What Does … CRM … Really Mean?

Having spent almost 50 years involved in direct marketing, I have always thought CRM was the acronym for … Customer Retention Marketing. Today it has evolved into meaning … Customer Retention Management.

So, changing “marketing” to “management” doesn’t sound like that much of a change.

But, in truth, it’s enormous.

Today’s definition of the “management” part of the acronym seems to center around the software and technical structure on maintaining the database for a company’s “customer retention” program. In the company’s conference room a lively discussions ensue on why the technical aspects of ACT is better than Right Now or eCometry … or visa versa.

Forgotten is the “art” to customer retention in the first place. This is a symptom of today’s corporate America. Just as in the practice of medicine, everyone has a “specialty”. This creates marketing managed by committee. The result is very ordinary customer retention creativity with a highly technical piece of software having all the “bells and whistles”. However, in the long run, it doesn’t creatively work for putting together a brilliant marketing plan. That’s what happens when everyone is a specialist.

My comments are not targeted at those who handle the management of the technical aspects of the database software. I am speaking to top company management, especially when the companyis in the $3 to $7 million range in sales and can't yet afford several levels on management responsibility. I fear today’s top management have come up through the ranks as a specialist. They never learned their craft by being the “chief cook” as well as “the bottle washer”.

Years ago we built a creative retention marketing plan … then applied the technology of the day to that plan. Today’s top management must take a step back and look at the big picture they are trying to accomplish. It boils down to one thing … increasing sales from your customer database. It’s not just having software with all the bells and whistles. If top management did their job properly, they’d become horrified on how their “technocrats” have become the “tail that wags the company dog”. Yes, proper technical software management is a vital part of CRM, but it’s one of many parts to ensure more sales from a company’s database.

Here’s a good case in point. One of my associates asked me to contact his nephew, an owner of a candy wholesale company. He felt I could help the company grow exponentially with the proper CRM. It was a $6 million a year operation. All their sales came from their internet catalog. They never once had sent out a reorder mailing, let alone a reorder e-mail. I sent letters, e-mails and even had the owner’s uncle call on my behalf. Did I hear a word? No. Not a peep. Not even a “thanks but no thanks”. Here’s a company with a good CRM plan could more than double their sales in a year’s time.