CRM can be really magical - when it works

There are hundreds of companies out there today that have spent literally millions on high-tech CRM systems - and never used them to their full potential. It always surprises me to hear that so few businesses and SMEs implement strategies to make their customers feel good.

Money spent on CRM is wasted unless your company can effectively use the systems properly to ensure that your customers have positive experiences, and also feel that they are getting good value when they do business with you. When that CRM information system is also used to analyse and implement strategies and tactics for customer retention, for cross- and up-sales, and to mobilise the power of word-of-mouth and referrals, then you will have an unbeatable competitive edge.

©Jakub Jirsak via 123RF

So, what can you do to make sure that your CRM system helps rather than hinders your relationships with customers? Here are some tips:

• Ensure that the information you keep is relevant to the customer, and their needs and preferences, rather than just your own. Find ways to say 'hello' and initiate a friendly chat. Gather information on what they like and then give them what they want. Make them feel welcome and special. Remember their names. The more you know your customers, the more specific your segmentation becomes. Get to know what they're most interested in by segmenting the list, to see which offers drive the best response

• Don't burden your customers with your information problems. You know what it's like when you apply for financing for a new car or house, or even when you re-do your cell phone contract or get your new credit card: it is usually an absolute nightmare of paperwork and bureaucracy.

• When people are trained, don't focus only on the technical aspects of how to use the system reasonably efficiently. It is also crucial that they know how to use the information proactively to help customers.

• The "human touch" is also critical. Apart from the warmth, courtesy and interpersonal skills of staff dealing with customers, you also need to ensure that you understand the human needs of your customers. We are not talking about phoning them on their birthday here. For example, some of my best experiences as a customer have been with a business where I don't experience any human contact at all, such as in an online store.
  However, the development team of the online store website has taken into consideration that I have more needs than just ordering books. They allow me to look at the content pages of the book, and to read about what other people have said about it. They keep me informed about the processing of my order, even after they have dispatched the items. And when another book on the same subject is published, they let me know about it.

If businesses could put themselves in their customers' shoes when they implement new CRM systems, and use them to add value rather than save money and improve efficiency, customer loyalty and delight will improve dramatically.