Do You Know What Are the "Unintended Consequences" of Your CRM Project?
Jim Mercante - November 25, 2004

Introduction

All too often companies look at CRM as a project-oriented endeavor, focusing on time and budget measures as the primary metrics of success. This is especially true in organizations that are still driven by a "ROI mentality." What many business leaders fail to take into account is the "unintended consequences" of their actions with regard to CRM. One common function of CRM is to stratify customers by current or potential profitability. Using that information, companies treat the more profitable customers better and, in some instances, actually try to discourage the least-profitable customers from continuing to patronize their service. The former may be tolerable; the latter will produce some serious unexpected consequences. However, some of the MBA marketing gurus who have never had eye contact with a consumer may not understand an important word: community. How about a bank CEO who does not have the vision to understand some of the hidden links between bank customers, which gives them additional value. For instance, a low-balance elderly widow may be the mother of a high-balance tycoon. Offend her, and he moves his business elsewhere...