Jennifer Lonoff Schiff, who runs a blog for and about small businesses, writes that eCRM Guide asked Salesforce.com, NetSuite, and SugarCRM for their tips on what to look for when purchasing a customer relationship management (CRM) system, as well as advice on how to make sure employees actually use the system and get the most out of it. Here are their responses:

Keep in mind who will be using the CRM system and plan (and buy) accordingly. “Try to define your rationale for installing a system up front before you begin discussion with vendors,” suggests Scott Holden, director of product marketing at Salesforce.com. “Make sure that you put the user community at the center of defining your requirements.”

Make sure your CRM software integrates with other key systems. “If [your] CRM system is to be truly effective in converting prospects to revenue-generating customers and maximize renewals, [it] must integrate with other systems across [your] business,” states Paul Turner, director of product marketing at NetSuite.

How will the CRM system handle critical customer data? When evaluating a CRM system, make sure you understand how the system is going to manage customer information. To do this, Turner says decision-makers should ask the following four questions before purchasing:

• Will it arm your sales force with the business information they need beyond just sales information, such as past customer purchase history, current inventory levels and service issues?
• When the support team takes a call, will the CRM system enable them to be aware that the customer is close to a critical renewal, what their past purchases have been or whether that customer is about to purchase?
• Will your billing team have the ability to see customer service history so they can act accordingly when they have an aging account?
• Will it provide your sales and marketing team with a universal customer database so they can segment and target customers based not only on demographic characteristics, like employee size, but also based on transactional history such as previous products purchased, revenue generated and returns?

Define objectives and set baselines before rolling out your CRM system. “Clearly define the objectives of the project up front to determine what information should be stored in [your] CRM system and what information does not need to be managed,” says Holden, who adds: “sometimes less is better.”

Don’t skimp on training. “Your employees aren’t psychic — nor will the majority of them be familiar with your CRM system,” writes Schiff. “So to get the most of your CRM system, get a positive return on your investment and get your employees to actually use the software, make sure you set aside time to train each and every person you plan on having use …  the system — and periodically offer (or require) refresher courses or classes when there is an update.”

Choose which tools and features to implement with your sales force in mind. “Implement tools and dashboards that are easy to manage,” advises Holden. “When technologies are difficult to navigate, salespeople run out of patience.”

Think big, but start small. “To drive adoption and CRM success, don’t boil the ocean,” states Schneider, meaning you don’t have to — nor should you — implement every feature or tool in your new CRM system all at once.

Customize wisely. “Customization is key — but remember the ‘Five Levels of Why,’” advises Schneider. “Ask ‘why do we need this change?’ And actually ask ‘why?’ to the answer. If after four or five iterations of asking ‘why?’ the change still seems necessary, it probably is.”

Don’t forget about incorporating social media leads. “Make sure your CRM system allows you to input and track leads found on social media sites such as Facebook and Twitter — and encourage your salespeople and other users to use these sites to find and follow-up on leads,”  writes Schiff.

10. Monitor progress — and setbacks. “Business processes typically don’t improve without monitoring and measuring performance day in and day out — from the operational level to the strategic, and across each department,” notes Turner. “Business processes that are failing must be quickly identified so mid-course corrections can be made in a timely manner.”

Source: eCRM Guide

Posted August 31st, 2010 under Intellectual Property Marketing

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