One of my friends recently recanted an anguished tale of how she bought a fridge-freezer, only to have it returned and re-delivered eight times before she was finally satisfied with the product.
That's eight delivery trips by the fridge-freezer company. Eight rescheduled orders. Eight (probably more) lots of paper work. Eight (definitely more) telephone calls and, perhaps more importantly, eight valuable and frustrating half-days off to receive delivery.
And, as if to add insult to injury, the day she was finally loading her pork chops and pizzas into the freezer cabinet, she received a promotional mail-shot (with her name misspelled) from the fridge-freezer manufacturer saying that she could have 20% off if she purchased the same appliance before the end of the month!
Needless to say, she told (at least) eight people about her unhappy experience and vowed never to buy from that manufacturer again. Clearly, the relationship she had with the supplier was far from the appliance of science. The experience that left her feeling somewhat colder than her perishables was evidence of poor customer relationship management (CRM) on the part of her chosen product supplier.
Competitive threat
Whether you're selling fridge-freezers, widgets or a new textile range, the story is still the same. In this day and age, with virtually every market fast reaching saturation point, a CRM strategy is so very important to every business, large or small.
It's not just about retaining the loyalty of existing customers in order to sell them more for longer (although this is important). CRM is also about being on guard from competitive threat; optimising efficiency through integrating all customer contact information; minimising duplication of effort; gaining valuable market information vital to strategic decision-making; reducing customer attrition rates and, perhaps most importantly: protecting your margins.
True, in recent years CRM may have suffered bad press with some organisations investing heavily on computerised systems to the point where a return on investment has been difficult to achieve. Vendors of CRM integrated software systems have, in the past promised the earth, only to see their clients' high expectations fall short of the mark.
But the fact still remains: if your business has customers, you need a CRM programme. These days, the process is becoming more of a competitive survival management tool rather than a pure numbers and ROI exercise. The decision is not so much: "can you afford to have a CRM system?" but more: "how long can you afford to operate without one?"
Given the many different ways and permutations a business could record and co-ordinate customer information: via letters, faxes, invoices, complaints, website hits, sales, returns, reorders, credit details, phone enquiries and so on, no two CRM systems are exactly the same. And this, perhaps, provides a possible key to successful implementation. In short, it helps if the company you choose to set up and computerise your CRM system knows something about your business and your industry.
Midlands-based software company Syscom PLC, specialises in bringing operational efficiencies to textile and apparel, general manufacturing and distribution businesses. The company has recently been selected as an approved channel for Microsoft Business Solution UK's recently launched entry into the CRM market: MicrosoftCRM.
Accumulated knowledge
The fact that Microsoft has chosen the "channel approach" to delivering its product to end users, rather than selling direct, is considered to be a key ingredient to future CRM success.
Syscom PLC's Chairman and Managing Director, John Moses explains: "CRM is more about understanding customers within the business context than it is about the technology involved to make it work. MicrosoftCRM is a superb tool, especially for small to medium-sized businesses. But, as a tool, it can only be as good as the expert use it is put to. Microsoft's channel approach means that we, as approved suppliers, can add the value of our accumulated industry knowledge to the excellence of the product."
When it comes to customer focus, many businesses still have the inter-departmental co-ordination of a ballet dancer on three pints of crème de menthe (as my fridge-freezing friend will attest). This is why the whole company should commit to gathering, sharing and integrating information - not just for the benefit of the customer, but for the survival of the organisation.
According to Moses, the true CRM successes are those driven, not by the IT department (if indeed, the company has one) but by the highest level of management overseeing the whole organisation. He asserts that the company's CRM policy, as established by a customer-focused and holistic business plan, should drive the IT system need and not the other way around.
"The ideal solution for a business is to integrate the CRM system with its enterprise resource planning system," he said. "This means that all information, from stock-holding and supply-chain management, to sales enquiries, order choices and credit information can be put to use creating the ideal service experience for the customer. The objective is to give the customer absolutely no tangible reason to buy elsewhere."
A dirty word?
To some business managers who have made the mistake of focusing on the technology rather than the business process, CRM has become something of a dirty (and rather expensive) three-letter word. To many others, it creates a warm smug feeling, as they barely feel the bumps of their steam-roller flattening the competition. But to most, however, it is hardly a new concept.
That's why, on the surface of things, it seems rather strange that Microsoft - normally adept at driving band-wagons rather than leaping on them - is entering the market so late in the game.
The clue to this is found in the many small to medium sized enterprises (SMEs) upon whose business requirements Microsoft has founded much of its empire. Previously the domain of the large corporate, CRM is now being made a more readily attainable proposition to the SME.
Microsoft Business Solutions UK's CRM Product Manager, Michaela Alexander, explains the company's approach: "We saw an opportunity in the SME market which has traditionally been over-targeted and under-serviced. Currently, only an estimated 20% of the SME market has a CRM solution. No other vendor offers such a solution built specifically for this market, which clearly has a strong need."
Designed for SMEs
Studying the well-publicised CRM problems experienced by larger corporations first, before entering the market with a new CRM offering for SMEs appears to be a smart move. And, rather than just selling software, Microsoft Business Solutions has developed a detailed programme to assist their channels like Syscom PLC to help their clients get the most out of their CRM implementation in terms of ROI, deployment and customisation.
Having implemented MicrosoftCRM throughout his own organisation first (well, you'd expect that, wouldn't you?), John Moses has every confidence that the CRM product will be a hit.
"Never before has a CRM solution been so easily accessible to SMEs. The fact that it integrates with, and looks similar to, widely used applications such as Microsoft Outlook means that it's easy and intuitive to use across all departments. And this is important with a system that processes customer information from such a wide variety of sources," he said.
And, perhaps this level of shared information could also make customers feel more listened to, warm and cared for, rather than frozen out and left in the cold.
