Avoid the Four Perils of CRM

Customer Relationship Management

By Group 1 Christopher Anderson Cher-Elaine Bindley Deborah Burgess Henry Chen

Kathryn Bran Teik Joon Chor

CRM: Handy or Headache 55% of all CRM projects don¶t produce results -Gartner Group .

Peril 1: Implementing CRM before creating a customer strategy Segmentation Cost Management CRM works as a system to support the strategy Others « Customer acquisition & retention strategy Fact: CRM ranked in the top 6 for usage rate but bottom 3 for satisfaction out of 25 popular management tools .Management Tools: Global Results Presentation. Bain & Company 2001 .

Peril 2: Rolling out CRM before changing your organization to match Develop the CRM strategy to match business culture / structure / process? OR Develop the business culture / structure / process to match CRM strategy? OR Maybe both? That is why it takes so long to roll out CRM program Fact: It generally takes 24 months to implement CRM .

spending millions on the technology won¶t do better than just a ³Thank You´ card .Forrester Research Strategy Technology Sometimes.Peril 3: Assuming that more CRM technology is better Fact: Cost of implementing a CRM solution ranges from $60 million to $130 million .

Peril 4: Stalking. customers . not wooing.

Peril 4: Stalking. customers Right customers Right messages In the Right ways Just because you can contact customers doesn¶t mean you should Fact: 1 in every 5 users reported that their CRM initiatives not only had failed to deliver profitable growth but also had damaged long-standing customer relationships . not wooing.

Stable Top management vs.CRM: Something more ‡ ‡ ‡ ‡ ‡ Short term objective vs. External process Change vs. Localisation . Long term objective Internal process vs. Front-line Globalisation vs.

Conclusion: CRM Fit Strategy Fit Organisation Fit Technology Fit Target Fit .

Questions? .

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