Corporate Training Magazine

The Evolution of CRM
Vol 2 Issue 4- Jul/Aug 2006

By Mark Robbins

"The customer is our /number one priority". Virtually every company claims this, but in today's customer-centric market, organizations need to pay this more than lip service. Customer relationship management (CRM) is fast becoming a cornerstone for business success.

The overriding principle behind CRM is to bring together people, processes and technologies in order to gain a better understanding of the customer's needs, build a strong, ongoing relationship with them both as professionals and individuals, and improve the customer's overall experience. The resulting benefits to the organization include increased productivity and effectiveness as well as enhanced customer loyalty.

This approach is nothing new. In his book Swim With the Sharks Without Being Eaten Alive originally published in 1958, author Harvey Mackay highlighted the need to build a relationship with customers. He emphasized the importance of knowing something about your customer as well as your product. This approach was driven by Mackay's belief that knowing the customer is important in relating to him or her.

The tool he developed, the Mackay 66, was an expansive profile of each customer, incorporating not only business data such as their company history, job title and responsibilities, but also personal traits, characteristics and interests. It addresses such aspects as: "What are your customer's hobbies? Interests? Political and religious orientation?"

Mackay avowed the same principle is crucial to establishing contacts with influential people. Learn something about the person, so you have an idea of their hobbies, interests and values. Then you'll know what hot buttons interest them‹and what topics to avoid.

For example, many years ago when Mackay met Fidel Castro, Mackay asked the Cuban president how he kept in great shape. Castro, who prided himself on his physical prowess, told Mackay he was an active bowler. When, Mackay told Castro that he was a champion bowler in college, Castro became excited to have met someone who shared a similar interest.

Nearly a half-century since Mackay's groundbreaking book was first published, the field of CRM has grown to become an integral component of the business process. And the advent of new technologies has brought a new level of sophistication to Mackay's tried-and-true approach to building relationships with customers.

Microsoft Canada CRM product manager Frank Falcone explained, "CRM software provides a single view of each and every customer, allowing companies to ensure their customer data is up-to-date while providing workflow-driven processes that ensure consistent process execution, an event-driven model for alerts and escalations, and comprehensive reporting and analysis across all customer processes."

These processes are particularly important because of growing market pressures such as increased competition, more informed and discriminating consumers, and the globalization of markets. Companies willing and able to adapt to these changing conditions by implementing processes and strategies to proactively address the needs of customers stand a much better chance of gaining and retaining a competitive advantage.

A Tool to Fit Your Company
Where once companies were forced to adapt to the software, current CRM packages are more consistently being tailored for seamless integration with existing technology and procedures. Falcone identified three main theories around which Microsoft believes a CRM solution should be designed.

"First, it works the way you do, providing the most natural and comfortable way to add CRM capabilities to anyone the delivery of a great user experience.

"Second, it works the way your business does, providing workflow-driven processes to ensure consistent process execution, an event-driven model for alerts and escalations, and comprehensive reporting and analysis across all customer processes.

"Third, it works the way IT wants it to, ensuring simplified installation, a smooth upgrade path, and extensive configuration and customization capabilities, all based on a set of tools and technologies that customers and partners are familiar with."

What Lies Ahead
Given the increased competitive pressures and the growing customer-centric nature of the marketplace, there is little doubt that formalized CRM adoption will continue to proliferate. Falcone also envisions continued expansion of enterprise-wide CRM across industries, more integration with external partners and resources, and enhanced supply chain management "By bringing together people, processes and technologies, CRM is helping to increase the productivity and effectiveness of businesses, and ultimately drive business success."