In a LinkedIn survey, 45% of participants state that data protection, technical dangers or the costs argue against installing the tracking code of a CRM / marketing-automation system in a website. Crazy, one might think. Where do these unfounded fears come from? A research project comes to the conclusion that over 70% of all CRM projects fail. This figure is repeatedly doubted. But we can confirm that many companies find it very difficult to implement a CRM / marketing-automation system successfully. In the context of our projects, we repeatedly come across the following 5 myths about CRM and marketing automation.
Myth 1: Data protection
Data protection nowadays has to serve as an excuse for everything that could lead to a change in companies. It is the strongest keyword for preventing the improvement of a company’s customer centricity. Here, threat scenarios are painted on the wall — that, for example, every company ‘robs’ the unsuspecting customer with the help of its CRM system, or that an error in the cookie banner threatens a legal dispute of at least CHF 1 million. The data quality in the vast majority of CRM systems is still positively described as abysmal. A wave of lawsuits due to small errors in the cookie banner is not discernible in Switzerland. So it must be noted that the word data protection is used above all when the person responsible in the area of CRM / marketing automation has massive knowledge gaps. Customer data, such as the email address, may only be stored on the basis of the customer’s consent. In addition, all CRM / marketing-automation systems allow customers to unsubscribe from newsletters. There are companies that do not observe this. But that has nothing to do with data protection. The rules are clear, and if an error should occur, the current applications always offer the possibility for customers to unsubscribe.
But what are the consequences of a misunderstood data protection in practice? Companies, for example, do not use the web-tracking function and thereby do not individualise their targeting. Missing knowledge about customers leads to average advisory experiences, which are proven year after year in customer-experience studies in Switzerland. Without individual, comprehensive customer data, the company is massively restricted in differentiating itself at the customer-experience level. Put simply: the ROI of such an application is massively diminished if the functions for data acquisition are not used to their full extent.
Myth 2: Technical risk
The digital world is full of risks, as is the analogue world. A CRM / marketing-automation system is connected to several surrounding systems via REST APIs. Browser settings change constantly, and new technical devices require the respective systems to constantly develop further. There are hackers who attack companies. But credit-card information or bitcoins are considerably more lucrative targets than CRM data. The argument of technical risk is also readily used to prevent digital change. There is no software without risk. But there is no finding that CRM / marketing systems and their JavaScript codes represent a massive security risk. Otherwise, the massive growth of these applications cannot be explained. Important detailed knowledge is lacking in the respective companies. Decision based on agency is, especially in the area of CRM / marketing automation, convenient but dangerous. Management is called upon to challenge the IT departments more strongly to face the new developments better.
Myth 3: Expensive
There is no expensive CRM / marketing-automation system. There is only a missing business case, because the capabilities of most functions are unknown for one’s own company. Companies need agencies for everything — whether to install the tracking code in the website, to create newsletters, etc. Without the continuous building of one’s own competencies in the area of CRM / marketing automation, every company quickly belongs to the 70%. So the introduction and operation of such systems is never expensive if the employees have the necessary competencies. Here, the CAS Customer Relationship Management at the HWZ offers the possibility of comprehensively increasing one’s own competencies.
Myth 4: Software features
What is written in every strategy, marketing and CRM book — customer retention is considerably more profitable than customer acquisition for most companies. We are often asked to select the best CRM / marketing-automation system. But most companies have no goals and strategies at all in the area of customer retention and customer-value increase. So a system is often selected that is completely over-dimensioned (safety) or a system that causes low costs. But it is not about software features, but about the strength of your customer-relationship strategy after the purchase and the ability to deploy the respective features optimally in the post-purchase experience.
Myth 5: Longevity
We live in a time of change. Some providers develop rapidly. Some providers stand still in terms of features. Some providers are acquired, and other providers demand, after a few years, licence costs that mainly boost their own share price. IT needs to be understood as a living system of building blocks that is constantly developed further. As a consequence, this leads to higher costs than in the past, but precisely for that reason a CRM / marketing-automation system must also show as high a ROI as possible. In many firms, an investment backlog has built up in the area of CRM / marketing-automation systems, which becomes dangerous for survival, or systematically prevents growth strategies.
Conclusion on the 5 myths about CRM and marketing automation
Over the last 30 years, these myths have been refuted again and again. The earth is not a disc. One can want to believe that, but that does not make it reality. We are called upon here not only as the respective company to grasp the seriousness of the situation. European society affords itself a me-too strategy in the area of customer centricity. All world regions have recognised the possibilities of customer data and are systematically expanding its use. In Europe, we conduct discussions about, for example, data protection, which are important, but we should also start to claim a leadership position in this area. Because only those who lead can also influence the rules. In addition, improving customer centricity is a great source of motivation for employees, because growth and profit in the company will rise. So let’s finally clear up the 5 myths about CRM and marketing automation and discover great new worlds with joy.
