I am a strong believer of CRM as an – inseparable – means to the end, the business & CX challenge; Increase Customer and Employee happiness. Solve customer facing processes related pain points. E.g., breaking down silo thinking through connecting the silo’s with one central customer engagement platform. Drive engaged customers. Automate & personalize messages to customers at different stages of their journey. Improve insights. Central data hub with all touchpoint data and customer interactions data. Drive revenue. Drive cross selling. Managing the Customer life cycle. Paying the right attention to the right customer. Drive efficiency. Running smooth customer facing processes. Integrate all physical and digital touchpoints to CRM. Sounds promising?! Yes, it does. But. Why has CRM implementations often a bad ROI? Why does CRM implementations fail? In my experience and vision, CRM is not strategic; Make CRM strategic with an interconnection between the CRM program and the overall objectives. Interconnection CRM with CX, design CRM based on the Journey blueprint. Global enterprise? A set up based on think global but act local based on the regional journey blueprint. Read on!
Content
1. CRM
1. 1. Benefits CRM
1.2. Failing factors CRM and how to mitigate
2. How to make CRM successful
2.1. Link CRM to the objectives through OGSM
3. Design strategic CRM
3.1. CRM and journey blueprint
3.2. Global CRM set up based on think global act local based on the regional journey blueprint
4. Drive It-change and business-change with change leadership
5. Summary and more information
1. CRM, benefits and failing factors
CRM benefits on a high level, increases business and reduces inefficiency. In this paragraph, let’s have a look at the benefits of CRM. This is such an impressive list! But, why does many CRM implementations has a bad or negative ROI? Let’s at the other side have a look at the failing factors and how to mitigate this failing factors.
1.1. Benefits CRM
Customer and Employee happiness:
- an engaging and hassle free business for both parties
- breaking down silo thinking through connecting the silo’s with one central customer engagement platform
- automate & personalize messages to customers at the different stages of their journey
Insights:
- the central data hub with all touchpoint data and customer interaction data
- serve customers with a 360 customer degree view
Revenue:
- drive cross selling
- managing the Customer life cycle
- paying the right attention to the right customer at the right moment based on the customers service model
Efficiency:
- running smooth customer processes
- integrate all physical and digital touchpoints
- solve customer facing pain points
1.2. Failing factors CRM
CRM is not strategic
- interconnection between CRM and the overall objectives
Reality. People just chose CRM because they like the brand of the CRM vendor. People chose CRM without having a clear picture which problems to be solved with CRM. How to mitigate, make a link between the overall strategy & objectives and the CRM program.
- Interconnection between CRM and CX. Design CRM based on the journey blueprint. For global enterprises, think global, act local based on a regional journey blueprint.
CRM supports, from customer interactions and data point of view, the CX strategy in many ways; Design CRM based on the Journey blueprint. Reality. There is no link between the CRM program and the CX strategy. How to mitigate, design CRM based on the journey blueprint.
Global enterprises, think global act local based on the regional journey blueprint. One global set up for CRM? This does’t work in many cases because the regional market approaches and CRM requirements are to different. How to mitigate, create a CRM set up based on think global act local based on the regional journey blueprint.
IT change and business change, change management
- CRM starts at the moment of the Go Live
Reality. Often people think CRM is just an implementation project. How to mitigate, a long term adoption program which started at the implementation phase but continuous after the go Live!
- CRM requires both a business change and IT change. But also requires change leadership for driving a long term organizational change.
Reality. Mostly there is attention for the IT-change, but limited or no attention for the business-change and there is no change leadership. How to mitigate, create a sound business change program and develop the organizational change competences.
In the next paragraphs is outlined; How to make CRM strategic. Design CRM based on the journey blueprint. Global enterprises, set up based on think global buit act local based on the regional journey blueprint. How to drive the IT-change and business-change with change leadership comptences.
2. How to make CRM successful
In my experience and vision, make CRM strategic. Make a process for continuous improvement which is linked to the overall objectives. Design CRM based on the journey blueprint. For a global CRM, create a set up which is based on act regional and think global. Drive IT-change and business-change with change leadership.
2.1. Link CRM to objectives through OGSM
Means and the End? CRM tooling – the means – to facilitate the challenges with customer-oriented business – the end -. However, in practice I often see that the means becomes the end. A complete focus on, for example, a certain CRM tool without looking how this tool contributes to the objectives. Which problems to be solved with technology? What is the dot on the horizon and how can technology facilitate this?
The Golden Circle of CRM and CX tooling
To this end, edwinbest.org has developed the Golden Circle model of CRM and CX tooling. Within this model, you recogonize the concepts of the Deming’s quality circle (PDCA), the OGSM model and the Agile Scrum model:
- The PDCA quality circle. A model for continuous improvement based on Plan, Do, Check, Act.
Continuous improvement is the first key element of this model.
- OGSM. The OGSM – Objectives, Goals, Strategies and Measures – model originated by the management by objectives ideas of Peter Drucker. It makes clear how the different parts are related to each other. The OGSM is a strategy on an A4 and forces you to make sharp choices! (And not a 100-page strategy that states what we all want without making explicit choices.)
Management by Objectives is the second key element of this model!
- Agile Scrum. Agile – literally agility or flexibility – is a way of working in which one is aware that circumstances (customers, markets) are subject to change and can respond appropriately.
Agile is the third key element of this model!
3. Design strategic CRM
In this paragraph is outlined the strategic CRM design. As a starting point, CRM and the Journey Blueprint. For global enterprises on top off a global CRM set up based on think global act regional based on the regional journey blueprint.
3.1. CRM and Journey Blueprint
Design CRM based on the journey blueprint. A journey blueprint visualize the end 2 end customer journey with all related – digital and physical – touchpoints.
In a sense, the blueprint of the customer journey. It visualizes all customer interactions – based on the Jobs to be done – and reflects from an organizational point the underlying processes and related departments. The pain points – the opportunity’s for improvement – completes the picture.
Based on this Journey blueprint, design the CRM set up:
- Determine solutions for the pain points which can be fixed with a CRM. E.g., an optimized on boarding process facilitated through CRM.
- Connect all – digital and physical – touchpoints to CRM for establishing a central data hub for insights purposes, breaking down the silos and facilitating a smooth operation.
- Automate & personalize messages to customers at different stages of the journey accordingly the journey blueprint.
- Connect all departments to CRM accordingly the journey blueprint.
3.2. Global CRM set up based in think global act local based on the regional journey blueprint
For global businesses it’s often – too – hard to standardize the processes and so standardize the CRM set-up. The regional market and businesses approaches are often to different. In practise I fase often one global CRM set-up with an outcome a limited adoption and a negative ROI.
With modern CRM systems like Microsoft CRM with its Azure platform it’s possible to create a CRM platform which is based on think global act regional. Yes, the initial implementation cost might be higher. But, the ROI is better and positive. In the picture a simplified picture (without for example a ERP layer.)
Design global CRM, example with Microsoft CRM
Explanation of the three layers:
1. Strategic reporting layer
- based on the global classifications, a standarized global reporting
2. CRM layer
- the foundation, one global basis set-up. it’s includes the global classification and standard account and contact set-up.
- on top of this, a regional set-up based on the regional demands and requirements; the regional Journey blueprint
3. Global classification layer
- standarized, global, classification data. For example ABC, industries, segmentation, profiles. Everybody is using the same classifications.
4. Drive IT-change and business-change with change leadership
Seek for a good balance between the IT-Change en business change with change leadership.
IT-change
- set up based on the (regional) Journey blueprint
- the target architecture: which system to be used for which purpose, the definitions of the source data
- low code, configure unless coding is required (average 90% low code)
- security and authentication
- automated workflows
- data migration
Business change
- link CRM to the objectives, drive change on a continuous improvement program which reflects the objectives
- determine the Journey blueprint, this is also the starting point for driving the change
- adoption and training program
- ambassadors, subject expert matters per discipline
- celebrate successes!
Change leadership
- example behaviour
- long term coaching to establish the desired behaviour: e.g., data driven culture, cross company collaboration
- translate the desired behaviour in HR strategy & policies
5. Summarize
I did’t mention stuff like AI, the pros and cons of the different CRM vendors. These subjects are very important, for example how AI benefit CRM nowadays and which CRM vendor for fill the needs. They must be a part of the CRM approach, but there is more needed for making CRM a sustainable success; a positive ROI on the long term. In an sense, make CRM strategic with a process of continuous improvement related to the overall objectives. Design CRM based on the journey blueprint to establish and drive customer centric business. Last but least, drive both the IT-change and the business-change with change leadership
5.1 More information?
edwinbest.org is happy to think about your CRM challenge and how to provide with help. For example with a CRM selection and CRM implementation based on the Journey Blueprint:
More information CRM selection
