CRM Definition and Solutions

What is CRM?
What is the goal of CRM?
That sounds rosy. How does it happen?
Are there any indications of the need for a CRM project?
How long will it take to get CRM in place?
How much does CRM cost?
What are advantages of hosted or on-demand CRM vs. on-premise and vice versa?
What are the keys to successful CRM implentation?
Which division should run the CRM project?
What causes CRM projects to fail?
What industries are leading the way in CRM implementations?
Which industry is behind the curve?

What are the keys to successful CRM implentation?

• Develop your customer-focused strategy first before considering what kind of technology you need.
• Break your CRM project down into manageable pieces by setting up pilot programs and short-term milestones. Start with a pilot project that incorporates all the necessary departments but is small enough and flexible enough to allow tinkering along the way.
• Make sure your CRM plans include a scalable architecture framework. Think carefully about what is best for your enterprise: a solution that ties together “best of breed” software from several vendors via Web Services or an integrated package of software from one vendor.
• Don't underestimate how much data you might collect (there will be LOTS) and make sure that if you need to expand systems you'll be able to.
• Be thoughtful about what data is collected and stored. The impulse will be to grab and then store EVERY piece of data you can, but there is often no reason to store data. Storing useless data wastes time and money.

Which division should run the CRM project?

The biggest returns come from aligning business, CRM and IT strategies across all departments and not just leaving it for one group to run. In fact, it’s best for the business departments who actually use the software to take ownership of the project, with IT and the CIO playing an important advisory role.

What causes CRM projects to fail?

Many things. From the beginning, lack of a communication between everyone in the customer relationship chain can lead to an incomplete picture of the customer. Poor communication can lead to technology being implemented without proper support or buy-in from users. For example, if the sales force isn't completely sold on the system's benefits, they may not input the kind of demographic data that is essential to the program's success. One Fortune 500 company is on its fourth try at a CRM implementation, because it did not do a good job at getting buy-in from its sale force beforehand and then training sales staff once the software was available.

What industries are leading the way in CRM implementations?

As in most leading-edge technology implementations, the financial services and telecommunications industries set the pace in CRM. Other industries are on the CRM bandwagon include consumer goods makers and retailers and high tech firms.

Which industry is behind the curve?

Heavy manufacturing. As a rule, the further an industry is away from the end customer, the less important CRM is.