CRM Software Solutions

"Information To Help You Make An Informed Decision "

CRM software (Customer Relationship Management) systems allow companies to better manage their customers and have available specific, real-time information about each customer. By using that information correctly, businesses can be more supportive of their clients and more successful in the marketplace.

A good system deals with a wide range of customer issues on a day-to-day basis. They have grown dramatically in recent years in terms of capabilities, and functionality.

CRM software systems are not just an application of technology, but part of a business wide strategy to deal with customers. You can understand their behaviors, better satisfy their needs, and build better relationships with them.

The technology and software solutions, need to be integrated with your business philosophy to provide a way of working with your customers more effectively and efficiently.

The solutions available today rely heavily on the use of technology. There can be benefits, potential detriments, and negative consequences of implementing one of these applications. It is important to determine the best solution for your specific needs and to implement that solution correctly.

Why CRM?

Retaining existing customers and gaining new ones is important to almost every business. The cost and effort of obtaining a new customer is usually about five times that of retaining an existing one. As a business grows, so do the ways of conducting business and interacting with your customers. Along with this growth comes a greater complexity and the need to manage your interaction with your customer base.

By gaining additional insight into the behavior of customers businesses can modify their operations, products, offerings, and engagements in a way that best serves the customers. A good CRM software system helps your business recognize the attributes of your customers which in turn allows you to capitalize on and improve customer relations.

A CRM application can be anything from an Excel spreadsheets to a complex software program and solution. All CRM systems should include the following:

• Finding out about your customers' purchasing habits, opinions and preferences
• Profiling individuals and target groups to market more effectively and increase sales

This leads to changing the way you operate to improve customer service, awareness and preference.

To get the most from a CRM implementation, you need to get the right software for your way of doing business and that satisfies the requirements and needs of your customers.

Business Benefits of CRM

Implementing a CRM software solution might involve considerable expense and time before you begin to see the potential benefits.

The key benefit of a CRM software system is the development of better touch and relationships with new and future customers. When done correctly, this should lead to:

• Increased sales through better timing and anticipation of customer needs based on historic patterns and buying trends
• Identifying and catering to specific customer requirements
• Cross-selling and up-selling of other products by highlighting and suggesting alternatives or enhancements to the installed base of products or services
• Identifying the cost of sales for your customers and identifying which ones are profitable and which are not

With this information you'll be better able to market your products and services by focusing on:

• Effective targeted marketing campaigns and communications that are targeted specifically at your customers needs
• Applying a more personal approach to your interactions in the development of products and services that help you increase your business

And, an effective implementation leads to:

• Increased customer retention
• Increased customer satisfaction
• Improved reputation for your brand and company in the marketplace
• Enhanced value from your installed base
• Efficiencies of time, money and personnel
• Reduced cost of sales
• Focus on increasing the profitability of all customers and identifying less profitable customers that may require a different sales channel that is more cost effective

By looking after your existing customers more effectively, it might free up time to focus on developing new customers and expanding your market. By developing good information about your existing customers, it will give you a better understanding of who your ideal prospects should be. CRM software systems increase in their effectiveness and efficiencies over time and with usage.

The key is to continuously gather accurate information about your customers in the areas that are important to your business. That ensures everyone in the organization who takes advantage of this information has the necessary information to be useful.

Different Types of CRM Software Solutions

CRM solutions can be provided in four different ways.

1. Outsourced CRM

   Web-based solutions can be delivered to your business by application service providers. If you're looking to get a solution up and running quickly, or if your company does not have the resources or skills necessary to implement a system independently, this could be a good method. This method is also a good way to go for customers whose business is primarily web-based and online e-commerce.

2. Prepackaged Solutions

   There are multiple software companies that provide off-the-shelf CRM software applications. These usually have reduced functionality and are marketed toward smaller businesses. Prepackaged solutions are generally the least expensive in terms of the original purchase price. Because they may not perform exactly the way you want a CRM software system to function for your company, there may be some downside. The trade-off you'll make is functionality versus price. There are generally service providers who make a living helping you integrate prepackaged solutions. Consider their availability and cost when you are considering an off-the-shelf option.

3. Customized solutions

   If you feel there is no solution in the marketplace that exactly fits your requirements, there are numerous consultants and software companies that can create a customized application. This can be expensive and time-consuming, but the result is generally a system that works very well for your business. There is a lot more upfront specification and design time required if you go with a customized solution.

4. SaaS and Managed solutions

   One of the more popular ways of managing a CRM software solution is from companies who provide software as a service and manage the solution for you. This can be a cost effective way to go, because you usually pay on a monthly basis for the number of users. However, there may be a compromise in terms of specific functionality required for your individual business. These systems are generally robust and easy to tailor.

CRM Implementation

When implementing your solution, you need to consider your entire customer engagement process. First identify the type of customer data and information that is critical for your business. Next you begin the process of gathering information and assembling it in ways that will improve your marketing and customer experience. Consider the following six implementation phases:

Phase 1: Collection of Relevant Information

A CRM software system is very good at collecting data and bits of information. Your priority should be to identify the key information about your customers that is critical to running your business. Many system implementations get off to a slow start because you ask for too much information. This overwhelms individuals in trying to keep the information current. Consider carefully what information you want your employees to input. Also consider providing places for your customers to keep their information current as well.

Phase 2: Information Storage

Consider how you want your information to be stored and who will be able to change the stored records. The information you gather is very valuable to your company over time, so consider who will own the information. The information should be effective, retrievable, and owned by your business. Some managed systems retain ownership of the information stored on their systems, which may or may not work for you. A good and convenient database will allow you to run your systems effectively and from the same source. This helps ensure the accuracy of the information, and the proper usage of the your system.

Phase 3: Accessing Information

Once your information is stored in a way that you want, you need to address how the information is retrieved by your employees. Consider who will be able to look at what levels of information and how your security will be structured.

Phase 4: Analyzing Customer Behavior

Data does not become useful information until you analyze it and put in a format that is meaningful. Consider what reports will be of value to different business units and service units within your company. Match the analysis and information reporting to the rhythm of your business so it is available in a timely manner.

Phase 5: Marketing Considerations

Once the information is entered and accurate, it can be mined to provide detailed knowledge about your customers. You can target your marketing campaigns more specifically with a better understanding of your customers issues and business needs . In most companies a small percentage of customers generate the largest percentage of profits. A well functioning CRM software system helps you target your products and offerings to those most valuable customers.

Phase 6: Conditions of Customer Satisfaction

Even your best customers will complain once in a while, and a small number of troublesome customers often take up a disproportionate amount of service time. If customer problems can be identified and resolved quickly, your personnel will have more time to be proactive with your top customers and to develop new business. A good CRM implementation provides you with the information to quickly identify and resolve those customer issues.

Word of Caution About CRM Software Solutions

Many customers find that their implementation does not give them the immediate results or ROI they were expecting. There are multiple reasons why this might occur.

1. Implementation of a CRM software solution requires commitment from all the people within the companies that are going to be using and benefiting from the system. Adopting this new approach may require a complete cultural change. The CRM implementation has to bring value to customers and all levels of your organization. It cannot be viewed as just a tool mandated by management. The system will never achieve its full potential without the free flow of accurate and timely information from all levels of your business.
2. Communication and the ability to share accurate information make your system a success. All users in your business need to have relevant information that will help them in their job function, and not hinder them. Your implementation will be successful if your employees can access accurate information in a timely manner to add value to their roles and responsibilities. A good implementation requires strong change management leadership. Management needs to promote the value and benefits of the project. Always keep the plan focused on doing what is right for your customers as well as your own business.
3. Trying to overreach the initial implementation is a tempting but risky strategy. Consider breaking your project down into more manageable pieces. Identify the most critical requirements and implement those first. Set up short-term programs and milestones that give you immediate success and value. Make your initial implementation manageable and flexible enough so you can make adjustments to be successful.
4. CRM software systems will consume a lot of storage. Make sure that your system data requirements are adequate and expandable. Also consider what data is most important and keep only data that is useful and of a timely value. Discard old unused and unwanted data in a routine manner.
5. Consider the internal rules you'll put on the usage of the CRM software solution. Your objective is to get the information critical to improving relationships with your customers, without being overbearing on your staff and employees.
6. There are also rules and regulations as to how you can use the information you gather on individuals. The Data Protection Act of 1998 governs the use of personal information by businesses and other organizations. You must comply with the rules established in this act if your business requires you to store people's personal information. You should have a privacy policy in place that is consistent with all requirements.

Considerations When Purchasing

The right solution for your business will generally represent a large investment in terms of time, money and other resources. Choose the type of application and the provider carefully. Making the wrong choice can have a large impact for a long time. The wrong choice can slow down and jeopardize your business. Here are some questions to consider asking potential suppliers:

• How long have you been in business and what is your history?
• What are the initial costs and the ongoing costs of maintenance, recurring payments, and updates?
• Do you provide evaluation software?
• Who provides technical support, and how much does it cost?
• Does the supplier or third-party consultants do the implementation?
• Is the application scalable to grow with my business, and what is the future direction of the application?
• What third-party developers are available to help tailor and customize the solution?
• Is there a users group, or website and blog where users can exchange information?
• Will the supplier provide references for businesses in your industry that use their software?
• What training is available for using the system and what does it cost?

Conclusion

CRM software solutions come in many types with varying functionality. It is critical to choose the application and delivery method that best suits your business. Keep your CRM implementation focused on enhancing the customer's experience with your company and it will continue to add value to your business and customers.

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