The impact on the business of CRM systems

No one doubts the advantages derived from the implementation of CRM systems, but before taking that step, it is essential to know the impact that their adoption has on the structure, philosophy and processes of any organization.

As the new economy consolidates, CRM systems continue to gain in importance. No one doubts the advantages derived from its implementation, but before taking that step, it is essential to know the impact that its adoption has on the structure, philosophy and processes of any organization.

With this objective in mind, Gartner Group examines in a report the 10 key impacts of the implementation of a CRM system, which according to the consultancy can be divided into three categories based on their scope of influence, market space, executive space and implementation space.

In the market space, the implementation of a CRM has three main consequences, it increases customer expectations, increases the complexity of the relationship with customers and produces a shift that leads from mass production to customization.

Increased user expectations are causing the adoption of new channels, leading to the implementation of poorly crafted multichannel strategies, which lowers both customer satisfaction and loyalty.

According to Gartner, the complexity function of the relationship between companies and their customers is manifested in this way R (f) = (No. of segments) x (No. of Products) x (No. of Channels) x (No. of Corporations), and all elements of the equation as new technologies emerge, there is greater mobility and new products are developed.

Regarding the third point, customers are demanding an exact answer to their requirements and the solution is customization.

In the executive segment, the adoption of a CRM system entails the intensification of the CEO’s attention to the system, improves the distribution of the budget and formalizes the governance of customer relationships. Large CRM vendors and consultants find that CRM initiatives lead to improved profits and stock prices. In addition, driven by the attention of CEOs, a strategic shift is taking place in companies in terms of the object on which the emphasis is placed, which is closer to the customer and away from product excellence and operational efficiency.

Regarding the influence on the implementation segment, it is observable how internally developed applications are being replaced by standard packages and client / server architectures are moving towards Web-based architectures, while point solutions are being replaced by suites. CRM capable of handling most functions.

In this same area, an explosion of information concerning the customer is also evident. In the past, the bulk of spending on CRM applications was focused on sales and customer service; Beyond these areas, marketing and analytics are the fastest growing environments today, due to the explosion of customer data from their transactional modes, their customization habits, their use of communications voice and video and the resulting analytics.

Currently around 500 companies say they sell CRM software solutions, but, according to Gartner Group, only 200 are really what they say they are and of these, only 50 percent will survive into 2004. Simultaneously, Gartner warns of the increase in the number of projects that fail. A recent study shows that in 32 percent of technology projects, twelve months after their deployment, there had been poor or no use of technology, a situation in which Gartner understands that companies should try to identify risk factors and take the necessary steps to minimize the risk of failure