CRM in SmallBiz: Disappointing Misconceptions

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In the last few months there has been quite a lot of discussionon CRM (customer relationship management) solutions in the forumsand ezines.
Although it is extremely positive that people finallystarted... In the last few months there has been quite a lot of discussionon CRM (customer relationship management) solutions in the forumsand ezines.
Although it is extremely positive that people finallystarted to talk about the one concept that will make the futureof a business successful or unsuccessful, there are quite a fewmisconceptions about the term. Those misconceptions make peoplelose time and energy finding solutions in areas they should notbe even searching, instead in concentrating on the reallyimportant things.First, the simplest and the least obvious: Customer RelationshipManagement is about RELATIONS between people (yes, business isdone by people, not companies).
It is NOT technology. Businessdid exist before computers, so relations between business peopleexisted before computers, i.e.
CRM was not invented with theinvention of computers (just the name CRM was). The goodpractices of relating with your customer did not become obsoletewith the introduction of computers, though the TOOLS changed.
Sowe use the same practices, but we take advantage of the possibilities that technology gives. It certainly is a differentexperience for the buyer if he is met on the web site by a humanvoice or keyboard chat (LivePerson, FireTalk, HumanClick) which is what technology now makes possible.
The technology enables usto see how the customer is navigating through the site, and, ifwe want to, interrupt him and offer assistance. But I wonder whether the customer will welcome that.
If you are a salesman ina brick and mortar store, you would watch the expression of thecustomer and, based on that, decide to approach him or not.On the net you cannot see his face (it's questionable if he'll let you even if possible). In any case, CRM is NOT technology, so you will not find your CRM solution among SWvendors.
Which brings us to the misconception number two.Business people tend to search for a CRM solution among SWdevelopers and vendors. "They know the technology, which I (thebusiness manager) don't know, so they will know my needs andhow to implement it".
If a business manager would object to sucha suggestion he would be labeled "old" and "overdue". In todayfast business lane, fortunes are made fast, and young managerstend to "buy" a CRM software solution.
CRM should already be inplace, functioning, BEFORE starting IT implementation (who hasto forward which info to whom to be ready for who, when? Who hasto respond to what in how much time?). CRM Software solution isonly a TOOL for procedures already in place.
Let me draw a parallel.With the invention of cars, the way we conduct business changed.We could do much more business and do it better. But never once,it occurred to us to let auto designers lead and ENFORCE the waywe are building relations with our customers.
So why does everybody think that software designers are capable of that?They might be brilliant SW developers, but still they wouldn'tknow how to better customer retention in a company manufacturingfurniture. So why do we try to do that? Because it is easier notto lose time over enforcement of customer retention rules in ourown company, when we can pay someone to do it.
Because we have the money, but we don't have TIME. Well, we can't do that.
We cannot avoid our involvement in the process (and our hours, ofcourse), although I know most of you didn't want to hear this.Which brings us to the misconception number three.You search for an SW solution for your CRM, buy it, and letthose people do their job. As good manager, you organize weeklymeetings to have your finger on things.
Because you selected aSW vendor which is a respectable company, the first thing thosepeople do, is to organize internal audit. They pass out forms topeople in different departments, to find out exactly what are the needs of different parts of your company.
Alternatively, they conduct interviews. And that is good.
That is much betterthen them trying to force their "proven" flow of documentationupon your company. But what they are actually doing is LEARNING the way your company functions.
And the teaching is done bypeople who work in each department, that most probably, don't have the whole picture. So the integration of the whole picture is done by the SW vendor.
Can they learn in a fortnight or a month?I would suggest another approach. Find an "oldie" within yourcompany, preferably one year from retirement.
The one that doesknow how your company lives, who preferably worked a bit insales, a bit in procurement and a bit in support or reclamation.If he doesn't like computers, all the better. If he later likesthe results, you can be sure everyone else will.
Assign him fulltime as a liaison, and let him guide the implementation. Haveeveryone know all the doors must be kept open for him.
Remember,CRM implementation is about KNOWLEDGE of how your companyfunctions. It is about how EXISTING customer care procedures(remember misconception number one?) are automated (complemented,modified) by computers.
And if there is no such person(s) withinyour company? Well, that leaves YOU. I bet you didn't want tohear this, but remember that everyday customer relationprocedures will be done by your people, not the SW vendor.Which brings us to misconception number four.CRM is sales automation.
No, no, no, it is customer support. No,no, no, it's the lady who says hello answering the phone on thehelpdesk.
No, no, no, it's the operator who chats with thepotential customer on the web site. Actually, it is all of theabove.
In a company, sales people seldom talk with the supportpeople. And vice versa.
As if those were two differentnon competing companies so they have little to talk about. Lastfew months everybody talks about customer retention.
Which isnormal as it is much easier and cheaper to sell again to anexisting customer, than to get a new one. But only if he received good customer support and service, that is.
So a goodCRM SW solution would have some data common to everybody (name,address, phone, etc), but also data needed by sales, procurement, helpdesk and support. This does not mean you have to have an ERP system, it just means that you need some extrafields which are specific to each department.
Ideally, you yourself would be able to add some extra fields as needed, without becoming a programmer. Which brings us to misconceptionnumber five.After the first year of coughing and hiccuping, your CRMsolution is finally in place and humming nicely.
You are gettingall that nice data you needed, and you are finally able to watchand build your customer relations. So you are home and free.
If you need an extra report, or an extra field, you'll call the SWvendor and he will make the necessary changes. Well, that's not entirely true.
The life of your company is not static. It changes daily.
The same way, your CRM solution cannot be static.If your sales person needs to call an IT liaison, explain to himthe change he needs, then to the SW developer, then wait for implementation, you can be sure that he will not do it. He will rather scribble it into his note book or the Excel sheet on his notebook.
He should be able to do just that in your CRM solution. Which means you should have a modifiable solution, onein which you can add fields and tell the system how to handle them.
But that means you will have to invest time to learn how to do it. Or leave it for later when you will have more time.
Which is misconception number six.People tend to search for a CRM software solution when theycannot cope any more with the traffic. By then, it is too late.It is late in the sense that you have to implement a solution inwhich you have to invests time, and time you don't have.
Thatmeans that the implementation will be much longer, it will costmuch more in hours, lost business, poor customer service, whichmeans you will spend more hours dealing with a customer, youwill have less hours in sales, you will have to hire more people... There is no nice way to tell you, so I will say it straight out: You should start implementing a CRM system, the moment you start using PC in promotion and sales.
And that is now, isn't it?So what really is the difference between a CRM software systemand old, traditional relations with your customers? Documentationand analysis. With a CRM software system you have historical datawhich you can analyze.
Analyzing our customer support data we found out that about 60% of our helpdesk activity was done withnew customers (within 2 months of purchase) which is normal, butabout 90% of those incidents were trivial questions about simpleuse of functions. Although we were issuing three manuals andgiving a six day course to our customers, we decided to issue aspecial cookbook for novices, based on the most common questions.The style was light, simple and straightforward, one page max perfunction.
It was a double jeopardy. Novice interventions droppedto about 30% and the customers had a feeling they were drivingthe system, not the other way around.
So we were both happy. Andthat's called customer satisfaction, right? Article Tags: Misconception Number, Software Solution, Customer Retention, Don't Have, Customer Support Source: Free Articles from ArticlesFactory.com .