NEWS
Companies are being urged to realise there is no such thing as a 'ready-made solution' when it comes to their customer relationship management (CRM) and it is something they must always work at and measure.
They are also being warned to remember that effective customer service can never be fully automated but rather technology can only scale what we already know constitutes good service.
CRM is playing an increasing part in the way businesses increase loyalty and revenue, while reducing churn and inefficiency. But companies must understand their customers and their own business before they make major investment in the technology to synch the two – understanding that investment in technology does not give them a divine right to customer satisfaction.
Scott Nelson, VP at Gartner, told attendees at the Gartner CRM Summit in London that "CRM is not a 'once and done' – it's a journey".
He said businesses must realise the relationship they have with their customers is unique. Comparison with other companies in the same industry is irrelevant, said Nelson, adding businesses should compare themselves with any organisation that has invested successfully in understanding their customers.
Nelson said: "Companies will spend a lot of time thinking about what is right for the firm but they won't stop to think about what the customer expects.
"Companies need to get more intelligent about what's going on with their customers."
He added: "Just because you are collecting all this data it doesn't mean you are using it most effectively," citing an extreme example of one financial services company which included 40,000 entries of the name 'Mickey Mouse' on its database.
Such large databases naturally require a degree of automation but Nelson warned companies against assuming 'the computer will look after it' and to constantly measure the success, or otherwise of their CRM and track "what's working and what's not working".
With a raft of vendors offering 'out of the box' solutions and CRM on-demand, Nelson said Gartner wouldn't be drawn on which type of offering will prevail.
He said: "We're not going to say one is better than the others but one will be better than the other based on your unique DNA," urging customers to realise the long-term benefits of getting the decision right and managing their CRM effectively.
But realising technology is the enabler, underpinning far more crucial human factors is key.
Nelson said: "CRM doesn't require technology," citing examples of store-keepers who know all their customers personally and remember their requests and their preferences. "But it does require technology in order to scale."
Don Peppers, founder of marketing consultancy Peppers & Rogers Group, said companies must realise the customer is everything to them and the function of their CRM must represent that.
He said: "If you do not have customers you are not a business; you are a hobby."
As such, systems must look to scale the abilities of the experienced store-keeper which customers find so compelling.
Using the example of hotels, he said businesses must remember which newspaper each customer takes, whether they drink tea or coffee and which type of pillows they prefer.
He said unsuccessful businesses will show "no memory of the customer's past and no respect to their future intention to buy".
Comments
There are 3 comments. Join the discussion
1. Sarah
As I learnt years ago, Customer Relationship Management is a business methodology which needs to run through the very fabric of an organisation, both with external clients and colleagues (internal customers).
In recent years it seems that CRM has been hijacked by the IT industry to sell solutions which claim to "do this for their client".
It seems to me that we may finally see that it is more than just IT.
Hopefully .... then we might get somewhere with a concept of real customer service. As we move towards a more service-driven world with greater choice for the consumer, it will become essential for organisations to understand and implement this concept.
2. Roger Huffadine
Relationship Management ? - huh. If I said to my misses Wow I just found a software package that will manage our relationship - guess what the response might be --- Well that is exactly what the main board directors should be saying to the software vendors who ply their wares and 'snake oil' as CRM. CRM is a culture and has absolutely nothing to do with databases and software. Databases and software are tools that can assist in the delivery of CRM but only once the culture exists.
I was intimately involved in the Call Centre Industry when CRM was first touted as a magic wand and unfortunately the same level of ignorance pervaded board rooms then - companies were buying worthless applications for megabucks in the hope that the application alone would solve problems. Its a bit like going out and buying a Pilots uniform and then expecting to be able to fly a Helicopter.
Interestingly in those days I mixed with a fair number of experts in business management and Call Centres and non of us could look at the plethora of solutions touted as CRM and come up with an all embracing definition.
3. Martin Bell
Talking about CRM, you dont get much better than a solution from a company called Visualfiles. Their knowledge & matter management applications are second to none, and when they sell you their software, they will learn all your procedures and computerise them, over time I can see this saving ours and many other company's, thousands if not millions of pounds. If you want to benefit from a complete CRM solution, give them a try. www.visualfiles.com