Are CRM Consultants Leaving Value on the Table?

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Or worse, are they taking value away from an unsuspecting client?

***tier3square.shtml***CRM consultants leaving value on the table is one of my favorite topics to think about because I truly believe, after many years in the "so-called" CRM consulting world, that sometimes CRM consultants are being robbed of the value they create for clients; and other times, they are the ones doing the robbing. Now, I'm not suggesting that CRM consultants are thieves. But, ignorance is no excuse when the success or failure of your client's business is at stake. Conversely, not asking for an appropriate investment for the value you deliver only robs you and your employees of the respect they deserve.

Am I being too tough? Maybe everyone is satisfied with their level of value delivery. Maybe you're happy letting your customers get a 1 million percent return on their investment with you. Personally, I'm never satisfied and I know that I can do much better.

Most of us price out or projects using a per-diem rate. I'm not sure who it is that sets the rate for "CRM" but I'm pretty certain that it's tied to rates determined in the IT world. Certainly, they are higher than many IT rates because the implementation and development knowledge is specialized. The problem with this theory is that IT generally promotes operational efficiencies that are fairly straight forward. CRM, if approached properly, provides an opportunity for businesses to achieve exponential leaps relative to the dollars they are being asked to spend.

Ha Ha CRM consultants. The joke's on you…..or is it?

In fact, the joke may be on the CRM customer most of the time. Hey customers, when you engaged your CRM consultant, did you proceed to run down a list of all the forms and buttons you needed? Was it one of those never-ending lists of wishes from every corner of your business? If so, you let yourself get taken for a ride! Why? Because CRM consulting rates are probably priced too high for basic task oriented implementation efforts. After all, what real value was delivered? You're the one who thought you knew what you wanted!

In a few select cases, the joke is on the CRM consultant. The rates being charged can't possibly include the value created when a company is guided through the process of moving the customer to the center. Look at it this way, this process first has to begin with a cultural change that starts at the top. That's not programming. Once this change is in place, every internal business process has to be re-worked to support that new vision of the customer. And once all of that is done, technology has to be developed and implemented to support it. Not many companies are ready for this, so the consulting and guidance needed is significant.

But generally, this sort of CRM consultant figures it out eventually. How do they do that? Well, their customers are constantly praising them and telling about all of the wonderful things that resulted from the project. And then they stumble up a book like "Million Dollar Consulting " or "Value-Based Fees: How to Charge - and Get - What You're Worth ", both excellent books by Alan Weiss, which expose them to the perspectives and techniques used by truly successful management consultants. If you read either of these books, you will shed a few tears at the thought of all the money, er value, you let slip through your hands.

These aren't the guys that just sell and install software for a living, so don't get yourself excited thinking you're suddenly going to make more money!

If I were to interview you (Mr. CRM Consultant) to find out what kind of consultant you were , and whether you are leaving value on the table, or stealing it, here are the things I would want to know.

• Do you and your clients engage in a meaningful discussion of what their clients want and need, how they deliver (or intend to deliver) it, and how they expect to see it returned to them?

• Do the solutions you recommend allow your client to identify their most valuable customers?

• Do the solutions you recommend allow your client to identify changes in customer value over time so they know where, when and how to react?

• Do your solutions help your client identify when a customer is about to defect, so something can be done about it?

• Do your solutions get away from bad behavior generating tools, like enforcing sales quotas, in exchange for a customer-centered approach to incentives?
  

• Do your solutions support cross-functional workflows designed around the customer's experience?

If these questions seem foreign to you and your business card says CRM consultant, you should lower your rates. Sorry for being blunt, but you are product focused and products are commodities. If these questions seem incomplete, then you are probably a damned good CRM consultant and could teach me a thing or two (let's talk!).

One of the problems you will face when taking a more "value" oriented approach to your engagements is demonstrating how you will help your client increase the value of their business. I've written about this a few times. Probably the simplest way to do this was outlined in my article about customer accounting. With simple techniques like this, you should be able to quickly show a client where they are, and talk to them about what they should be trying to achieve. Then, a few months, or quarters, down the road they will be able to see the changes your promised. These are the sorts of things you will not achieve by simply viewing CRM is a means to make bad operations and process more "efficient".

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