When you take a closer look at that 50% you will find that their failure shares a common foundation - they neglect to win company wide buy-in. Buy-in comes from a healthy mix of motivation, education, tools and training - and its importance should not be underestimated. So says Sandra Gudat from the Customer Communications Group.

A recent report by the American Society for Training and Development found that companies who invest the most in employee education enjoy higher net sales per employee, higher gross profits per employee and a higher ratio in market-to-book values. Yet, when it comes to CRM, many companies have fallen behind. Respondents in a recent Peppers & Rogers Group (PRG) survey say they're committing just 2% of their CRM investment to training.

So, what makes CRM work?

Top management buy-in and commitment: Experts say you've got to launch your company's switch to a customer- centric business model with an event that is backed by a high-level executive.
Example: To kick off its customer loyalty program. The Bon-Ton department store created a splashy presentation for its annual store manager meeting. The presentation was fully supported by the CFO and CEO. The Bon-Ton even created a mascot to put a face on the program.

Rope in the teams: Assemble a change-management team - an enthusiastic group of leaders, handpicked to represent every department in the company. The team's mission is to identify how each department will be affected by the new initiatives, to create action plans for implementing and communicating the message to others in their individual departments. This process will also help the team identify some ways to get "quick wins" - small victories that will help prove to sceptics that the new business strategy really does have legs.
Example: This type of cross-departmental, cross-functional approach was instrumental in auto manufacturer Mazda's implementation efforts. 'Looking at the CRM initiatives in tandem was critical, 'explains Bill McAdam, co-chair of Mazda's CRM Action Team. 'Otherwise the departments would have gone in separate directions.' The approach helped Mazda employees see CRM as a company-driven initiative, not just the next big idea from the marketing department.

Open the Feedback Loop: As each department representative delivers the message to the masses, they should (a) Reiterate key points from the kick-off event (b) Recount team discussions (c) Lay out the proposed implementation plan and (d) Invite feedback. These steps give employees a measure of control and ownership - and help their CRM team leader tailor the company's CRM plan to meet departmental goals.
Another bonus: 'Including staff in the planning,' says Ken Saunders from PRG, 'has the added benefit of modelling behaviours you want employees to use in the future in your new customer-focused company.'

Spell out Expectations: Paint employees a picture of exactly what's expected of them. Questions to be answered include: How is each division, department and employee affected? What new skills will they need to learn? What will their daily tasks look like? What are they doing today that will support this new-world vision?

How will their efforts be measured? What will change, both initially and as the program takes shape? What are the things that won't change? Once you've answered these key questions, commit it all to paper in a CRM manual or training guide. This fosters a common understanding and a cohesive mission. The guide should also include contact information for CRM team leaders, as well as milestones for the project. Ideally, this guide should be customised not only by department, but also by job function.

What's in it for me? (WIIFM) Be prepared to answer this question over and over.
Example: When Alex Martin of Brennan's restaurant in Houston, wanted his employees to start collecting information on patrons, he boiled the WIIFM down to the basics: The more information we have on a customer's dining preferences, the better that customer's experience will be. The better the experience, the happier and more likely they are to return - and ask for the same waiter. The staff immediately understood that gathering customer information would not only get them better tips, but also bring in more (tipping) customers.

Create competition: Some employees are motivated by money, others are inspired by competition.
Example: Canadian Imperial Bank of Commerce (CIBC) employees undergo four weeks of customer-centric training followed by a 90-day coaching period - a program that CIBC directors believe creates some of the industry's best customer service reps (CSRs). To foster a little friendly rivalry, CIBC posts a scorecard that rates CSRs on productivity, service quality, sales and risk. The scorecard lets employees track their progress and also helps strugglers find co-workers they can turn to for help.

Be careful to tie cash incentives to performance, caution the experts. Although hard-line incentives are effective in many cases, they tend to be dangerous when employees' only motivation is money. The goal is to get employees to commit to the ideals so that customer-centric actions become second nature.

Manage your program: A common mistake in CRM implementation is generating a lot of fanfare about the rollout, then abruptly stopping as people settle into their redefined roles. Training, motivation and communication should continue long after the initial rollout.
Example: Along with ongoing on-site training, Swissôtel Hotels sends frequent e-mails to remind employees of its mission to epitomise "The gold standard in customer service, customer satisfaction and repeat business."

Example: To keep its program in the limelight, technical-services firm Butler International publishes its customer- and employee-satisfaction data in its annual report. CEO Edward Kopko believes that putting this data right alongside the financials underscores the company's commitment to being the number-one customer-rated company in the industry - and keeps enthusiasm high because employees can see their efforts paying off.

Sandra Gudat closes in saying: 'There's no right or wrong way to educate, train and motivate your employees about your new initiative. What's important is that you make it a priority and keep the lines of communication open.'

Take care and ask the question: Are you committed to your CRM program and are you customer-focused?

Winnifred Knight, email win@cubesquare.co.za or phone 082 575 9922

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