In a recent discussion, the Chairman of a small plc confided in me
'we knew our customers much better 30 years ago when I started the
business'.
That, if you like, is the challenge for CRM. Lower cost, more
powerful technology that offers the possibility of re-creating the
intimacy of one-to-one relationships across all of your thousands or
millions of customers. At the same time, the frenzied attempts by
software vendors to entice you to buy their systems has, perhaps,
diverted Customer Relationship Management from its true meaning. Too
often CRM means IT systems, not creating and maintaining relationships
with customers. The acquisition of a CRM system has become a 'silver
bullet' - another panacea for a company's problems. With such high
expectations, it is little wonder that there are anecdotal accounts of
CRM failing to deliver.
Successful implementation
We have initiated the CIM's CRM Knowledge Centre to address these
issues; 'how do you successfully implement CRM?' We have put ourselves
in the place of the manager charged with leading a company's CRM
implementation and asked ourselves what do they need to know? By
assembling a mix of advisors who have implemented CRM, we have
endeavoured to capture their experiences for the benefit of those
embarking on implementation or part way through the exercise. Our aim is
not to compete with thought leaders, but support the practitioner
implementing CRM in their organisation. Most fundamentally, and perhaps
most obviously, CRM will not compensate for a flawed business model or
sales strategy. CRM systems do not make up for poor segmentation and
inadequate customer propositions. Instead, implementation of CRM exposes
those weaknesses. The first question for any organisation is: 'Are we
ready?' Too often, implementation of CRM is started without
consideration of these issues. This is indicative of the frequent lack
of planning before plunging into implementation. The result is confused
objectives, lack of buy-in and wrongly specified CRM systems. The
imperative to get things done and meet senior management goals too often
allows scant time to consider sufficiently how payback will be achieved.
Active involvement
But undoubtedly the biggest challenge is the project management of a
CRM implementation. CRM is not the sole preserve of sales or marketing.
Implementation requires multi-functional working; IT, finance,
manufacturing. The challenge for the project manager is to get the
active involvement and support of all these functions despite their
often differing objectives and language. This demands skills that aren't
common; the ability to connect with and gain the confidence of all
relevant functions, and keeping the pressure on whilst retaining a clear
perspective of the project's goals. There are too few people who can
operate across internal boundaries and take a whole company perspective.
Their task is even harder when the project is international. Selection
and briefing of the project team is a vital success factor, as is
reflected in some of the articles here.
Gaining buy-in
Implementation can be made easier or harder by the team's awareness
(or lack of it) of their own company capabilities and culture. If your
company has little experience of large scale projects, is it wise to
attempt an ambitious CRM system implementation? Similarly if your
company comprises many largely independent business units,
group-wide initiatives may be hard to gain buy-in. Our experience is
that projects that use the company culture are much more successful than
those that challenge it.
Effective project management
Establishing goals that are feasible within your own company's
capability will give the CRM project much more chance of success and
much greater buy-in from around the business. Strong customer
propositions, sound upfront planning, working within your company's
capabilities and effective project management. All are obvious, but how
often do we see it in practice?
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Main aims
To identify the fundamental building blocks necessary to create an
effective Customer Relationship Management (CRM) programme.
To review the thinking behind CRM and the propositions made to support
it.
To collate best practice in implementing CRM and understand the
capabilities required.
To understand the broad lessons learned about the impact of CRM on
customers and the wider business context.
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Contributors
Steering Group:
Peter Jackson, KPMG (Chair)
Debbie Brown, BT
Sue Seager
Clare Briegal, Caradon Bathrooms
Graham Vann, CISCO
Andrew Robinson, Alliance and Leicester
Andy Jones
Ray Perry, Formerly CIM
Jenni Allen, Formerly CIM
Tess Harris, CIM Fellow
Rosemary Carter, CIM Fellow
Grant Oliver, CIM Fellow
Advisor: Professor Merlin Stone, IBM
Assistant: Simon Hathway
> To CRM Canon Homepage

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