Secrets of CRM Success by Richard F. Gerson

Secrets of CRM Success

by Richard F. Gerson

08.Feb.2001

When you examine the success rates of many CRM efforts, the low numbers may shock you. Some analysts predict that up to 70% of current implementations are failing. Why? Many of these companies are "wowed" by the latest CRM technology, so they buy it and then try to force-feed processes and people into the way the technology works.

Technology is great, and it can be an integral part of CRM success. However, there are several things that should be done before a company even considers a technology platform. They are what I call the "4 Ps of CRM Success."

Planning. Develop a comprehensive plan for your CRM efforts. Lay out what you want the "program" to accomplish both initially and over the next 3-5 years. Unless you know exactly what you want to achieve with CRM and how you want to capture and use the data, you'll probably end up purchasing the wrong technology, or worse, have no program.

“The most critical aspect of CRM is the relationship that you establish with the customer. Your employees will be the ones to initiate and maintain those relationships. Therefore, make sure they know how to interact, influence and service your customers."

For example, if you plan to capture customer data from your Website, you set a goal to do this in three phases. The first is to just get the customer's e-mail address and name. The second is to get their physical address and phone numbers. And the third is to capture their purchase preferences. You establish a goal for each phase, such as capturing 80% of the visitors to your site during phase 1. Your goal for phase 2 is to turn 90% of those first-time visitors into customers, which means they will make a purchase and give you the required information. Your goal for phase 3 is to capture their purchase preferences so you can personalize their future visits as well as send them hard copy direct mail to influence repeat purchases.

When this is laid out in the planning phase, you can then look towards a software solution that will allow you to do this incrementally. Additionally, you will realize that your software solution must enable your people to track every customer contact and touch point.

People. Get your employees and partners involved and on-board with your CRM effort. This is a whole new company culture, and not everyone desires to be totally customer-centric. You should train your staff in customer service skills and the purpose and functions of CRM, while preparing them for the technological changes that will occur in the way they work.

You should establish two training protocols. The first involves communicating the culture-change effort along with the associated soft skills. The other involves preparing your staff for using the technology. Solicit their input to determine how they see the process working. By doing so, you can "fine tune" your training programs and change efforts to achieve maximum buy-in.

There is another reason the People "P" is so important. The most critical aspect of CRM is the relationship that you establish with the customer. Your employees will be the ones to initiate and maintain those relationships. Therefore, make sure they know how to interact, influence and service your customers. (And each other, after all they are each other's customers, too.)

Process. Carefully identify your CRM process. This is your service map of how a customer contacts your company, how you will capture the information, how the information is then processed, your methodology to contact the customer repeatedly, and your plans to consolidate information from all customer touchpoints.

Create flow charts, fishbone diagrams, service blueprints, and any other graphics you find necessary to develop—to ensure that everyone understands the process from the customer's point of view. Most companies complete a process analysis from their own perspective, and then attempt to make the customer fit into that process. You should experience the desired process as a customer would experience it. Therefore, ask your current customers exactly what they need, want and expect from you. Then ask them what they actually get from you. Chart the steps in the process and share that information with everyone. For once you agree on what the customer experience and how the process works (or doesn't work), you can begin to consider your software.

NOW YOU ARE READY FOR TECHNOLOGY.

Platform. It is time to select your CRM technology platform. Find one that works the way you do and that will be easily adapted to your way of serving the customer. You have already set out your CRM program goals, involved your people, and charted the process. You should find the software that will work best for you and your customers. Test out the various CRM technology packages (software and Web-integration tools) and determine which platform suits your company best.

When you know how to use the secrets of the "4 Ps of CRM Success," you are ahead of your competition. If you are among the companies that have not begun your CRM efforts, this approach will help you leapfrog your competitors. By doing it right from the start, you won't have to do it all over again.