What is CRM and why do I need it? May 5, 2007
Posted by Dan Stuchbury in : CRM , add a comment“Don’t worry about the definition of CRM. If you don’t come up with your own definition you’re wasting your time” – Ed Thompson, Gartner Analyst.
This probably accounts for the fact that there are so many different definitions of CRM out there.
One of the first things to do when considering adopting CRM is to define what it means to your business, in as much detail as possible, remembering to consider why you are doing it, and what results you want to achieve from doing so. It is crucial that you fully understand what you want to achieve from your CRM programme, as without knowing this you will have no way of knowing how successful, or otherwise, the implementation has been.
Often high on a list of desires is to increase customer satisfaction, and understandably so. Research suggests that dissatisfied customers will tell 7-10 people about their experience, whereas satisfied customers will refer you to 3-4 new customers.
Successful CRM is about competing in the relationship dimension. Not as an alternative to having a competitive product or reasonable price - but as a differentiator. If your competitors are doing the same things you are (as they generally are), product and price won’t give you a long-term sustainable competitive advantage. But if you can get an edge based on how customers feel about your company, you can start to develop a more sustainable, long term relationship with them.