CRM Needs a Team to Succeed
Customer relationship management (CRM) solutions can prove to be invaluable
to an enterprise — but only when used properly. Ongoing CRM analysis
from Frost & Sullivan revealed
that even though many companies have taken the external step of furnishing
the technology, CRM solutions are often underutilized internally.
Frost & Sullivan Industry Analyst Katherine Shariq places the emphasis on
poor employee compliance, rather than technology issues. However, despite
employee resistance CRM solutions have had unprecedented success in the
sales, marketing, and customer service business units. The industry
generated revenues exceeding $11 billion in 2001 and is projected to surge
ahead, nearing $36 billion by 2008.
Frost & Sullivan emphasizes that early CRM usage was initially to make
customer service representatives more efficient on the telephone; and
current CRM strategies are designed to facilitate easier customer/enterprise
interaction.
CRM should make it easier for a customer to do business with one firm over a
competitor by providing more online self-service capabilities, knowledge
transfer, and information sharing. Organizations must be able to provide
customers the appropriate tools to foster healthy company/client
relationships.
Many early users viewed CRM as the solution to all of their customer
problems. However, this was not the case, as the technology was not combined
with a clear, enterprise-wide CRM strategy.
“Customer relationship management is as much about a corporate philosophy
and business strategy as it is software. It is a philosophy that places the
customers’ needs at the center of business operations, and this strategy is
used to increase profits by improving client acquisition and retention,”
says Shariq.
The research firm recommends that industry participants must take a
proactive role in seeking out new markets, and educating end users about the
operational strategies they must adopt. Meeting with clients and explaining
CRM’s potential is essential to overall market success.
“Departments that define their objectives at the outset and then put the
applications into place become satisfied and successful users — in
comparison to participants who expect technology to solve their business
concerns,” Shariq concludes.
Meanwhile, employee lag time can be critical in CRM as research from IDC finds that the success of CRM analytics
can rely on the real-time factor.
“CRM analytics coat the CRM process as nerves coat a body for the sense of
touch,” said Bob Blumstein, director of research for IDC9s CRM Analytics and
Marketing Applications research. “Successful CRM companies should
concentrate not only on minimizing clock time but also on the more elastic,
perceived delays that lower the chance of successful CRM analytics usage.”
Reprinted from CyberAtlas.
Robyn Greenspan, an independent researcher and speaker, is interested in innovation, market trends and information technology. She was a participant in the AI Summit and also took part in the IEEE International Conference on Edge Computing, International SOA Symposium series and the International Cloud Symposium series. She graduated from Temple University. She was previously the communications and research manager for the AMS, an internationally recognized professional association that advances knowledge in the IT and business management areas.
