|
Please
remember my columns are copyright-protected.
Feel free to print a copy for
yourself but please do not reprint
them for distribution without
contacting me first. Thank you.
SAVVY
SELLING - MARCH
17, 2006
A Primer
in CRM
By Michelle Nichols
EXECUTIVE
OVERVIEW
There are several considerations
in choosing a CRM but don't
forget your customers while
doing so.
Customer relationship management
is the key to keeping your network
up to date and your employees
on the ball
Smart salespeople leverage
their strengths and get help
with their weaknesses. For many
of us, organization isn't one
of our strong points. Keeping
track of which customers to
follow up with when, how, and,
most importantly, why usually
requires some support. Hence,
a few decades ago a new industry
was born -- CRM, customer relationship
management.
I don't want to give away my
age, but I was considered a
real leader on my sales team
way back in the mid-1980s, when
I kept track of my prospects
on a "laptop" computer
from Radio Shack that ran on
a fistful of C batteries. My
fellow sales reps and customers
were amazed that I could carry
a simple database of my customers'
information around and update
it at will. I don't recall what
size CPU it had but I bet my
cell-phone could out-power it
now.
When it comes to CRM, to steal
a line from an old advertisement,
"We've come a long way,
baby." Now there's a wide
variety of CRM solutions, something
to fit every size and situation
BETTER GET STARTED.
Shopping for CRM is like shopping
for a car. First you need to
think through your needs. Otherwise
it's like not knowing if you
want to buy a Silverado or a
Corvette. Some companies use
CRM primarily to make their
customers happier and increase
repeat sales. Some use it to
increase initial sales. Some
use it to decrease their overall
cost of doing business.
Once you know your needs, research
those CRM solutions that meet
them. Then pick one and get
started. Don't fall into "paralysis
by analysis." Like any
technical product, you'll learn
as you go, but you'll never
learn if you never get started.
CRM is available on three platforms:
individual- , server- or Internet-based.
Of course, there are combinations
of these too. If you're a lone
ranger, perhaps the sole employee
of your company, an individual-based
CRM system that sits on your
computer or laptop might be
best. This type of solution
would give you maximum privacy
and control.
HOW TO CHOOSE.
An individual CRM system is
a database of what you know.
Once you've typed in your customers'
kids' names and birthdates or
their favorite sports teams,
you'll always know this information.
However, when multiple people
touch one CRM database, something
magical starts to happen. It
starts to collect data on your
customers from various sources
and now it collectively "knows"
more than any one person could.
If you want several salespeople
to see the same database of
customers, you could look at
a server-level solution. With
this option, you keep one CRM
on your corporate computer and
several employees can enter
and modify the records. This
would give your company privacy
and control.
One concern with these first
two platforms is they both require
increased technical support,
including installing, customizing,
and supporting all the hardware
and software you need to buy.
IN THE FIELD. If
that sounds like too much work,
an Internet-based solution is
a worthwhile consideration.
This is especially great if
your employees aren't co-located.
You'll experience increased
flexibility and value but, on
the other hand, decreased privacy.
There's also always the risk
that the computers of the master
database could go down and people
in your CRM network wouldn't
be able to get to or use their
data.
I've used this type of CRM
because I could add independent
contractors anywhere in the
world, and we shared contacts
and information. When they left,
I just eliminated their access
codes and carried on. Since
the Internet is everywhere,
when I travel I can leave my
computer at home and log on
at computers around the world
to pull up some contact information
or add to my database.
There's a second consideration
in choosing a CRM, and that's
the desired level of complexity.
Some sales organizations want
to record every last detail
about their customers. This
benefits management because
they can see exactly what's
been going on with a customer.
This also helps when sales reps
leave because detailed records
exist for whoever takes over
the account.
FEED ME. Management
should be careful here. Having
lots of boxes to type in sounds
good, but since most sales reps
aren't detail-oriented, this
can create friction between
sales reps and their managers.
If you're like me, you got into
sales because you're a people-person,
and every minute spent typing
in notes about what a customer
said is a minute you could have
spent making another sales call.
Also, customer information
can become stale and worthless.
A bigger CRM database isn't
necessarily better. Kit Wong
may have been the VP of Finance
at Company ABC 10 years ago,
but if his record isn't occasionally
refreshed, this bit of data
becomes useless.
The most simplistic CRM solution
I found is software from Post-It
Notes called Digital Notes.
It literally organizes digital
sticky notes. What a contradiction!
KEEP IT REAL.
A third consideration is how
far you want your CRM system
to extend. Some CRM systems
only touch the sales team. On
the other end of the spectrum,
some solutions reach into HR,
finance, marketing, and even
manufacturing.
The biggest problem with all
of CRM isn't in choosing which
implementation to buy, it's
the risk of taking your eye
off the ball -- your customers.
The last thing they want to
hear from you is, "I'm
sorry I didn't do what I promised
but our CRM was down."
Choosing and using the right
CRM for your situation is a
necessary but difficult task.
There's even a magazine dedicated
to the field, CRM Magazine.
However you manage your customer
relationships, find a system
that helps you organize them,
and your sales will surely soar.
Happy selling!
Michelle Nichols is a
professional sales speaker and
consultant based in Reno, Nevada.
She welcomes your questions
and comments. You can visit
her web site at www.savvyselling.com
or contact her at michelle.nichols@savvyselling.com.
Her toll-free number is (877)
352-9684.
Copyright 2000-2006. All rights
reserved.
Want to know more about copyrights
and use? Check out: http://www.templetons.com/brad/copymyths.html
|
