The high failure rate of CRM implementation has caused corporate customers, CRM vendors, and academic attention. Organizational environment calls for adaptive enterprises CRM, but even more serious problem is how to locate the right CRM strategy, strategic positioning of deep mining factors for the low success rate of CRM implementation, and how the pursuit of high return on investment, in This raised several preventive measures can learn.
Calling for papers
Organization - Environmental adaptation strategies
Economic integration in the world today, enterprises are faced with competition and pressure surge, one of the most striking feature is the business environment surrounding the increasing pace of change, management guru Michael Porter has also been raised help the company adapt to the environment, thereby increasing its a series of external conditions for potential profits. They are: ① ② market entry barriers to large weak competitor ③ ④ few alternatives to the status of weak customer supplier status ⑤ weak. Gong Si size and positioning strategy will determine the profits of enterprises, large companies, especially multinational corporations begin to enjoy the world of integration are lower unit costs Dai Lai, Bing Ju bring a larger purchasing power, therefore, crucial factor is the company in Danshi market positioning strategy. According to Porter's view, in a market, you can take the following three general strategies to be a: ① ② The total cost differential ③ centralized leadership. Porter pointed out that any clear strategy to take over one of the three are good business, adopt the same strategy, the company changed form a strategic group, but no clear strategy for the company, he became the company take the middle road is dry worst.
However, according to McKinsey & Company's views, strategies does not mean everything, the best management strategy is only necessary the company one of the seven elements. World Marketing Guru Philip Kotler in his rage, "Marketing management analysis, planning and control," the book on the "changing environment in the company's profit theory" in the "adaptive organization environment interaction" in-depth analysis, the book cited a McKinsey consulting firm's "7_S framework of theory." Figure 1
Figure 1 framework McKinsey 7_S
According to McKinsey and Kotler comprehensive view of the first three elements of strategy, structure and systems are considered the most successful hardware; behind the four elements of style, personnel, skills and common values in the software. Every organization and a part of the overall environment interaction, interaction, and this part of a relevant environment, and that the company can best adapt to the environment will be successful.
Many management literature emphasize the hard elements. A successful company lies in the development of appropriate strategies to achieve its objectives, the establishment of appropriate organizational structure to implement the strategy, and equipped with effective information systems, planning systems, control systems, and incentives for organizations to complete the work. The key concepts are: the starting point is the strategic, rather than structure. The company should first decide where to go next, followed by the development of an organizational structure and systems implementation.
The Information Age is the biggest challenge facing the rapidly changing business environment, how to adapt business strategies closely changes in the business environment as well as lead many entrepreneurs to become the biggest strategic thought. The information age information technology has been unstoppable right-hand man to become entrepreneurs.
Internet Times Calls CRM
Internet has brought the world of business productivity and competitiveness. People are quick to use this medium the same as a personal means of communication and business communication. On the other hand, the company is full use of this ability to enter new markets and broaden the scope and practicality of the deployment, and support their products and services.
However, with the rapid development of Internet, the market continues to mature, the world economy gradually into the age of electronic commerce, this online revolution has also created a sense for these organizations challenge. When customers use Web services to compete, companies with timely and personalized attention, competitive advantage is to compete with each other. The competition is the traditional business model of the constraints, because they are non-integrated environmental constraints. Products and services is more and more. Production as the center for the purpose of selling products market strategy gradually to customer-centric service strategy for the purpose of replacing the market, so customers who can grasp the trend of strengthening the relationship with customers, effectively identify and manage customer resources, who will be able to obtain competitive advantage in the fierce competition in an invincible position. Enterprises, suppliers, distributors and customers together into a value chain to become the core of competition among enterprises.
In order to successfully attract, acquire and retain customers, organizations need to consider the implementation of a model based on improving customer relationship management strategy. But very few new ideas to make CRM implementation and maintenance is difficult, because it produce the desired results for the basic needs of the business and technological change.
Understanding of what CRM is and is not effective deployment of CRM strategy is critical.
Definition
CRM, is through the use of information technology to business marketing, sales management, customer service and support orderly operation of information links and full, timely and customers in the enterprise mobility, efficient use of resources to achieve customer management software system. The core idea is to put the customer group as a valuable external resources companies, and as far as possible within the control into the enterprise to increase customer value as the center, effectively meet the individual needs of our customers, improve customer relationships and increase market competitive capacity. CRM implementation will improve the efficiency of sales management, through various channels and identify market opportunities for mining, improve customer satisfaction and maintain good relations with customers, and reduce operating costs for enterprises to create long-term sustainable source of profit. Customer relationship management can be defined as a business model, as its main objective, model identification, prediction and understanding of potential customers and existing customers, to improve customer retention degree, growth and profitability. CRM consists of a series for customers and partners successful life cycle management of business and technical functions: from marketing and customer acquisition to customer service and customer retention. This way, CRM is a business strategy, not just a technology. Of course, technology for the achievement of this goal is critical; since CRM has been the basis of which many things to collect, store and analyze customer-related data. However, it needs to be treated as a business model, in order to implement our customers and partners of personalized service, need to use the technology function.
Customer Relationship Management View map 2,3600
Real CRM, including coordination of customer experience, support and management, to smart to get access to customers, cross-selling opportunities and retain customers. CRM implementation should be organized to give priority, customer satisfaction will continue to increase because of market pressure, and the delivery of targeted products and services. As the product delivery schedule, globalization of markets and services, mass customization, customer profit contribution rate will be balanced.
Strategy and the implementation of articles
The combination of e-commerce and CRM technology help to achieve the traditional Web and telephone technology to an integrated enterprise technology environment changes, the delivery of this new environment is the customer total solution, not just information (commonly known as the eCRM) .
Implementation of this model to improve the main benefits of CRM type is: can human company's Web site, expanding the company's business scope beyond the individual based on customer buying preferences and patterns of traditional products and services, usually business boundaries, and more personalized products and services of. Therefore, companies can now demand to customers based on customer-specific service delivery targets. This ability to build customer loyalty for the line is critical; and this is the basis of the laws of customer experience management.
When a focused business and "customer-centric" access to the formal implementation of CRM strategy, it makes sense on the orient can be to predict, manage and successfully meet the future needs of customers and suppliers.
Defined strategy
Enterprises must realize that as a business strategy, CRM will have to "change management" rather than "change management." This is a business need, and by the management and access to technology Zhichi the model, the need for all levels of senior management's involvement and support of all sectors involved in leadership is critical to the overall successful implementation. This is a basic principle of the implementation of CRM.
To become a "customer centric" organization, operational management and process changes in demand for companies to quickly implement changes in customer behavior. This may require more staff authorized; flexible product / service pricing model; and expansion of product features / benefits. But the real customer-oriented is an easy target. CRM implementation organizations to identify target areas, we must redefine their business methods. This will help identify and define innovative and measurable and attainable goals.
A successful CRM innovation begins:
Who is your company really understand the true customer
The company's customer experience is what has been
What hope for the future customer acceptance of services
What kind of operation need to implement changes
In today's environment of thinking about a structure to determine the CRM strategy is the best way to meet the demand. These include:
Sure will be to support the products and services
Draw current business workflow, access points and internal liaison graph
Assessment of available technologies, features and capabilities
Discussion of operations and business prospects
Definition of business requirements
Development of advanced business workflow and processes
Determine the technical capabilities gap
Draw the business process function diagram
Development of new technologies and functional structure
Develop a concept design and prototype plans
In this strategy, the development of the most important step is to identify the CRM innovation will be key success factors to achieve:
Organization Vision
Strategy rules
Customer service strategy
Financial goals
CRM innovation goals
The failure of many CRM implementation origin: before the implementation does not fully consider all aspects of their operation. These projects are often technology-driven, and there is no measurable business goals. In order to develop a successful CRM strategy, organizations need to use the various independent companies and potential side effects.
Figure 3, customer relationship management, I / O map
CRM will touch on the organization's culture, business, technical and interpersonal relationships is also important to understand. If this model is used to provide the desired goal of corporate earnings, corporate vision and strategy in every aspect: the implementation of the technology and tools, as well as staff training levels, experience and compensation need to be analyzed and understood.
The key factors affecting strategy
Directly affect the CRM business strategy implementation, product selection and implementation procedures, the enterprises must pay attention to several key factors as follows:
Enterprise CRM selection must consider the future long-term business development strategy and planning, and resolutely put an end to "Tandaqiuquan" thinking and "eat a big fat" idea, according to the direction of future development of enterprises and the implementation timetable for deciding CRM promote consistent with the timetable; enterprises to implement CRM, must also follow the "master plan, step by step, step-benefit" principle; business to really follow the "local expansion, and the area benefits from the point of spread of" principle, achieve a smooth transition of information technology readiness, "Paomaodilou" seek optimal for sesame steadily high; CRM system that are part of the integration as a key step by step, on the success of CRM is also important, so is the success of CRM obtain the efficiency and effectiveness of a process, they are: end-user efficiency, improved end-user effectiveness, team effectiveness improvement, the improvement of business efficiency, increase the effectiveness of enterprises
Selection and effective implementation of the CRM business, the general need to think deeply about the strategic impact of the following areas: market positioning, channel selection, pricing, marketing, branding and advertising. Market positioning will ultimately decide the source of customers and the market sector organization; price is the most sensitive in the consumer market factors, will affect and reflect the company provides products and services; channel of choice will directly affect how deliver their services and products reach the customers hands.
Enterprises to implement CRM should follow the "technical service management," the purpose, CRM system implementation services for enterprise management, and in the product selection process must consider the future business development, strategic plan, so that management software and enterprise development trends correspond to a certain degree of scalability and flexibility; should recognize that technology is only contributing factor, it is not a solution. CRM implementation team carried out a first job should be to spend time to study the existing marketing, sales and service strategy, and to identify ways to improve.
Enterprise Selection CRM, must take full account of existing business processes and optimized. Gartner, said: "The biggest mistake is no plan." In the implementation of CRM projects, not too many technical factors should be considered, but a lot of energy should be assigned to consider the fundamental business processes. They demand the company is very clear, but the former did not consider these needs to write to the company how to adjust the existing problems. CRM projects fail and the people, processes, company policies related to, Gartner's survey results showed that 70% of the project because of the failure of one or all of the factors pre-selection survey of business processes can be minimized selection blind; selection after the optimization of business processes can check and improve the company's business processes, or the use of CRM will only fuel the rote, the original issue of the existing business processes will become more serious, the more the products in question frequently. If the process is wrong, then the use of a CRM software company will not only waste large sums of money, but will greatly accelerate the pace of such waste.
Corporate Culture and CRM integration: Although corporate culture is different from the enterprise system as a mandatory binding on the employees, but as common to all members of corporate thinking and behavior, the influence of the enterprise is without doubt. Successful implementation and application of CRM system, there must be corresponding support for the corporate culture to do. Implementation of CRM is the core of how to make decision-making, management and the implementation level of thinking and behavior can be from a real focus on to customers. Now, 93% of the CEO that the success of customer relationship management is more competitive and the most important factor (Aberdeen Group), but in strengthening the corporate culture and the integration of CRM, the part of the CEO has not been fully recognized, it is CRM as a reason for the high failure rate. Corporate culture is affected enterprises can effectively establish a good relationship with customers The key is the effectiveness of CRM can play a precondition; the same time, CRM as a new corporate culture to support a powerful tool, but also on the corporate culture brought Xin change. Through the implementation of CRM, business enterprise value by the importance and ability to change the emphasis on ability to use resources outside the firm, which is to bring CRM to the biggest change corporate culture, corporate culture, many other changes are derived from this change. CRM is not just a technology, companies need to change culture, operations and product support model, on the basis of the compatibility of individual forecasts and respond to the needs and expectations. The successful implementation of CRM need to be able to approach this CRM into all aspects of company operations: from product strategy and development to marketing and sales process, to individual expectations of each customer's process support and "with care."
Implementation Strategy
CRM difficulty is: how to develop the right business and technical implementation of the process, to meet the organization's overall objectives. To realize this opportunity, organizations should define a plan or life cycle, to support their innovation. When every part of the organization have been analyzed and understood, the project team will be very easy to determine at every stage of the implementation of specific delivery targets and the completion of each task the resources and skills. A proposed life cycle of CRM implementation in Figure 4:
Figure 4, CRM implementation life-cycle
In order to solve the existing CRM implementation complexity, organizations should draw to ensure that interactive services to enterprises in the different areas of technology strategy chart. This will help identify and correct documentation needed to improve the field of potential customers due to changes in economic and process issues, and to maximize the business benefits of the implementation of the priority change. Objectives are listed below to explain the method:
Figure 5, the scope of access channels associated with Figure
Use include:
Customers use the equipment (computer, personal digital assistants, wireless devices, etc.) What type?
What are the main means of communication (traditional phone, IP phone, etc.)?
Typical customers and companies use the traditional package for that?
Corporate data, phone and voice automated systems What is the function?
Figure 6, the scope of business channel dependence graph
Use include:
What is the company's host system?
The company has used the application procedure?
Each segment of the traditional business tasks, processes and rules?
Company database management system What is the function?
Figure 7, the service channel of the scope of an agent associated with Figure
Use include:
Computer service center What type of equipment used?
Use of primary and secondary application procedure?
Voice communication system based on what is the function?
Web-based system's performance is what?
Business and technology constitute
Since the implementation of CRM need to develop a new technical structure, so companies seeking to implement this model will help deliver these companies need to understand the different components of the strategy. These components can be divided into:
Component function
1. Information Delivery / product selection online classified order entry billing inquiry services to deal with
2. Customer database analysis of traffic patterns on data mining products / services, product acceptance rate of self-service model to improve the scope of marketing and sales of products developed user information
3. Personalization and content management, marketing, import competition automatically respond to service call center support services, traditional collaboration-line inquiry service
4. Sales automation contact management sales forecast for the proposed automated order management sales report document management registration
5. Partner distribution channel automation clues leads the planning and evaluation Financial Management to achieve cooperation in the preparation of billing services, marketing, advertising
6. Customer Service Product inquiries, account management services for managed self-service system to achieve multi-business relations
Now the company to maximize profits, reduce support costs, increase sales and customer loyalty, need access to "immediate state" processing of data, not historical data. As mentioned above, CRM needs to rely on the capture, storage and analysis of clients, it must carefully consider developing an integrated data management / data warehousing strategy.
There are some tools for interactive services. Today's products, competition from the integrated analysis and management applications, to meet the individual needs of the traditional sales automation / CRM, and point solutions, such as data mining, advanced reporting and contact management.
Although these products are easy to implement, but often their integration is complex, since they are essentially different platforms. According to company's existing technology infrastructure and IT resources that can be used to determine which solution.
The following are the chosen solution should contain many of the functional elements:
Type of performance function
Rate segments generated statistical models feature automatic SQL-
Evaluation of consumer response and acceptance margin rate and frequency products and services, multi-dimensional analysis of the cost forecast trend analysis
Cluster customized contact management competition
Report co-classification data mining visualization applications
Table 2, the solution function of the elements of
Interactive CRM services opportunity
There are many potential regional organizations can be used to deploy a new CRM strategy. Each organization provides customized online support their products and services the flexibility to:
1, Web information update
FAQs and personal information access products
2, Web account update
Access can change personal information, and product / service customization form options
3, cross-selling products
Automatically provides historical information based on personal and customized solutions
4, interactive communication
Web timely access by knowledgeable agents
Agents to control the CRM application
According to the meeting to determine the number of priority queue
Conference was CRM applications and track record
Agents can "push" the required form or information with a single page
5, IP phone
Timely access by a voice conference service agent
Priority once again, the control of CRM applications
Customers to use a microphone connected to their PC sound card, online communication with agents
Agents the right page again pushed to the client terminal
If the phone can not provide good quality sound, or if it is not able to use the page should contain a "call me" feature to allow customers to fill in the callback message (call back time / date, phone number, etc.)
CRM applications and then be able to pass the customer fill out the form on the treatment center, work flow arrangements
6, interactive E-mail
E-mail through a gateway and the timely exchange of agents
Similar to web conferencing, CRM application control information transmission
Information is passed to processing, work flow arrangements
Articles enhance the return on investment
Evaluation of the role of CRM
Business improvement and technology innovation in the complete, organizations should regularly evaluate the role of these changes brought. The role of this method is: based on an actual customer feedback to identify the CRM model to accept the process of change.
Enterprises spend huge sums of money to implement the CRM system, many people often ask the question: "Who Moved My return on investment (ROI, Return on Investment)?" Some people have the image of ROI compared to the "cheese", the reality The situation is advanced CRM return on investment on the research of this little cheese, if a company is put into one or two million dollar to implement CRM systems, companies must analyze their investment to predict how much benefit?
Of the CRM's "cheese" expected returns are so beautiful: revenue growth, cost reduction, increase customer loyalty, access to timely information, increase staff motivation, it seems a bit endless, but one year later, companies spent unclear funding, leaving only a kind of confusion, a kind of input / output ratio of the confusion. Enterprises expect the "cheese" in the wrong? Perhaps it has been lost, and you find yourself lost development. Can only be sure, call center costs, and call waiting time has been shortened to handle the call volume has increased, ... ... However, these cost reduction measures rarely lead to real substantive improvement. Income growth is still expected to stay at the basic level!
The face of this difficult issue, companies are looking for positive and effective way to overcome. Here, we use of a successful foreign precautionary approach:
First of all, before buying CRM software, companies must conduct an analysis of their business on their own ability to accept the valuation of the system. This preliminary analysis will be canceled to reduce the possibility of purchase program, and help the company choose the right software and systems, even more brutal in the current economic environment, you can also gives a company a good "blueprint" .
Second, companies should determine the business needs of the overall investment costs. This includes sales, marketing, customer service and support costs required, and companies need to clear a benchmark and continuously measured in accordance with this benchmark, to ensure that the business can operate in accordance with the expected conditions. All investments should take into account not only technology investments (such as hardware and software), as well as staff and the investment process itself, including in-house investment staff personnel needed for education and technical training costs; the investment process itself needs must also be included in the ownership among all the investment, such as change management and knowledge transfer of the funds required.
Finally, the investment return on plan "cheese" to forecast calculations: To predict ROI, customer relationship management must be a major aspect of each individual to predict, and then predict the results of synthesis. In accordance with the successful experience, this step is best under the financial sector's help to conduct, and to Kaolv a sales business every different products, Yin Wei these sales business in the sale of products of the time Bingbu often assume that you're Suozai the company's specific investment and income-based. In addition, they provide the Products may be too vague. For example, Gartner has observed many of the investment return rate models do not include applicable to a particular company, taking into account the costs of personnel and the process itself, the detailed ownership costs of all the funds needed; on earnings forecasts only a broad basis based on the average, does not necessarily apply to every company.
A lot about return on investment and revenue projections are not in customer relationship management program a reality. Today, Gartner predicted that companies in customer relationship management in 80% of the company does not justify operating business activities. This part of the investment return rate because of incomplete, also because of the absence to have plans, accurately, and return on investment be measured on the basis of Shouyi a customer relationship management program of the Ying Xiang. By 2006, only 35% of the companies will begin a customer relationship management before the project can be fully defined their overall return on investment, benefits and business case; less than 20% of the company will use economic tools to guide the customer relationship management the whole process.
Eventually, the company can not afford the fees for access to technology, and do not establish measurable return on investment based on the cost of application technology. So, to get a return on investment measurement method is very important, the company will own the customer relationship management through planning to get return on investment measurement method, in order to ensure business recession era CRM return on investment based on a quantitative . With quantitative data, also has a demonstrated basis for CRM. So as to ensure that enterprises attach importance to ROI, based on a quantitative understanding, which can further improve ROI, increase ROI.