CRM Software Solutions

I have often wondered whether to call it a CRM solution or CRM software or as the title suggests as CRM software solutions. By whatever name we may choose to call it , an effective CRM implementation will only be possible if we take both software and solution as part of the system. Necessarily, we must consider the business aspects before even venturing towards CRM. The three broad aspects which need closer examination are data collection, classification and deployment. CRM software solution must be able to address all the three aspects effectively. A good CRM software solution would be capable of data mining, data abstraction which would include business intelligence and providing solutions.

In the end, the CRM software solution will only be as effective as the sum of its parts. What surprises me is the level of confusion among industry experts when it comes to implementing a CRM software solution. As a result enterprises land up with solutions which are rather inappropriate to their situation. What’s sauce for the goose may not be sauce for the gander. One has to therefore make a wish list of what exactly they want from their CRM software solution and then hunt for the right one.

How to Select the Right CRM Solution

So you run a business and you wish to select a CRM solution that is a perfect fit for your company. There is a plethora of CRM alternatives out there, you need to select the best based on a few criteria. You have to be in a position to ask the right questions so that you can get the required information about software capabilities and vendor appropriateness.

Consider the following points:

• What are your prime requirements; targeted marketing, customer retention, adding to the customer base, business intelligence, or a combination of these

• Is your staff prepared to move on to a CRM system and work on the deployment

• Do you have the IT strength to run and maintain a CRM deployment

• What is your financial capacity to endure a sustained deployment process

• Is your business better suited to SaaS or an on-premise CRM deployment

• What is the extent of database integration that is required

• Will your legacy systems work with your new CRM deployment

• What will be the cost of upgrades

• Is the vendor reliable, what is his past track record

• At what point will your CRM system yield an ROI

If you search for answers to these questions, you will not go wrong with your CRM selection.

Weaknesses of CRM systems – Part 1

Although CRM spending is increasing by the day, there is some concern regarding the rate at which CRM deployments are failing. This two-part piece aims to bring out the issues that CRM vendors are loath to talk about.

• A CRM deployment can be a major resource guzzler through its entire lifespan. Costs include cost of software, deployment expenses, customization costs, upgrade costs, licensing costs, cost of lost productivity during implementation, cost of educating the user staff, hardware and equipment costs and costs of maintaining an IT staff for running the CRM.

• Delayed implementation can lead to increased frustrations as budgeted costs go haywire and employee morale and interest goes down. Rarely does a CRM system start to deliver an ROI within the theoretical time frame arrived at. Delayed ROI and poor gains from a CRM system in the initial phases can quickly down management enthusiasm

• A CRM deployment demands exhaustive changes in the company’s business methods. The IT department has to be up to the task of managing a CRM system; the user base has to be convinced and then trained. Also care needs to be taken that the company’s business philosophy does not become secondary to the software, the CRM applications have to fit in with the company’s business practices as far as possible.

Weaknesses of CRM systems – Part 2

Continuing from the earlier post, here are a few more points that CRM vendors are loath to discuss:

• Organizational co-ordination does not come easy. Departments can often be loath to align their operations to meet system architecture requirements. A smooth deployment requires co-ordination otherwise piecemeal deployments can throw the process off kilter. Companies also need to ensure that their key officers and managers stay involved with the deployment till the end, if one happens to leave mid-way, getting the right replacement can be a tedious process.

• A CRM solution is as effective as its users want it to be. A major reason for slow and failed deployments is that the management often fails to get a buy-in from the users who are to be involved in the day-to-day working. Salespersons especially can be loath to changes in established practices particularly if they are meeting their sales targets. System requirements are to be met at every touch point if the system has to deliver.

• A complete CRM suite that is equally effective across all applications is difficult to find. Each vendor has applications that can be considered best-of-breed and some that are not that good. So, while you may have good BI applications and data mining capabilities, your email management and SFA may not be that great.