Summary: There are pitfalls to CRM programs.  The biggest issue is how customer relations are effected by the elimination of personalized customer service. This article provides valuable information on ‘how’ CRM programs can become a problem if management doesn’t have a handle on things.

As they say, it’s the man behind the machine that makes the difference. So too with respect to CRM, the most up-to-date database and cutting edge software can come to naught if the human element fails to deliver.

The reasons why customer service, especially at the point of interaction, fails to create a positive impact on the customer include poor training, understaffing, poor co-ordination with the backend, sloppy backend work regarding procurement and distribution, and poor database management.  

Another interesting facet of the effect of CRM on customer service is that “old-fashioned” or personalized customer service is perceived to have given way to interaction with programmed humans either face-to-face or at the other end of a telephone line. Worse is being put on hold, automated voice responses that do not offer satisfactory information, dialing options that can leave you dazed and still finding yourself where you were at the beginning of the call, which was five minutes back. 

It wouldn’t be incorrect to state that the approach companies adopt toward CRM can have a detrimental effect on customer service.

CRM issues that affect customer service

Across industries poor customer service is often the number one cited reason by customers who switch service providers. Customer handling skills and poor oral communication skills displayed by customer-facing staff are a major worry for managers.

Research shows that in the U.S big companies do not answer around 40% of the mails received by them. A non-responsive attitude to answering emails hurts business because of loss of potential buyers and eroding customer loyalty. The probable CRM-related causes can be committing to more than you can deliver in terms of response management and faulty email practices because of improper training.
 Customer service is a lot about problem solving and easing the customer’s mind. Aspects that are to be considered as a part of problem solving include knowing your product and service, not digressing and trying to push another product, inflexibility and an impersonal approach. The absence of these factors affects customer service. One reason why lack of problem solving skills is an issue is the high level of churn in certain industries. Retail for example takes or is supposed to take a very customer-centric approach; however a high level of churn requires that the new recruits be trained in the company business ways, some may require grooming from zero. This is because CRM systems are often much customized to a given business and learning the ropes may take time. Retail, incidentally, also faces a very high level of customer turnover as compared to other services such as hotels, airlines, and life insurance.

A focus on conforming to procedures can sometimes suppress natural soft skills that a person would otherwise display at the front end.

Conclusion

The culture of customer service in a company is bound to be influenced by CRM practices. CRM investments on their own cannot foster customer service. What can; however, is information on what customers prefer and what puts them off. Learning gleaned from such information should be made a part of CRM training initiatives so that “bad service” can be eliminated as much as possible.