CRM, Choices, Consumerism & Competition

By Robert E. Grasing
President

In true whining Andy Rooney fashion, I pose this question: Did you ever wonder what executives are thinking when they say they are going to install CRM as a technology solution to improve their sales? I know that I do.

CRM (Customer Relationship Management) has evolved from being thought of as trendy jargon denoting the next big wave of technology-enhancing applications to an acronym for a strategic sales tool that "you must have to compete." There are many views on what CRM is and how to approach implementation. Some executives, consequently, are finding it difficult to understand where to start.

Here is a model for a CRM project lifecycle that can offer guidance:

1. Strategic Review

2. Business Process Review

3. Systems (Application) Selection

4. Package Implementation

5. Deployment

6. Test and Re-deploy

At last count, there are over 350 different software solutions to choose from and the list is growing. The difference between these software choices is unclear to many. It’s similar to the decision consumers make when buying an automobile. Purpose, price, value, features, dependability, style and often the class of car drive the buying choice.

Many executives view CRM selection as a software issue and have abdicated the CRM initiative to their Information Technology specialists. In my opinion, this is a mistake. It doesn’t allow for differences in strategy helping to direct the technology choice.

We are a consumer nation that relishes options, and with CRM our choices are growing by the day. Unlike buying a car, there’s no Consumer Report where we can examine what the incidence of repair is or quantify differences in handling.

CRM is a relatively new strategic approach, and competitors are not likely to reveal how they deploy the marketing information, how they calculate customer relationship value, and what advantages they have realized from using their new tool. Without an independent testing organization, your buying decision must be determined by making sure that the vehicle (CRM software) fits your strategic needs. Unfortunately many of the "independent" consultants that you may employ are strategically aligned with a particular software vendor. It is not an easy issue.

So what is the bottom line, Andy? CRM is a strategic tool (not a technology solution) that has the ultimate potential to significantly redirect the sales activities of your organization to become much more effective by concentrating on customer value. My advice is to think of the project as a strategic initiative and not as a technology solution.