Why Crm Doesn't Work : How to Win by Letting Customers Manage the Relationship

CRM is getting too much hype -- largely from the "consultants" that are making a fortune from it. On the flip side, I feel I've made some of my own fortunes by flipping the system around and ENABLING THE CUSTOMER TO DRIVE THE RELATIONSHIP. The author refers to this as CMR (Customer MANAGED Relationships). He gives great examples, but some of the details and technology explanations are basic and really don't belong in this book. If he had stayed with a higher-level discussion of the philosophy and psychology of CRM's shortcomings, I would have given it 5 STARS. There are far better resources available about the SPECIFIC "how to" of CORRECTLY implementing customer interaction systems. If you are interested in this topic, you should also look into PERMISSION MARKETING by Seth Godin, as that EXCELLENT work (should be rated SIX STARS!) gives another similar perspective on solving the customer bombardment / interruption marketing problem that has arisen.

Why CRM Doesn't Work is an excellent discussion of why most companies are disappointed in the results of their CRM investments in shiny new technology to attract and retain profitable customers. The basic problem: Companies are trying to use new tools to manipulate customers in ways that customers hate. An example would be a company that asks about all of your preferences, and then sends you enormous numbers of offers for things you aren't interested in. The solution: Use a management process that lets customers decide what relationship they want with your company, and then develop capabilities that efficiently provide what's needed for that relationship. An example would be all the fun programs that Budweiser provided on-line for those who wanted to enjoy participating in its Whassup?! advertising campaign.As many people point out in the book, someone will sell you lots of technology bells and whistles whether you need them or not and whether or not you are prepared to use them properly. With this book, you can overcome that problem by using the thoughtful process outlined in the book to make your whole company move into an effective, customer-focused direction. I especially liked the way that it focuses on those relatively few current and potential customers who could make a real difference. Although the message is a simple one that you could have gotten from a magazine article, I found it helpful to read the many detailed examples in the book. Those that described customer frustrations were the best as reminding me of how badly most companies treat their customers. I should admit my bias in liking this book so much. On pages 172 and 173, Mr. Newell repeats two of my favorite stories about why humans have stalled behaviors that serve no current purpose . . . both of which appear in a book I co-authored in 1999, The 2,000 Percent Solution. In the first story, a woman cuts off the end of a ham before roasting it. When asked by her husband why she does that, she says that her mother always did. It turns out that her mother's roasting pan was too small for a ham . . . so that's what started the habit. In the second story, experimenters douse monkeys with cold water when one reaches for a banana. Soon the other monkeys will attack any monkey that tries to reach for a banana. Gradually change all of the monkeys in the cage, and they will still attack any monkey who tries for a banana . . . even though none of them have ever been doused with cold water. So break out of your old habits of manipulating customers to reduce your costs and improve your profits so that you can establish a mutually advantageous and pleasant relationship that makes it easier for profitable customers to do more business with you. Why did I grade the book down one star? Well, in a lot of sections the book is very repetitious. In some sections, one set of ideas follow another that don't seem to fit together . . . but there's no discussion of how they con

Two years ago, in the midst of CRM furor, no one would have paid attention to "Why CRM Doesn't Work," however, this summer it has made its entrance with impeccable timing. Newell introduces the idea of customer-managed relationships (CMR) and also shows by example (and spices it up with humor) how often CRM initiatives fail because most companies are still product--- and not customer--- focused. Newell then goes further and explains how any business can discover why, when, how, and where customers want to be contacted....simply by realizing who today's customer is, and by listening to them. With these ideas in mind, it really makes you wonder how any company can miss these clues and continue to alienate customers as often as they do. With this book in hand, perhaps more executives will be able to create a truly customer-focused culture; one that lets the customer take control.Beyond these insights and ideas, Newell questions how technological, financial, and other changes of the future will effect how CRM is being done today, and how CMR can be an answer to many of the most pressing issues. This book truly speaks to businesspeople in any industry, at any sized company, and at any stage of their CRM initiative (even if they don't yet have one)This book entertains while also encouraging its readers to think hard and formulate their own answers to their company's problems. CRM - such a grand (and wonderful) business strategy, still needed a new approach, and Newell delivers it.

Frederick Newell explains throughout exactly why CRM needs a readjustment (and so much more). This book is peppered with thoughtful insights and never-thought-of ideas for any CRM or Marketing executive wanting to justify a new CRM implementation or one who is desperately searching for a clue to begin the rebirth of an existing one.Until this book, marketing and other business professionals everywhere may have been wondering where they should look for some fresh answers to their marketing initiatives. My suggestion is that they look right here, because this: CMR (Customer Management of Relationships)... is precisely what Customer Relationship Management will, and must, become. Frederick Newell has done it again only this time with a lot more moxie. As always, he sees the future of this important business strategy and points the reader in the right direction.