Tuesday, March 14, 2006

Why Should Customers Be Loyal to Us?

I just came across an old AMR Research slide showing the key drivers behind CRM. Wow, is it revealing!

It reveals that corporations were (at least in 2002 when the study was done) totally fixated on themselves instead of on their customers. At that rate, CRM should never have been called Customer Relationship Marketing ... it should have simply been called Marketing and Sales Automation.

The first driver cited by 33% of respondents was "automation/productivity/efficiency. Second behind that was "competitive advantage." We were staring at our own navals, trying to fix messed up departments and calling it CRM.

The third driver was "customer demands and requirements." We were not leading our clients, they were demanding better service. An admission of total CRM failure.

Following were these drivers: Increased Revenue, Cost Reduction, Saving Time, Keeping Track of All Aspects of the Business.

Then finally, in seventh place, came "Customer Support." Further down the list in 12th position was "Customer Satisfaction."

That AMR study is convincing evidence of what I said in my previous post -- we treat our customers simply as a means to cash ... and they know it. So why should they be loyal to us?

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