CRM Unplugged Chapter 1 docx

[...]... and Dr Margaret Fleming for all of their support and encouragement Philip Bligh and Douglas Turk Chicago, 2004 xviii CHAPTER 1 A New, More Strategic Approach to CRM Industry Leaders Show the Way 5 A Clearer Definition of CRM Is Required 6 Three Lessons from Leaders 13 Key Points 21 T he 19 90s saw widespread investment by companies in software applications that automated their sales, service, and marketing... success with CRM However, none pursued it in conventional ways.What emerged from our study were clear patterns in how CRM should be approached to achieve lasting returns.We introduce three key approaches in this chapter and cover each in more detail in subsequent chapters: 1 CRM is not just a technology initiative; it must be approached strategically When initiated with this perspective, CRM can produce... trends should drive CRM agendas Initial CRM implementations or enhancements to existing CRM infrastructure should be based on adequate information and perspective about customers and the firm’s demand environment Once implemented, CRM should allow organizations to see beyond the boundaries of the internal enterprise, and collect, analyze, and leverage such insight 5 CRM Unplugged 3 CRM must be implemented... strengthening profits and strategy This section outlines these approaches and Chapters 3 through 6 cover them in more detail CRM Must Be Approached Strategically and Linked to Clear Business Gains A major element of past failures has been the tendency to implement CRM ideas and technologies without first identifying the firm’s key 13 CRM Unplugged levers of competitive advantage Higher prices, improved market... how CRM could strengthen their specific competitive advantages, and instead embarked on expensive efforts to adopt Best Practices embedded within CRM software applications or automate their existing processes regardless of their strategic value Therefore, 3 CRM Unplugged most ended up with implementations poorly tailored to their specific competitive needs As a result, few of those who pursued CRM. .. interactions CRM can and should help coordinate processes across functional departments and create a crossdepartmental mindset in order to deliver tailored treatments to key customer segments In the remainder of this chapter we summarize these key lessons, which are covered in more detail in later chapters But first we must pause to clarify our definition of CRM A Clearer Definition of CRM Is Required... strategy and help generate enduring returns We hope to show how CRM should be defined, approached, and profitably applied to your business We describe what went wrong and what lessons can be learned from the first phase of investment in CRM The title of the book CRM Unplugged captures a vital lesson that most early adopters had to learn the hard way: CRM really isn’t about technology, it is about attracting... marketplace CRM must be implemented in this tailored manner to truly help improve value for customers, strengthen competitive 14 A New, More Strategic Approach to CRM position, and boost business performance The new approach first determines the distinctive activities within the firm’s value chain before creating agendas and committing investments to CRM To illustrate the strategic approach to CRM, consider... leverages technology as a tool—not the other way round Implemented properly, CRM produces lasting gains in revenue and profitability by boosting competitive advantage 4 A New, More Strategic Approach to CRM Industry Leaders Show the Way During our research for this book, we looked extensively for CRM failures and success stories In Chapter 2, we’ll look at the failures in more detail In looking for success... the past failures of CRM stem from multiple causes in both planning and implementation There is no silver bullet that will guarantee success Instead, a whole new way of conceiving of and implementing CRM is needed At the core of the Inforte approach is the notion that CRM is a tool for company strategy, not an end in itself The book offers a textured understanding of how to align CRM with strategy, which . Marketing Strategy 15 0 Key Points 16 1 7 Implementing CRM Successfully 16 3 Implementation Guidelines for Success 16 5 Key Points 18 1 Epilogue: The Future of CRM 18 3 New Marketing Approaches 18 7 Understanding. Insight Infrastructure 10 4 Key Points 11 5 5 Demand Visibility and Response 11 7 Demand Visibility 12 1 Best Practices for Increased Visibility 12 3 Responding to Market Demand 12 5 Best Practices for. Responsiveness 12 8 Science of Revenue Management 13 1 Power of Pricing 13 2 Key Points 13 3 6 An Enterprise-Wide Approach to CRM 13 5 What Is Customer Strategy and How Does It Help? 13 9 Contents vi ftoc.qxd