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CRM is (Almost) Dead.

February 22nd, 2008 @ 6:25 am

15 Comments

Categories: Blogroll, Humor, Marketing, Sales Technology

Tags: CRM, Sales Strategy, Customer Relationship Management (CRM), Sales Force Management, Advertising & Promotion, Sales Force Automation (SFA), Enterprise Software, Sales, Software, Marketing

CRM and SkullfaceNot the technology, but the buzzword.

Ten years ago, “Customer Relationship Management (CRM)” was called “Sales Force Automation (SFA).” Then SFA started getting a bad name because so many of the systems turned out to be expensive mistakes. Vendors switched to CRM buzzword to avoid the taint.

Same thing is now happening with CRM buzzword. Many CRM systems are implemented simply to supply management with data; very few systems actually help sales pros in the day-to-day task of selling. Many sales pros feel as if they’re being asked to be data entry clerks — and give away their contacts, simply to help their managers make fancy reports.

Now that CRM is starting to get a bad reputation, providers of sales-oriented technology are struggling to dump the acronym. Today, about half the websites selling some kind of sales technology already avoid the “CRM” moniker. Instead, they sport a variety of terms like “Sales 2.0″ or “Sales Enhancement Technology” or “Sales Productivity Improvement Tools.”

Eventually, a new term for “CRM” will crowd the other terms out. By that time, the number of self-identified “CRM” providers (like the SFA brethren) will dwindle to a handful. The technology will still be around, of course, but it will be sold under a different buzzword. And probably encounter the same problems with user adoption that SFA and CRM encountered.

Since there’s to be a new buzzword, any suggestions what it should be? If I get some good suggestions, I’ll run a poll in a future post so everyone can vote on them.

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  •  
    1

    jvinch

    02/22/08 | Report as spam

    What's that about lipstick on a pig?

    CRM/SFA or whatever you call it is powerful. Unfortunately, it got a really bad
    start from which it never really recovered.

    Here's the problem - to most salespeople CRM isn't anything more than a
    stick that their management uses to beat them. It's a fairly large
    administrative burden on folks people who don't see the benefit, people who
    don't really experience how it helps them sell.

    So you can call it what you want, really, but as long it's just "busy work" for
    many salespeople - the problem won't go away.

  •  
    2

    Jim711

    02/22/08 | Report as spam

    RE: CRM is (Almost) Dead.

    Love that last one ???Sales Productivity Improvement Tools.??? S.P.I.T

  •  
    3

    NU Girl

    02/23/08 | Report as spam

    RE: CRM is (Almost) Dead.

    all I can say, I use the name of our "system" as a swear word!

  •  
    4

    TheCRMDilemma

    02/23/08 | Report as spam

    RE: CRM is (Almost) Dead.

    It really doesn't matter what it's called. After being a sales rep for almost twenty years, I was asked to lead the North American CRM implementation at our company. I have now conducted extensive research on what I have termed "The CRM Dilemma" that has determined that any system that involves activity controls will fail. The quote that sums it up is from Douglas Hartle - "It is a rare dog that will carry the stick with which it is to be beaten." Feel free to have a look at my research that is informally presented on my blog called "The CRM Dilemma."

  •  
    5

    upshift

    02/25/08 | Report as spam

    Blog location

    I would be very interested in finding the Blog on CRM. Would it be possible to get the location?

    Thank you.

  •  
    6

    Geoffrey James, Sales Machine

    02/25/08 | Report as spam

    I think it's here:

  •  
    7

    TheCRMDilemma

    02/29/08 | Report as spam

    My blog

    This is the correct address to my blog. Enjoy and I welcome your feedback on my research.

  •  
    8

    Aimee333

    02/25/08 | Report as spam

    I'm with you

    I used to be the National Sales Manager for a High End Post House. My Boss got real excited about a SFA/CRM. And Ofcourse I had to get excited. The fact of the matter is-I became a National Sales Manager of High End Crud! Like you said, great reports-bad performance.

  •  
    9

    jimdaley

    02/25/08 | Report as spam

    RE: CRM is (Almost) Dead.

    Are there really companies calling CRM ???Sales Productivity Improvement Tools??? The acronmym becomes SPIT!

  •  
    10

    andrew2wyatt

    02/27/08 | Report as spam

    CRM should become a sales and lead tool

    In order to avoid dead: CRM solutions should become sales tools for sales.

    Currently in B2B markets most leads will visit company website.
    And during the sales process prospects will re-visit the website.
    Even your customers will pay a visit to your website, when they need new products or solutions.

    In order to help Sales: just give them a tool for discovering and identifying the website visitors.
    The CRM should receive the constant inflow of visiting data, thus making the CRM interesting to be used by Sales. The CRM becomes a source of information instead of a data input battle (with sole purpose feeding the Sales & Marketing VP's or Directors).

    One such solution is LEADSExplorer (www.leadsexplorer.com): integrated website visitor identification and CRM with focus on prospecting and selling.

  •  
    11

    Geoffrey James, Sales Machine

    02/28/08 | Report as spam

    CRM or not CRM

    The functionality that you describe is EXACTLY the functionality of the product from one of the CEO who told me "NO WAY DO I WANT TO CALL THIS CRM!" The acronym is becoming toxic due to problems with the standard implementations.

    I agree, though, that monitoring website usage can be a very valuable technological tool in terms of developing a prospect.

  •  
    12

    john@...

    02/29/08 | Report as spam

    RE: CRM is (Almost) Dead.

    Dear Colleagues,
    As a management consultant with banks, insurance companies and trading houses in the Middle East and Europe I have moved from customer service, through crm into enhanced customer relationships and business before technology. We should use 'customer focus - customer choice' and recognise our own requirement to work harder to satisfy their needs rather than our own never ending waterfall of data we struggle to find time to read. Thanks, John Davis, john@scottdavismgt.fsbusiness.co.uk

  •  
    13

    Geoffrey James, Sales Machine

    02/29/08 | Report as spam

    Excellent

    Brilliant comment!

  •  
    14

    gemofaperson

    06/02/09 | Report as spam

    Customer Engagement and Fulfillment

    We can now call it CEF

  •  
    15

    darwin.com

    10/19/09 | Report as spam

    RE: CRM is (Almost) Dead.

    great post!

    Mike Chatha

    Darwin - CRM has evolved

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