CRM is software.
This common misconception is why CRM initiatives have such a poor return on investment. Seriously, can you name a piece of software that solves everyone's problems? Software companies did a great job hi-jacking the term CRM after their SFA initiative failed and have made the term synonymous with software. They've been tied together so many times that they might as well be "Scotch" and "Tape".
If you stop to parse out the acronym, you get the words Customer Relationship Management. OK so the software manages your customer relationships for you. It must be pretty great! Even though the word "Software" is missing, many fail to realize that CRM is really about creating greater customer loyalty through a customer-focused way of doing business. Understanding your business through the eyes of your customers and prospects is a major part of what CRM is all about.
But, a complete CRM strategy must also incorporate some cold hard facts about your customers as well. Which ones are truly profitable so you can focus your efforts accordingly. Do you know what their needs are? Do you know what the like, and don't like about doing business with you, or with a competitor? Your strategy for implementing CRM must address all areas that contribute to your revenue, costs, profitability and lost opportunities.
If you or your company is thinking about CRM, stop thinking about software and starting thinking about this:
CRM is not software. CRM is your commitment to know your customer better. CRM requires you to develop a sound strategy to increase customer loyalty through a better understanding of those customers. CRM is about setting measurable economic goals, justifying the investment to achieve them and measuring them. CRM is about communicating a customer focused vision to your customer facing business units. CRM is about leading your customer facing business units to work together so your customer sees a clear and unified message. CRM is not about Sales. It's about Sales, Marketing, Customer Service and Customer Support working together.
See, I got back to software. It's now in its proper place....LAST. - 21151
This common misconception is why CRM initiatives have such a poor return on investment. Seriously, can you name a piece of software that solves everyone's problems? Software companies did a great job hi-jacking the term CRM after their SFA initiative failed and have made the term synonymous with software. They've been tied together so many times that they might as well be "Scotch" and "Tape".
If you stop to parse out the acronym, you get the words Customer Relationship Management. OK so the software manages your customer relationships for you. It must be pretty great! Even though the word "Software" is missing, many fail to realize that CRM is really about creating greater customer loyalty through a customer-focused way of doing business. Understanding your business through the eyes of your customers and prospects is a major part of what CRM is all about.
But, a complete CRM strategy must also incorporate some cold hard facts about your customers as well. Which ones are truly profitable so you can focus your efforts accordingly. Do you know what their needs are? Do you know what the like, and don't like about doing business with you, or with a competitor? Your strategy for implementing CRM must address all areas that contribute to your revenue, costs, profitability and lost opportunities.
If you or your company is thinking about CRM, stop thinking about software and starting thinking about this:
CRM is not software. CRM is your commitment to know your customer better. CRM requires you to develop a sound strategy to increase customer loyalty through a better understanding of those customers. CRM is about setting measurable economic goals, justifying the investment to achieve them and measuring them. CRM is about communicating a customer focused vision to your customer facing business units. CRM is about leading your customer facing business units to work together so your customer sees a clear and unified message. CRM is not about Sales. It's about Sales, Marketing, Customer Service and Customer Support working together.
See, I got back to software. It's now in its proper place....LAST. - 21151
About the Author:
Mike Boysen is a seasoned CRM professional and the creator of www.effective-crm-consulting.com where you can learn much more than the definition of crm in this article. Get a totally unique version of this article from our article submission service
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