Commit to a Solid CRM Strategy

Today's topic is (drumbeat, please) CRM technology. Specifically, we want to explore reasons why so many times a huge technology investment for CRM tools never pays off. Why do so many CRM deployments end up dead, never used correctly and abandoned by the company that had such high hopes when they initially deployed the technology?

Case in point--Albertsons Grocery stores. They have recently announced that they're abandoning their loyalty program. Apparently, grocery managers weren't taking advantage of the rich data collected every time shoppers swiped their card to get grocery discounts. Wow, think of the money wasted by this significant investment in building and deploying such a large loyalty program.

It's stories like Albertsons that give CRM a bad name--horror stories about firms that spent a bundle on CRM systems that users never use. I think it comes down to a simple fear of commitment. Firms need to embrace, shall I say, COMMIT to an environment that is focussed on the customer well before they even think about spending money on any technology. They need to understand that buying technology for the sake of technology or because they believe that they need to keep up with their competitors (which may be the case with Albertsons) isn't the best strategy.

Prior to any CRM investment, at the very minimum, these three simple questions should be answered thoughtfully and completely:

1. How will our customers benefit from this new program? In the case of grocery loyalty programs, in my opinion, the benefit was never clear. As a shopper, I know that I need to participate in order to get the discounts, but I'm never happy about having my buying habits open to scrutiny. Why can't I just get the discounts? Now, if they would take the program to another level (and some chains may, just not the ones I shop in), that would be different. If they sent me a coupon for a free box of laundry detergent just when they knew that I'd be needing it, that would be great. If they celebrated my birthday by giving me a nice bottle of wine that they knew I enjoyed, that would be super. As a consumer, I never see these types of personalized benefits, although the stores have all the data they need to extend them, if they choose to.

2. What will be our return on this significant technology investment? CRM was such the buzzword several years ago that many firms simply just jumped on the bandwagon without the due diligence that they would have given any other similar-sized investment. Any CRM investment needs to ultimately pay for itself. Whether it's increased lifetime value, new customers acquired, more customers retained, cross-sell, up-sell, whatever, goals need to be articulated up-front and tracked over-time.

3. Do I have commitment from all levels of the company? There's that pesky word again, commitment... But this is so true. Not only does the CEO need to be a customer advocate, but any users of the system need to understand the customer-focussed vision. If ultimate users of a CRM tool understand the vision behind it (and not just see it as another new technology step that they need to deal with to finish their job for the day), they may surprise you by devising new ways to use the tool to create customer satisfaction. At the minimum, they'll use the tool in the way it was designed.



Commit to a Solid CRM Strategy - To learn more about this author, visit Nancy Arter's Website.

Like this article? Share it with your friends

E-Mail | Print | More

Related Articles
Ten Commitments to Ethics and Personal Conduct For Business Coaches – From Your Strategic Thinking Business Coach
	Business coaching remains a rapidly growing profession and one of the impacts of this rapid growth is more scrutiny of the profession. There have been some predictions that business coaching and other fo...
Strategic Commitments To Build Trust With Clients According to Your Strategic Thinking Business Coach
	Today many small business owners are accountable only to themselves. And guess what? That means they are really accountable to no one. Your Strategic Thinking Business Coach strongly believes that accountability ...
Ten Strategic Actions To Change Your Marketing Mindset, From Your Strategic Thinking Business Coach
	Many small business people struggle with marketing their business services and products. This is particularly true with entrepreneurial business owners. They engage in traditional marketing endeavors and they simp...
Internet Branding
	A lot of people, especially small business owners, are wary of relying to heavily on the Internet for business means. Sure, it can drive traffic here and there, but why risk another dot com fallout like what happene...
The Single Most Effective Marketing Strategy to Get Clients and Marketing Professional Services
	The Book Yourself Solid Always-Have-Something-to-Invite-People-to-Marketing-Strategy is simply the most effective marketing strategy on the planet for the professional service provider.

---

Related Forum Posts
	Internet marketing email strategy
	best internet marketing strategies
	Book: Secrets of Six Figure Women
	Beyond Booked Solid by Michael Port
	internet marketing strategy article
	Book: Leave The Office Earlier: The Productivity Pro shows y
	Favourite Business Books
	Free MIT Courses