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Effective CRM

CRM Software Saves The Day

At least that's what they want you to think

Let's just destroy the myth right off the bat. CRM Software (or Customer Relationship Management Software) cannot solve your problems for you. It's simply the vehicle we use to make CRM strategies and tactics more effective and efficient. I can't count the times I've worked on projects which started as a software sale.

These projects quickly became a set of deliverables, most often dictated by the IT department. In fact, the IT department, in a scenario such as this, has most likely made the initial contact with the software reseller.

And what do you think drives the IT mindset? Is it how to gain market share thru an effective marketing strategy? I won't hold you in suspense. Their goal is to get the software as cheap as possible. And the software will be selected according to a checklist of technologies that they are comfortable with. There's your CRM software solution: a centrally administered web application better known today as Software-As-A-Service (SaaS). And the best part is that it only costs $50 a month per user with no contract!

If you are a business unit manager or business owner, you owe it to yourself to create a vision for your customer relationships. Know where you are now, and where you would like to be. Then take the time to interview consultants that can help you implement this strategy. If you need help building the strategy, you need someone with experience doing this. If you have a solid plan in place, then you need a consultant that understands both the economic value of the plan and the means by which it can be implemented. This is when the CRM software should be selected.

Pretty Software Box Your IT Manager has none of these attributes. Sorry if that's too honest. That is not why they are there. IT is there to manage your technical infrastructure. Believe me, they are already overworked in most organizations! They don't need to be out evaluating CRM software. They're much more interested in monitoring packets on your network.

Man does this CRM software look pretty!

There is a reason why grocery stores place products the way they do, and the packaging also has a purpose. It's to get you to make an impulse buy. Is this how you want to select your CRM Software?

I guess I can't blame the vendors who are producing a product that they need to sell. They add all the bells and whistles to it that they collect from their user community. It ends up looking powerful and feature rich and this makes the buyer (you) feel that they are getting their money's worth. Oh, but you'll still want a discount, won't you?

And both the CRM software vendor and their CRM Consultant will be glad to accommodate you with that discount. And because they are software focused, and not consulting focused (unless you consider programming to be consulting) they will be out trying to sell as much software as possible. So don't worry, they won't be bugging you all the time except when the annual maintenance and support fees are due.

The way it should be

My philosophy is simple. If you don't have a plan, no software in the world is going to help you. Sure, it may make you feel good for awhile. But then the frustration will set in when you must constantly experiment with customizations to see if they will help your business. Or maybe you'll purchase a slick add-on. More money that could have been invested properly! Anything you do without a plan is doomed to failure!

CRM software is a very effective tool to be used in conjunction with a sound CRM strategy. That way you know what you need it to do, you can eliminate the clutter, you can communicate the plan to your employees and you can measure your results.

You're correct to assume that I focus on a handful of products when I develop solutions for my customers. Since most of the software packages available have similar functionality, the software selection just isn't that important. Let's remember that as much as the vendors want you to believe otherwise, software is very close to being a commodity.

It could be any CRM software product. I just happen to have expertise in a handful. If something changes, I can easily switch products because I don't lead with them. I lead with consulting. If I find myself in front of a prospect who is software focused, I will do everything within my power to redirect the conversation to an area that has value to the prospect and to myself. So don't get upset if you ever find me in your office. I've warned you in advance!

The bottom line is that the conversation needs to start at the beginning and not at the end. And software is definitely the second half of the process. More on all of that elsewhere.

CRM Software Functionality

This software segment can include products which attempt to solve basic problems in a number of areas. Sometimes it's all included and other times you can find modular solutions that grow with your expanding CRM initiative. Other times, it looks great in the demo, but you can find yourself quickly painted into a technological corner!

Regardless of whether you purchase an all inclusive CRM package, or you decide to go with best of breed on a component by component basis, you need to make sure the integrate well, and address some basic areas.

The Sales Operations - Your sales team needs features that will allow them to manage their business as real time as possible, while allowing their sales force to stay in the field as long as possible. They also need to know what Marketing initiatives are in play and how they factor into them. At a minimum, that will be aiding in the collection of customer data. Every CRM software package has sales force automation built in. This is where it all started after all.
The Marketing Operations - Marketing needs the tools to analyze the customer data they need to make decisions about who to communicate with, what they should say and when they should say it. They also need the mechanisms to deliver these messages.
The Customer Service Operations - Reacting to customer inquiries is more than answering the phone. It may also require quick access to customer specific history, other categories of issues, and possibly information the marketing operation has deemed important to convey to this customer at this time. Most CRM software has a customer service module.
The Customer Support Operations - Companies selling technical products or services need provide a means for customers to get help. Like customer service, they need to know who their customers are, what they've purchased, and what their history is. Any time a customer reaches out for help is a chance to enhance customer loyalty by resolving the issue to their satisfaction. It's also data that can be used to understand the behaviors of your customers as a whole; and this will be valuable to your marketing organization if they do any type of behavior variance analysis.

How Would You Describe CRM Software?

No one seems to view it the same way. I guess it really depends on what type of business you have and the challenges you face with your prospects and customers.

No single CRM software package is necessarily a complete platform for a given CRM strategy. Usually there is at least one best of breed component (for instance, a workflow engine). However, in some cases a single package might work if the strategy only focuses on one or two components of effective CRM.