3 Steps To Successful CRM

Regardless of your company's size and the requirements for your CRM (Customer Relationship Management) solution, the goal remains the same: learn more about your customers and leverage that knowledge into increased customer loyalty and improved sales.

However, too often companies jump into their CRM initiatives without the proper thought and planning. The result? A CRM system that does not meet critical organizational needs and fails to provide the proper insights into their customer base. Or perhaps worse--a CRM system that is not used at all. The key to success for your CRM implementation is not just the technology driving your solution, but in the strategy itself.

To achieve CRM success, there are 3 steps every company must follow before starting to consider CRM technology:

1. Establish a commitment to organizational change. If your company already understands why it is essential to improve customer loyalty and agrees that a CRM initiative is a high priority, congratulations! If not, you'll need to do the legwork necessary to achieve consensus with all teams. Don't be overwhelmed. Use this as an opportunity to put the pieces of your CRM puzzle together--discovering where customer touch points interact, what information is important to whom and why, and to identify what current business processes seem inefficient to those tasked with executing them. Once each team feels heard, and their grievances documented, they will likely agree that change is a good thing. Then you not only have much of the critical information you need for your next step, you also have the capital to return to these folks for their buy-off when your CRM strategy is completed. Your next step?

2. Define specific adjustments to operations. This seems like a tall order, but it is the logical next step towards building a solid strategy that your entire organization can get behind and evangelize. We suggest creating a matrix of all the problems identified in the first step and the solutions that were discussed. Use this matrix to compare the challenges across departments and identify potential operational changes that would solve these issues. Do not think about how technology can support these solutions, just concentrate on the operational changes necessary--who needs to know what and when, what workflow will share critical information between departments, and what critical customer-facing actions should occur at the completion of each task. TIP: The biggest factor to building a solid CRM strategy is developing a standardized sales process that is based on best practices, can be implemented across your sales organization, and integrates tightly with marketing and operations. Armed with this information, you are ready to:

3. Document your CRM Strategy. Your strategy should identify the specific business problems that need to be addressed (based on your information gathering and prioritization exercises from the first 2 steps), define objectives whose results can be measured (to demonstrate the ROI of your implementation), and outline solid insight into how CRM will impact the company, current operations, and your customers. To ensure organizational buy-off, boil down your CRM strategy into these critical points: How will CRM improve the lives of its users? How will it increase productivity? How will it impact sales? It is this strategy you then take back to the key stakeholders for final buy-off. It is this strategy that you will arm yourself with when researching and evaluating all possible CRM solutions available to you.

Understanding what business problems you need to solve and how they impact your operations--while demonstrating company support for this initiative--will ensure a successful implementation of your CRM solution. Not only will you better understand the trade-offs that you will need to make with the technology you choose, you will be able to better evaluate customization requirements and recommendations made by your CRM partner. The time you spend planning and documenting your strategy will be well worth the results!

Written by: Shannon Kavanaugh

Comments

[CR Manager]

"CRM is a business strategy - an attitude to employees and customers - that is supported by certain processes and systems. The goal is to build long-term relationships by understanding individual needs and preferences - and in this way add value to the enterprise and the customer".

[1691p battery]

Hi All,

Shannon acicular actual able-bodied the absolute accomplish for a acknowledged CRM. ADAMI Systems (after over 20 years acquaintance with CRM systems in the biologic and medical industry) considers that you cannot accept beneath again the accomplish aloft if you appetite to accomplish the CRM success.

Through the use of a classified acquaintance database and an adapted appointment ecology the ability of the barter sales force can be decidedly added aural few months.

Going into capacity apropos casework we offer, afterward are some of the highlights of them:

[CRM Software]

Good insight that applies to any major initiative being implemented. Getting your business requirements right, together with the goals will help put some measurement success factors together. Your business requirements and budget should then help you determine what type of CRM implementation you need. Is it an inhouse or web based CRM software solution.The point here is that your comments apply equally to both solutions and so apply across different sized organisations.

[Jason]

I just attended this event.

WIN HP mini Netbooks (5 Netbooks) and 100 Dynamics CRM online subscription (free for 6 months).
The Dynamic Business Week is the event where you can experience the Social Customer Relationship Management (SCRM) community in action. This event offers you a unique opportunity to network with your peers, industry experts and Microsoft Dynamics CRM team members. Share ideas and knowledge— all in one place.
Visit Dynamic Business Week by following this link. http://bit.ly/dsBBc4 .
This event lets you interact with industry experts in the CRM and social CRM space and also with other attendees that are interested in SCRM .
This is a virtual event with social media interaction built from ground up, the Virtual events platform used is http://social27.com and it is based on Windows Azure platform.
http://www.microsoft.com/windowsazure/

[JohnR]

I think that industries where you have a huge sales force team like pharma, banking etc must use a specific CRM solution.

I am a SFE manager in a Pharma organization and I use Sales Vision Pharma CRM from this organization http://www.media-soft.info/ .

Now we will switch to the new iPad solution from tham, but you must know that generic solutions like Microsoft or SalesForce are rally not good for a industry with a huge sales force.

Wish all the best and keep going with such great articles!

[Adami CRM]

Hi All,
Shannon pointed very well the real steps for a successful CRM. ADAMI Systems (after over 20 years experience with CRM systems in the pharmaceutical and medical industry) considers that you cannot have less then the steps above if you want to achieve the CRM success.
Through the use of a classified contact database and an appropriate visit monitoring the efficiency of the customers sales force can be significantly increased within few months.

Going into details regarding services we offer, following are some of the highlights of them:

· Contacts and Institutions recording, Visits, Orders and Activities detailing, Appointments planning, Reclamations handling;

· Fast detailed reporting of the all mentioned above;

· OLAP reporting - access to Real-time reports based on the CRM values but also on some additional external data sources if these are available (e. g. Sales data)

· Database hosting and maintenance without any additional costs;

· Easy configurable and adaptable according to your business requirements.

If you want to see if the 3 steps are really followed, try it out: 30 days trial version including 3 hours support for transferring your data into your own database and furthermore the application training: http://www.adami.com/Download-Adami-CRM,

Please feel free to contact us (www.adami.com) and we gladly help you to discover how our tools could help your business.
Adami Team

[Social Networking Design]

Great article, the steps you've identified are absolutely integral to CRM success. This is the same model my company is using and we are finally starting to see some real postive results.

[Mattsmalls]

Customer relationship management is needed to promote any business or organization. This blog looks great!

[CRM]

CRM .The Easy CRM Software for Outlook. Prophet simplifies contact management software, contact manager, small business Sales CRM Software. Prophet is the easiest CRM software because it is built INTO Outlook vs simply synching with Outlook.

[Jason]

I agree Rebekah. This article is very helpful. You work for yacht exports?!?! I just used that company a couple months ago to ship my boat to Germany. VERY GOOD customer service btw.

[Rebekah]

Great blog! very inciteful! I will def take some of this back to where i work. At Yacht Exports we expect the best and this article will definately help me acheive that! Awesome!

[Intelestream Inc]

Great article, we definately agree that establishing a commitment to organizational change, defining specific adjustments to operations and documenting your CRM strategy are necessary steps to a successful CRM. At Intelestream we also strongly believe that CRM deployment process is also vital to its success. We have assisted many companies in successul deployments by utilizing the following methodology:
Discovery: This critical step clearly documents the client business processes to be automated by the new software system.
Design: This process allows us to focus in on the requirements collected and gather them into a refined data model, set of development approaches, and conceptual process models.
Development: This is where the bulk of professional services time is consumed. Code customizations, module development activities, QA, bug fixing, and data migration are all a part of this stage.
Deployment: This stage focuses on executing final refinements and releasing the newly created project for use by users.
For further information, to speak to a Senior consultant or to take advantage of a 30day free trail visit www.intelestream.net
The Intelestream Team

[Crase]

Sorry - http://www.teamwox.com/en/

[Crase]

All greetings. In my CRM-applications enable effective customer relationship management, provided that the enterprise has the right objectives, strategy and culture.

For example, we now use a system TeamWox (http://www.teamwox.com/en/). So it we are no problems to overcome any pitfalls that were before it. She does not concede to me the same salesforce, and to free

[CRM master]

Very shost and clear article.
Thanks for your advices.

[CRM Software]

you are right and for every company either big or small, it is very necessary to take careful step for his customer value and there needs.

great

[Twitter Advertising]

Good thoughts about CRM system. these are great solutions out there for any kind of businesses.

[Online CRM]

Hey all...

There are some great solutions out there for any kind of businesses. In selecting a solution, you must take into account many options including current needs as well as future needs...

Some other great CRM options are from:

www.Rightnow.Com -- great online and on-premise solutions. Has been in the market for sometime.

www.SuradoCRM.com -- you can start with online and easily migrate to on-premise. Also has a great offline CRM product. One of the early CRM market introductions.

www.SugarCRM.com -- open source... only attempt this option if you are into programming.

www.NetSuite.com -- offers both CRM and ERP integration. May not be suitable for small business since implementation is not exactly easy. But may be a great tool for larger organizations.

There are some great articles or white papers for small businesses looking to adopt CRM applications... one that come to mind is -- Got CRM? Small Business Guide for Small Business.

Note: CRM is not just software implementation. It requires a mindset change to put the customer at the center of the operations -- absolutely needs a champion and buy in from all employees.

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[Avayaglobalconnect]

The process that organization uses to built relationship with different segments of its customers and at different levels.

[Fiona]

I agree with you about all the three steps you've identified. I'd also say that although it's not an actual step, one of the most important aspects of successful CRM implementation,is communication. Arguably, the most common cause of failure of CRM projects is poor communication. This includes internal communications, for example between IT, project managers and end users, as well as between business partners, individuals and client companies.

[DJ - Dialer]

Sweet posts. I love CRM.

[Joshua Varney - Dialer]

Great Article. What I've found is that companies committ to a CRM but then the Admin/Sales Manager needs to committ to doing the work.

Great Admin's that know what they are doing show what I believe better results. Lazy admin's are the exact opposite.

[Ben]

You're too right about people jumping in without due thought and attention - in all honesty I've coughed up more money than I really want to count looking for a quick fix, until a friend in the business recommended Enterprise Wizard - it's been a real help and everything's looking a lot more joined-up now. You can sign up for a free trial at the website - http://www.EnterpriseWizard.com/freetrial.htm - mine's about to expire, but I'm definitely going for a full account.

[EDunigan]

These three tips are great. I agree that it is so important to not just jump in with an off the shelf CRM package.

Those exploring a CRM may find the following podcast with 4 tips on rolling your own CRM insightful.

http://www.trackvia.com/blog/?p=83

[Smith]

One other aspect we must all consider is the insane space limitations in CRM systems. Is it true that SF only allows 20M per user unless you pay extra? This is -tiny-, I could see a limit of 20G, but 20M, there must be a mistake.

Other vendors I believe are more or less restrictive. For example EnterpriseWizard allows up to 100M per user with their standard package, priced at $45 per user per month. Is this a good deal in comparison to other CRMs available in the market?

[Cheryl Curtis]

When researching CRM / CMS vendors, look for one that wants to partner with you instead of just selling you a product out of the box. There are companies out there providing unlimited support and fully customized solutions that don't cost an arm and a leg.

[Adam]

Hello and this is really great stuff in here. I appreciate the mention of a difference between contact management and CRM. It is challenging to find a user friendly, simple, affordable tool that has both of these included. There are soo many to choose from. Our company started out with a small need and used a company called my elite contacts, www.myelitecontacts.com , and their tool has been great. No tool has it all, but this tool has most of it.

Adam

[Thomas Trevino]

It is a tricky situation if you rush into it blindly and the steps that you point out here are GREAT! They will definitely assist those in trying to find the best crm solution for there business. So many choices, so many questions... Contact Management should be a priority and focal point of every business person's mind when looking for a management solution! Good One Shannon!

[Alina Popescu]

Hi Shannon,

Nice to meet you and the entire team of CRM Blog writers. My name is Alina Popescu and I am a fellow blogger helping Steve Ireland of Norada to get the word out on his latest product, JobBlogs.

JobBlogs is CRM meets Project Management utilizing communication concepts of Business 2.0.. It serves up an intuitive, comprehensive and fast workspace tailored to meet universal team challenges.

Given your blog's strong focus on CRM, I thought JobBlogs would be a perfect topic for a future story. It would be great if you would join us and help spread the word. Here's their newest announcement: http://tinyurl.com/6q347v. If you'd like me to keep you posted in the future or to talk to Steve, please let me know.

Thanks for your time and talk to you soon!

Alina

P.S. Sorry for using the comment box, but I didn't see an email or contact form to use instead.

[Cheryl Curtis]

I agree with Stuart's comment that businesses are not from a box and neither should your CRM solution come out of a box. Technology should fit into your business; you should not modify your business to fit the technology.

Make sure you are buying the steak and not just the sizzle. Dashboards and "canned" reports are slick, but are they providing you with the information you really need?

Look for a contact management solution like SalesNexus that allows you to create ad-hoc reports, fully customizable and gives you the flexibility to analyze the data that is important to your business.

Provide your sales reps with a tool that they can easily see the benefits not only the company bottom line but their own bank account too.

[Mark Antill]

As a salesman for a hosted CRM solution (www.salesnexus.com) this article hits on a the big iopnts. One of the biggest hurdles, I have found, is getting buy in from the sales staff. All they see is more work or the "big-brother" aspect. It's really hard to get them to see the value (more organization=less stress=higher productivity=more money) in the beginning but those companies that take the steps spelled out in the article will get there much quicker.

Good read.

Mark

[Anh]

Terrific article. I have to agree with Sam Green. You have to get your sales team buying into the CRM app. Often times, I see companies where management knows they need CRM, but haven't fully prep their sales team to embrace it. Eventually, they end up right back at square one, and need to start over.

[George Bliss from Increase - On Demand (Hosted) Microsoft CRM]

Hi Shannon, great post, and a fantastic starting point for companies beginning their 'CRM journeys'.

Often more haste less speed is the answer, but arguably this can sometimes prolong what should be quick benefits for companies without any CRM whatsoever (we often speak to large corps and listed companies who are 'making do' with Excel and Outlook contacts!)

We've published this mini-whitepaper, called 'Successful CRM, Fast!'. http://www.increasecrm.co.uk/media/11100/increase_successful_crm_fast.pdf

If that link gets broken try clicking through from here: http://www.increasecrm.co.uk/resources/downloads.aspx

There is significant overlap in our thinking, so it was great to come across your blog.

Cheers,
George

[Stuart Amery]

Great article and I agree that some CRM users may use it as a glorified address book, but I imagine that is all they have been told and more importantly shown that it does.

I would argue in adding a 4th step - get the software that works for your business. Most business are not from a box - yet choose to buy out of the box software. This tends to make you change the way you do business, but by getting software that works along side the way you do business you will find the implementation a lot smoother and the user adoption tends to be much higher

[Ash A]

Great article.

I see so many clients not use CRM to it's full advantage, but as a glorified address book. They don't take the time to set goals and follow ups.

www.forsolutions.ca

[Kabir]

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[Sam Green]

Often simplicity is the key. Salespeople will quickly adopt technology when features are easily accessible. To many times users of CRM are lumbered with over complicated systems which make them 'switch-off'. Give them quick benefits and they'll be volunteers not conscripts when it comes to successful implementation.

[Scott Famrer]

I agree with everything in your article but, I would like to add that there is another important element in success of a CRM project. Sales Process, without it, all you are doing is using the CRM tool as a tracking tool instead of having it drive sales. We use Salesnet and the sales process engine inside the tool really helps drive our business.

[Bob Segal]

Oops, the web site I referenced earlier is http://www.micontacts.com/

Thanks

Bob

[Bob Segal]

Too ofter CRM becomes an over used word. In my organisation we use Salesforce. The company has invested significantly in integrating various systems (SAP, inhouse, etc) into Salesforce to give many departments a view of the customer. I work in sales and what I need is an activity manager for:
(a) my team to focus their daily efforts corectly - afterall they spend minimal time in front of the customer so what do they do with the rest of their time? They need to be active and they need a tool to support them.
(b) me (Sales manager) to understand just how active my team are and ensure they are focused in the right area.

Reciently, we got involved in trialing . Its not launched to the public yet (January 2009 is the official launch date). What a fantastic tool for getting back to sales basics and focusing on activity. Sure, I still use Salesforce because the company want their sales forecast this way But Mi Contacts has really made a difference to my teams activity levels. We now run regurarly run sales campaigns to boost activity when necessary - the result is the sales pipeline has never looked better and I now understand how my team is opperating better. Recomended!!!

[Kevin]

Wow, I will us this in my next sales meeting.. Thanks.

[Peter Thomas]

Great article, I would also add that it is important to revisit these strategies after the deployment. There are two major reasons for this.

1. To evaluate how things are progressing and revisit any areas that not working as expected.

2. To identify new capabilities and benefits that might not have been apparent at the onset. Often organizations don't realize what is possible until after they start using a CRM system.
(see my blog as well)
http://successwithcrm.blogspot.com/

[Scheuering]

Absolutely right!
I think the most important thing in order to launch a functional crm is to find out what are the goals and how can we meassure them?

INFONIS tiene como principio fundamental el tener un ÚNICO SERVIDOR para todos sus clientes que vende como único para cada uno.

NO crea este comentario, COMPRUÉBELO USTED MISMO y la próxima vez que su conexión en Elite CRM de INFONIS falle póngase en contacto con otros clientes de INFONIS. Si su conexión va igual de mal en ese momento no le quedará duda de que INFONIS S.L. le está timando.

Empresa ubicada en Barcelona, que fue comprada por el GRUPO INFONIS de Madrid.
El antiguo nombre de la empresa antes de que fuera comprada era “TELECON IBÉRICA S.A.”,
actualmente se llama “TELECON CRMLAB S.L” y anteriormente se había llamado “TELECON IBÉRICA S.L.”
El grupo de empresas que forma el GRUPO INFONIS y que tiene delegaciones en Italia, Portugal, Belgica,
está formado por menos de 100 trabajadores. En Barcelona menos de 25 personas.
TELECON CRMLAB como indica el nombre se dedica a la implementación y mantenimiento de sistemas CRM / SFA,
especializados para la industria farmacéutica. En las oficinas de Barcelona trabajan practicamente para
un único cliente “BAYER”.

Grupo infonis + Telecon iberica. Consultoria tecnologica. 300 empleados. Oficinas en España (Madrid, Barcelona), Portugal (Lisboa y Milán). 20 años vendiendo crm, business intelligence, e-learning, servicio de datos (estudios de mercado y potenciales) para la industria farmacéutica. Sus clientes no suelen renovar contratos por constantes problemas en todas sus aplicaciones (LENTITUD en la navegación, FALLO de conectividad, BAJA calidad,…) y las clausulas de sus contratos. La renovación de sus aplicaciones enmascara con un cambio de colores y cuatro dibujos una supuesta mejora del sistema. Todo un negocio de la estafa en un entorno de trabajo no recomendable.

[call center]

Many CRM projects fail because critical stakeholders are not involved in setting CRM strategy, assessing requirements and selecting options. Get key sponsors involved from the get-go and make sure that the individuals involved can make the financial and time commitments to ensure success. If possible, involve customers in this dialogue through surveys, councils and other ways to ensure that your strategy is in sync with their expectations. At the executive level, start determining the kinds of information that various people need to better understand and respond to customers.