How Not to #Fail: A Look at CRM
Customer relationship management (CRM) programs are supposed to make it easier for retailers, not cause headaches. Still, there are countless stories of CRM failures, ranging from underutilization to just outright bad implementation. The prospect of failure shouldn't deter anyone though; retailers need solid CRM systems in place. Churn rates are staggering considering how many retailers have come to market in the internet age. As a result, no one should wait for customers to initiate contact.
With most business successes and failures, it's difficult to identify which factors have the largest impact, but there are a few things retailers can do to ensure a solid foundation. Outlined below are some of the biggest obstacles, dangers and fail factors every company needs to be on the lookout for when attempting to implement a CRM program. All of them are especially important in retail, with a constantly changing portfolio and inventory and the need to consistently react to market trends and fads.
A Clear Strategy
Retailers need CRM programs, but that doesn't mean they should call up the first vendor that comes to mind and dive in. Understanding how a CRM program works and finding the right fit is going to maximize the benefits for the company.
However, choosing the wrong CRM partner could be the kiss of death. You need to find a company that's on the same page, can meet your needs and won't bog you down with unnecessary expenses. Your provider should be flexible. The goal is to find a company that will help you grow your business, not be so self-obsessed with its products that it fails to meet the needs of its customer — you.
Employees
Your workforce must believe in the new strategy, along with adopting new technologies and business applications. Additionally, strategies need to be in place to initially train and constantly support employees. High attrition and a constant influx of new employees can leave a CRM program lifeless and ineffective
CRM systems follow the "garbage in, garbage out" mantra. If the execution of your new program is based off bad navigation and invalid information, it won't be effective. In fact, it could be detrimental to the business. Depending on the business and operation, the workforce can be incredibly diverse — e.g., location, mobility, language, experience. All considerations need to be taken into account during implementation and rollout. Failures are often a result of neglecting the workforce, causing ruptures in the organization's business.
Quick Tips
- Rapid onboarding and constant enablement is the best way to prepare your workforce.
- Account-to-customer ratios should be low (e.g., 1:35, or less) in order to truly maximize account manager effectiveness.
- Use account managers who are not only customer focused, but are flexible, creative self-starters who thrive on working with ambiguity.
Slow Down, Breathe
Your implementation speed needs to be somewhere between the tortoise and the hare — steady enough to get it done correctly, but fast enough that you're not hemorrhaging valuable customers. Create a timeline that allows the organization to develop a program that will succeed, but stay in the now.
One of the biggest mistakes I see is companies that become overly excited about the endgame before they've even begun defining all of their deliverables up front. It's important to stay flexible as you grasp the spectrum of your customer requirements.
Deploy your program as a pilot initiative to a handful of employees. Gauge initial acceptance and incorporate feedback prior to deploying across your entire population. Keep goals simple and achievable, yet meaningful enough to positively impact your customers.
Measuring Success
Perform regular assessments that give your teams the tools to assess engagement and usage levels for each customer segment. Managers should be able to track all program activities and deliverables, which will allow you to focus on expanding the program deeper into your customer base.
Malcolm Poulin is senior director, product strategy for ANCILE Solutions, a provider of enterprise training and productivity software.