CRM - Beyond the Hooplah (1,414 words)
Q: Why do more than 50 percent of CRM installations fail?
Hughes: Those who use it assume that a warehouse plus CRM software will produce profits. What produces profits is a communications system that selects the right prospects and builds customer loyalty. CRM assumes you can predict customer behavior using a warehouse. You cannot.
Instead of building a multimillion- dollar CRM warehouse, marketers would be advised to concentrate on building a database, and marketing to sectors of prospects and customers. That works, and costs only 10 percent as much as a CRM warehouse.
Doug Tanoury, CRM historian
Q: What should marketers think about when it comes to CRM?
Tanoury: In 2000 and after, the visionary solution has been to regard each customer contact as a failure of process or product and to address the root cause of those failures in order to design or engineer them away through process or product improvements. This "solution of un-service" is the future of at least 80 percent of the CRM customer contact industry. The remaining 20 percent are applications that generate revenue for companies and will function with highly skilled sales and knowledge workers empowered by analytical and knowledge-management technology to increase revenue and customer loyalty.
Companies that are now investing in traditional current CRM technology and initiatives already are behind the times and investing in an area that in the coming years will be engineered away. So, too, are companies that are addressing customer needs by typical service and contact models of the last 20 years.
Don Hinman, vice president and group leader for the Abilitec Product Group, Acxiom Corp.
Q: How is Acxiom facing its many challenges with mega-corporations as it tries to install CRM systems and integrate all the various silos of data into a common, unified data store, and then implement CRM systems?