CRM systems promised to allow companies to respond efficiently, and at times instantly, to shifting customer desires, thereby bolstering revenues and retention while reducing marketing costs.
Why do CRM initiatives fail so often? One reason CRM backfires is that most executives simply don’t understand what they are implementing, let alone how much it costs or how long it will take. If you find this hard to believe, try asking 5 of your managers to define CRM. The right answer: CRM aligns business processes with customer strategies to build loyalty and increase profit over time. (Note that the words “technology” and “software” are conspicuously absent from the definition.)
Loss of control, vulnerability, stress, victimization: these are the themes that emerge when we listen to people talk about hte products they use, the companies that supply them, and the marketplace as a whole. In fact, we are more likely to hear consumers vent their frustrations about newly acquired products than we are to hear them extol their virtues. Control is experienced simutaneously as loss of control. Gains in efficiency are offset by the creation of more work. Freedom of choice is interpreted as a bind of commitments. These frustrations run deep, threatening the very quality of consumers’ lives.