Home Pioneer Squared CRM is Filling the Gaps Between Customer Service, Sales and Marketing

CRM is Filling the Gaps Between Customer Service, Sales and Marketing

by Share Reeves
For years, Customer Relationship Management (CRM) was mistakenly viewed as part of the high-tech bubble. When that bubble finally burst, many so-called hot trends and companies vanished without a trace… but not CRM.

CRM is here to stay, for one very simple reason — it’s primarily a proven management process, not a technology. Yes, medium-to-large companies often upgrade their back-end customer technologies when implementing CRM, to produce better bottom line results, but don’t mistake the tools for the craft.

What is CRM?

CRM is “…a business strategy that applies to every organization. It means working with customers such that they receive great service and are motivated to return again and again to do more business with your company,” says Bob Thompson, of CRMGuru.com. CRM does this by ‘filling the gaps’ between traditional Customer Service, Sales, and Marketing responsibilities.

“What gaps?” you may ask. As consumers, we’ve probably all experienced those gaps first-hand… for example, have you ever had a cell phone company solicit you repeatedly, without even realizing that you’re already a customer, or perhaps a past customer who left due to poor service? Unfortunately, that failure to communicate between Customer Service, Marketing and Sales is all too common, and it’s very expensive…

Acquiring a new customer is six times more expensive than retaining an existing customer! That simple, bottom line fact is the driving force behind CRM, and in today’s sluggish economy, it’s why more and more companies are turning to CRM in order to stay competitive.

“We have a variety of products, not just newspaper advertising sales,” says Brian Jonas, the CRM Manager for The Seattle Times Company. “That means it’s really important to cross-sell and understand the unique needs of every customer. CRM helps us do that, so we can offer relevant services, be genuinely responsive, and satisfy our customers long-term… it’s the ‘know & serve your customer’ ethic of a small town store, scaled up to corporate dimensions.”

CRM is Growing Rapidly

CRM-related expenditures reached $42 billion worldwide in 2002, according to Forrester Research, and could climb to $73 billion by 2007. Most of this growth is expected to come from mid-sized businesses.

What motivates companies to adopt CRM strategies? It’s generally one or more of these fundamental business reasons:

• Competition – with globalization and e-commerce continuing to spread, many corporate offerings are increasingly becoming commodities. Differentiating products & services becomes more and more difficult. CRM offers these companies a path to increased customer loyalty, higher margins and stronger branding.

• Consumer expectations – e-commerce has put your competitors just a mouse click away, and consumers have become more demanding when ‘voting with their pocketbooks.’ Companies that use CRM to truly understand and respond to their customers will come out on top. Amazon.com is a textbook example in this regard.

• Technology – the cost of CRM technology has dropped, so it’s easier to justify systems that consolidate all your customer ‘touch points.’ The separate and isolated systems traditionally used by Customer Service, Sales and Marketing can now be phased out, and the old communications gaps filled-in.

• The diminishing impact of advertising – whether it’s primetime TV, print journalism, direct mail or email marketing, many forms of advertising are increasingly ineffective. With CRM, you can target your message more precisely, hold people’s attention better, and retain customers longer, and at a lesser cost.

With all these good reasons for adopting CRM, why are people sometimes so hesitant about taking the plunge?

It’s often a matter of not knowing exactly how and where to start.

“I’m meeting a lot of people involved in planning or managing CRM systems,” says Jim Gascoigne, of AT&T Wireless. “It can be complex, since the CRM industry is still evolving. This group is a great place to compare notes with other people doing CRM.”

The group Jim’s talking about is the Northwest Chapter of the National CRM Association. It’s a group of business professionals, all with a common interest in seeing CRM implemented in their companies. Members range from mid-managers to business owners to information specialists, as well as industry consultants.

“Even though basic CRM principles are centuries old, applying them at the enterprise level is relatively new,” says Jim Gascoigne. “It really helps to meet with your peers and find out what’s working and what’s not. Plus, the presentations and Q&A’s are often very insightful.”

Of course, even successful CRM programs aren’t without their challenges — when we succeed in understanding our customers better, they may not always appreciate that fact. When the owner of our corner store knows our habits and preferences, that’s comforting. However, when corporations exhibit that same degree of familiarity, it can be disturbing… it’s that controversial issue of ‘Privacy’, rearing its head.

Again, groups like the CRM Association can help. The folks implementing CRM are often the same people monitoring customer privacy… and when the topic is Privacy, you’re sure to find an informed and lively discussion at the local CRM Association events!

If you have interest or maybe even a role in bringing CRM to your company, you’re invited to attend a CRM Assoc NW event. You’ll leave with a clearer understanding of CRM, a handful of useful tips and leads, and fewer myths about “this whole CRM thing.”

Share Reeves is the founder of the NW Chapter of the National CRM Association, a champion of the CRM philosophy, and an advisor on the leading trends and techniques for enhancing customer 1-to-1 programs.

Share’s company — NETnack
(www.netnack.com) — plans and implements dynamic content point-solutions, for the realization of CRM strategies.

Ms. Reeves was an early pioneer of online lead-generation. She’s helped numerous companies develop the programs needed to cultivate new and existing customers.

On sunny weekends, Share Reeves can be found in her garden, tending her colorful flowers. But her true green thumb is for growing customers.

Reach Share at [email protected].

The NW Chapter of the National CRM
Association can be found at www.crma-northwest.org