Payne and Frow argue that successful implementation of
CRM programme depends upon four critical factors:
(1) CRM readiness
assessment
(2) CRM change management
(3) CRM project management
(4) employee engagement.
A CRM readiness assessment is an overview audit which helps managers to
assess the overall position in terms of readiness to progress with CRM
implementations and to identify how well developed their organisation is
relative to other companies. CRM change management involves strategic
organisational change and cultural change. Senior level understanding,
sponsorship, leadership and cross-functional integration are clearly
critical in a complex CRM implementation. CRM project management
requires forming cross-functional teams of specialists who manage the
enterprise's CRM implementation programme. Successful CRM projects
deliver against the CRM objectives derived from the corporate objectives
and support the overall business strategy. Finally, employee engagement
comprises support and commitment of the employees to CRM projects.
Increasingly, firms recognise the significant value their employees
contribute to the business, which extents well beyond the basic
fulfilment of core duties. Companies cannot develop and operate
appropriately customer-focussed CRM systems and processes without
motivated and trained employees.
Various arguments
have been put forward for the failure of CRM systems. Day suggests that
main reason for CRM project failure is the lack of strategic planning
prior to the implementation of CRM.
Maselli found that the reasons for failure of many CRM initiatives
ranged from technological implementation problems to a lack of
organisational integration and customer orientation. Jain et al.
state that most such failures are attributed to poor design, planning
and measurement of CRM projects. They comment that capturing the wrong
customer information, unclear goals, inappropriate selection and use of
technology, inability to integrate people and processes and use of
misleading metrics or improper measurement approaches are the major
barriers in implementing and managing CRM projects. According to Kale,
the seven deadly sins for unsatisfactory CRM outcome are:
(1) viewing
the CRM initiative as a technology initiative;
(2) lack of
customer-centric vision;
(3) insufficient appreciation of customer
lifetime value;
(4) inadequate support from top management;
(5)
underestimating the importance of change management;
(6) failing to
re-engineer business processes; and
(7) underestimating the difficulties
involved in data mining and data integration.
He states that most
executives are not even aware of these issues, even though they could
spell disaster for their careers and for the company. Others argue CRM
failures are heavily influenced by the firm's lack of ability to
integrate CRM technologies into its functional processes.
Further more information about this articles, please you check on Journal of Database Marketing & Customer Strategy Management.
By Bryan Foss, Merlin Stone & Yuksel Ekinci
Repost by Acarre Community Media
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