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Q: Why is it so difficult to sell CRM to management?
A: In a nutshell, the problem is that CRM is all about change - change in the way businesses relate to their customers, or in some cases - change as to who has control over the interactions with the customers. And like any entity, organizations tend to be scared by change. Therefore, a tendency exists to continue to do things the way they've always been done, so many CRM initiatives run into roadblocks because of the changes they will bring to the organization.
Q: What are dangers of not overcoming this fear?
A: The problem is that CRM is not simply an initiative that was
invented by some staff members within an organization - the
initiatives are derived from customers and their needs. CRM, at its
core, is a business strategy built around the concept of the
customer. Moreover, if enterprises aren't able to adapt and meet the
demands of its customers - whether the environment is
business-to-business, business-to-consumer or
business-to-intermediary reseller - the enterprise will be at risk.
The reason for that risk is that customers will find other
enterprises that do a better job of meeting their needs and
fulfilling what they're looking for from a customer-relationship
perspective.
Q: Do you have any suggestions on how to sell CRM inside
the organization?
A: Yes, but they're really more than suggestions. They are closer to be being business rules.
Rule
One: There is no silver bullet.
Rule Two: Look for
friends in odd places. CRM is a business strategy that often has
multiple parts of the organization touching it. Consequently, all
those parts must pull together to maximize the effectiveness of the
CRM initiatives.
Rule Three: Build CRM justification to
management brick by brick.
Rule Four: Look for the major
"pain points." Most enterprises already know the weak
points of their CRM efforts. Selling the plan will be easier if the
sales efforts are concentrated on the pain points.
Rule Five:
Have management become a customer.
Rule Six: Think
strategically, but invest tactically. Don't try to accomplish all of
CRM in one initiative, but you must know where you're headed. That
way you can invest for specific, near-term results and still work
effectively toward the long-run strategy.
Rule Seven: Find
an enemy. Enterprises always work better if they can band together
around a common enemy. So look at what the competition is doing in
the CRM arena and use that as justification for many of these
initiatives.
Rule Eight: Involve your customers every step
of the way.
Q: You've outlined some of the things that can be done to sell CRM more successfully to management. What should be avoided? Where are the minefields?
A: Three things are very important. First, some businesses will require more time to discover and value CRM. Therefore, just because the organization is not ready for CRM at the moment, or is resistant to the idea, that doesn't mean that in six months the situation will be the same. Many company executives become more receptive to CRM proposals as they read more and watch the competition.
Second, companies have to realize that CRM, by its very nature, is iterative - meaning that no company gets it right the first time through. One company, for example, considers itself in the seventh iteration of CRM. Company management always tells Gartner the same thing, "Each time we go through another iteration, we learn how really stupid we are as an organization." In other words, the enterprise discovers more and more about what its customers are looking for with each iteration. Therefore, don't get too tied up in the idea that everything must be done initially. You're going to learn, and so your company will get better and better at CRM. Eventually the company will emerge as a strong player in the CRM arena.
The third and last minefield that CRM proponents may encounter is management that totally resists all CRM initiatives. It's quite likely that this will eventually result in the end of their business as an entity. CRM advocates who cannot seem to gain any support in their organizations really need to do an evaluation - that is, what that means long term for their company and re-evaluate their role. In some cases, they may need to find other companies that are more receptive to their ideas.
(Scott Nelson, VP and Research Director)
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