that More CRM technology is better CRM can be managed without huge investments in technology simply by motivating employees etcAssumption of a high-tech solution being better than low tech one is a mythWell functioning CRM programs dot all points of technology spectrum :low tech ; Mid tech & high tech Simple, inexpensive solutions can be more effective than complex, techie solutionsCase Study :Grand Expeditions –Healthy hybrid tech ;Square D –High Tech What CRM Really Comprises of ? Peril 4: Stalking, Not wooing, Customers Most important “to maintaining relationships”Focus on Build relationships with right customers the right wayRelationships are two-way streets; failure to build relationships with customers who value them means losing your customers to your competitorAvoid building relationships with disinterested customerCase study : Dallas Morning News Learnings from Failure CRM is not just another fad; it is a powerful idea, difficult to implementTry understand CRM and then implement it to avoid failuresSuccessful CRM depends more on strategy than amount spent on technologyEffectively lead and  manage change, showing CRM support teams how to achieve their  goals through new processesSum up : CRM is Customer Strategy which involves where employees  are going and why ? & to align business process supported by technology later Case Study : BMC Software References HBR Feb 2002 issueTHANK YOU!
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