Why CRM Implementations has not so Success?

Lack of a clear business case and objective

Lack of active sponsorship

IT-driven project

Thinking of CRM as a system

Lack of organizational readiness for CRM

Unrealistically wide project scope

Insufficient change management resources

Perform gap analysis

Organizational change and company politics

Absence of a proper operational pilot

Poor data quality

Define and document your existing business processes.

Skilled CRM consultant

CRM is a valid business concept with enormous benefits for both a company and its customers. However, it has been hyped and oversold to the point where many tend to see the tools and technology as ends in themselves, and underestimate the complexity of process and organizational change.

The very high failure rate of CRM project can be attributed mainly to a lack of due diligence on the part of the companies launching them. There are clearly identified critical success factors and risk factors, which are almost exclusively related to the companies running the project rather than to the vendors or consultants providing the products and services.

CRM as supported by pundits today is nothing less than an instrument for survival, required the radical transformation of people and process a great expense. These are impossibly high stakes and corresponded neither to reality nor to what is feasible in a general business environment.

The complexities of organizational change necessary to implement CRM successfully are so far-reached that the learning phase will still run for a number of years before we begin to see acceptable is different, such results will usually be dependent on the lessons learnt from a company’s own previous CRM initiatives.

Successful CRM implementation requires a great deal of research, documentation, planning, and evaluation. Many companies believe they cannot afford the time and resources required to complete these tasks. Yet, they are quick to devote time, resources, and money to a CRM effort statistically leads to failure. Remember CRM is a methodology for doing business; therefore, you must understand, control, monitor, and continuously improve how your company conducts business.

CRM market share

Customer relationship management (CRM) software revenue is projected to surpass $8.9 billion in 2008, a 14.2 percent increase from preliminary 2007 revenue estimates of $7.8 billion, according to Gartner, Inc. The market is poised for healthy growth through 2012 when revenue is forecast to reach $13.3 billion.

Market structure

List of top CRM software vendors in 2006-2007 with figures in millions of US dollars. Gartner study


CRM projects that were completed in 2006 and made use of external consultants and system integrators, according to a 2007 Gartner study.


On- premise CRM vendors

• SAP
• Siebel
• Microsoft Dynamics CRM
• PeopleSoft
• Onyx
• Pivotal
• Soffront
• SugarCRM
• C2CRM
• Commence
• TechExcel
• Sage CRM
• Maximizer

On-demand CRM vendors

• AbsoluteBusy
• Aplicor
• Coravue
• CentraView
• Entellium
• Free CRM
• HydraNet CRM-gx
• Microsoft Live CRM
• RightNow
• Salesforce.com
• Salesboom
• SalesCenter
• SalesJunction
• SalesPro CRM

CRM professional salary survey

CRM in a Nutshell

Customer relationship management - what exactly is it? Is it way of computerizing your business? Is it series of tools and techniques? Is it marketing tool to attract customer loyalty? Is it just terminology that every company should spell?

CRM in a nutshell – We are not here to know the meaning of Customer relationship management (CRM) or Types/Variations/Tools/Vendors/Technology of CRM.

Customer switching and disloyalty?
Poor service as a more common reason for switching company than price advantage. Customer switching and disloyalty are critical aspects behind any customer defection, Including:

Too little contact
Too little individual attention
Poor product information
Poor service levels and standards

The reality of today’s service-based and customer-focused economic world is in marked contrast to the attitude and priorities that previously existed in companies.

Priority of service - Top Management really concern?
Management should bring service related issues a regular boardroom discussion and spend time to understand and resolve service issues.

Is your company based on customer-centric and a product-centric policy, preferences, procedures? Does your company do the minimum required to solve a customer’s problem.

“Doing things right” is no guarantee of customer satisfaction, financial success or loyalty, but increases the probability

Customer is worth, customer for life?
Many companies spend about 75% of their marketing budget in a search for more new customers. Customer care is important as it allows you to build a strong, loyal relationship with your customers.

It costs substantially more to win a new customer than it does to keep a current customer

The longer a business keeps a customer, the more profitable that customer is for the business

When customer lifetime value increases, the more dependent they become on a company, and the less changes to switch company.

Select the right customers thought market research.

Know your purpose for being in business.

Move customers from satisfaction to loyalty by focusing on retention and loyalty schemes.

Develop reward schemes.

Customize your products and services.

Train and empower your employee in excellent customer service.

Respond to customers needs with speed and efficiency.

Always add value to customer’s relationship with you.

Maintain customer exit survey and conduct failure analysis.

Remember!

96% of unhappy customers never complain. But if their problem remains unsolved – they usually tell ten other customers.

Customer-focused selling and marketing with customer in the digital age

Customer-focused companies develop a high-level of customer satisfaction and high level retention.

Customer-focused salesperson applies 3 basic principles at every step of the sales process.
1. Focus on customer
2. establish credibility
3. persuade through involvement

One of the most effective and ultimately most successful ways of gaining new business is by referrals.

Understanding the buying criteria and the customers buying process, make company to apply business principles.

Interactive media marketing redefine the marketing strategy. Selecting right media or channel is a real challenge for a company.

More choice always makes less customer satisfaction. Internet medium is the biggest challenge to get quality customer information.

Internet is an innovative and less expensive marketing tool if you know how to apply.

The ten keys to excellent customer service

1. Whatever it is you do – do it fast it shows you care. When a customer says time is not important – ignore them with smile.

2. Positive communication – People would rather buy from a friendly and enthusiastic trainee than an indifferent expert.

3. Personal touch – personalized service what customer buy from a company. Make every customer feel like your most special customer.

4. Keeping customers – Customers are for life… not just for Christmas. Every year most business loses between 10% - 30 % of their customers and they don’t know who these customers are.

5. Turn complaints into opportunities – it is vital that to achieve customer satisfaction quickly… if you get the opportunity to fix a problem… you do it quickly. 40% of your perceived customer service is how well you solve problem. Resolving a problem quickly will turn 95% of unhappy customers into happy customers.

6. Create moments of truth – every customer want to be made feel good and solutions to problems. Treat every customer as your important customer.

7. Exceed expectations – The extra mail is never crowded. If u understand the cycle of sales. Suspect, Prospect, Client and loyalty or champion. loyalty lead you at least three other customers.

8. Systems are as important as smiles – Nobody is ever motivated to do an average job. A company’s greatest asset isn’t on the balance sheet. It’s the number of satisfied customers it has.

9. Follow-up and follow through – You won’t know how well you are doing unless you ask. Listen and learn your strengths and weaknesses. Know why your customers are your customers.

10. Deliver - When you are in contact with customer, you are in contact with whole company. When you define your job in terms of adding customer satisfaction and perceived value you will do it quite differently.

Final Thoughts……

Outstanding customer service means creating good feelings and solving problems in ways that exceed expectations.

People make the difference; if the customer hasn’t got smile – give them one of yours.

It’s not what you do… It’s the way that you do it.

”Customer relationship management” Continues process...