What's the Definition of CRM?

By Mike Boysen

CRM is software that will magically transform your business.

Unfortunately, that belief system is why so many CRM implementations fail. They are only implementing software. Just as in politics, marketing has been used very effectively by software companies, and resellers, to create a belief system based on sound bites. If you say it often enough, it becomes true, no matter how ridiculous it sounds.

CRM actually stands for "Customer Relationship Management." I don't see the word software in there, do you? CRM is actually a customer-centric way of doing business. It's a philosophy that if you truly know your customer, you will be able to deliver the products and services they need, instead of the products and services you need to sell. The end result should be more than customer satisfaction. It should be increasing customer loyalty.

CRM is also a plan which is based on an acute understanding of your customers. Knowing which customers are profitable and which customers are not. Knowing what they need, and what they don't need. A solid CRM Plan will help you manage the four bottomline corners of your business: Revenue, Costs, Profitability and Lost Opportunity Costs.

If you are considering that first step into the CRM abyss, or if your looking for some help getting out of it, start with this CRM Definition:

Software will not transform your business. It's there to support your business strategy, which in this case is based on improving your customer relationships. You and your team must define a way you will do business with prospects and customers, not some software package. You must define measureable goals and measure them. You must include all parts of your business in the development of the plan, so they take ownership back and deliver on the plan, together, all customer facing units. CRM starts from the top, not the second tier, such as sales, marketing or customer service. They will be executing your plan....together.

See, I got back to software. It's now in its proper place....LAST.

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