Avoid the Four Perils of Crm

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REPORT SUMMARY
Avoid the Four Perils of CRM by Darrell K. Rigby, Frederick F. Reichheld, and Phil Schefter
Arun G Antony (P13111)
According to the "Harvard Business Review," a full 55 percent of customer relationship management (CRM) technologies and methods do not produce results. A wide array of CRM technologies exist to help companies target new customers, collect data on existing customers and streamline the customer acquisition process. Though many of these technologies and methods tout big returns, companies considering investing in CRM need to know how to avoid the four main pitfalls of customer relationship management technologies and methods.
1. Implementing CRM before creating a Customer strategy
It seems obvious that you should draw up a plan before implementing anything. Yet a surprising number of firms dive headlong into CRM without carefully working out an exact customer strategy that the technology helps the company execute.
In some ways it's similar to the rush to be on the web a few years back. It was so hip and "must-do" that everyone joined in. Yet most never stopped to ask why they were doing it or what they would get out of it. As a result, few websites to this day produce much of anything. Most were poorly thought out and almost nobody visits them. Only those who understand the Web and the role it plays in overall customer strategy have mastered how to utilize it.
It may well be that the same thing is happening with CRM. Companies hear that Siebel or SAP or PeopleSoft CRM is the thing to do and they go ahead and buy the software. That leads to implementing it before drawing up a customer centered acquisition and retention strategy.
But the right away to go about it is to lead with strategy. Before even considering a specific CRM technology, organizations should figure out where they are going. This would include such basic planning…...

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