CRM Failure and the Seven Deadly Sins

Kale, Sudhir H.
September 2004
Marketing Management;Sep/Oct2004, Vol. 13 Issue 5, p42
Successful customer relationship management (CRM) initiatives should steer clear of the seven deadly sins in CRM implementation: viewing CRM as a technology initiative, lacking customer-centric vision, not understanding customer lifetime value, having inadequate top management support, underestimating the change management involved, not re-engineering business processes, and underestimating the difficulties in data mining and data integration. Locking in valuable customer relationships is increasingly emerging as the most prized strategic capability a firm can possibly have. CRM, when correctly visualized and implemented, can uniquely provide an organization with this strategic capability. The seven deadly sins discussed here encapsulate the experiences of companies banished from CRM heaven. Those desirous of a virtuous CRM implementation are well advised to stay clear of these transgressions. CRM could provide you with a valuable asset that does not appear on the balance sheet, but is, nonetheless, essential for survival in today's competitive world. This asset is loyalty on the part of your most valued customers. It will not suffice to have customers that are merely satisfied. Satisfied customers switch, for no good reason, just to try something else. Profit and growth come from customers that can boast about your product or service--the loyal customer.


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