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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 Turn to page 2
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