Poor Crm

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Customer relationship management (CRM) is a widely implemented model for managing a company’s interactions with customers, clients, and sales prospects. It involves using technology to organize, automate, and synchronize business processes—principally sales activities, but also those for marketing, customer service, and technical support.The overall goals are to find, attract, and win new clients, service and retain those the company already has, entice former clients to return, and reduce the costs of marketing and client service.

http://en.wikipedia.org/wiki/Collaborative_CRM

(1) Loss of customers – Decrease in market share (Short-termed focus)

Enterprises always want something new: new products, new clients. They put most of the resources in R&D to invent new products, and to exploit potential customers. But maintaining current situation becomes the responsibility of low-level employees. As exploiting new clients is highly rewarded, employees have no incentive to care about existing customers. They are not able to develop a long-term relationship with the patrons and are likely to lose them in the end.

Passionate and Profitable, Lior Arussy, John Wiley & Sons, 2005, p.21

Lack of long-term planning: Most companies only focus on the beginning part of their programmes, such as creating the company’s image, offering discounts to attract new customers, but neglect how to maintain them. Seldom do they set up a complete operation plan.

Passionate and Profitable, Lior Arussy, John Wiley & Sons, 2005, p.24

(2) Low efficiency of company operation –
Reduction in profit (Complex system & Unskilled/ Inexperienced workers)

CRM techniques are concerned with answering customer questions, solving customer problems and giving customers pleasant experiences in doing business with your organization. Analysis of data is highly iterative.

http://www.information-management.com/infodirect/20020712/5501-1.html

(3) Misallocation...
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