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GWU Biz School Report: Tackling 'Fundamental ' CRM Dilemma Facing CompaniesBy David Sims TMCnet Contributing Editor According to a recent George Washington University School of Business Research Report, the "fundamental dilemma" facing companies trying to use CRM to increase their long-term competitive edge is "finding out which CRM approaches have the greatest positive impact and result in building long-term customer value and thus financial impact." VendorGuru.com has interviewed noted CRM expert Dick Lee, vice president of a consulting firm that specializes in designing and developing customer-centric business strategies and author of Strategic CRM: The Complete Implementation Manual, about just that topic. Lee stresses two important steps to successful implementation of CRM software: developing customer-centric strategies and finding the technology that fully supports them. Note the order. First, the strategy. Second, the fancy, shiny techie toys. The message is clear, as far as Lee's concerned: companies that do not develop and maintain value-based relationships with their customers are gambling with the future of their business. Companies like "Nordstrom have been customer-centric forever… Southwest Airlines and Toyota caught on years ago, and young companies like Amazon.com (News - Alert) and Google got it right from the start." CRM, when implemented well, can help a company "better understand and adapt its marketing and business processing to its customers' preferences," and this creates an "enduring personal business relationship" according to the GWU study. This is a long-held truth. A 2004 survey conducted by the American Society for Quality also found that "competitive advantage rests with those organizations that successfully provide customer value through the most efficient use of technology and people," adding that customer value translates directly to "increased revenue through repeat business, referrals, and customer loyalty." Said Tara Moynihan, spokesperson for VendorGuru.com, "Companies that are not looking closely at developing essential connectivity with their customers, aren't going to be around in tomorrow's competitive marketplace." Last month VendorGuru predicted the customer relationship management (CRM) market for 2007 will grow 11 percent, and recommended that businesses find a CRM vendor who "recognizes the benefits of an effective CRM strategy to build customer loyalty within their specific industry." Technology market analyst firm Gartner (News - Alert) has reported that the CRM applications market will remain strong in the coming year, and there will be a shortage of skilled CRM workers. That means finding the right source for CRM expertise is more important than ever as it becomes increasingly difficult to hire CRM-trained professionals. David Sims is a contributing editor for TMCnet. For more articles please visit David Sims' columnist page. What’s the number one VoIP |
