Congratulating yourself on the success of your company's CRM solutions? Not so fast. According to a recent study by META Group and its marketing technology research affiliate, IMT strategies, most Global 200 companies' current CRM initiatives run a "serious risk of failure." Most long-term programs aren't developed enough to withstand the risk of business failure. Some reasons for a potential downfall follow:
However, companies can gain a competitive advantage by focusing on customer lifecycle management, or CLCM. It's a process that covers the full range of customer interactions, from the initial engagement to the fulfillment of a request. If a company creates "exit barriers" to keep a customer from taking his business elsewhere, it's harder for a customer to leave once he or she has been immersed in the entire selling process.
- The main weaknesses lie in the analytical area of customer data analysis and in customer collaborative applications. Long-term CRM success requires well-developed, integrated programs in the areas of operations, analysis and customer collaboration.
- CRM projects are often highly fragmented and have too little customer focus. Fewer than 30 percent of respondents have begun taking steps to integrate operational and analytical CRM environments.
- Most companies underestimate the value of customer information, purchase CRM products and services that can't easily be integrated and don't employ meaningful measuring techniques.