A CRM Definition That Your Competition Doesn't Know

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You might be surprised how some folks define CRM.

***tier2square.shtml***My CRM definition leads me to conclude that the CRM failures may be even higher than projected. This site is dedicated to helping you understand what you can do to make sure it doesn't happen in your company. As with any concept, it's always good to start with a solid definition. But first....CRM is not software!

Here's my stab at a CRM definition: CRM is the application of a well developed customer strategy, based on a high level of customer awareness, to a properly matched set of CRM technologies and services. In other words there are two components, both of which are required, that make a successful CRM solution.

A better stab at is by business process guru Dick Lee who defined it in his interview with me as "CRM adds value to customers in ways that add value back to the company." That's about as on the mark as you can get. Bottom line, it's not about the software.

CRM is a customer-centric focus on the way you do business. If you are product focused your company tends to look like a number of independent silos to your customers. Software will not correct this problem even if you move toward a central customer database. If your marketing activities aren't coordinated through a higher vision, you will continue to look and function the same.

Many companies, to this day, continue to believe that CRM is a plug and play investment. And as a result, projects still fail regularly. Now, I say this not based on any national surveys but from simple logic. How can something be deemed successful if no cohesive plan has been developed with specific measurable economic benefits? And when does this plan get developed if the consultant is selected based on his or her experience with a particular software brand?

If the functional component has been selected first, you're going backwards. But more likely, you've skipped an important step to success.

The CRM definition used by many middle market companies continues to be based on a belief that software is the solution. My goal is to change as many minds as I can. And there are others like me. If you are struggling with the definition, there is help out there.

Read the customer relationship management definition at www.customerservicepoint.com. This site is focused more tightly on customer service. But, but customer service, while most think of a department, is also a way of doing business!

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