business builder technology
To take better care of customers,
it’s time to retire shoebox
by Kirk Hoaglund
I’ve just finished spending too much time battling a key vendor. They made a number of serious errors and have been unable to effectively deal with me. After a couple of weeks, the problems are finally resolved.
My company simply cannot run without the services provided by this vendor, but I really can’t afford this kind of delay. That isn’t what worries me the most. Whenever something like this happens — and admit it, it happens plenty — I think, “I hope we aren’t doing the same thing to our key customers.”
To avoid this sort of battle with my customers I need to exercise careful control over two things: customer data and the processes that deal with that data. Then I need to be able to analyze this data and these processes to find problems, and eliminate them. I need everyone in my company to have the same power — to have access to the same tools. You need the same thing.
There’s a name for such a tool: a customer relationship management (or CRM) system. CRM is something that you’ve always done and always will do. You can perform CRM with a shoebox and index cards or with a pencil and yellow legal pads. You do it now and you cannot run your company without it. But automating it can be a big help.
Business automation is the application of computers and computer technology to streamline business processes and improve the handling of your business data. Your accounting system automates a set of financial processes and creates improved control over the data. A CRM system automates three core functions: finding, getting and keeping customers.
Finding. You find customers through marketing: print advertising, direct mail, telemarketing, careful public relations, seminars, trade shows and plenty of other activities. These activities are designed to produce leads.
Getting. You get customers by closing a sale: writing proposals, creating quotes, demonstrating value, negotiating price, planning delivery and more. All of this drives to the close.
Keeping. You keep customers by continuously delivering value: product support, product upgrades, problem resolution, usage advice, and the rest of your constant attention to customer needs. Your goal: Sell to them again.
CRM systems automate these activities and help you manage the data associated with each. By making your lead-to-opportunity-to-proposal-to-sale process consistent, CRM gives you a clearer view of what you are doing right and what you are doing wrong.
By managing all your customer contact data in one place, CRM helps you avoid pitching a renewal to a customer that has lots of unresolved problems, because everyone knows the true status of each account. By enforcing your sale-process rules, CRM helps you know that everyone is selling the same things in the same way — the way that leads to profit.
When setting out to put CRM automation in place, there are several keys to choosing the right system and making sure it helps you increase profit and grow your company:
Contact is a noun and a verb.
It is relatively easy to buy contact management software. Nearly all contact management packages manage the noun: the information you keep about each customer or lead. You’ll be able to store and retrieve address, phone, e-mail, birthday, favorite color, and lots of other nice data bits. But while some contact management software will help a little with tickler files, few help you manage the verb: the activities and processes that you engage when you contact your contacts. Don’t buy a contact manager when you are looking for a CRM system
Never automate a mess.
Automating a mess helps you get the wrong answer faster. Even if you’ve never thought of it this way, you DO have processes. Spend some time thinking about that. Find the common activities that produce the most success and pay attention to the pieces of information that really help you find, get and keep customers. Automate it after you understand it a bit better.
The dog wags the tail.
It is tempting to believe that the predefined processes and data that a CRM package has can become your “new and improved way of doing things.” While that’s possible, it is really, really unlikely. That’s the tail wagging the dog. Don’t tell me you don’t know how to run your company. You do. If a CRM system can’t do things the way you do things, don’t buy it.
A sporty car needs a powerful engine.
Next year, when your sales triple, you’ll be looking at that new Jaguar — the really nice-looking one with the powerful engine. It isn’t a Jaguar unless it has plenty of horsepower. Trying to automate your finding-getting-keeping processes using the spare computer sitting in the extra office is the same thing. You need a solid infrastructure on which to build an effective CRM system. Don’t get cheap with equipment.
Everyone must be on board.
Many of the advantages of a good CRM system are lost unless everyone uses it all the time. The system must be usable, preferably built on a familiar base. Your salespeople must be able to see the support status of their accounts. Your support staff must be able to understand customer sales activity. Only buy a system that everyone can and will use.
You are the king.
Any good CRM system lets you perform actions outside the normal processes. You need to do that when you make a great new deal with a special customer. Never buy a system that prevents you from running your company.
Turn data into information, then wisdom.
Your CRM system must allow you to view, analyze and manipulate lots of data. You’ll want to know what works and what doesn’t. Who is closing the most deals? From what markets are most of your new customers coming? Which are the hot products? Which are the dogs? Buy a CRM package that has a complete and rich report set that lets you keep close track of what’s going on.
Careful attention to these key elements will help you choose and use a new CRM system. You’ll become someone’s key vendor, they won’t be able to run their companies without you, and you’ll never let them down. That helps us all sleep better.
