I am sure most of you have experienced, websites, portals, apps etc which leave you frustrated & with mixed emotions i.e. you do not get what you are looking for or want to address. This still happens to this day, not just in India, but all over the globe. While reading this most can recall & recount their own experience, to connect with the point I am trying to make!
- This is also true of even the most modern CRM systems, including ‘Social CRM’, Whatsapp CRM, Twitter CRM, ‘Agile CRM’ & ‘AI based CRM’ (whatever that means!), because the ‘wiring’ in to the thinking behind their design, is still sided & one way
- Phone services, Toll free numbers, IVR etc are the winners, from the bottom
- Call centres & Telemarketing anger prospects more, than deliver on either sales or service
The traditional CRM approach is a “one-way” street & ineffective. In addition, what is touted as modern CRM snake oil, just does more of the old, same things, which do not work
Here are some of the reasons why;
Reason 1 : Focus on data collection over customer engagement
- Most CRM systems prioritise gathering data about customers rather than fostering genuine, two-way communication
- They tend to store customer data & track behaviours but fail to engage customers in meaningful conversations
- The approach feels more transactional rather than relational
Reason 2 : Over-automation
- CRM systems often automate interactions like emails, follow-ups & customer service, which can create a robotic, impersonal experience
- While automation is efficient, it sometimes lacks the personal touch that customers desire, leading to a one-sided interaction where the company does most of the talking
Reason 3 - Lack of customer feedback
- In many CRM implementations, businesses collect data but don’t use it to listen to or act on customer feedback
- This creates a scenario where the business is talking to the customer, but the customer’s voice isn’t effectively heard or used to drive decisions
Reason 4 : Generic communication
- CRM tools often segment customers into broad categories & send generalised messages to everyone within those segments
- This approach can lack the personalisation & relevance that customers expect, making the communication feel less tailored & more like a mass broadcast
Reason 4 : Failure to adapt to changing needs
- Some CRM systems may not be agile enough to adapt to evolving customer preferences or market conditions
- If businesses aren’t continually refining their CRM strategies based on customer input & behaviour, the system becomes ineffective over time
- In essence, when a CRM approach is focused only on collecting & managing data without actively engaging or responding to the needs & desires of customers, it becomes a one-way, ineffective system
- Effective CRM should involve continuous, personalised communication & a feedback loop that allows businesses to adjust & improve based on customer input
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