CRM Without a CRM System?
The ‘people, policy and processes first’ approach
It’s been more than 10 years since CRM (customer relationship management) started to be a new buzz word among the global management community with the promise of using technology to significantly boost revenues by managing customers. Many studies suggested that focussing on existing customers rather than continuously chasing new customers is hugely more cost effective (Bain and Company) and that CRM activities contribute more than 50% to a company’s total return on sales (Accenture).
Until today, the CRM buzz has been fuelled mainly by IT consulting companies. As a result, many large companies around the globe invested heavily in CRM systems in order to be at the head of the trend.
Customers have probably experienced increased service levels in many respects. For instance, call centre interactions in general have become less time consuming and more effective; we enjoy daily SMS advertising that really matches our urgent needs; each year we can be sure that our email inbox fills up with vendor birthday alerts. In addition to enhanced customer interactions, I have no doubt that companies benefitted by gaining transparency into customer-related transactions and gained new insights into customer behaviour.
However, many CRM technology projects fail - a failure rate of 30 to 70% according to some studies. Many companies struggle to get people to diligently enter information about their latest customer interactions into the customer database, or fail to make use of newly provided customer insights. It often takes years until a CRM system delivers real business benefits.
Dr. Peter Theisen is director for business consulting services at Freewill Solutions Co. Ltd. He helps Asian and European companies restructure major parts of their business operations in order to gradually improve their ability to compete in a globalised, fast moving business environment.
Peter’s specific strengths are in business analysis and modelling, organisation and process design and business transformation planning and execution.
Before joining Freewill Solutions, he worked with international companies such as Accenture (strategy, business architecture), the German Aerospace Center, and Theron Management Advisors. He obtained a masters in thermodynamics, a PhD in aerospace and aeronautics in Germany and a masters in management at Sasin, Thailand.
