Are Soviet-Era CRM Applications Holding Your Company Back?

I thought I was being clever when I described a major retailer's point-of-sale and CRM system as being "Soviet-era" on my personal blog. It sounds like the term is creeping up on the collective subconscious, since Phil Wainewright just used it as the headline for his interview with Bob Warfield from HelpStream, a vendor of CRM applications.

Warfield responds to Wainewright's use of the phrase by suggesting older CRM software forces a "central planning" philosophy on both customers and agents. In larger institutions, once considered early adopters by investing in this kind of technology, the system starts to wield control over both processes and people. It's an apt term to playfully describe what can happen when companies let their CRM systems dictate interactions instead of allowing customers and team members to engage in real problem-solving.

The growth of the Internet in the past decade has fueled the need for CRM systems that respond to customer needs, rather than attempt to force those needs into silos. Some examples of CRM applications that break the "Soviet" mold include:

• Health club CRM applications that allow trainers and membership coordinators to understand the specific needs and preferences of their members.
• Grocery store CRM applications that customize coupon and special offer delivery based on a customer's entire purchase history, not just the order on the conveyor belt.
• Unified CRM applications that allow agents to pick up conversations and interactions with customers, eliminating the need to restart relationships with each contact.

"The CRM software doesn't let me do it" is no longer a good enough answer for customer service professionals in a marketplace connected by Twitter, Facebook, and blogs. IT directors willing to embark on their own version of Glasnost can prepare their companies for a new kind of customer relationship.