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CRM - more philosophy than technology
Written by: Petr Vykoukal
Implementing Customer Relationship Management
(CRM) systems without proper advance preparations is like putting the
cart before the horse. While CRM's "introductory stage" is
long past, unrealistic expectations among managers are still common.
IN THIS COUNTRY we've been aware of the term CRM for many years.
During that time lots of things have changed, and foreign words
have become a part of the language. "The situation in the
Czech Republic and its neighbors with respect to CRM changes every
year - firms are quickly learning what CRM can mean to them, so
they're no longer merely discovering what CRM really is," says
Alena Sochorová, telecommunications and hi-tech manager for the
Czech branch of Accenture consulting company. Although there has
been some improvement in the knowledge of Czech managers regarding
CRM in recent years, many experts are still critical. They think
that many managers have in mind something like, "we should
start using CRM," while the procedure they should choose is
actually just the opposite.
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Petr Bučík Photo
by: Andrea Horská
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The beginning
is decisive
CRM is usually seen as the first step in the creation of a customer-friendly
firm. "The CRM philosophy is that a firm learns to recognize the
value of its customers, and to approach them accordingly," Sochorová
says. Good advance preparation is crucial for successful implementation,
and endeavoring to introduce CRM as quickly as possible, without a well
thought-out strategy, can lead to disappointment. "Whether the implementation
is successful and meets expectations generally depends on how it is begun," notes
Václav Kadeřábek, the quality, security, and key programs director for
Eurotel. "I see the milestone as formulating a company-wide strategy,
its harmony with CRM, and setting up the correct processes," he
adds. One must always keep in mind that, according to Petr Bučík, a financial
services management consultant with LogicaCMG, "the software is
the cherry on top." The result of launching a poorly thought-out
and hasty CRM program can be a firm's acquisition of a several-million-crown
phone book.
Unsystematic implementation, where a firm launches CRM only partially,
can likewise cause problems instead of greater efficiency. According
to Sochorová, many firms have made the mistake of not wanting a CRM program
until they have a problem, so they prepare the solution without considering
the impact on the other parts of the firm. "This means that they
are far from taking advantage of the CRM solution's full potential," says
Sochorová. "Furthermore, investing in this limited solution further
development of CRM within the firm can essentially be blocked for some
time, because from the start its additional development wasn't planned
for."
But the opposite extreme also occurs. Companies that decide to build
entirely new, comprehensive CRM solutions become frightened of the price
tags (larger implementations can run into the millions of dollars), suspend
all CRM implementation activities, which basically delays any benefits.
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Václav Kadeřábek Photo
by: P. Poliak
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Everything in its time
If the implementation of CRM is necessary for a company's development,
it shouldn't be postponed, because, among other reasons, it takes a
long time. Setting up a system in a large company with tens or hundreds
of thousands of customers takes many months, or even several years,
and smaller firms also have to count on at least a few months. For
example, Michal Seifert, CRM & DWH program manager at Česká spořitelna,
says that the preparatory phase alone - introducing new service methods
at branches - took a year, and the next phase, implementing a data
warehouse and CRM applications at the branches, took two years and
is currently nearing completion. The case of eBanka was similar. "The
process of CRM implementation is lengthy, and since the bank was founded
in 1998, more and more functions have been gradually added. We believe
that implementing and improving CRM solutions is a never-ending process," says
Pavel Makovský of eBanka. David Seibert, the director for customer
development and retention at Český Telecom, shares this view. "Implementing
the technologies that support work with customers is a process that
can never be completed, because the CRM support systems develop with
the needs of the market and the way business is done," he says.
As an example, he cites the fact that ten years ago ordering a telephone
line over the Internet wouldn't have occurred to anyone, while today
most customers expect it. "Tomorrow, downloading movies in digital
form instead of going to a video rental shop will be an everyday matter.
Of course, the technologies and processes within companies will have
to be adjusted for this," he adds.
A road full
of obstacles
Simplifying CRM to just a technology or a set of activities is
the wrong way to go about it. "CRM is primarily about people
and processes first, and only then about technology," explains
Bučík of LogicaCMG. Motivating the company's employees is one of
the hardest parts of implementing a new system. "When you
launch CRM, the most difficult thing is to involve all of the levels
of the company in its implementation," says Romana Kubalková
of Raiffeisenbank. David Seibert also sees the human factor and
motivation as critical. "The hardest thing is to motivate
the employees to see everything through the customers' eyes," he
says. "Český Telecom is gradually implementing many technologies
in this area, but their use depends on our employees, and that
is what we pay the greatest attention to today. Our goal is to
motivate our employees to truly orientate themselves to our clients'
needs," Seibert explains.
And CRM should reveal its greatest advantages in precisely this
area. Motivation need not be only financial in nature, but CRM's
benefits can be quantified in specific cases. It mainly involves
maximizing business efficiency and sometimes cutting costs as well.
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Speaking clearly
The most frequent form of CRM is the call center.
Because it is often the first point of contact between a
client and a company, the impression made by its operators
is very important. One of the elements that can affect this
impression is the speech of the operators. But different
companies approach this issue in different ways.
"
We didn't take into account the operators' accents, and we
have no information that clients notice various accents,
what they notice is accomodating behavior and willingness.
When we choose operators they take a test on their ability
to communicate," says Petr Hajný, the IT department
manager for Středočeská energetická. Komerční banka has a
different approach to accents. "One of the conditions
when hiring employees is literary Czech, which means accentless
Czech," says Markéta Dvořáčková of the bank's press
department. Komerční banka built its call center near Jablonec
nad Nisou, where the colloquial is the closest to literary
Czech. Petr Šindler of Český mobil, whose call center also
features Slovak operators, takes a third approach. "We
have not yet had any complaints about our operators' accents.
We see the way the operators react and answer questions and
how they handle communications with demanding clients as
the most important things," he says. The linguistic
similarity of Slovak might lead one to think about building
call centers in Slovakia. Why don't firms go that route,
since the labor there is cheaper? "One could talk about
setting up a call center in Africa if they spoke good Czech
there...but let's be serious. The idea of building a call
center in Slovakia doesn't seem like a very good one to me," Hajný
says. Dvořáčková is of the same opinion. "The condition
of Czech spoken without any accent is one of the reasons
it would be difficult to set up a call center in Slovakia."
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Satisfaction is crucial
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Michal Seifert Photo
by: Petr Poliak
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The term CRM began arising frequently in connection with
the liberalization of the power market. However, many other
companies with large numbers of customers are already working
with this concept to some degree or other, for example, banks
and telecommunications companies. For all these firms CRM
should bring better ways to serve existing customers and
better react to their needs. Michal Seifert, CRM & DWH
program manager for Česká spořitelna, describes the reason
on behalf of all the others. "The room for acquiring
new clients is limited, while the room for developing the
value of the existing portfolio is huge."
Český Telecom wants to change the way its whole company is
perceived by its clients by applying CRM principles. "We
are striving to transfer CRM principles into the way many
departments actually function. This should lead to a change
in work style, with the final effect that our customers will
have positive experiences with Český Telecom. This should
be reflected in our retention of existing customers and their
increased long-term value and thus increased value for our
shareholders," says David Seibert, director for development
and customer retention for Český Telecom. As the market becomes
more competitive satisfied clients are crucial.
Power distribution companies are still waiting for the market
for the general public to open up, but many of them are already
prepared. According to Petr Hajný, the IT department manager
for Středočeská energetická, CRM should lead to the creation
of a unified environment and improved quality and professionalism
in contacts with customers. It should also result in expanded
services provided to customers that are more convenient for
them than personal visits - via telephone, e-mail, or fax.
Information about clients's demands are also gaining importance.
CRM allows better tracking of customer needs. "Thanks
to this we can now react more quickly to changes in customer
requirements and adjust the development of our services and
products accordingly. Then we can launch services and products
that our customers really want and will use," explains
Václav Kadeřábek, director of quality, security, and key
programs for Eurotel.
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The CRM magic formula
The question as to what precisely CRM (Customer Relationship
Management) means is far from a simple one. "Each firm
supplies its own individual content for the term CRM," says
Romana Kubalková of Raiffeisenbank, adding, "We see
CRM mainly as a concept for the organization of the company
and the provision of services to clients in such a way that
we can accomodate their requirements." On the other
hand, Václav Kadeřábek, director for quality, security, and
key programs for Eurotel, characterizes CRM as follows: "It
involves the introduction of analytical tools for marketing
needs, for running marketing campaigns, and also for implementing
front-end solutions with customers, that is, for example,
including corporate web sites or WAP services."
However, it is this very broad concept of CRM that can also
lead to a decision to avoid the term. "The term CRM
is a buzzword under whose label various firms sell everything
from information technology through consulting services to
training employees how to speak with customers. It's up to
each company to define the term for its own needs," notes
David Seibert, the director for development and retention
of customers at Český Telecom. "We decided not to use
the abbreviation CRM, and instead focused on specific procedures
that affect how customers perceive our firm," he adds.
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