Your question: I was wondering how BT sees the Internet as benefiting traditional CRM techniques. We have been approached by a number of companies selling software and databases and are curious to know if this is something that BT feels is essential for good CRM in the future?

BT replies

Although nothing can replace good quality face to face relationships, there are many attributes that the internet can provide for CRM, in particular it does allow you to learn about the needs and wants of your customers through the ability to observe their interactions on your website. You can also integrate email into your website to enable customers to respond when it’s convenient to them. A website also allows you to sell certain products without sales intervention, thus reducing your cost of sale.

How essential a website is to your business, or not, will depend on the factors that prevail for you, these include your business objectives, the nature of the products you sell, your competitive position and the kind of customers you have, or would like to have. All of these things taken together will help to define a business strategy for the Internet. Avoid getting into technology discussions on software and databases in the first instance, that would be the tail wagging the dog.

The most important factor and the single error most organisations make is to focus on a CRM strategy as a technological solution. The most vital element of any CRM initiative is making sure your company culture and customer focus is understood. Technology can then become an enabler of CRM; interactive, client focused communication. Then and only then are the Internet, Call Centres and Wireless communications viable solutions that complement you normal day-to-day activities of customer engagement.

I think what is essential at this stage is to evaluate the business benefits of the internet as a route to market in the context of your own business profile, this should reveal how compelling an opportunity it provides to you. If the results of this look promising, it would then be worth exploring a pilot implementation that will prove the benefits and justify the investment in the technology components required to enable those benefits.

A good, solid, quality CRM solution is not cheap, but nor does it need to cost the earth. Provided it links back to your corporate strategy, you will notice a quick, profitable return and the view of your organisation in your customers’ eyes will be in line with the quality and reputation you have built up.