Practice Makes Perfect

The most important thing to remember when considering customer relationship management (CRM) is that it is a philosophy, an approach, an attitude towards customers - not just a technology.

Many companies forget this and believe that implementing technology means their CRM processes are in place. This simply is not the case and companies will not see the benefit if their programme is technology-led rather than benefits-led.

So what utilities do ensure success? From the outset, they should be clear on their objectives. They need to resolve questions such as: how should we interact with our customers? How do we want to manage our relationship? Where do we want to see improvements in the service we provide? How will we measure the improvements? But effects can often be intangible and difficult to measure. Companies will consequently also need to clearly define key performance indicators at the outset.

Utilities will also initially need to review their approach to the marketplace (for both existing and potential customers) and look at the services they provide. this should enable them to identify those activities which could add significant value to the customer if changed and improved, and should highlight where internal efficiencies could be found. Firms will then need to analyse the business processes that underpin these services and customer interactions to see where improvements could be made.

As always, a careful balancing act is required. Costs and expectations must be managed while improvements are delivered. It can be all too easy to get carried away with enthusiasm but trying to do everything at once can lead to downfall. Companies must prioritise activities and take a step-by-step approach. For example, the ultimate programme goal may be a web portal allowing customers to access and update information about their account, request dates and times for their next service visit, and pay bills at their convenience, but their vision will not be realised unless more mundane fundamentals are in place.

Once objectives and key performance indicators are set, and a staggered rollout programme is in place, managing the changes CRM will bring is vital. It is a big step for most companies to put customers at the forefront of the business. All employees need to understand how their role will change and what they will need to do to adopt the new philosophy and working practices (read more in our case study: "The Emotional Journey of Scottish Water"). They must also be made aware that CRM is a continuing process and not just a one-off implementation of new processes and technology. Senior management buy-in is vital.

If all this seems somewhat of a chore, it is worth pointing out that it is not just existing customer relationships that can be improved through a structured CRM programme. CRM can improve the way utilities as a whole work, bringing internal efficiencies, increased capabilities, and ultimately new customers leading to increased revenues.