MyCustomer.com recently asked me what my thoughts were about CRM — why initial CRM projects failed, what has changed to make deployments successful, and what the future holds for CRM. Here is the third and last part of my answers, as well as a link to the published article.
Question: It has long been suggested that ‘CRM’ is becoming increasingly opaque, with some ‘CRM vendors’ sharing few common features. Lithium, for instance, is categorized by Gartner as a ‘Social CRM’ player yet has no sales or marketing functionality at all. Has CRM become too much of a ‘catch-all’ category in your opinion, and what are the dangers of this?
Answer: I think back to the situation that happened a decade ago when the new “e” (electronic) channels became available as customer service channels. There was now customer service, and eService. Fast-forward 10 years. Electronic channels are now just another way of servicing our customers. What matters more is for a company to provide a consistency of experience across the communication channels in order to reinforce and preserve the brand.
I see this happening with social CRM. Social is just another way of selling, marketing, and servicing your customers. The vendors in the CRM landscape will change, with a tremendous amount of consolidation in the vendors landscape. The communication channels will change, but the fundamental value proposition of a CRM system will remain intact.
Question: How do you envisage CRM will continue to evolve as a technology and category?
MyCustomer.com recently asked me what my thoughts were about CRM — why initial CRM projects failed, what has changed to make deployments successful, and what the future holds for CRM. Here is the second part of my answers, as well as a link to the published article.
Question: What has improved/changed to make CRM implementations more successful now?
Answer: My flip answer is that we’ve all grown up. Our technology has matured, we now have best practice processes to scope, implement, and deploy CRM systems, and we understand the organizational commitment and achieve the ROI that CRM has been promising us for the last decade.
A more factual answer is that CRM systems are now feature-rich, with best practice and industry-specific workflows built into them. This means that customers can choose to adopt these best practices without needing many man-months of customization work. The CRM architecture has evolved to make them immensely scalable, more easily integratable with other IT systems, as well as easily changeable to keep in step with changing business needs (think about all the mergers and acquisitions that have happened in the past several years, and the IT changes that have had to quickly happen to preserve the customer experience). There are also SaaS solutions available to achieve a rapid time-to-value, and we see a significant uptick in SaaS CRM adoption. Vendors and system integrators have a proven track record of deploying, tuning, and optimizing CRM projects to achieve quantifiable ROI, and this knowledge can be easily leveraged.
Question: What typically characterized a CRM project 10 years ago? And what do you believe typically characterizes a CRM project today?
MyCustomer.com recently asked me what my thoughts were about CRM: Why initial CRM projects failed, what has now changed to make deployments successful, and what the future holds for CRM. Here is the first part of my point of view, as well as a link to a series of three published articles from MyCustomer.com.
Question: Nearly a decade ago, estimates suggested that a very large proportion of CRM projects were failing. What were the main problems undermining CRM projects in those days?
Answer: The main problems undermining CRM projects a decade ago were mismatched expectations with reality in three categories: technology, process and people.
The first CRM systems were not fully baked and had large feature holes that were not always communicated to the purchaser. The technology was not intuitive or easy to use. It was hard to implement with long time-to-value and hard to become proficient in its use. It was even harder to change the business processes that had been implemented — changes that were necessary to stay in line with evolving business needs.
CRM systems were also difficult to integrate with a company’s IT ecosystem, which meant that many actions needed to be repeated in multiple systems. (For example, consider a CRM system that was not integrated into a company’s email system. This means that a sales person would have to cut and paste a customer communication from their email correspondence into the CRM system, which was labor intensive and often not done. )