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About the Author
Dinko Bacun
Dinko is CEO at Caprio HelpDesk, which offers fully customizable CRM solutions for small business.
CRM: Technology alone is not the answer!
In the last few months there has been quite a lot of discussion on CRM (customer relationship management) solutions in the forums and ezines. Although it is extremely positive that people have finally started to talk about the one concept that will make the future of a business successful or unsuccessful, there are quite a few misconceptions about the term. Those misconceptions make people lose time and energy finding solutions in areas they should not be even searching, instead of concentrating on the really important things.
First, the simplest and the least obvious: Customer Relationship Management is about RELATIONS between people. Yes, business is done by people, not companies. Business did exist before computers, so relations between business people existed before computers, i.e. CRM was not invented with the invention of computers (just the name CRM was).
The good practices of relating with your customer did not become obsolete with the introduction of computers, though the TOOLS changed. So we use the same practices, but we take advantage of the possibilities that technology gives. It certainly is a different experience for the buyer if he is met on the web site by a human voice or keyboard chat (LivePerson, FireTalk, HumanClick) which is what technology now makes possible. The technology enables us to see how the customer is navigating through the site, and, if we want to, interrupt him and offer assistance. But I wonder whether the customer will welcome that. If you are a salesman in a brick and mortar store, you would watch the expression of the customer, based on that, decide to approach him or not. On the net you cannot see his face (it's questionable if he'll let you even if possible). In any case, CRM is NOT technology, so you will not find your CRM solution among SW vendors. Which brings us to the misconception number two.
Business people tend to search for a CRM solution among SW developers and vendors. "They know the technology, which I (the business manager) don't know, so they will know my needs and how to implement them". If a business manager would object to such a suggestion he would be labeled "old" and "overdue". In todays fast business lane, fortunes are made fast, and young managers tend to "buy" a CRM software solution. CRM should already be in place, functioning, BEFORE starting IT implementation (who has to forward which info to whom to be ready for who, when? Who has to respond to what in how much time?). CRM Software solution is only a TOOL for procedures already in place. Let me draw a parallel.
With the invention of cars, the way we conduct business changed. We could do much more business and do it better. But never once has it occurred to us to let auto designers lead and ENFORCE the way we are building relations with our customers. So why does everybody think that software designers are capable of that?
They might be brilliant SW developers, but still they wouldn't know how to enhance customer retention in a company manufacturing furniture. So why do we try this? Because it is easier not to lose time over enforcement of customer retention rules in our own company, when we can pay someone to do it. Because we have the money, but we don't have the TIME. Well, we can't do that. We cannot avoid our involvement in the process (and our hours, of course), although I know most of you didn't want to hear this. Which brings us to the misconception number three.