Although I am a proponent of CRM software and database management, I have never, nor will I run across a software solution that provides Complete CRM. On a note of credibility, my company, Wright Solutions is partnered with a few CRM software providers whom will not be referenced anywhere in this post, or this series. I want you to understand the depth of my committment to the fundamentals of human CRM.

Companies in the market for CRM solutions actually are in need of better managing relationships with their customers, and most are looking at CRM applications as the answer. I am not about to suggest that any of the well designed and reliable IT solutions are not a significant piece of the puzzle. I will say that alone, they are not ‘the answer’. Three significant misconceptions continue to impede the successful implementation of CRM systems or upgrades. The first myth is that CRM is a software solution, secondly that CRM is a tactic and lastly that satisfied customers are loyal customers. The truth is that CRM is a people driven - not a software solution, CRM is a strategy not a tactic, and satisfied customers are not necessarily loyal.

Busting the myths - the 5 W’s of Customer Relations.

Myth #1. CRM is a Software Solution. Who - If you spend $25,000 on the installation and implementation of a CRM system, and six months down the road you have no increase in the number of customers regularly repeating business with you, Who is accountable? What - If your employees do not ‘buy in’ to the new system, failing to input or update customer information correctly, What results will your $25,000 investment produce? Why - Have you purchased and introduced this new software? If your answer is in any way similar to the following statement, you are guaranteeing failure: Our employees never seem to have the time, or just don’t consistently follow up with our customers. Where - Are you measuring and monitoring the results produced by your CRM software at the end of the process? If you are, how do you know the quality of the data initially input by front line staff? When - Time, a commodity always in demand, always in short supply. Two thoughts on time: If one of the reasons you made this investment was due to the fact that your employees didn’t follow up with your customers, what makes you think they’ll now have or take the time to accurately update records in the system? And have you made provisions for one or more people to have the extra time needed to monitor and review the output of the system for errors, duplications or unique circumstances?

Having put all that out on the table, I’m sure (well, actually I’m hoping) that I’ve left you with more questions. “If this great new IT solution is not the whole answer, what is?”, “I’ve already made the investment, how do I ensure its success?”, “We’ve trained and offered incentives to our employees, they claim to be following proceedures, but still our numbers haven’t gone up. What do we do now?” … The possibilities here are limitless!

From my perspective, I say GOOD! It means I’ve succeeded in reaching my goal for today. To provide food for thought, to provide incentive for you to question and examine what you are doing today and what results you are getting is a tremendous step towards a solution. Success never comes by way of quick fixes or trendy technology. You will arrive at success only once you have honestly assessed the gap and determined where you are today. If you also have a clear view of where you want to go tomorrow, we can begin to size up that gap and decide how to bridge it.

How to do that begins with the discussion of the next myth: CRM is a tactic. My next post will bust that myth in brief as we’ve done here with the first.

Over the course of this series we will be taking an honest look at where many businesses are today - The real deal, I don’t care too much for ‘political correctness’ or ‘beating around the bush’. Some may not like my approach, but those that follow me through, those that suffer the unease of examining and questioning your ‘comfort zone’ will find themselves ahead of the game and significantly improving their success.

Until next time, I implore you to change your viewpoint, get down on the ground, climb a ladder, anything to look at your business, your employees, your customers and your processes from a different perspective. I also encourage you to read. If you haven’t looked at a book on customer service since your college days, do it now. Some of my favourites are: “The Butterfly Customer: Capturing the Loyalty of Today’s Elusive Consumer”, “Customer Tells : Deliver World Class Customer Service Using Championship Poker Strategies” and “Are You Being Served Yet?: Customer Service Evolution”.

Thanks for reading. I wish you all success at learning something new today.

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CRM solutions providers are companies and individuals who provide solutions to build a good and profitable customer relationship. CRM is the abbreviation of Customer Relationship Management. In the present world, CRM has become a milestone in businesses strategies. It assists in building new business strategies which will not only improve relation with the customer and but also to enhance the prospects of overall business. Today, CRM has become equally important to small, large, and medium business organizations.

Increase in the demand of customer relationship management (CRM) has lead to the popularity of CRM solutions providers. CRM solutions providers are broadly classified into two - in-house CRM solutions providers and hosted CRM solutions providers.

In-house CRM solutions providers are also known as customized CRM solutions providers and on-demand solutions providers. Generally, in-house CRM solutions providers give solutions to meet the specific needs of a company or a customer. They give business solutions to all types and sizes of companies. Based on the size of the company or organization, in-house CRM solutions providers usually take three to twelve months for the complete implementation of their program. In-house CRM solutions providers have many added advantages when compared with hosted solutions providers. In-house CRM solutions providers generally have an intimate knowledge of the legacy systems in the organization. Thus, their programs are easy to install and maintain. Usually, in-house CRM solutions providers give solutions for sales, marketing, and other services. In-house CRM solutions providers are more costly, when compared with hosted CRM solutions providers. For example, an in-house CRM solutions provider will charge around $2,000 to $3,500 for a business service.

Hosted CRM solutions providers are better known as outsourced CRM solutions providers. This type of CRM solution providers simplifies the entire management process, and thus reduces the risk and increases the value of the businesses. Hosted CRM solutions providers have solutions for sales, marketing, and other major services.

Editor’s Note: See ServiceCycle CRM for an example of hosted crm

When compared with in-house CRM solutions providers, hosted CRM solutions providers are more cost-effective. Generally, hosted CRM solutions providers will cost around $70 per month for a medium size business organization. Therefore, it is widely used by small and medium-sized business organizations.

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CRM is a comprehensive business and marketing strategy that integrates technology, process, and all business activities around the customer. It is mostly defined in terms of the acquisition and retention of customers, and the resulting profitability. Effective CRM is assumed to lead to bottom-line benefits for the organization. Profits increase by 25-80% when customer retention rates increase by five points. The Internet has provided a platform to deliver CRM functions on the Web (eCRM), thus as business moves to the Web, eCRM will move to center stage.
The Internet represents a new media, with specific characteristics. The Internet is characterized by:

1 quick access and transfer of information;
2. lack of space and time barriers;
3. ease of comparison between various objects, events, or organizations;
4. interactivity and flexibility.

Also, it has to be taken into consideration that in most cases, the e-service represents a one-to-one experience (company-customer).

In this specific environment, the customer will therefore be able to access the company’s website from any place in the world (as long as it has a working Internet connection), to compare the company’s offer and to interact with the organization on a one-to-one basis. On the other hand, the company is capable of attracting and developing relationships with customers located anywhere in the world, to make an ongoing competitors’ analysis, and to personalize its interaction with the customer.
Balancing the two sides of the experience (company/customer), an online service provider will have to define and select its target customers (focus) to analyze the specific competition for that particular market segment (competitive analysis), and to design its long-term interaction with the customer in order to achieve sustained customer satisfaction (strategic planning and implementation).
eCRM can be therefore defined as an interactive, content-centered, and Internet-based customer process, driven by the customer and integrated with related organizational customer support processes and technologies, with the goal of strengthening the customer-service provider relationship.
The Internet empowers the customer. The Internet user has the opportunity to switch the suppliers with several mouse clicks, to compare price and products on a worldwide basis, and to select without external pressure the best available offer. The winning combination of low-price/high-quality product does not work properly on the Internet because the same offer may be available to hundreds of other online retailers. The only possibility to increase the competitive advantage of online retailing is to create not only product-related satisfaction, but also customer-firm relationship satisfaction.
The implementation of customer relationship management (CRM) represents the key to increasing customer loyalty in the digital environment.
Besides the necessity of CRM systems in online businesses, the Internet also offers the possibility of implementing effective customer management operations through the use of complex IT applications (e.g., database software, customer management applications).

Consequently, the selection of CRM applications needs to be strategic and based on relevant criteria for implementation to stand a chance of success. These criteria will include functionality, company strategy, legacy back office systems, and application architecture. Current classification of CRM applications identifies three groupings:

1. Operational CRM products - for improving customer service, online marketing, automating sales force, etc.
2. Analytical CRM products - for building data warehouses, improving relationships, analyzing data, etc.
3. Collaborative CRM products - for building online communities, developing business-to-business customer exchanges, personalizing services, etc.

The implementation of an efficient CRM strategy requires the introduction of a customer-focused organizational culture Customer-centric organizations are defined as being very committed to raising customer satisfaction levels, using customer data to increase sales, improving customer data quality, gaining a deeper knowledge of customers, and implementing customer-management systems The key operations for building an effective CRM strategy include:

• identifying unique characteristics of each customer within the targeted customer segments
• modeling the current and the potential value of each customer
• creating proactive strategies and operational plans, or business rules that will support the desired experience for the customer, starting with the highest value customers
• redesigning the organization, processes, technology
• reward system to implement the relationship strategies.

DJ note: Article Source

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What priority would you put on the need for CRM (Customer Relationship Management) in your company? If you understood what CRM was that would be an easy question to answer. After all, what is the most important part of every business - even your business? What’s that aspect of your whole operation, without which the whole kit and caboodle would fall down like a house of cards?

The answer is, as you are probably aware by now, your customers. Without customers you have no business. Every business has the need for CRM. Every business, from the very smallest one man operation to multinational global corporations, relies on customers. Not only rely on them, but are competing with others to attract new customers in order to expand and to retain the ones they have in order to survive.

So why is it that the customer is frequently the most ignored aspect of your business when it comes to computerized management systems? The need for CRM seems to come second to every other system such as Sales Analysis and Management systems, Production Management, Inventory and Purchasing systems, etc, etc, etc. In fact, many companies have not even heard of CRM.

Editor’s Note: The next two paragraphs are essential when considering the implementation of a customer relationship management (CRM) software.

Your business will stand or fall on you maintaining good relationships with your customers, especially in this increasingly competitive era. CRM is not just about keeping customers happy from a personal point of view, and once you find out what a good package can provide, you will understand the need for CRM.

It is important to understand why customers buy your products or services. To be able to identify your most profitable customers, and to forecast what to give them when they want it. Here is the need for CRM, which can set your company apart from the others and provide all the tools required to give you the edge over your competitors that can get you ahead of the pack, and stay there.

There are several software packages than provide adequate tools to enable you to meet the need for CRM within your business, but is ‘adequate’ enough? Microsoft Dynamics CRM 3.0 leads the field in providing everything you should be looking for in a state of the art CRM system, and also has the versatility and flexibility to fit in with the way your company operates. Sure, it can make extremely valuable suggestions for improvement, but can also work exactly as your company works. Microsoft Dynamics CRM 3.0 meets the need for CRM without requiring you to change your processes and procedures to fit in with software requirements.

There is nothing more annoying than have to retrain employees in your own internal procedures as well as in the use of the CRM software. It is important to you business to balance the need for CRM software with its acceptance by your employees.

Do not underestimate the need for CRM within your company. It can automate and analyze such functions as sales forecasting, sales cycle analysis, time management, sales force optimization, account management, and all the reports and analyses required. Your sales force can have essential information at their fingertips through palm computers or PDAs at the point of contact with customer. No more having to “send the information later” or “we will get back to you on that”. All information available on the network is visible to your sales force when they require it. You can secure that order before your customer has time to change his mind, or be tempted by a competitor.

This is just one simple example which indicates the benefits that CRM can bring to your company. The need for CRM does not require much thought, and can not only get you ahead of the pack but will also keep you there.

About the Author

Chris McElroy helps manage the Microsoft CRM Software Provider Blog

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When people ask, “What is CRM?” the literal answer is, “Customer Relationship Management,” but that doesn’t really convey much in terms of what all CRM does for a business. This CRM definition is too narrow to really explain everything the system does if it is working to its fullest potential and is user-friendly enough to expand and grow as a customer-client relationship changes and grows.

CRM in the broader sense encompasses not only customer relationship management itself but how customer relationship management is handled and the most important elements of a CRM program that are essential to its being successful. The range of CRM software options vary from those that provide simple customer tracking and live chat capabilities to the more complex CRM solutions that can integrate all of the customer relationship data an enterprise has on each client past, present and future in a dynamic information data network.

What should I look for in a CRM software package?

If there’s an ideal CRM software package that works for every company and every situation, it hasn’t been discovered yet, simply because every company has slightly different needs for their customer relationship management needs as well as software implementation.

In general, however, when you are looking for a strong CRM software package there are a few things to keep in mind. If you are shopping for a CRM package, try to forget about the initial price tag at first (as difficult as this may be) and focus on the adaptability, usability and integrity of each system you evaluate as it relates to your particular needs. A few things to consider:

• What are the most important facets of customer relations are we looking to address, and does this CRM software support tracking and updating all aspects of this? For example, if your company wants to customer service to have ready access to changes in customer spending habits and an opportunity to offer new product options based on these records, make sure this capability is built into the software. Customization down the line will be time-consuming and expensive — if you have a primary goal, make sure it is standard in your CRM software package.• Will the CRM software package integrate smoothly with all platforms currently in use at your company? If you will have to re-enter all databases such as client names, addresses and phone numbers, this will significantly increase the amount of money you’ll spend in the long run. Make sure that you can either integrate smoothly or import all information needed flawlessly.

• Is the product more than you need? An enterprise solution that offers fifteen functions you don’t need and never will isn’t a bargain if you will never expand into that market niche. Just because it’s available doesn’t mean you have to have it. Selling custom-sewn hats? You won’t need a CRM software package for tracking million-dollar overseas accounts.

• Has this CRM software package been used for a company of your size before? If it has been used for companies up to 10,000 and you have 150,000, the system may simply not be able to sustain the volume of data and crash or develop glitches. Look for something more powerful with a support system capable of understanding the size of your company.

Can you build me a dream CRM software package?

Hmm…let’s see. The best CRM software package would be optimally functional across all platforms and have its own customer support backing it, and …. Well, let’s take a look at our own list of what we’d really like in a CRM software package if money was no object and we could “have it all,” so to speak:

• A CRM software provider that has partnerships with other vendors for support in the event you need it for integration of platforms.• Extensive training from certified CRM software technicians who will walk your people through the process of setting up, using and training others on the system.

• Full data migration capabilities to and from all programs in current use to the new CRM software.

• Offsite server storage backup for all information in the CRM system for added security.

• A toolbox for company programmers for customizing templates for company use — this will save huge amounts of time by eliminating the need to write custom codes from scratch.

• Either in-house consultants or a choice of contracted consultants they recommend (try not to be at the mercy of one consultant when there is a problem).

• A CRM software package designed by a company familiar with our specific industry and its structural needs.

The best CRM software packages enable customer service representatives to review the account information of each client or customer when they are talking to him or her and immediately understand something about that person’s needs, wants and spending patterns.

For banks, CRM software can indicate their banking patterns — are they investing through the bank? Have they recently looked into a money market fund? Do they have substantial funds that could be put to better use than languishing in a simple CD?

A mail order company can note your shopping tendencies and make Christmas shopping suggestions based on past purchases by seeing that you buy a lot of kids’ clothes and that you spend about $200 each holiday. Used correctly, a toy company can steer you toward some bargains and suggest alternatives, enriching your shopping experience and building customer loyalty.

Why does CRM software fail so often after it’s put into place?

You’ve heard the stories about a company buying a CRM software package and then realizing it hasn’t really changed anything. The big-wigs are disappointed, customer service is frustrated, and the clients are aggravated with the new changes that don’t seem to show any improvements in customer service or client relations. How does it happen?

Because CRM software was purchased that wasn’t appropriate, was purchased too soon, or wasn’t implemented properly. If you don’t purchase CRM software that specifically addresses what your customer concerns are, you may have software that is very detailed in an area you don’t need and somewhat lacking in exactly what you do need.

Purchasing too soon means you bought the software before you had evaluated what you really wanted. Many companies by CRM software with a goal “to improve customer relations,” which is not a clear business goal! You should have a very specific, well-defined objective that your CRM software solution can address, and you company should have developed a formal objective before you went shopping for a solution. Retaining customers? Improving the size of current customer portfolios? Penetrating a new market niche? Reduce customer complaints? Improve customer repair response? Determine what it is you want to focus on as a goal, and then choose your CRM software solution based on how it will address it.

Finally, implementation of a new CRM program requires proper management support and effective training. That means that management must be behind it one hundred percent, and not have “head in the sand” approach where they determine that “that’s for customer service, I never did understand that stuff,” and avoid learning how the CRM software works. It is an attitude that will pervade the company.

Second, training is essential and must encompass the company to ensure that all levels of personnel will embrace the new system and understand the genuine need for it and the real goal of what you are trying to achieve with your new CRM software solution.

Some CRM software options for small and medium sized businesses

For small and medium businesses, the most common customer relations management software request is for anything that enhances online communications and improves the time between a customer complaint or question and resolution of the issue for them.

For many companies, there are software solutions that can be purchased or downloaded to be used through their Internet website for basic services such as online customer support through live chat and customer assistance with online purchasing that is both efficient and relatively inexpensive. If your need is primarily to improve sales volume, improve response to customer questions and complaints and to make your company website more personalized, look into these solutions that are at the lower end of the price spectrum while providing solid CRM products:

• LivePerson offers two different versions, Basic and Enterprise that provide live chat, email and a variety of interactive forms customized to meet companies’ needs for customer relations. This company has developed live chat solutions and online forms for everything from universities to financial services firms. This company provides a wide range of services, including online marketing, case studies, and software designed to improve online shopping cart capabilities.• LiveHelper offers many of the same features, and adds real time traffic monitoring and other data assessment features as well. For the price, LiveHelper is a very good CRM software value.

• GroopZ includes customer routing software so that you can transfer entire chat strings from one customer service rep to another if you need be, along with an efficient filing system for chat transcripts and customer records. For improving customer relations, the software support suggests pre- and post-service questions for all customers who contact you.

Also included are templates you can set up with specific, pre-scripted answers to frequently asked questions in online chat to save customer service representatives time and make the process clearer and more efficient. This company does a bit more customizing on the front end to fit your needs, and pricing is adjusted accordingly.

• SupportWizard gives you three CRM options that give you some flexibility — you can buy, lease or let them host your customer service/relations solutions. Interactive FAQs, live chat, standard answers to frequent questions, and Boolean search capabilities to review past interactions all make this package extremely effective. SupportWizard also has more customizable features than some, including an “escalation alert” that can be tailored to specific situations when a supervisor would be notified if a customer service situation exceeds certain parameters.

This is one of the more expensive packages available, but rather than a monthly fee you are paying for lease or outright purchase options, so factor this into the cost. You will also get spectacular customer support and constant upgrades and patches when necessary. The integration of email, live chat and telephone information into one database is also a plus with SupportWizard.

• BoldChat offers free CRM software for online customer service chat that you can use for a limited time, and offers a $9.95/month and a $39.95/month customized version of their CRM software. Both offer live customer service chat, but one adds customized windows and more options on buttons and the number of available customer service reps you can add.

• CSLive offers the most comprehensive CRM software solution available for small and medium businesses, with live chat, email, and the usual customer service features you expect from a small business CRM solution, but with plenty of extras. CSLive also offers an extensive tracking and filing system, an Internet server site where you can upload and store files of customer help articles that customers can be referred to that can by emailed directly to clients by your reps. Throw in the message center and online meetings, and this is practically an enterprise sized solution at a small business price of $29.95 a month.

CRM software, whether on a monthly user basis or purchased outright and downloaded onto your own server, will make serving and understanding your clients and customers a more productive experience, and you will all be happier for it.

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