This is pretty much verbatim of what I have heard over the years, at least within the pharmaceutical and healthcare industry. CRM has become synonymous with a system or to take it back to its most primitive form a database of customer records.

Literature over the decades from authors like Buttle (2009) defined ‘CRM as the core business strategy that integrates internal processes and functions, and external networks, to create and deliver value to targeted customers at a profit1’. Is it a co-incidence that at this time pharmaceutical companies were still working with the terminology of an eTMS (electronic territory management system) latterly transforming into the SFA (sales force automation) tool?

During this period these solutions were primarily a customer database with the functionality to structure into territories by postal code districts or an amalgamation of these. This allowed the customer to be flagged as a target or non-target. With two main marketing channels implemented in the SFA i) sales representatives delivering a blend of face-to-face calls and meetings and ii) postal mailings. The tool was used to simply record the interaction and sales representative administration such as time on territory and in some cases expenses as well as allowing the extraction of mailing lists.

You rarely hear of anyone making their career out of a CRM system roll-out but you certainly know a few that have nearly had their careers broken by one. I have been lucky to have survived five rollouts over a 20-year period, these range from local instances to global solutions. I’ve deliberately used the language survived as on occasions that is how it felt. I have partnered with some great IT colleagues over the years now mostly rebranded as digital. Where I see the difference between successful versus stressful rollouts is where the accountability lies and the strength, trust and respect of the working relationship. 

If CRM is viewed as a digital project and managed as such, it is likely to be a bumpy road, this is where I have felt the stress over the years. The intent is always positive and links back to what Buttle refers to as Operational CRM which ‘automates and improves customer-facing and customer supporting business processes. CRM software applications enable the marketing, selling and service functions to be automated and integrated2’. Is this such a bad thing? In isolation, no, however this also assumes that the business processes are optimal, aligned, efficient and more importantly forward looking. Reflecting on the changes observed in go-to-market strategy following the introduction of digital marketing which accelerated overnight in 2020 due to inability to access customers through the traditional channel were we fully prepared for overnight success?

Where does CRM succeed? The best chance of success must be when CRM is fully embedded in the business specifically with marketing and franchise teams understanding their customers and bringing data, people and technology together. Following profiling, segmentation and targeting of customers, we deploy many different channels in a journey aiming to improve the brand uptake and the customer experience. This could be defined as ‘strategic CRM focussing on the development of a customer-centric business culture. This culture is dedicated to winning and keeping customers by creating and delivering value better than competitors3'. Do we pull this concept through to reality? Is this positive intent implemented into a solution or is it too difficult as redevelopment is needed leading to elements often in isolation with the solution used to host interactive sales aids, pdfs and targeted emails. There is still much to do yet progress is being made as organisation’s look to accelerate and embrace AI to implement next best action as a starter from fragmented and incomplete data sets. We are moving forward but I would argue we are still a distance from realising a true customer relationship management approach.

This is often hampered by not having actionable and timely analytics which happens to be another CRM approach. 'Analytical CRM is concerned with capturing, storing, extracting, integrating, processing, interpreting, distributing, using and reporting customer-related data to enhance both customer and company value4'. This has been an ongoing discussion of whether CRM analytics should be managed in isolation or integrated with sales data in one place? That’s a discussion for another day.

To implement customer relationship management for success this must be embedded at the heart of business with the processes being future focussed and fit for purpose. Operationally, any solution must be implemented with the end user in mind allowing the ‘what’s in it for me?’ to be answered with ease, whilst ensuring an optimal and expected customer experience is achieved. These two elements may compete as external and internal customers may have different view and needs which will need trade-offs. Finally, what goes in must come out, adding increasing value to generate new insights to meet ever changing customer needs.

CRM is data, people and technology working in harmony.

Article sources
1. Buttle, Francis., Customer Relationship Management, Concepts and Technologies (Oxford: Elsevier Ltd, 2009), pp. 4-22