Eliminating the Pain from CRM Implementation

I can't tell you how many articles I've read throughout the years that provide advice on how to make CRM technology implementation less painful. I've posted on this topic a few times myself, right here on this Direct Marketing Blog. It begs the question: why can't some smart firm come up with a solution here?

Regardless, since CRM implementation (and the pain associated with it) remains a 'hot' topic, I thought I would share some tips from this Inside CRM article titled: 10 Ways IT Managers Can Make CRM Implementation Painless.

I've listed each of the tips below, but you can read the full article for more detailed explanations and suggestions.

1. Watch your alignment. In other words, start at the top and make sure your CRM efforts match your business goals.
2. Spread the word. To hook CRM applications into a company's core products and services, IT managers will likely have to beat multiple drums in order to be heard.
3. Sell it to the sales department. While end users across an organization must commit to diligently using and updating CRM systems, success may well depend on the acceptance level of the sales force.
4. Root for the home team. End users are not the only ones who will likely be in need of constant CRM coaxing. To best lead a staff to CRM victory, IT managers must constantly champion attainable corporate goals.
5. Stay ahead of the curve. Along with keeping the team happy, the most effective IT manager will work constantly to keep up with an industry known to change at warp speed.
6. Change from the inside out. External factors are not the only change agents at work. IT leaders will also want to ponder the internal impact of a new CRM system.
7. Raise the bar. Regulatory matters and other factors up the ante. Thus, IT managers must make sure that major decisions surrounding CRM initiatives are not relegated to those toiling in the trenches.
8. Visualize results and use carrots instead of sticks. The most capable CRM managers are high-level leaders, who are hyper-aware of CRM’s ability to shape an organization.
9. Take it on the run. In order for the sales staff or other departments to use CRM to get to know customers better, users will likely need a way to tap CRM applications remotely.
10. Pick your battles. Without question, a CRM initiative is laden with snags that can challenge even the best IT manager. Hence, a significant number of organizations chose to pass the lion's share of the chore to outsourcers.

Know Thyself

Who knew that the ancient Greeks could give advice on CRM implementation? This article from searchCRM.com shows that the Greeks were, indeed, correct about the importance of self-understanding and self-awareness.

Titled "CRM will disappoint without an honest self-assessment," the article discusses the importance of a company truly understanding and articulating what they require from a CRM system before any tool is even contemplated, much less purchased.

From the article: "CRM is doomed to disappoint without a clear focus and self-assessment of a business's needs, according to a recent analyst report (Forrester Research).

History has taught that the "big bang" approach to CRM, massive implementations of technology deployed across sales, service and marketing all at once, has proven to be a failure. Instead, organizations looked to smaller, tactical deployments and are now deploying CRM tactically with an eye to long-term goals."

The article goes on to state that historically CRM purchases were made with a focus on techology, as opposed to developing the understanding that the chosen technology would meet business objectives. I know that we've seen many CRM teams headed by IT, as opposed to sales, marketing, finance or other key users. Now, I have nothing against IT--without them businesses cannot run and, more importantly, :) I can't get my hands on customer data that is so important to my database marketing programs. But, IT should not be the lead decision-maker in a CRM decision.

And, the lack of a focus on business needs when making CRM decisions is evidenced by the high failure rate experienced. "Forrester surveyed 94 business and IT executives responsible for CRM and found that less than 50% were fully satisfied that the benefits met expectations. That's usually due to a lack of focus on specific business capabilities, according to the firm."

So, the lesson learned: Take the time to perform a proper needs assessment. And, by the way, sometimes an outside perspective on this will ultimately save you time and money. An outside firm will have no pre-conceived notions of how the new CRM system 'should' work. They won't bias the process.

What does a CRM needs assessment include? Here are some important steps:

Interview key system users. Listen carefully to what they say. Understand how they perform their day-to-day functions. Understand what would be 'utopia' IF they had the right technology. Document what you learned.

And very important--understand where your leaders are coming from. Get on senior managements' calendars. Talk to your CEO/CMO/CFO about short- and long-term goals. Make sure that any recommended technology addresses these goals and then articulate how the CRM investment is going to take the business closer to meeting objectives. Get management to 'buy-in' to your system, even before you know what the system will look like.

The third component is to get your arms around existing technology and data structures that you'll have to integrate the new system with. Again, documentation is key here. Another benefit--if you have a clear understanding of the systems and data architecture, it will be much easier for your selected vendor(s) to provide you with an accurate view of how their tool will work--within YOUR environment. And, it will help them present an accurate price quote, too.

Finally, once you have developed an understanding of users needs, determined how the system will complement corporate goals and have a feeling how the new system can integrate with existing data and systems, NOW (and only now) is the time to research and interview vendors. We've seen the vendor selection process proceed the above three steps. That's a bad decision. You will be amazed at how much more focussed the decisionning process will be once you have a clear handle on today's environment and future goals.

So, yes, the Greeks were right. A company definitely must "Know Thyself" prior to making the significant investment in CRM technology.

Fear of Commitment

No, I'm not talking today about some of the men I've dated in the past...

Today's topic is (drumbeat, please) CRM technology. Specifically, I want to explore reasons why so many times a huge technology investment for CRM tools never pays off. Why do so many CRM deployments end up dead, never used correctly and abandoned by the company that had such high hopes when they initially deployed the technology?

Case in point--Albertsons Grocery stores. They just announced that they're abandoning their loyalty program. Apparently, grocery managers weren't taking advantage of the rich data collected every time shoppers swiped their card to get grocery discounts. Wow, think of the money wasted by this significant investment in building and deploying such a large loyalty program.

It's stories like Albertsons that give CRM a bad name--horror stories about firms that spent a bundle on CRM systems that users never use. I think it comes down to a simple fear of commitment. Firms need to embrace, shall I say, COMMIT to an environment that is focussed on the customer well before they even think about spending money on any technology. They need to understand that buying technology for the sake of technology or because they believe that they need to keep up with their competitors (which may be the case with Albertsons) is just dumb.

Prior to any CRM investment, at the very minimum, these three simple questions should be answered thoughtfully and completely:

1. How will our customers benefit from this new program? In the case of grocery loyalty programs, in my opinion, the benefit was never clear. As a shopper, I know that I need to participate in order to get the discounts, but I'm never happy about having my buying habits open to scrutiny. Why can't I just get the discounts? Now, if they would take the program to another level (and some chains may, just not the ones I shop in), that would be different. If they sent me a coupon for a free box of laundry detergent just when they knew that I'd be needing it, that would be great. If they celebrated my birthday by giving me a nice bottle of wine that they knew I enjoyed, that would be super. As a consumer, I never see these types of personalized benefits, although the stores have all the data they need to extend them, if they choose to.

2. What will be our return on this signficant technology investment? CRM was such the buzzword several years ago that many firms simply just jumped on the bandwagon without the due diligence that they would have given any other similar-sized investment. Any CRM investment needs to ultimately pay for itself. Whether it's increased lifetime value, new customers acquired, more customers retained, cross-sell, up-sell, whatever, goals need to be articulated up-front and tracked over-time.

3. Do I have commitment from all levels of the company? There's that pesky word again, commitment... But this is so true. Not only does the CEO need to be a customer advocate, but any users of the system need to understand the customer-focussed vision. If ultimate users of a CRM tool understand the vision behind it (and not just see it as another new technology step that they need to deal with to finish their job for the day), they may surprise you by devising new ways to use the tool to create customer satisfaction. At the minimum, they'll use the tool in the way it was designed.

If you have any other core questions that should be explored before investing in technology, please share.

TGIF. Enjoy your weekend!

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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