CRM - What is your strategy?

A CRM strategy is often a checklist that management can pass off to a business analyst or, worse, to IT. There is an assumption that defining a "strategy" is the start point for a CRM initiative but in truth, a CRM strategy is often a means of formalising the critical success factors of an effective customer management effort. It is anticipated that by formalising and recording the processes that these can be enhanced and improved upon……….that often isn’t the case.
 
The following list represents the work that is required to establish a CRM strategy. But and it is a big but remember there are few people in even the largest organisations with the skills, interest and time required to tackle these tasks (some of which are projects in their own right).

• Establish the scope and boundaries of the initial CRM effort

• List the stakeholders and their responsibilities

• Imply a rigorous set of business requirements

• Identify the necessary data

• Define success metrics

• Optimize customer-facing business processes

• Explain to management what the costs and benefits

One thing in CRM is certain…If you don’t have personnel in place tasked to drive the implementation and take up of your system…it will fail!

The strategy should be considered more as an appropriate and useful opportunity for the company to define its overall objectives. CRM is a way to fulfil a corporate strategy. Effectively creating a CRM strategy is a waste of time. It shouldn’t require a strategy…..it fulfils one.

CRM failure rates were rife a few years ago because of the lack of a clear and consensus-driven CRM strategy and the lack of a set of defining principles—

Your executives already know your CRM strategy. They know the simple things such as more customers means growth. Better satisfaction equals less customer churn. Cost of acquiring new customers is many times that of maintaining a good relationship with an existing one. They understand that customer value is proportional to profitability.

What they don't necessarily know is what to do next. The questions keep coming back.  "What does CRM mean to us?" and/or "Where do we start?" or "What do we do now?"  Because of this strategy and vision presentations have given way to business case development and deployment planning meetings.

In the Final Analysis

CRM does not require a strategy. It should be considered as a component of your business process. It's important to align corporate requirements such as CRM as a part of your company's strategy.

It is also important to understand that taking on CRM as part of this process requires drive and funding. Clearly identified goals that provide the ROI will ensure that it can be sustained.