4 Perils Of Crm Essay

636 words - 3 pages

Summary of ‘Avoid the Four Perils of CRM’

Different managers may define CRM in many different ways. Some may say it is the use of technology and software to achieve a better relationship with their customers, however the right way to define CRM is that CRM aligns business processes with customer strategies to build customer loyalty and
increase profits over time. The difference here with this definition is that the terms technology and software don’t play an important role in defining CRM.

Research has shown that many managers stumble upon one or more of the four perils while trying to implement CRM. All these perils are basically caused due to a basic assumption that CRM is a software tool that will manage customer relationship for us. The truth however is that it isn’t all about that CRM is actually the combination of customer strategy and processes, supported by the relevant software, for the purpose of improving customer loyalty ...view middle of the document...

This is because Effective CRM is based on good proper segmentation analysis and is designed to achieve specific marketing goals.

2. Rolling Out CRM Before Changing Your Organization to Match

One of the most dangerous pitfalls is installing CRM technology before creating an organization that is focused on its customers.in order to develop a better relationship with its customers the company should first of all bring in major changes to business processes that relate to customers. A CRM rollout will succeed only after the organization and its processes such as job descriptions, performance measures, compensation systems, training programs,and so on—have been restructured in order to better meet customers’ needs. It is very important to bring in these changes in an organization before installing any type of CRM in the organization.

3. Assuming that More CRM Technology Is Better

Another pitfall in CRM is assuming that the more intense the technology being used the better the CRM. This is not true at all. Complex and advanced technologies are not the only major requirements of a successful CRM system. Customer relationships can be managed in many ways. The objectives of CRM can be fulfilled without huge investments in technology as well. The organization should motive its employees to be more aware about the needs of its customers. The general assumption of considering high tech systems to be better than the low-tech ones is basically a cost pitfall for and organization. A successful company should be able to implement and work with any types of CRM systems. The managers should be able to understand the basic needs and strategies before selecting the level of technology to be used.

4. Stalking, Not Wooing, Customers

This peril of CRM basically talks about the choices that we make in an organization while selecting their customers. They often end up trying to build relationships with the wrong customers, or trying to build relationships with the right customers the wrong way. This results in disastrous consequences. So in order to succeed in implementing any CRM Systems in an organization it is very crucial to understand the nature of the customers the company has to deal with.

Other Papers Like 4 Perils of Crm

Crm the Eight Building Blocks of Crm: Vision

525 words - 3 pages deliver to customers. This will help enterprises plan and prioritize their investments, which improves the chances of success. 1. Vision 2. Strategy 3. Customer Experience 4. Organizational Collabration 5. Process 6. Information and Insight 7. Technology 8. Metrics Analysis Understand What CRM and a CRM Vision Are Gartner defines CRM as a business strategy that maximizes profitability, revenue and customer satisfaction in these

Approaches of Crm Essay

1900 words - 8 pages approach puts the company and the customer in perspective. If there is no benefits to the customer, there can be no benefit to the company. CRM is reciprocal process. 3. Process, not software. The found is something the organization does, not something the IT group or the marketing department, does or the customer service group does. Process is the key to CRM. 4.Outcomes, not inputs. The focus in on outcomes. What is supposed to happen as a result of

Project Charter

1784 words - 8 pages sales activities, marketing, customer service, and technical support. 3. Improve sales department conversion rate 4. Increase new sales revenue 5. Increase add-on business 6. Reduce work redundancy Project Business Objectives The below Yourgard business objectives will be used to measure the success of CRM implementation project: 1. Improvement in customer satisfaction rating from a C+ to a B+ within 6 months of project

CRM Success

4611 words - 19 pages Email, Phone, Web or Self-Service................................................................... 3 Voice Enabled CRM.......................................................................................... 3 Step 5: Drive Sales Effectiveness......................................................................... 4 The Marriage of Marketing and Sales............................................................... 4 Sales Coaching: Guided Selling

Crm Implementation

1422 words - 6 pages ), Parvatiyar and Sheth (2001, p.5) and Kracklauer, Mills and Seifert (2004, p.4) 3 CRM consists of four dimensions: (1) Customer Identification – the process of identifying potential customers and also identifying the customers who can be profitable to the business and customer segementation (2) Customer Attraction – Focusing on the identified customers through various forms of marketing and seeking potential customers through marketing (3

Business - to - Business Marketing

4504 words - 19 pages & B2B and discuss in detail the design, implementation, and monitoring of CRM program in an organization with the help of examples taken from available literature and relevant case studies. Table of Contents Introduction 4 Characteristics of B2B 5 Business Market Classification 6 Different Type of Relationship 7 B2B Market Structure 7 B2B Demand 8 B2B Buying Behaviour 8 CRM Definition 10 Characteristics of CRM 10 CRM

Customer Relationship Management

1657 words - 7 pages alignment with ones corporate IT infrastructure. The following areas of technical requirements should be considered: a. Integration and connection requirements b. Processing and performance requirements c. Security requirements d. Reporting requirements e. Usability requirements f. Function-enabling features g. Performance requirements h. Availability requirements 4. Talking to CRM vendors: After one understands his required CRM

CRM Success

3025 words - 13 pages effects you were looking for there are a number of things you need to address. By adhering to Zync's five basic principles you will significantly increase the chances of succeeding with your CRM implementation and getting the increased sales, higher quality, better profitability, more satisfied customers etc. you were looking for (read about Alektum on page 4). Create a common view of the CRM project Focus on structured, implemented and accepted

Implementation of a Contact Resource Management (Crm) System

2215 words - 9 pages a CRM (Chipman, 2014); Availability: 99.9% uptime Scalability: Easily scalable to over 5,000 users and over 1,000,000 records Backups: We should be able to download full database backups on a daily basis Disaster Recovery: Redundant data centers with less than one hour failover time Cost: The system must cost no more than $X per month 4 of XI. Summary of project Aces Wild Casino Parties current business processes currently do not meet

Andreskhamis

921 words - 4 pages Panera Bread Restaurants Customer Relationship Management (CRM) Analysis Andres Khamis Final Exam 1.- Panera Bread is an American chain of bakery-café fast casual restaurants in the United States and Canada, offerings include soups, salads, pasta, sandwiches, and bakery items. Taking in consideration Panera’s target market, brand image and goals as organization, there are certain steps that must be part of the implementation of a CRM

Customer Relationship Management in Indosat

4806 words - 20 pages be used to explain and design the organizational process. 3. Information capture and alignment of technology Information capture and alignment of technology is characterized by the capability of transferring data into the form of information. 4. CRM strategy implementation the process and activities required for Implementing CRM in successful CRM strategy. ADVANTAGES OF CRM IMPLEMENTATION The advantages of implementing CRM is

Related Essays

Business Management Essay

3670 words - 15 pages Circle:The CRM value Cycle”, Institute for Business value-IBM Lawton, T.C., Michaels, K.P. (2001). "Advancing to the virtual value chain: learning from the Dell model". Irish Journal of Management 22:91-112, ISSN: 1649-248X. L. Fahey, R. Srivastava, J. S. Sharon, and D. E. Smith, (2001),” Linking e-business and operating processes: The role of knowledge management”. IBM SYSTEMS JOURNAL, VOL 40, NO 4, Magretta, J. (1998). "The power of

Crm Presentation Essay

1341 words - 6 pages Customer Relationship Management (CRM) Services, Support, Sales, Marketing Jasim January 2016 Table of Contents Section 1 What is CRM Section 2 CRM in Telecom Business Section 3 Table of Content CRM within IT Landscape Section 4 CRM Data Source Section 5 CRM and Business Strategy Section 6 CRM and Organization Section 7 CRM as A Differentiator Section 8 Current Telecom Challenges

Crm Project Essay

647 words - 3 pages the sales person? 1. Enhanced Customer Loyalty 2. Marketing and Sales Integration 3. Increased ROI 4. What are the top 3 benefits of CRM for the sales manager? 1. Saves Time 2. Saves Money & Security 3. Faster Lead Generation & Simplified Goal Setting 5. Do you think CRM will help you be more efficient in doing your sales job? Please provide an example Yes, I do highly think a good CRM can

Crm Software Essay

1459 words - 6 pages Sigrun Finnsdottir ACCT 367-01 Prof. Poyner 4/20/13 CRM Software: Customer Relationship Management Software Introduction to CRM Software It’s very important to a business to have good customer relationships; CRM Software’s main objectives are to attract new customers while maintaining and satisfying their current customers and trying to win back the trust of former customers. Customers are one of the most important variables for a