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Incorporating the Human Element Into CRM

When it comes to growing a business, some CEOs believe it's all about revenue. I believe it's all about relationships. While the bottom line is of utmost importance, it will only be impacted when you are able to build real and true relationships with your customers, relationships that are built on mutual trust and understanding, with a focus on continually meeting customer needs.
 
This concept is far too often overlooked in today's economy, especially when examining the types of CRM solutions that some organizations are implementing. All too often companies believe that technology is the key to obtaining more valuable customers. As companies are now finding out, technology is just a part of the equation.
 
In order for CRM to be successful, organizations must focus on the relationship building process. While technology provides the ability to manage and analyze data collected about existing and potential clients, it cannot develop and nurture customer relationships - a critical component of any successful CRM initiative. In order to have true and successful CRM, there must be a human component, with humans relating to humans. The market is just beginning to realize this.
 
Look back to the advent of the Internet in the early to mid-90s, when many companies began to equate self-service with customer service. They created fancy Web sites featuring a plethora of information that users could independently access, with no need to speak to a human. Some offered lists of FAQs, for instance, believing that if they gave consumers the opportunity to read a document that generically answered the most basic, common questions, they would meet customer needs while lowering the cost of doing business.
 
During this time, companies also invested in expensive technology that allowed the creation of comprehensive, searchable databases that customers could use to seek answers to basic questions. Companies initially embraced this concept as a cost-effective means for handling customer demand. However, these were ultimately expensive ventures, especially for smaller companies that needed to create the initial database. The results were marginal. The systems were highly impersonal, often providing one-word answers and frustrating consumers.
 
As more and more companies recognize the shortcomings of such impersonal solutions and understand the benefits of live human interaction, they are beginning to reintroduce the human element - seeking ways to incorporate live discussion so that they may take a more proactive stance with customers and prospects.
 
While all organizations may benefit from incorporating human interaction, the process may be more effective for certain companies. For example, the "human touch" may be unnecessary for consumer-oriented companies that sell lots of inexpensive items. Such organizations would be better suited investing in technology that would enable segmentation of their customer database into categories - frequent buyers, occasional buyers, and infrequent shoppers. Companies may segment even further, dividing their buyers by purchasing behavior, for example. With this information, companies can personalize and target their marketing campaigns based on customer needs and preferences.
 
The human element is most effective in a business-to-business environment selling expensive products. Companies in this category should consider several different types of technology to introduce the human element. For instance, they might consider a way for Web site visitors to immediately interact with a customer service representative by simply clicking on an icon, giving them access to real person via live chat, an immediate call back via the phone, or voice-over IP technology. Another option might allow them to identify hot prospects while visiting a corporate Web site, based on time spent on specific pages or a specific click path, and then engage a prospect in a one-on-one conversation via live chat or phone.
 
The key to successfully incorporating the human element into your CRM initiatives is to provide the right people to staff your call center or customer interaction center. Look for true customer service and sales professionals who are smart and educated, and pay them well. Give them plenty of training so that they understand the products and services you sell, and make sure they are sales savvy. Remember, they are on the front lines. They can make or break a customer relationship. They can mean the difference between keeping a customer or prospect satisfied - or losing a deal.
 
Jeanne Lambert, president and CEO, founded Cerida Corporation in 1993 and currently spearheads the overall management and strategic direction of the company. During the first two years of Cerida's growth, Lambert implemented programs for several high tech companies, including The Mathworks Corporation, Lotus Development Corporation, CBT Systems, FASTech Integration, and Lotus CSG. Prior to founding Cerida Corporation, Lambert built the telesales organization at Index Technology Corporation, which was later merged with Sage Software to form Intersolv, where she hired, trained, and managed the telemarketing, field sales and pre-sales technical support operations, and implemented a pioneering team selling structure with overall annual revenues of $40M.