In the last few weeks, we have received many emails asking us for help in putting your CRM project into practice. In this article we are going to develop a simple methodology to help put CRM and relationship marketing concepts to work.
After having talked about the basic characteristics of CRM as well as the problems that are appearing in CRM implementations, and having already made the basic concepts clear, it is important to define a small methodology to put these concepts into practice.
In the previous articles, one conclusion was clear: CRM is a business challenge and not a technology one. Technology will help us to manage customer relationships in an operational way, but without the correct strategic focus, as well as people and processes, the project will never be successful.
It must be taken into account that CRM systems basically allow three things:
- Have an integrated and unique view of customers (potential and current), being able to use analysis tools. Manage relationships with customers in a unique way regardless of the channel that contacts them: telephone, website, personal visit, etc. Improvement of the effectiveness and efficiency of the processes involved in customer relations.
On many occasions I meet people who ask me if to improve their relationships with their clients they need to invest large amounts of money in technology and if this investment is a guarantee of success. In reality, investments have to be very "measured and clear. " What is really critical is having a global vision of how to improve customer relationships by integrating the different elements to achieve this. Whenever we make investments in the CRM area, we must have a clear return on investment.
Methodology
Conceptually, the methodology for the development of a project of this style will contemplate the following stages:
1. Definition of objectives and vision of the CRM project
It is necessary to define a vision ("what the organization will be like after the implementation of the project") as well as some global objectives of the project in order to be able to focus on these objectives and to be able to monitor them.
This definition must be developed after an initial analysis to find out both the strengths and weaknesses of the organization, this initial analysis being critical for the subsequent development of the project.
These objectives must be quite specific (within ranges). In other words, the objectives would be for example "to decrease the rate of customer churn by x%" instead of "to improve customer relations".
2. Definition of the CRM strategy
After having defined the vision and objectives, it is essential to define a strategy to achieve the defined objectives.
Obviously, in this strategy the definition of the positioning in each of the organization's customer segments is key, analyzing the current and necessary competencies as well as a timetable for their implementation.
At this point, it is critical to analyze each of the segments as well as the definition of the value proposition for each of them. Not all customers should be treated as a "uniform mass" but each segment has its characteristics and peculiarities.
3. Organizational changes, processes and people
It is necessary to modify the organizational structure and processes to achieve a customer-centric company. The processes must be redefined to improve their effectiveness and efficiency, giving the highest priority to those that have the greatest impact on customer satisfaction. At this point, technology will be key.
Likewise, it is necessary to introduce the values of a customer-oriented organization into the corporate culture. This is one of the critical elements in the success of a CRM project: the "passion for the customer" embedded in the culture of the organization.
Everyone in the organization must understand that "the customer is king" and that every interaction with them is critical to business results.
1. Information
Definition of correct practices for information management.
This is a very important part for the development of "customer intelligence" and thus getting to know more about customers, an initial step for the development of a complete CRM strategy based on customer knowledge and development of products and services to suit you.
It is also important to collect information for the improvement of processes as well as for the implementation of continuous improvement systems.
2. Technology
After having perfectly defined all the business objectives, processes, organizational structure, etc. it is time to start thinking about technology.
At this point it is very important to emphasize that it is absolutely necessary to know exactly the business needs in order to choose the technological solution best adapted to specific needs.
It is problematic both to choose solutions that are oversized for the needs and to choose a solution that after its implementation is clearly detected as insufficient for the needs of the organization.
3. Monitoring and control
Like any major project, indicators (KPI) have to be defined that serve to control results as well as decision-making in accordance with those objectives.
It is important to note that although we have a global project development plan, it is very important to take short and safe steps, analyzing the ROI of each of the steps and thus continue to motivate the organization towards the long path of being a «organization focused on the client".
