RSM Resources

Many midsized companies manage their data in silos, where sales or marketing may hold information separately from areas such as manufacturing or accounting. That poses problems for tracking a total customer experience, since customers interact with companies in most or all of these areas. Enter the latest customer relationship management (CRM) software, an increasingly valuable tool to help businesses grow sales and improve service to key clients.

A CRM system centralizes, standardizes and streamlines data, allowing for easy retrieval of formerly disparate pieces of information. CRM solutions can help businesses make more informed planning decisions, and provide decision support on how to forecast and fulfill the changing needs of the company’s most profitable customers.

Traditionally, businesses have deployed CRM systems in sales, marketing and customer service. However, a truly integrated solution can help resolve "pain points" in every corner of an organization. Implemented effectively, CRM systems can help:

• Decrease administrative workload. Because CRM solutions allow every user to access and manage large quantities of information, they can significantly reduce staffing and even outsourcing, thereby providing an almost immediate return on investment. Customer transactions can be automated, and organizations with multiple offices can manage and share the workload between locations.
• Simplify sales and marketing. CRM solutions allow users to monitor customers’ behaviors and see what, where, when and why they are buying. Having this kind of information at employees’ fingertips means that marketing can focus its efforts on only the most productive campaigns, increasing both customer volume and revenue. In turn, sales can dramatically reduce the time it takes to close a deal, increasing customer satisfaction. Meanwhile, customer service representatives can provide fast and accurate help, increasing customer loyalty and retention.
• Enhance financial forecasts for business planning. Because CRM solutions can provide up-to-the-minute, big-picture information about customers, vendors and finances, they can help ensure that business management decisions are truly data-driven and focused.

Selecting CRM software
If your company is considering a CRM solution, it’s imperative that you do your homework to find the right fit.

In a recent article on CRM, technology expert David McNamara said choosing the right platform is crucial if a company is to improve its ability to collect, analyze and use data.

"A balanced solution will provide both the functionality and the ability needed to address changing marketplace demands," McNamara said. "An ideal solution should be easily deployed and cost-effective through its life cycle."

When shopping for a CRM solution, experts suggest the following nine steps.

Align CRM with a defined business strategy. Know what objectives you want to achieve with CRM and how you will measure results before you select a solution. By clearly defining your company’s mission, core business, target customers, and strategies to acquire and retain customers, you can ensure that your CRM strategy is in direct alignment.

Map key business processes and develop business requirements. Think of this as mapping out a long road trip. Create a map that shows how your company acquires, serves and retains customers, and also map how information about those customers flows from one department to another. Consult your managers and end-users from every affected area to determine exactly how a CRM solution would support them. Then, identify and prioritize your key technical and business requirements for a new CRM system.

Determine your company’s data requirements and CRM compatibility. The CRM technology that you choose should be compatible with existing IT architecture for storing and managing data. Map your information flow and you’ll be able to select a CRM product that has an appropriate data structure.

Generate a vendor list. Many types of CRM vendors are available ? from Web-based, on-demand software to fully installed on-premises systems. Look into all types of providers that may meet your implementation requirements. When developing a list of potential vendors, talk with IT providers you already use, seek recommendations from other business owners or technology leaders, or find a third-party partner with expertise in designing and implementing major software solutions. Use the following questions to help narrow your list:

• Will the CRM solution provide sufficient scalability for one-, three- and five-year growth estimates?
• If necessary, how easy will it be to export data from the CRM solution into other applications?
• How well does the CRM solution integrate into other offerings that may be needed in the future, such as sales-force automation or enterprise resource planning?
• What is the cost to the business, both upfront and ongoing, for the deployment and continual maintenance of the CRM solution?
• Does the company retain ownership of all data, including tasks, notes and logged calls? And is it secure?
• Is there sufficient training available or provided to get staff on board quickly and effectively?
• What is the real expected time to deployment?

Seek detailed information and demonstrations. Conduct initial phone screenings with sales executives and make sure they know you’ve already defined your critical criteria. The vendor should understand your requirements before you schedule a presentation. Avoid sitting through a generic capabilities presentation. Instead, ask to learn specifically why a product is a strong fit for your company.

In today’s CRM market, competitive vendors typically offer a "free trial" that enables you to put a product through its paces and know exactly what to expect before buying. Rigorously test each main function, and take detailed notes on the system’s capabilities, shortcomings, ease of use, layout and any problems you encounter. Beware of a CRM solution that is overdesigned or too complicated for your business. Focus on a solution that will best meet your most urgent needs. Remember, you can add functions or upgrades later.

Define and communicate CRM benefits to all constituents. To ensure system adoption, clearly define and share the benefits of a new CRM system with everyone who will use or come in contact with it, including senior executives, middle managers, end-users, customers and business partners.

Implement your CRM solution in stages. Resist the temptation to replace all existing functionality at once. Instead, do it in a planned, phased approach to aid in user adoption and training.

Don’t skimp on training. Train users on more than system functionality; instead, teach them how to better perform their jobs by using CRM. Once users have mastered the basic functions, hold additional training sessions on advanced features.

Perform system changes concurrent with business changes. Just as your business needs will grow and change, so should your CRM system.

Investigating and choosing a CRM solution requires a substantial upfront investment. However, if done properly, the exercise can pay substantial dividends over the long term ? both in increased customer satisfaction and retention rates, and increased company revenue and profitability.