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How to Start Your CRM?
Q&A between GCCRM Advisors and Members
Ms. Candice Ng-Chee
Managing Partner, MetaCore Asia
GCCRM International Partner (Singapore)
www.mcore-asia.com
The article is exclusively written for GCCRM.
Question:
Our company is the only authorized distributor of a leading European brand in Beijing region. I am now working in the CRM department, which is a newly established department in April 2004. Since we are car distributor (first-tier), we used to focus on selling cars only, no need to take care of maintenance as the leading European brand already have their support on that. However since the market develops, management think that we need a CRM department and assign me this job. Now, my major duties are to collect simple data from front-line sales on those retailing customers. Afterwards, we will make a simple phone call to follow up. But I haven't seen any impact on company's development and sales so far. Thus, I would like to seek for your advice. For car distributor like us with such a new CRM department, how should we start our CRM?
Answer:
In the face of rising customer sophistication and expectation, the linear relationship between manufacturer-distributor-retailer ('I Make-You Sell-He Buys') is no longer working well as a channel strategy these days. It is typical for a distributor to adopt a push strategy on the retailer who in turn adopts a pull strategy (such as discounts or freebies) to attract customers. This puts your business in a less desirable transactional state rather than a relational one, and trains your customers to be price sensitive which could trigger off a vicious cycle. With a strong brand like your leading European brand , you can be sure that your discerning customers are anything but tolerant. Your CRM strategy must include your retailers for a total B-to-B-to-C solution. To collect any information from retailers without a well communicated game plan might put them on defensive mode, or they might not understand your perspective to give you their fullest cooperation. Consumers could also find it intrusive to receive unsolicited calls without their permission.
To distinguish your company from other auto distributors, you can start by working with your retailers/resellers to identify, create and deliver a superior customer experience. A prospective customer 'experiences' your leading European brand the moment he thought of buying a prestige car. From researching to testing, buying, using, maintaining, repairing and replacing, the experience must be pleasurable, personalized and consistent (across channel partners). Very often we only focus on the buying stage. As a sole distributor, it might as well be your responsibility to take the lead to first understand your retailers' and consumers' issues and needs; analyse the gaps and identify the opportunities where you could make an impact. Start with a blank paper, go back to the drawing board, hear from the retailers/customers - this is CRM. Focus groups and interviews will highlight qualitative issues, and Voice of Customer research will help you quantify and build a business case. Maybe what some retailers need is training and best practice sharing; while others may wish for communications support like internet content, dealer-locator, e-marketing, hotline to help reinforce the efforts at the retail outlet. How would your leading European brand 's customers want to be 'treated' (customer treatment) at the different touch points? at different stage of their usage? What are their lifestyles and preferences? And how could your company bridge the two so that 1+1=3 (plus you!)?
After you have done that, establish your CRM vision for the next 2 years and build some common goals with your retailers. You will find them more open to collaborate with you to get the customers (and the latter will also become more attracted to a caring brand or company).
CRM has proven to be effective in retaining and growing customers, put in some simple CRM metrics to help you measure the progress of your efforts, sales need not be the only measurement of your follow-up result. Customer and partner knowledge are assets to you as it help you to acquire customers, build customer satisfaction, achieve customer loyalty and build long term relationship.
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