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CRM - 5 Fatal Misconceptions |
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Misconception Nr. 1 ‘Knowing a lot about someone qualifies to be in a relationship’. Really? In other words, if someone collects as much data as possible about a person, he/she is entitled to assume he/she is involved in a relationship? Is this not exactly what some psychotic people do? Gathering all information about someone and imagining that that person is part of one’s relationship?
Since when is knowing a lot about someone equal to having a relationship? Since when is collecting socio-demographic data about customers and keeping track of their sales and contact history equal to a relationship? Who came up with this? You don’t need to be a rocket scientist to figure out that this simply doesn’t make any sense. Make sure that you are not in an Imaginary Customer Relationship. There is a word for this…stalking.
Misconception Nr. 2
‘Focusing on your strengths will strengthen a relationship’
Sounds logical, but it isn’t. Imagine a relationship getting into a crisis caused by one specific lack in the relationship, and the two implied parties shifting their focus away from that lack and putting their hopes on something that is not an issue? If a relationship were in a crisis because of the disappointing behavior of one of the involved parties, how much good would emphasizing his/her strength do? What once was admired can become irritating and even nauseating, when overemphasized in a relationship crisis. Do your really believe that a relationship can be saved by emphasizing ones strength while ignoring the cause of the crisis? Focusing on the weaknesses in a relationship and solving them is the secret to developing healthy relationships. The same is true for customer relationships.
Misconception Nr. 3
‘Loyalty is an accurate indicator of a good relationship’
Right, in other words, if two people are together for 20 years, they are having a great relationship? Can we say anything about the relationship only based on the fact of their coexistence? Is loyalty giving us any clue regarding the quality of the relationship? Could there be other reasons why these two people might stay together, like habit, fear of change, fear of rejections, insecurity, monotony, not knowing any better, etc…?
Is not commitment telling us a lot more about the quality of a relationship and is commitment not automatically generating loyalty? A couple cannot be committed because of habit, fear of change, etc… If in a relationship two people are loyal it doesn’t necessarily mean that they are committed; but if they are committed they will be loyal. By going for a committed customer relationship instead of just aiming for loyalty, loyalty will be an automatic consequence.
Misconception Nr. 4
‘What was crucial for initiating a relationship will always remain essential’
Hmm, is a relationship not a growth process? Does a relationship not need to be nurtured? Is nurturing always the same ‘relationship food’ going to help the healthy growth of the relationship? Do you feed an infant the same food as an adult? While growing, it is obvious that the nutritious needs and requirements shift. If you don’t have an understanding of this, you might still be feeding what you were used to in the beginning and cause indigestion or malnutrition.
Yes, relationships too do suffer from indigestion and malnutrition if they are not properly fed. As a relationship grows it needs more substantial food than was required in the beginning. This is exactly the same for a grownup customer relationship.
Misconception Nr. 5
‘The quality of the data determines the quality of the relationship’
Not exactly. What determines the quality of data, its accuracy or its relevance? You could say both, but ask yourself: is it possible to collect accurate but irrelevant data? Yes, absolutely. What is the value of this accurate, yet irrelevant data? The value is zero, because it is irrelevant to achieving your goals.
Most CRM systems excel as ‘Data Management’ tools, focusing on socio-demographic data and client history. What is the relevance of this kind of data to measure the quality of a relationship? Do you know what your customer is thinking about your brand based on socio-demographic data and historical behavior? If your data is not dealing with relationship principles, than your CRM tool is nothing more than a library.
Also ask yourself, what is accurate and relevant data worth if you don’t know what to do with it? Does it make any sense to have a pricy CRM system and not to integrate these finding in your communication and brand plan? If your advertising agency is not able to convert relevant data into effective growth generating messages, why bother with the hassle of collecting all these data?
If your CRM program is not part of an integrated communication concept, then you are probably giving yourself and your customers a hard time for nothing.
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