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McKinseyonMarketing
Anin-depthlookatthechallengesfacingseniormanagersPublishedbyTheMcKinseyQuarterlyJuly2004
GlennMitsui
OrganizingforCRM
Companiesshouldtreatacustomer-relationship-managementsolutionasaproductorserviceand
itsusersasinternalcustomers—bymakingitvaluable,pricingappropriately,advertising,andproviding
after-salessupport.
Articleataglance:Mostlargecompanieshavesomeformofcustomer-relationship-management(CRM)
software,butmorethanhalfofthemaredisappointedwithit.Criticsblamethesoftware,buttherealproblem
couldbeafailuretoaddresstheorganizationalchallengesposedbyanynewinitiative.Topmanagementoften
assignsexecutiveswithotherprimaryresponsibilitiestotakechargeoftheCRMeffortonatemporarybasis,
andtheymayresorttoheavy-handedmandatestogetfrontlinestafftousethenewtools.Instead,CRM
shouldbetreatedasaproductorservicetargetedatinternalcustomers.
Thetake-away:CRMinitiativeshaveabetterchanceofsucceedingwhenaccountabilityisclearandfront-
lineusersgetadequatetrainingandincentives.
1
OrganizingforCRM
AnupamAgarwal,DavidP.Harding,
andJeffreyR.Schumacher
What’slefttosayaboutcustomer-relationship-
management(CRM)solutions?1Businesscommentators
havespilledoceansofinkdescribingthegut-wrenching
riseandfalloftheseprograms’reputations.Mostlarge
companieshaveimplementedsomeformofCRM,and
manyhavefollowedtheirearlydisappointmentswithfull-
scaleCRMremediationefforts.2
Indeed,morethanhalfofallcompaniesinvestingin
CRMconsideritadisappointment,accordingtoseveral
recentsurveys.What’swrong?It’snotthatcompanies
arespendingwildly;manyofthembuildrobustbusiness
casesbeforemakingtheirinvestments,whichatthispoint
arelikelytobeincremental.Nordoesthefaultliewith
thetechnologyitself—mostsystemsprovidetherequired
features.Companieshavelavishedattentiononbusinessofthemoneyinvestedandtheopportunitycostsoffailure.
andtechnologyissuesbecausebothwereglaringearlyInstead,companiesshouldviewCRMasaproductor
impedimentstoCRM’seffectiveness.servicetargetedatinternalcustomers.Likeanyproduct
or