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When Will CRM Be Defined Properly?

By Mike Boysen

CRM is software.

Unfortunately, that belief system is why so many CRM implementations fail. They are only implementing software. Just as in politics, marketing has been used very effectively by software companies, and resellers, to create a belief system based on sound bites. If you say it often enough, it becomes true, no matter how ridiculous it sounds.

CRM actually stands for “Customer Relationship Management.” I don’t see the word software in there, do you? CRM is actually a customer-centric way of doing business. It’s a philosophy that if you truly know your customer, you will be able to deliver the products and services they need, instead of the products and services you need to sell. The end result should be more than customer satisfaction. It should be increasing customer loyalty.

CRM is also a business philosophy which is based on an acute understanding of your customers. Knowing which customers are profitable and which customers are not. Knowing what they need, and what they don’t need. A solid CRM Plan will help you manage the four bottomline corners of your business: Revenue, Costs, Profitability and Lost Opportunity Costs.

If you or your company is thinking about CRM, stop thinking about software and starting thinking about this:

Do you really believe that the front office can be run on best practices? Who’s best practices? A software developer? If you really want to be more competitive maybe the only differentiator left is customer loyalty, not a software package. Do address this will require a lot of work. Sorry, installing software and having two days of training isn’t going to cut it. You need a comprehensive strategy that will clearly lead your customer facing employees, and also dictate the few processes and workflows that can be supported with software.

And once you’ve done all of this, you will know what you need and don’t need in a CRM software package. Don’t develop a CRM strategy based on the features of some CRM software. Your requirements should be derived from your strategy, not from your software.

Mike Boysen is a CRM expert and a seasoned CRM professional and the creator of www.effective-crm-consulting.com where you can learn much more than the crm definition in this article.

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Article Citation
MLA Style Citation:
Boysen, Mike "When Will CRM Be Defined Properly?." When Will CRM Be Defined Properly?. 12 Feb. 2010. uberarticles.com. 4 Sep 2014 <http://uberarticles.com/miscellaneous/when-will-crm-be-defined-properly/>.

APA Style Citation:
Boysen, M (2010, February 12). When Will CRM Be Defined Properly?. Retrieved September 4, 2014, from http://uberarticles.com/miscellaneous/when-will-crm-be-defined-properly/

Chicago Style Citation:
Boysen, Mike "When Will CRM Be Defined Properly?" uberarticles.com. http://uberarticles.com/miscellaneous/when-will-crm-be-defined-properly/


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