CRM – The Why, the What and the How

(Boomer Consulting, Inc. made the switch to Microsoft CRM during the first half of 2007.)

The Why

A successful CRM initiative requires a considerable investment in time and money. This reality leaves many firms talking about CRM—but still searching for compelling business reasons to commit to it. While CRM is an infrastructure upgrade that requires substantial investments up front, it pays generous dividends in the long-term.

Some of the most compelling benefits your firm will realize from a CRM implementation include:

• Business Process Improvement – A CRM implementation forces the firm to look at its core processes for managing client relationships in order to determine whether they are as efficient as they should be. Having someone on the taskforce who continually asks “why” during your process review is particularly helpful. (This individual should be someone who is not intimately involved in the process.)
• Increased Efficiency –As the firm improves its processes and consolidates the number of tools required to carry those out, it will invariably become more efficient. Efficiency leads directly to time and money savings!
• Boost Customer Satisfaction – A CRM system acts as a single source for all client information—including contact data, communication records and sales initiatives. Consolidated client details ensure that important tasks and information do not fall through the cracks. The result is improved responsiveness and customer care, which lead to greater customer satisfaction.
• Increased Transparency of Client Communication – A CRM system offers one place to review all information related to a particular client. Anyone in the firm can see who talked to a client and what they talked about—avoiding the potential embarrassment of repeating a conversation or sales call.
• Increased revenue – The ultimate goal of any CRM system is to increase revenue. If nothing else, the required process review will help your firm identify specific business goals that will lead to increased revenue. Some specific goals your firm might pursue as a result of implementing a CRM system include:
• Increase the number of products/services sold to existing clients
• Double the number of new customer wins
• Triple the number of contacts with both new and existing clients

The What

Although this list is not all-inclusive, the most important components of a CRM system that Boomer Consulting identified during its implementation are listed below.

• Common Communication Tool – The system must act as a single location where communications with clients, vendors and partners are initiated and captured.
• Ease of Use – The system must be intuitive and easy to use, or the implementation will not be successful. It makes no sense to add additional work for employees—the purpose is to increase efficiency. During its initial launch a CRM system will likely feel like more work, but in the long-run the firm’s people and processes will invariably become more efficient.
• “Fit” with Existing Processes – Choose a system that fits with the firm’s processes (which should be clearly mapped during a thorough review). Too often a system is chosen first, and a firm tries to adapt its processes to work with the system. This mistake will often result in the classic “square peg in a round hole” ailment. Make every effort to avoid it.
• Integration with Existing Systems – An in-depth review of integration points with existing systems and databases is critical. The goal is to minimize the number of databases and limit redundant data and contradictory information. Making sure a CRM system “plays nicely” with existing software cannot be overlooked.
• Remote Access/Synchronization – With an increasing number of professionals working remotely, it is imperative they have access to the most current information while on the road. Not only does remote access and synchronization need to work well, it needs to be easy to use.
• Reach Extends Beyond just Sales Department – A CRM system is often viewed as a tool that benefits only sales and marketing. While those departments will be the primary beneficiaries, the system has the potential to impact all areas of the firm. To truly achieve the benefit of transparent communication, a CRM system should be accessible by everyone in the firm

The How

Managing implementation, training and user adoption is critical to the success of a CRM application. Below are some of the most important lessons we have learned from our CRM implementation.

• Assign a well-rounded task force – A CRM initiative should never be the sole responsibility of the IT department. Assigning a task force represented by people throughout the organization is the only certain way to make it a success. Four critical areas that must be represented on the task force include:
  • Firm Leadership – Commitment from the firm’s top is vital to success. Someone from the leadership group must serve as a task force member. This is the only way to ensure buy-in from the top.
  • Internal Business Users – You must include those who are most familiar with the business processes that CRM will impact.
  • Internal IT – Just as important as business users are those who understand the IT infrastructure and existing systems
  • CRM System Expert (Internal or External) – In order to fully grasp the possibilities of a CRM package, someone familiar with that particular CRM system should be involved. This person should make suggestions and help the team apply the system to existing processes.

• Review/Improve Existing Processes – Documenting a process evaluation and improvement plan are the first tasks the assembled team should pursue. A critical eye and questioning mind can dramatically improve existing processes.
• Ensure a Correct “Fit” with Processes – See “Fit with Exiting Processes” in “The What” section
• Set Obtainable Milestones tied to Business Objectives – The CRM system should address specific business needs. Each need should be split into manageable milestones, so that progress is visible and traceable. By its nature, a CRM system evolves, but if there are no specific milestones—the project may become never-ending.
• Review After Each Milestone – Conducting a “post-op” after each milestone will improve the implementation going forward. The task force should learn from its mistakes and build on its successes.
• Train & Communicate – This is the most important step in pursuing a successful CRM implementation. Communicating how the system affects individuals and why it is an improvement are critical to obtaining buy-in at all levels. Once users are on board, train them to use the system correctly and provide a reference document for self-help.
• Monitor – Tracking usage is also important to the success of a CRM. The task force should ensure that processes documented early during the implementation are followed by everyone in the firm.

Conclusion

By following these guidelines, your firm can dramatically improve its chances of success when implementing a CRM system. I close with a list of some of the most common mistakes firms make when implementing CRM.

• Viewing it as just an “IT project”
• Viewing it as just a “business project”
• Choosing a system first—then trying to adapt processes
• Failing to thoroughly communicate and train all employees