Customer Relationship Management (CRM) Implementation
Over the years, customer service has continually improved with better technology (computers), networks (the Internet) and availability (24/7/365). This has led to higher expectations by users of technology and clients in general. The businesses that satisfy this "higher level of expectations for customer service" will be successful if they do it in a cost effective manner.
Customer Relationship Management (CRM) software has gained popularity as a way to satisfy this higher level of customer service expectations. According to Alex Jefferies, Senior Research Associate of the Aberdeen Group, "Today's busy customer expects a heightened level of customer service." Competition is fierce - only a click away. Businesses must have a 360-degree view of customers, molding their firms into a customer-centric and customer-facing machine.
To meet the ever increasing demand for customer service, businesses can hire additional service staff or they can arm their current staff with the productivity tools found in today's advanced CRM systems. The latter clearly provides for a better Return on Investment (ROI).
Best practices suggest that the best companies have a well-structured, multi-phase, implementation methodology for CRM implementation before, during and after. The best companies do not allow their CRM software to remain static. The CRM solution must evolve, the information must be kept up to date, and the system must be used which is more likely obtainable if it is easy to use and incorporated in the normal everyday workflow. Efforts are required to reinforce use, which can be accomplished by a number of techniques. One such technique is simply adding transparacey around the business metrics.
These firms have used pre-implementation planning and post-implementation feedback to continue the process of incorporating the CRM into their everyday business processes. When fully enabled, CRM is "leveraged as a productivity tool," "data is meaningful," and "data entry, retrieval and maintenance is simplified." These companies have discovered how to keep salespeople using their CRM solution. What are their secrets?
Preparation Wins the Day
In sports and business, the better prepared team usually wins. When a business considers CRM, it has usually conducted an official or unofficial assessment of its internal needs. Good management asks their sales people what they need - what is not being fulfilled by the present software. Most companies view CRM as a solution in fulfilling two key objectives: 1.) attracting and building on client relationships and 2.) providing their staff with the tools to be effective and productive. Other related functions include improved data quality, enhanced visibility to business metrics and a higher ROI.
Key Business Questions for CRM:
- What are the key benefits of this CRM software?
- Will the system be used?
- Can the whole team collaborate to provide a total client solution?
- Will the system provide enhanced data and reporting?
- What might make the system fail?
More complex questions related to interoperability must also be considered:
- Can two departments access and maintain data, which has preference?
- How will the CRM system integrate with other business systems?
- What processes will need to be modified through CRM?
- How will sales people be trained initially?
- What follow-up training will occur?
Due diligence in analyzing, identifying and quantifying customer relationship needs and how CRM software will provide benefits is necessary. Businesses must document a baseline. Later, the results can be compared to the improved business results as captured in the new CRM system statistics. What has improved? What has not improved? Why? What can be done to further improve these business processes?
Once the decision is made to implement CRM, the analysis must continue. Develop an operational strategy for using CRM over time. Teach salespeople how to use the system effectively. Show them how it saves them time and money. Implement processes and reporting to improve transparency and accountability. Discuss expected returns from the CRM implementation with the salespeople to make them stakeholders in the process.
Before CRM Implementation
"All Sales Are Final - No Returns!" seems to be the motto for some CRM implementation. The product is pitched, the phone calls are returned until the implementation is completed. After implementation, they don't return your calls.
Salespeople can quickly become disenchanted with such CRM implementation. They are expected to use this tool every day, thus they need to have continued customer support for the CRM software and new enhancements for it to maintain its business value and usability. CRM implementation is a before, during and after process. How can a company that has just installed "Customer Relationship Management" software not manage its relationship with its own employees concerning supporting the learning process for the new tool?
Successful CRM implementation is a carefully thought-out process. The final goal is the full incorporation of the CRM into the business, transforming the company into a "customer-centric" entity. Continuous training and feedback is necessary to accomplish this goal.
During CRM Implementation
During the implementation, concrete examples of how the CRM software should be used on a dialy basis and how this will contribute to productivity and increased sales should be provided - "I used to get my sales prospects this way, CRM now permits me to get my sales prospects faster this way." Initial training must show the salespeople how to use the basic CRM features. Follow-up training sessions must allow for feedback into what salespeople have experienced and capture ideas for improving the system.
Teach salespeople how to use CRM effectively because you can't be constantly looking over their shoulders every minute of the day. Develop processes that require them to use CRM; reward those who use CRM the most efficiently improving their sales numbers.
Clean out the bugs with weekly meetings of department leaders for a couple of months after CRM implementation. Possible glitches can be fixed faster right away. Encourage and reward honest appraisals.
Management must have a clear understanding of how sales staff performs different tasks - accessing the customer history, contacting customers and finding upselling leads - to implement CRM properly. Surveys, reviews and feedback must be continuous through CRM implementation.
Compare pre-installation assumptions to how salespeople are using the CRM during installation. How does CRM improve this process? What steps will be replaced? What tasks might be performed with old or new software? Ask the CRM company that is selling the software to provide answers to questions your salespeople might have.
After CRM Implementation
Without context, training or follow-up, CRM implementation is a waste. Salespeople have the next sale on their minds, they will quickly lose sight of the CRM tool if it is difficult to use, does not add to their productivity and no one seems to hold them accountable. Perhaps, a CRM implementation strategy could include a temporary CRM support team to answer questions.
Workers use tools they are comfortable with. Many senior citizens refuse to use the most modern technology (cell phones, computers or the Internet) because they did not grow up with them. Their grandchildren use these items every day without a second thought. Items that are naturally in people's environment is used. Many people have a natural resistance to change, asking themselves - "I've succeeded for so long without this CRM software, why do I need it now?" The best companies provide CRM tools that are baked into their everyday business processes and desktop software.
Give the salespeople a hands-on project: "Solve this problem with CRM." Or mix CRM with other software commonly used by the salespeople. Relearning habits takes an estimated 23 days. We must continually reinforce habit changes through repetition. CRM implementation must use the same techniques.
If the top performing salespeople use the CRM software, then others will fall into line. CRM implementation must overcome the natural resistance to change by "proving" its value with real-life, real-time examples.
CRM Software Must Continue to Evolve
Gartner predicts that CRM will dominate in the next decade, yet many organizations still have not upgraded to the latest software versions. CRM is continually evolving, firms that do not use the software consistently will be left behind their competitors.
CRM software must continue to evolve with the business. Initial implementation is not the end game; increased sales is the goal. The playing field continues to evolve - firms must continue to improve how they use CRM.
Better Metrics System for CRM
"Before you start a race, you better know where the finish line is." Included in goal setting is measurement (or metrics) of when and how a particular goal is considered to be accomplished. Some companies don't have the most basic foundation of metrics before CRM software. Otehrs, even if collected, do not provide transparency to the metrics.
Salespeople cannot improve customer service and sales if they can't measure their present results. Interactive Data Corporation (IDC) has demonstrated how CRM improves ROI rates, productivity and business processes. An important real-life metric measures the response time for customer service calls. CRM software can assist in finding the call, customer history and answer. Call centers use FAQs, self-service response and automatic e-mail response to refocus limited staff resources.
CRM implementation can "define metrics for performance," providing a baseline for improved activity of salespeople. Identify, quantify and report sales statistics more efficiently with CRM software. Business analysis (design, planning and data mining for sales and marketing campaigns) and financial forecasting is also made easier.
Superior Customer Service Wins the Day
We all want to associate with winners like models, athletes and actors. Marketing and advertising associates products with successful people. Likewise, we want to work with companies with superior customer service.
With the World Wide Web, we measure the quality of Web sites with their speed in processing requests as well as the quality of the information presented. If we are on the Internet waiting for customer support too long or we cannot find the information that we need, we click to a different Web site. When a waitress takes too long, we don't give her a tip. When customer service is inferior, we go to the competitor. Superior customer service wins the day. CRM that provides good customer service improves the value of our business.
Attain Customers with CRM
According to Ed Thompson, Vice President of Gartner, "the goals of acquiring, developing and retaining customers in a profitable manner are timeless." He envisions the continued importance of CRM in future business developments, with a gradual change in pricing models from per user and process-based to more Software-as-a-Service (SaaS). He also expects the increased usage of Social CRM.
Social networking Web sites are very popular. CRM can assist in marketing with interesting pop-up boxes, surveys and free gifts. Salespeople can contact customers through text messaging and e-mail directly.
Customer acquisition is one of the primary goals of business. Salespeople must stay current with the latest industry trends and use their CRM tools effectively. Training can assist in this endeavor.
Increase Customer Response Times
The fastest customer service team answers inquiries quickly. Successful companies document rapid customer support response times by tracking the numbers statistically. Customer service representatives can better access customer history and find relevant answers with CRM software. CRM software can also help measure these customer service response times, so the best can be rewarded. Customers appreciate speed - "Time is money."
Retain Customers through a Deeper Customer Relationship
"Where everyone knows your name...." We all want to be treated as valuable humans, not numbers. We expect that businesses that we have worked with for years will recognize and know us. CRM software can help by documenting personal information like birthdays.
Business is about satisfying needs. Businesses that understand their customers more deeply are better capable of satisfying their needs. Salespeople who can track previous purchases, technical support calls and contact information have a decided advantage in closing sales.
Customized CRM can provide special fields, boxes or pages for salespeople who prefer certain information. CRM can automate customer surveys and reviews, offering customers the ability to provide feedback.
Reward Customer Loyalty
Automate rewards when customers reach a certain plateau in purchases. Track previous purchases and offer an accessory as a reward with your CRM software.
Upsell Customers
CRM software can automate pop-up boxes or windows to "suggestion sell" to customers based on criteria established by salespeople. Sales intelligence is increased after tracking previous purchases understanding customer trends.
Better New Product and Brand Promotion
Campaign Management is improved with CRM software by using a central database from which customer preferences, responses and trends can be assessed. This will help target potential customers for new products or brands.
CRM software can quickly assist in accumulating customer buying habits data. Then it can help create distribution lists with customer contact information for special offers, promotions or deals. Mailing is made easy with automated mailing lists.
Managing campaigns effectively can provide for enhanced ROI.
CRM Software Fills Gaps in Company Structure
CRM software attempts to unify policies, processes and procedures company-wide to achieve a seemless, symbiotic, customer-centric approach. The front-end (customer contact) is fitted with the back-end (accounting, manufacturing and sales) to maximize customer experiences.
IDC predicts the use of more Simple (or Lean) CRM solutions aimed at fulfilling specific end user needs, marketplace niches or business goals. If "Adding value to the customer experience" is a goal, then CRM software can help by increasing the value available by locating it in a central location, developing self-service kiosks or improving other avenues for delivering value. If you aim to take advantage of these bolt on solutions your base CRM product best provide a proper platform.
CRM can increase collaboration across deparmental lines by sharing information. Customer support can send a message to sales with a possible lead for a new product. These sales leads increase the symbiosis of the entire corporation as one functioning entity focussed on one goal: customer satisfaction.
High-Quality Data Maintenance
Salespeople need quality data in order to trust CRM software. Maintaining high-quality data set is essential for helping salespeople have faith in CRM tools. When data is relevant, reliable and accessible, then sales people will use that data. If a data set is filled with errors, mistakes and duplications, then sales people quickly lose faith in the entire central database and CRM software.
"Garbage in, Garbage out" goes the maxim. All departments can assist in acquiring data. Each department has its own data forms. When a sales person gets a change of address, a list of potential clients or a distribution list, then this information should be sent to the Data Entry department to transform it into the company-accepted format of the central database. This central clearing house can clean and mold the data to the standards of the organization.
Data coding, updating, cleaning and upgrading is a continual job. Duplications can easily occur when there are minor variations in customer data. Periodic duplication checks should be performed by scanning for duplicate records, then by merging those duplicates together using CRM software. Data cleaning improves data quality - saving time and energy.
Queries can find data, macros can update customer records rapidly. A good central database can assist in tracking life-cycle costs and ROI. Sales people need to know the cost of acquiring different customers in order to estimate their budgets.
A Well-Developed Implementation Strategy is Necessary for CRM
Customer Relationship Management (CRM) software is purchased to improve how companies relate with their customers. Successful companies design a complete strategy for before, during and after CRM implementation that includes planning, methodologies, feedback and training. Both attaining and retaining customers can be improved with the improved metrics, upsell opportunities and department collaboration empowered by CRM software.
Superior customer service wins the day. Improved response times, higher quality data and the ability to reward customer loyalty attains more new customers and retains more repeat customers. Salespeople will continue to use CRM software properly when it is completely incorporated into their everyday business processes, is easy to use, enhances productivity, is sponsored by execttive management and results in new business.
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