Client Relationship Management

Client Relationship Management (CRM) needs to be at the center of most businesses. Digitally administered CRM, however, creates “privacy” complications. These have become extremely sensitive and litigation prone as the healthcare industry adapts digitally based administration systems. Nevertheless, digital CRM--if secure--can mean better results, cost savings, increased profits and stronger morale.

CRM Investment Worldwide
     Products and services related to customer relationship management (CRM) totaled 11 billion dollars in 2001. The recent study of global, interactive and mobile CRM industries by market consultant firm Frost & Sullivan did not show a corresponding $11 billion in net profit, however. The investment looks even more suspect as revenues have actually decreased in 2002. By and large, marketing companies have funded CRM software in order to increase their own revenue potential rather than that of clients, and have provoked the need for clients to spend in this area by threatening to offer the so-called CRM advantage to competitors.

Businesses Want CRM to Decrease Costs
     All businesses would like to know more about their customers and potential customers in order to

    A. cut the expense of shotgun or mass marketing
    B. identify their best & worst customers
    C. reduce service representative and telephone expenses
    D. utilize online self-services
    E. lower inventory expenses with sales activity reports
    F. determine future revenue areas

What Customers Like About CRM
     Customers like the convenience of being able to quickly locate and procure what they want at the best price. Contrary to conventional hype, they are seldom looking for a warm and fuzzy relationship. They do like to be appreciated and treated with respect. This automatically tenders status, another highly valued customer need.

Why Conventionally Marketed CRM Programs Don't Pay
     Obviously, the goals of the CRM marketing software vendors, the businesses and the customers are at crossed purposes. The more the customer is manipulated by a business gathering information to reduce sales and service costs and increase profits, the more time consuming and expensive it is for the customer to satisfy needs and wants.
     In addition, software vendors usually require drastic business changes to optimize their profits. This increases both obvious and hidden business costs...in addition to the software price and maintenance. But software, imposed between service representatives and the customer, changes the face of the business. Unpredictable results, sometimes dire, usually occur.

When CRM Programs Do Pay
     CRM has been shown to pay well when customer needs are met in a timely and respectful manner. Price is seldom an overwhelming issue. In order for
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