Thursday, May 31, 2007

Does CRM resolve HR Problems?

Wow! Wouldn't that be perfect? Not only could you solve all of your customer management, data and data integration problems -- but it would fix your Human Resources problems too? CRM is just like having your own in-house magician!

Well, sorry to be a bubble-burster but, unfortunately, the real answer is no -- CRM can't really solve HR problems. Many firms make the mistake of thinking that it can, however, and this is highlighted as one of the Top 5 CRM Deployment Mistakes in a recent Multi-Channel Merchant posting by Rebecca Wetteman.

In addition to over-customizing and not paying attention to your data assets, the article states that while CRM can support changes in sales, marketing, and service management, it can not lead them, and "if you’re just paving over cow paths, the cows will still wander in the same direction." That pretty much sums it up, huh?

While spending money on well-thought-out CRM initiatives can take your company to the next level in terms of customer management and service, marketing and sales efficiency and achieving your ROI goals, companies need to be cautious as to how the intiative is designed and deployed.

It is extremely important to clearly state your business goals prior to launching your CRM intiative, then to re-visit them throughout the design and implementation processes to ensure that you are tracking to those goals -- or adjusting to your changing goals. As Wetteman states: "A good rule of thumb: If you don’t have a clear view of how you’re going to see benefits within 12 months, you need to do more thinking before you waste any money on CRM."

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