Getting Results with CRM

By its very name, software for Customer Relationship Management (CRM) should be the “holiest of holy” tools for finding, winning and keeping customers. Yet many businesses struggle to leverage this tool beyond being a glorified Rolodex.

Lots of Systems, Lots of Promises
Most companies have a CRM system whether it is a homegrown database or one of the many commercial products ranging in price from a couple hundred to tens of thousands of dollars.

For an individual company, it is likely the purchase was made to pursue many of the promises of this tool for better management of the customer relationship building process. Such promises might be:

• Streamlined sales, marketing and customer service workflow and management
• More customers from a higher rate of prospect conversion
• Renewals, new product sales and referrals from improved customer relationships
• A better brand and reputation
• Relevant data with which to make more informed decisions

The strategies that work to accomplish these goals vary from company to company. What works for an information technology consulting firm is not the same strategy that works for retailer of specialty goods. In fact, similar organizations in the same sector may use CRM differently to capture the promises above. With CRM Software configuration, is required and therein lays trouble.

Many companies make the mistake of selecting a CRM system based on the activities they do now, essentially automating their current efforts. Yet, a good CRM system brings new power to the table, akin to hiring an additional key staff member. At times like these it pays to reconnect with the company’s overall vision, goals, objectives and tactics prior to putting the new resource to work.

When selecting or re-vamping a CRM system the starting point is a discussion on how things should get done.

Strategic CRM
With a strategic approach to CRM every click leads to measurable progress on strategic objectives. That’s a bit of an overstatement, certainly, but the point is that the main features of the CRM software should directly and clearly support the strategies set forth for the sales, marketing and client service departments as well as the organization as a whole.

Simple questions that need to be answered are:

• What is your Vision for the company and each customer-facing department?
• How are you going to get there?
• What milestones will you hit along the way?
• How will you know you’re making progress towards these milestones?
• What activities will enable your progress?
• What other tools and technology are being engaged (think Website, email, etc)?

The questions above will provide a great starting point with the ultimate goal of gaining context for how exactly CRM will benefit the company, how the benefits can be measured and ultimately how the program should be configured.

Take for example a software provider that sells to various sectors within the Oil & Gas industry. Let’s assume the company has made the following choices:

Vision: Sustainable, cost-effective growth through repeat customers & referrals

Strategy: Build and nurture strong customer relationships

Objectives: Engage customers based on the specific sector they are in and find ways to provide additional value.

Tactics: Tailor communications to each sector, client interest and pain points

Milestones: Success is measured by:

• # of customers
• # of renewing customers
• Improvement in perceived applicability of the software to each sector’s needs

The CRM software can do a number of things to support these strategic objectives, outside of the standard keeping of contact information and purchase history. For example:

• Online surveys can capture and automatically populate the CRM system with the specific sector and needs of prospects & customers (are they in the accounting department or out in the field?)
• Phone, email and mail campaigns can run with messages specific to customer’s sector and interests (“Saving money in the Field…”)
• Reports monitor how the tailored messages are affecting customer’s propensity to purchase.
• Other features could be engaged to facilitate teamwork and manage staff activities around pursuing these strategies.

In this particular case study, the results expected are a larger customer base that is more likely to renew, purchase other products and refer future customers.

Taking a Strategic approach to CRM not only allows an company to select the right CRM program for its specific needs and budget, but it also paves the way to having stronger customer relationships and more reliable income. Simply tracking contacts and sales with CRM leaves this great opportunity untouched.

Brian Pickett assists business with strategic CRM, website, and email technology solutions to achieve sales, marketing and customer service goals. For more information on Strategic CRM Solutions please visit PickettCRM.com.