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Do CRM Software Companies Deliver What the Customer Wants?

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***tier3square.shtml***CRM software companies are not all the same. They target different markets. Sometimes it's based on size of the business and other times it's based on the types of customers they sell to; like Business to Business (B2B) versus Business to Consumer (B2C). There are also vendors that sell directly to their ultimate customer and others the sell indirectly through a business partner channel.

All of these potential combinations add complexity to a very important issue. Do CRM software companies really deliver what the customer wants? Do they even know what the customer wants? Do they know who their real customers are?

Let's explore…..

CRM Software Companies Selling Direct

In order for these companies to operate with a direct sales force, they also need to have the consulting arm in place so software can be implemented once a sale is made. These are software professionals who should know what they're doing since they work for the company that makes it. But, do they really know what the customer wants? They should, they deal with them every day.

In some vendor companies, the determination of what the customer wants is determined at a higher level and incorporated into the product. This is a less than nimble approach since this typically means one size fits all. It also highlights the bottleneck of a finite professional services division when customers request changes to the base product. This is pretty common in the Software as a Service (SaaS) world, regardless of what they tell you. They predetermine that the most important thing is low administration costs without any real regard for how your company is different from your competitor. You all get the same tools, same configuration, same performance!

Are their implementation consultants tuned into your strategy? Do they help you re-work poorly designed workflows and processes? Do these pimply faced technicians have the experience that can help you through the process? If you haven't asked yourself this, then you're doing your business, and your customers, and huge disservice.

In some ways, CRM software companies selling direct should have a more intimate understanding of the needs of their customers. Many of them now use engagement models to empower their customers through control of, or inclusion in, certain parts of the process that they couldn't participate in before. But, if the end result is a one-size-fits-all product, are they really customer-centric?

Is CRM about being customer-centric, or is it about cool software?

CRM Software Companies Selling Through a Channel

Channel partners are in a unique position to help customers. First, they can be software jocks, or they can be business process experts, or they can be CRM strategists….or they can be all of the above. Unfortunately, many are software jocks. Regardless, the channel moves the consulting resource burden away from the software company and demand determines the number of consulting resources.

Software Jocks - they're trying to sell and implement software. They don't really understand your unique business problems, or have the time to understand your customer strategies. They will do a quick requirements gathering session and show you how the software will optimize your current processes….even if they're bad processes.

Business Process Consultants - Many of the manufacturing process guru's will tell you that their approach will take your front and back office to new and wonderful heights of efficiency. They use what's called an "inside-out" approach to process design. The fact is, the front office requires an "outside-in" approach. So make sure you select the appropriate process consultant

Many of these firms specialize in designing strategy supporting workflows that put the customer at the center. In other words, ensuring that you're delivering value to your customer and not delivering whatever you feel you need to deliver. As such, they may not have a technology arm, so they will partner with software resellers or they will help you deliver requirements to them that should be met. Trust your "outside-in" process consultant.

CRM Strategists - Now you're getting even farther away from the CRM software companies. Good! These groups will help you understand customer loyalty and engagement strategies that work for your business. They may or may not get involved with workflow design. If not, you can find someone who will.

In a perfect world, you will find a group that can play all of these roles. The reality is that you will have a hard time finding such a company, so look for consultancies that partner closely with other key players. If you contact a software reseller, don't push back if they suggest a 3rd party process review. In cases like that, they've probably noticed processes that are simply broken and not designed to effectively meet the demands of your customers.


So, who is the customer? In the channel scenario, it's the channel partners. They are on the front lines and know what their customers want and need. CRM Software companies have a bad habit of trying to one-up their competitors in a feature war. All that leads to is dissatisfied customers all the way down the line. It's not about them, it's about the channel partners and their customers. They just need to start listening!

It's been said that CRM Software companies have hi-jacked the term CRM. In many cases, you'll see tired old Sales Force Automation software, and they continue to sell to sales organizations. CRM companies really have a duty to understand the market they are operating in. They can no longer get away with the delivery of features that "they" want to deliver. What do they know? CRM is a way of doing business that emphasizes knowing your customer. If you know your customer, and delivering products and services that they helped you create, you will see the value you've delivered come back to your business.

Sure, features matter. But, only when they support strategies that are designed to make your business better, not just theirs.

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