The missing process of CRM

                                                By: Jurgens Pieterse on 07/06/2000

Traditionally customer relationship management (CRM) revolves around the three functions of selling, marketing and support. Various process models have been built around how these functions are integrated and operated in a customer oriented enterprise. CRM initiatives almost always include the automation of these three functions. There is however a fourth critical function that is lacking in most CRM models.

The fourth function that often is the source of a competitive edge is that of innovation. Companies must continually reinvent themselves to deliver an improved and often a totally new value offering to their customer base. CRM must provide the customer intelligence that feeds information back into the enterprise’s knowledge management processes where it can trigger new innovation processes. Innovation is important even for organisations that follow a ‘follow the leader’ approach to remain competitive. When CRM is integrated into the innovation process, significant value can be derived from faster time to market cycle times and with new processes and services.

Marketing automation must ensure that the innovation processes are actually market driven. A market driven innovation process must include both strategies that are focused on satisfying customer requirements as well as strategies focused at redefining customer requirements. Sales automation should be integrated with the innovation process by ensuring that all sales channels are prepared and ready to take new processes and services to market before competitive forces can react. Customer service automation must be designed to empower the customer with the option of assisting with the design of the value offering. Redefining CRM around innovation, sales, marketing and service can identify new competitive opportunities for an enterprise.

The remaining question is whether companies are prepared to take the initiative and expand the definition of customer relationship management to include the process of innovation. The pressure to deliver results within the traditional definition of CRM already overwhelms companies. The dialog must start rather earlier than later because the competitive window of traditional CRM is decreasing and customer demands for a more innovative and responsive enterprise will increase.

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