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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