I have to admit that the term "CRM" can be sometimes confusing and is used a lot within the IT industry. But what does it really mean?? What is Customer Relationship Management really all about? Why would your business need a CRM system?
I like to think of CRM as a useful tool that enables businesses to get things done much more efficiently. So, instead of having to call up the sales rep to find out what he has agreed with Customer XYZ, you can simply log onto the CRM software and you will see all of the recent communications, correspondence, opportunities and even customer queries. Now this all assumes that the sales team and all other teams using the software actually update what they have been doing, but with Sage CRM being web browser based and available for smart phones, updating the system should become second nature. The benefits all there for all to see.
Now I am going to ask a few simple questions which should help illustrate the real power that CRM can deliver...
- What is the value of sales opportunities for this month/quarter?
- What is your conversion rate of Leads to Opportunities?
- Which of your Sales Rep's is most productive?
- What are the top 5 sources of business opportunities and how does this compare to last year?
- What marketing campaigns yielded the best results?
- Can you tell which e-marketing campaigns created the highest click rates and what areas in the campaign were of particular interest?
- Can you get a quick overview of what's happening with a customer all from one place? From Sales & Marketing to Communications & Customer Service & Finance?
- What % of opportunities did you lose because of Price? Do you know why you are not winning business?
Without having a CRM system in place, I would suspect that some of this information could be gathered from various sources and compiled eventually. I would also suspect that some of this information is not stored anywhere and therefore it would suggest that we may not be as "on the ball" as we may need to be. We are all out there competing with one another - surely its about being smarter and sharper to gain the competitive advantage??
CRM is really about putting a better structure on how you do things. Instead of sending prospect letters out by post, create an e-marketing campaign and follow and track the results. Use the information you have gathered and put it to good use.
If you were going to host an event for example, in Kerry. Using a system like Sage CRM, you can pull up all the contacts you have in Kerry who you dealt with in the past, but who never bought from you. Without a CRM system, I would suspect that many people will take a note of the company, contact them and if it doesn't work out, then their details become lost somewhere along the way. Keeping this information for future use is exactly what we should all be doing - its a very small world and just because somebody doesn't buy now, it doesn't mean that you cannot do business again in the future.
So, I think you get the picture now. It's really not that revolutionary - it's just a simple way of getting things done more efficiently and with greater clarity & accuracy. Integration with your Accounts system really completes the circle and enables information to flow in a circle around the organisation. It goes without saying that having this information to hand means you can make those decisions that spark change where change is needed. Remember that campaign we ran in March 2010 and generated lots of interest and where we exceeded our budget for the Quarter as a result?....why don't we try to replicate this and run the same campaign in 2011??
CRM systems such as Sage CRM V7.1 also incorporate Twitter & LinkedIn components and Microsoft Exchange integration. I would see this as an important step of adapting our business tools to take on board the new ways that we communicatate with each other and with the world.
Here's a video which hopefully illustrates the value of CRM to a business. It can be used in pretty much any size business and is not necessarily just for sales organisations. Its practical uses know no bounds.
http://www.youtube.com/watch?v=Q0xRlBp57Zw&feature=player_embedded
The easiest way to work out the value of CRM to a business is simply to ask any business this question.
"If we took away your CRM system tomorrow, what impact do you think this would have on your business"??
I would suspect you would get some very strange looks at the prospect of parting with CRM and the reaction might be along the same lines as asking if we could take away your mobile phone. Doing things the old way just doesn't cut it any more. It just becomes part of how you do business - in a structured and organised way.
