What do I mean under this statement? To answer this question we have to consider a current economical situation, an implications of financial crisis and their impact on business. It’s clear that the way we do business has changed. Increasing competition, customer power, risk, uncertainty, market turbulence, slashing demand, financial resources availability, market share – this is just a few problems business has encountered.
So, the only way to keep and increase you market position, improve financial performance and achieve strategic goals is to adapt your business model for this realities. And you have to do this in SMART way. First of all we have to take a systematic approach for our business model, we have to analyse all top business processes, supply and value chain, all functional areas: marketing, sales, finance, IT and of course corporate strategy. Without this, with only partial, incremental changes we will not achieve our goals.
Take for example CRM. We can’t greatly increase sales volumes and marketing effectiveness just by implementing CRM software without positive changes in value proposition, marketing communications, staff behavior and so on. We have to take a systematic approach to customer relationship management by starting our efforts from CRM strategy formulation, customer life cycle and marketing channels analysis, value proposition. The big mistake in CRM initiative is inward company orientation and understanding CRM just as IT technology without customer focus. We have to recall Peter Drucker’s words that the purpose of any company is to create a customer, so all our CRM efforts should be concentrated on maximization of customer needs satisfaction.
So, the only way to keep and increase you market position, improve financial performance and achieve strategic goals is to adapt your business model for this realities. And you have to do this in SMART way. First of all we have to take a systematic approach for our business model, we have to analyse all top business processes, supply and value chain, all functional areas: marketing, sales, finance, IT and of course corporate strategy. Without this, with only partial, incremental changes we will not achieve our goals.
Take for example CRM. We can’t greatly increase sales volumes and marketing effectiveness just by implementing CRM software without positive changes in value proposition, marketing communications, staff behavior and so on. We have to take a systematic approach to customer relationship management by starting our efforts from CRM strategy formulation, customer life cycle and marketing channels analysis, value proposition. The big mistake in CRM initiative is inward company orientation and understanding CRM just as IT technology without customer focus. We have to recall Peter Drucker’s words that the purpose of any company is to create a customer, so all our CRM efforts should be concentrated on maximization of customer needs satisfaction.
No comments:
Post a Comment