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Why CRM Doesn't Work: How to Win by Letting Customers Manange the Relationship

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  • Anonymous

    Posted June 14, 2004

    Insightful!

    Customer Management of Relationships (CMR) is not a tactic or gimmick ¿ it¿s a new way of looking at your business. Author Frederick Newell promises that CMR will put your customers where they should be: at the forefront of your company¿s efforts. Newell, an international marketing consultant and leading Customer Relationship Management (CRM) authority, explains that a strong relationship with customers is essential to success. Although his book is unnecessarily repetitive at times and poorly organized, he provides excellent advice for companies already on the road to improving their customer interactions. Valuable testimony from experts accompanies numerous case studies. Whether you took a ride on the CRM train, or not, if you want better customer relationships for your business, we think this book may be your ticket.

    1 out of 1 people found this review helpful.

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  • Anonymous

    Posted April 4, 2005

    Cost-efficiency isn't enough: Improve external effectiveness

    Newell focuses on an important issue by trying to explain: 'Why CRM doesn't Work'. He reports that only 25 to 30 percent of companies implementing CRM initiatives feel that they are getting the return they expected. He also manages to put forward many of the real causes for CRM projects failures. Most prominently that CRM projects are more concerned about internal efficiency in handling customers (automation of sales force, marketing, and customer service) than the real needs of the customer. So at the end of the day, the firm might have saved some dollars in internal processes and manpower, but the customers are probably treated even worse than before. This quote from the book illustrates the point: 'Marketing automation is fine, but it's not about the customer. Most marketing automation is about costs and speed. Selling efficiency is not about the customer, it's just about leveraging your resources. Value maximization, in terms of figuring out which of your customer segments are going to deliver the most top or bottom line, that's not about the customer. So a lot of the benefits that are claimed for CRM are really benefits that accrue to the enterprise, but have nothing to do with the customer' That's why Newell calls for a change. Instead of CRM, we should put the customer in charge instead and call it CMR. That is Customer-Managed Relationships. It's a good and a valid point. Newell summarizes the journey from CRM to CMR like this: * From the company is in control ... to the customer is in control * From make business better for the company ... to make business better for the customer * From track customers by transaction ... to understand customer's unique needs * From treat customers as segments ... to treat customers as individuals * From force customers to do what you believe they'll want ... to let customers tell you what they care about * From customers feel stalked ... to customers feel empowered * From organized around products and services ... to organized around customers The reason why I rate the book somewhat low is that it is poorly structured with endless anecdotes scattered all over the book. Peter Leerskov, MSc in International Business (Marketing & Management) and Graduate Diploma in E-business

    0 out of 1 people found this review helpful.

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  • Anonymous

    Posted May 14, 2011

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