CRM Mistake No. 4: Lack of social media integration--or ignoring social media as a CRM tool. In today's social media driven world, it is essential to have a CRM system that includes your social media interactions with customers. But "it's not enough to merely collect and monitor [this information]," says Sid Banerjee, CEO of Clarabridge, a provider of customer experience management solutions. "Businesses need to intelligently listen to their customers and... actively engage with [them] over Facebook Twitter [and] other social outlets," he argues.
The benefit: "Social information and engagement can produce vital customer insights and create a long-term relationship with your customers that can then be used to improve the customer experience and ultimately benefit an organization's bottom line."
Slideshow: 10 Social CRM Tools to Help You Keep Tabs on Your Customers
CRM Mistake No. 5: Not integrating your CRM system with other key systems. To optimize your CRM investment, "integrate [it] with other systems," says Lou Guercia, CEO, Scribe Software, a provider of CRM data integration solutions. "Companies who integrate their email... with their CRM, for example, cite year-over-year revenue gains of 22.7% vs. 13.4% for companies who don't, according to Aberdeen Research."
CRM Mistake No. 6: Lack of defined business processes. "Businesses that view CRM as a glorified address book miss the bigger opportunity at hand," says David Ciccarelli, cofounder and CEO of Voices.com, an online marketplace for voice-over talent. "Yes, you can store basic contact details but where the value comes from is in the grouping of customer information (contact details, sales opportunities and support tickets) and how that information relates to each other," he says. "To solve this problem, organizations should sketch out a workflow diagram that depicts the customer life cycle. This visual tool will aid you in not only customizing your CRM but fully taking advantage of its functionality."
CRM Mistake No. 7: Inconsistent nomenclature; no guide for how to refer to accounts. "Many companies have redundant entries for accounts--for example G.E., GE and General Electric--making it difficult to prioritize and capture information," explains AJ Ghandi, vice president of Customer Solutions at Lattice Engines, which provides big data for sales software.