Why CRM Fails — and How to Fix It (MIT Sloan)

Investing in CRM resources without first investing in related marketing capabilities leads to failure.

It’s a good point and also applies to web projects (TheGreatVine). CRM best practices are not enough.

Solution: learn and experiment to develop customer insights which can then be used to decide on the CRM technology that can best support them; this also has the advantage of building a business case and reducing project risk.

Is your company able to support learning, experiments and an evolutionary approach? Short term goals might kill this learning process. Top management needs to encourage learning and experimentation.

Marketing capabilities framework: Where are we? Where can we improve?

 Capabilities: Transaction marketing Long term “one to one” marketing Network marketing
“Demand management”: generate revenue from products and services
Creating marketing knowledge: generate and disseminate insights about customers
Building brands
Company relationship to its customers: CRM