How Well Does Your Organization Stack Up Against CRM Best Practices?

The phenomenon of the social Web — which Forrester calls Social Computing — is forcing business process professionals to expand their thinking beyond the goal of optimizing a two-way relationship between an enterprise and customer to also include the simultaneous interactions that customers have among themselves. CRM is evolving from its traditional focus on optimizing customer-facing transactional processes to include the strategies and technologies to develop collaborative and social connections with customers, suppliers, and even competitors.

Notwithstanding this emerging trend, one challenge that I see remains constant. Organizations still struggle to define the right CRM strategies and effectively acquire and deploy the right CRM technology solutions that will meet their needs. Disappointment with CRM is usually the result of poorly conceived strategies that lack a laser focus on improving a specific set of business capabilities to increase revenues or reduce costs. To avoid wasting your time and money on ill-conceived CRM programs, beware of the two most common pitfalls of CRM plans:

  • No strategic focus on business value. Many companies have a grand vision to become "more customer-focused," but the implementation of this vision often lacks practical focus and recognition of the typical constraints (e.g., time, money, and politics) that must be taken into account to make the vision a reality. A CRM program should be tightly linked to business goals, focused on customer benefits, clearly identify the processes and constituencies that will be affected, and specify the associated information and functionality needs.
Read more