BAD CRM CAN KILL (COMPANIES)

With the advent of the social customer, businesses nowadays have to be far more careful in their interactions with buyers. One miffed customer can spell a PR disaster for companies.

When Jeff Jarvis bought a Dell computer which soon malfunctioned, his repeated calls and mails to the customer service were met with either stony silence or unhelpful automated responses. Becoming disgruntled with the service, he wrote a scathing review on his blog, entitled “Dell Hell” that was shared widely across the internet. Around 10,000 people saw the post each day and shared their equally negative experience with the company. The top management only took notice when the story was shared in the mainstream media – almost too late. The company quickly jumped into action to assure Jarvis and the other bloggers that the matter would be fixed as soon as possible; however, the PR damage was done. In 2006 the company announced that it would be spending $100 million and ‘a lot of blood, sweat and tears’ to fix the issue. A costly disaster to say the least.


In today’s world, where each and every disgruntled customer may lead to a public relations disaster for a company, it becomes essential for businesses to deploy a smooth customer relation management program. To survive in this social setting, a solid CRM system is vital.

A good CRM system gives companies the following key advantages:

• Allows customers to have seamless interactions with relevant persons in the organization to answer their queries and issues

•  Gives greater automation to routine processes saving valuable time and resources for the company

• With data analytics, it enables companies to predict their most valuable potential customers – and ensure optimal contact to secure their loyalty

•  Creates a faster, more efficient customer relationship system

•  Increases word of mouth publicity and sales

Had Dell employed a more thoughtful approach to their CRM strategy, perhaps it may have been able to save its blood, sweat, tears and money.





Contributor : Vidushi