Аманах Ювилиати: «7 Success factor of introduction CRM»

Does CRM bring benefit to company? And the certain answer Yes he does! In the digital age, CRM has become a useful way to market effectively, to increase sales and to improve customer service, increase customer loyalty and profitability. CRM as a long term business strategy that focuses on collecting customer information, treating and providing service excellent for various customers, and using these to increase customer loyalty and profitability. Over the past decades, it has been argued that businesses across all sectors should move toward interactions, relationships, and networks.

Such a marketing approach is very different from the more traditional one of marketing through the 4Ps (i.e., product, price, place, and promotion). The CRM has been considering in many different markets firm for the customer market– with research suggesting that customer retention leads to increased market share and bigger profits. CRM is a concept that refers to the strategies used by an organization to improve business relationships with customers. Think of CRM like a digital Rolodex. It keeps peoples’ contact details — names, phone numbers, addresses, etc. — in one place, making it a powerful resource for marketers. But it also streamlines sales activities and optimizes business processes.

CRM Uses:

94% of businesses who have CRM use the software for contact management.

65% percent use it for lead nurturing,

59 percent for email marketing,

59 percent for sales forecasting

and 9% for customer service. [1]

When asked about what they plan to achieve from using CRM software, 74 % of users said improving customer service. 60% of CRM users hoped to boost customer satisfaction, 56 % wanted to improve customer retention and 54 % wished to accelerate sales. More businesses rely on CRM than ever before. In 2016, CRM usage increased from 56 percent to 74 percent, and a huge 91 percent of businesses with more than 11 employees now use this software. CRM applications help businesses nurture customers, improve sales and drive revenue, making it a crucial component of any marketing campaign.

As a result, the growth in demand for CRM solutions has been increasing. Gartner estimated that the market for CRM software exceeded $7.4 billion (£3.6 billion) in 2007, up 14 per cent from 2006.  Forrester estimated moderate growth in the CRM industry through 2010. Forrester suggested that worldwide revenues for CRM solution providers reached $8.4 billion (£4.08 billion) in 2006 and would continue to grow to $10.9 billion by 2010. Forrester anticipated that overall CRM spending will remain steady, with services taking an increasing share of vendors’ revenue.  In an international survey of 1,337 companies who have implemented CRM systems to support their sales force, CSO Insights has estimated that only 25 per cent reported significant improvements in performance. According to a Gartner survey, about 70% of CRM projects resulted in either losses or not bottom-line improvement in organization performance. [2]

  1. Marketing: managing the relationship with the client, knowing the client’s buying habits, understanding the client’s needs, are all things within the marketing process. Sales: Even though managing the relationship with the client has always been a natural aspect of the sales process, the CRM strategy has an important impact on sales channel process and after sales service process.
  2. Services: Within the CRM strategy environment, the relationship with the client is the elemental aspect. It follows that all issues related to services or customer services or high quality of service become critical.
  3. Define and communicate CRM strategy: Based on the concepts of CRM the absence of a clear CRM strategy or the lack of developing such a plan could cause the failure of CRM implementation. It should define strategy from operational CRM, analytical CRM and finally to cooperative CRM.
  4. Customer involvement: Direct and indirect Involvement of customers helps the organization to analyze the customer relationship life cycle and consequently find the areas of problems that can be managed by CRM.
  5. Personalization process: Personalization is a key to ambient computing; community and Personalization are closely related. Personalization is needed to make the information gathered from different customer communities to be usable.
  6. Time and budget management: Before implementing a CRM time and budget should be controlled and optimized. [3]

The process component dominated seven success factors: marketing, sales, services, define and communicate CRM strategy, customer involvement, personalization process, time and budget management.

Literature:

  1. Hogan, P. what is customer relationship manager. (online resource https://www.tenfold.com/what-is/what-is-crm access on 21 May 2019)
  2. Foss, B. Stone, M. Ekinci, Y. 2008. What makes for CRM system success – or failure?. Journal of Database Marketing &Customer Strategy Management vol 15 (2) pp 66-78
  3. Arab et al. 2010. A survey of success factor for CRM. Proceedings of the World Congress on Engineering and Computer Science 2010 Vol II WCECS 2010. San Francisco, USA.
  4. Aleksander Manin (2019) Lesson of CRM- Lesson 1 Introduction CRM. Higher School of Economic

7 комментариев

  1. Спасибо автору за такую интересную статью!
    Мне понравилось, что приводится конкретная статистика относительно масштабов и результатов внедрения компаниями систем CRM. Удивило, что такое небольшое число компаний используют CRM для обслуживания потребителей, когда в современном мире сам товар начинает выступать причиной для оказания клиенту дополнительных услуг.
    Можно предположить, почему 70% проектов по внедрению CRM в итоге оборачиваются убытками или не приносят значительных результатов. Возможно все дело в том, что компании (в основном их высшее руководство) ждут немедленных результатов от внедрения системы CRM, а как уже отмечала Влада в своей статье (Аудит, планирование и управление CRM-проектами), для окупаемости инвестиций в CRM должно пройти как минимум 2 года, поэтому спустя непродолжительное время компании отчитываются в неудовлетворительных результатах от попытки внедрить системы CRM в свою деятельность. Помимо этого, успешность внедрения зависит от результатов проведенного аудита CRM, четкого установления целей и задач использования CRM, разработки детального плана, который бы согласовывался с ключевой стратегией компании и который имел бы конкретные сроки выполнения каждого этапа, а также высокий уровень контроля за исполнением.
    Было бы интересно рассмотреть пример реальных компаний, в которых наблюдаются перечисленные автором факторы успеха внедрения CRM, однако вполне вероятно, что очень трудно найти информацию о внедрении CRM в компании с детальным рассмотрением самого процесса.

    Нравится

  2. First of all, let me thank the author of the article.
    It is a pleasure to read such interesting posts about CRM.
    It is difficult to argue that CRM systems and CRM tools becomes more popular today especially among huge companies nevertheless more you read more you understand that CRM system and CRM philosophy in general are a complicated process requiring a high level of preparing and understanding of aim as mentioned in the article.
    I would like to give examples of involving of CRM systems:
    — Pony Express had big problems with manger communication with clients. CRM system helped sales cycle up to 25 days, moreover CLV has risen in 5 times.
    — Consulting company Forrester decided to systematize information of their clients, to make a comfortable access to data and reduce unnecessary operation that led to 1,8% revenue growth.
    There are many cases of positive influence of CRM involving but it is important not to forget about disadvantages:
    — It eliminates the human element from the business equation;
    — There can be security issues with CRM software;
    — Employees must go through a learning curve with the new system;
    — Data can still get lost if the database isn’t properly maintained etc.
    All these risks must be taken into account otherwise companies will bear huge financial costs.

    Нравится 1 человек

  3. First of all, I want to thank the author for such an interesting article! She is absolutely right – CRM is one of the best ways to make a company work more efficiently and increase its competitiveness.

    I agree with the factors of success the author mentioned in the article, but I would like to add some more. First, there should be a unified CRM-system in multinational corporations and other huge companies. For example, TUI Group has several different databases and uses different CRM-instruments (each in its region) and that’s why it is difficult to follow a single digital strategy. Second, it is necessary to teach employees to use the CRM-system correctly, so that they take maximum from it. The last but not the least is that companies must provide the confidentiality of customers’ data – it must be used very accurately.

    What is more, I must mention that CRM replaces employees, companies now need less analysts, SMM-managers, employees in call-center, etc. It is unavoidable, even Jack Ma said that a huge number of professions will no longer be needed in 20-year time, but anyway companies should take this question into consideration.

    Нравится 1 человек

  4. Thanks to the author for this article!

    There is no doubt that CRM as a business strategy doesn’t go on its own — it is integrated in an overall business strategy. Therefore, speaking of successful CRM strategy implementation, it is not only about software to collect clients data, but also how to work with it along with other business departments.

    Though the article is fulldilled with numbers and statistics, it would be great to examine how real businesses implemented successful CRM strategy and highlight key factors (7 factors mentioned in the article).

    Besides this, to my mind factors highlighted in the article are more relevant to tactical part of implementation of CRM, whereas preparation process is also important. For successful implementation of CRM it is vital to set a correct and clear goal — what is the main reason for CRM implementation, what do we want to avhieve by embedding it in a company. Of course, it should be set in accordance with a key goal of a company.

    I also think that successful CRM implementation is based on an individual approach to each kind of a company. This means that both on a technical and managerial levels CRM should match the main demands of the company in terms of customers and internal processes.

    Нравится

    1. Маргарита!

      С удовольствием прочитал весь текст комментария.
      Мне понравились те критические заметки, которые Вам удалось дать. Они отражают тематику статьи и прекрасно дополняют основной текст. Добавить мне нечего, разве что только поставить Вам ЛАЙК!

      Нравится

  5. Очень интересный пост, как и последовавшие за ним комментарии. Единственное, он не вполне соответствует заявленной теме, поскольку здесь в большей степени ожидалось обсуждение различных подходов к оценке эффекта от внедрения CRM, а также реальных кейсов, по которым подобные оценки были получены. Хотя, надо признать, тема эта очень сложная и надежных оценок в этой области не очень много..

    Нравится

Добавить комментарий

Заполните поля или щелкните по значку, чтобы оставить свой комментарий:

Логотип WordPress.com

Для комментария используется ваша учётная запись WordPress.com. Выход /  Изменить )

Google photo

Для комментария используется ваша учётная запись Google. Выход /  Изменить )

Фотография Twitter

Для комментария используется ваша учётная запись Twitter. Выход /  Изменить )

Фотография Facebook

Для комментария используется ваша учётная запись Facebook. Выход /  Изменить )

Connecting to %s