Customer-relationship management (CRM) has become a contentious business software tool since its emergence and growing popularity over the last decade. Some organizations are reaping rewards; others are not.

One overall problem appears to be that organizations quickly become so enamored with all of technology’s possibilities and promises, that they lose focus on changing the business procedures and practices that are vital to ensuring CRM’s success.

Whether you’re just launching a CRM initiative, or revisiting an underperforming one, it’s important to first prioritize business functions and then pick the services that best suit your needs.

A tool, not a target

CRM software is everywhere and the choices are astounding. In general, the products are intended to bring organizations closer to their customers, and in the process, allow them to deliver more customer value. Programs are designed to integrate marketing, sales, and customer service for more efficient and profitable customer contact. Marketing is given the ability to effectively plan and analyze promotional campaigns, sales efforts are automated and allow for more lead generation, and call center duties are greatly enhanced.

But CRM projects can only meet your expectations if you’ve clearly determined your business goals. Developing well-defined objectives and a sound CRM vision for your organization is a crucial first step; one that must be addressed long before any software decisions are made or reexamined. In spite of everything, technology is never a substitute for business strategy. And it shouldn’t drive functionality. Instead, define your business needs up front then explore technology solutions. 

Your CRM goals should be specific and focused on identifiable initiatives. For example, instead of the broad ambition, to improve customer service, your goal might be to improve service response time by 15 percent. Most importantly, it’s essential that you require the I.T. team and your business users to work jointly in creating or recreating your CRM vision. Ensuring that employees are active participants in the development process will help to bolster the program’s ultimate performance.

Narrow the scope

You may want your CRM software to do it all, but is that what your organization really needs? Small and midsized companies would be especially wise to prioritize their business functions before launching or relaunching CRM. Considering that CRM can become either an expensive venture or a smart ROI, pilot projects centered on specific initiatives can be an intelligent approach. It’s always more prudent to scale up projects once you’ve pinpointed the paybacks than it is to cut back on an overly ambitious endeavor.

Besides, some companies simply don’t need all that functionality. And some programs can deliver far too much information. Your organization may be better served honing in on technology features that can provide the most value for a finite number of business goals.

An organizational transformation is required

Successful CRM programs must span organizational boundaries, and employees responsible for using the system must be comfortable with both the concept and the tools. Just as users should be part of the CRM development process, so should they be instrumental in its deployment.

Proper training is vital to program performance as are incentive plans to encourage full use of the new system. Employees will need to buy in to the idea that business processes are being adjusted to support the customer, and that information must flow freely between all functions. Keep in mind that building support across your organization can take time so be sure to reinforce positive results. 

Again, a gradual approach to CRM implementation may be most effective, giving your organization time to adjust culturally and procedurally. In the end, CRM can only offer ultimate value if it’s based on business strategy and wholly adopted by your users.