Capture and Manage Sales Leads

Posted on November 10, 2011 by Trushit Buch | Permalink 0

Every sales lead, if rightly tracked and nurtured, can be a revenue generating opportunity. However, one must have the right process and tools in place to make sure these are properly guided towards the most likely result of sales planning. For this reason, businesses consider Lead management as one of the important activities in their organization-wide sales & marketing process.

Capture and Manage Sales Leads.

  • Automate and accelerate lead management (lead generation – qualification – conversion – sales opportunities)
  • Capture leads directly from your Web site using Web-to-lead form and manage effectively in Aqua CRM
  • Import leads from external sources, such as Web downloads, trade shows, seminars, direct mail, and other types of campaigns
  • Set up lead assignment rules to automatically assign sales-ready leads to the sales persons
  • Qualify leads to next stage based on the information captured in lead details. Once leads are qualified for prospecting stage, convert them into sales opportunities, accounts, and contacts with a single-click
  • Customize Sales process for B2B and B2C business scenarios
Lead Management

Lead Management

What are Leads?

In Aqua CRM, leads are considered as raw details of company, person or business opportunity. These areunqualified sales opportunities gathered at various situations, viz. trade shows, seminars, advertisements, purchases from external sources and other marketing campaigns for the purpose of sales.

What is Lead Management?

Lead management is an important business process that combines tools with techniques to enable effective leads generation, management and tracking of new sales opportunities. In Aqua CRM, lead management is a powerful solution to automate and enhance the most inconsistent, disorganized and error-prone processes involved in acquiring and tracking leads through their entire life-cycle.

The different stages in Aqua CRM’s lead management process are:

Lead Generation

Lead generation refers to the capturing of consumers interest towards products or services, who may be interested in a purchase. These sales leads are captured through various sources, viz., campaigns, exhibitions, referrals, phone calls, branding, etc. Aqua CRM provides you with different methods to generate leads: Form Filling, Quick Create, Importing, Web Forms and Developer API.

lead-generation-methods

Lead Allocation or Distribution

Manually assigning new leads to specific individual (owner) can be tedious. Aqua CRM allows you to create a workflow rule to assign new leads to sales persons based on specific criteria, such as geographic region, activity, etc.

Lead Qualification

With the scope for further follow ups, the lead qualification process is essential to lead generation. This stage separates the sales ready leads from the general inquiries that are entered into Aqua CRM.

lead-qualification

lead-qualification

Lead Conversion

Once there is scope for business opportunity through further negotiations or follow-ups, a Lead is transformed to Account, Contact and business opportunity.  At this point, lead management  process is complete and there is no reverting to Lead process.

lead-conversion

What do I Gain from Aqua CRM’s Lead Management?

Across all industry sectors, marketing campaigns and brand promotion activities are the initial steps to finding and attracting new customers. However, you must effectively nurture the leads until they grow up to prospective buyers. Aqua CRM’s lead management process provides you the necessary tools and techniques in acquiring and tracking leads through the entire life cycle.

Your Benefits

  • Manage a 360 degree view of the leads’ life cycle (from creating leads to converting them into business opportunities)
  • Capture leads online using Web-to-lead form and manage effectively in Aqua CRM
  • Import leads from external sources, such as Web downloads, trade shows, seminars, direct mail, and other types of campaigns
  • Facilitate faster sales Lead Distribution through the lead assignment rules
  • Qualify leads to next stage based on the information captured in lead details
  • Customize lead management process (B2B and B2C business scenarios) as per your organization sales process
  • Standard reports and dashboards bundled for a fast learning curve
  • Export leads data to spreadsheet software for further data analysis
AquaCRM Software , , , , , , ,

Will Google enter CRM market?

Posted on July 19, 2011 by Trushit Buch | Permalink 0

Through the success of Google Apps, Google has has emerged as an enterprise apps contender. While their success to date has largely been with SMBs and early cloud adopters, the momentum is evident. Initially, Google targeted personal productivity and collaboration – Gmail, Calendar, Docs, etc. However, we’re wondering how long it will be before Google drives deeper into the enterprise. For example, will Google enter the customer relationship management (CRM) market?

In 2010, Google stepped up their apps strategy with the Google Apps Marketplace, an online store offering business applications which integrate directly with Google Apps. The Marketplace lets businesses administer everything from finance and project management to CRM – all from Google’s single sign-on infrastructure. By positioning themselves as the provisioning hub in this ecosystem of cloud applications, Google gains considerable leverage to gauge the demand and utilization of applications.

Although Outlook and Exchange are still the dominant solutions for enterprise email, CRM analyst Brent Leary says more and more companies are requesting Gmail integration from their CRM vendors. Integrating a CRM app to your Gmail is certainly helpful, but what if Gmail was your CRM? Let’s weigh the likelihood of Google making this bold move.

Signs Pointing to Yes

Google already has the building blocks
Arguably the most important aspect of CRM is that middle part – relationships. Some small businesses and start-ups have realized that Google, as a communication platform, is great for managing relationships. Gmail is an excellent resource for email and contact management. You can even use custom fields within each contact to document notes on past interactions or tag the contact as a lead. From there, you can do basic segmentation for an email campaign.

Along the same lines, Google Calendar and Tasks are excellent tools for managing opportunities. And because the Google Apps work together, information logged in one App is tracked in the others. For example, when two Gmail users exchange emails, Google can connect them in Google Reader. This could be useful for companies in learning more about their customers’ interests. Android, Google’s mobile operating system, positions the company especially well to deliver on the ubiquitous mobile deployment requirements in CRM.

Give the people what they want
Though Google CRM does not yet exist, the demand does. According to Google’s blog, CRM is the #1 most searched-for term in the App Marketplace. While enterprise applications such as supply chain management and enterprise resource planning are typically adopted by large enterprises, CRM is commonly used by the smallest of organizations.

Demand for cloud-based CRM is particularly robust; cloud adoption in CRM outpaces other application categories. According to a press release from Gartner in December 2010, the on-demand CRM software market grew from less than $500 million in 2005 to $2.3 billion in 2009. That’s an average annual growth rate of 49%. In business, it’s all about the numbers, and for CRM the numbers are looking pretty good. It might be time for Google to capitalize on this booming segment of enterprise software.

Build or buy?
So how would Google go about entering the CRM market? They could develop a CRM system from scratch by assembling the building blocks we mentioned above. Google has plenty of developer talent, and massive infrastructure to support new applications. Without too much trouble, Google could extend its personal productivity apps to target basic CRM opportunities.

However, a more likely route is through acquisition. Google has proven to be highly acquisitive. In 2010 alone, Google acquired 11 social media-related companies. Why is this significant? Because “social” is a highly buzzed-about word in CRM. The addition of a social layer to their existing collaborative apps positions Google well to capitalize on that buzz.

Not So Fast…

Google’s Salesforce partnership appears solid
Many analysts predicted that Google’s partnership with Salesforce in 2007 was setting the stage for a purchase of the CRM vendor. Brent Leary predicted it back in 2006… and again in 2007. But no wallets have been pulled out. Instead, the companies have tightened their integration and continued the partnership. If Google had ambitions to enter the CRM market it seems they would have done so already. Any alternate move Google might make in the CRM space would likely damage their partnership with Salesforce, while failing to bring meaningful market share.

A change in leadership signals a change in strategy
Leary made his predictions of a Salesforce acquisition before Google’s recent CEO shuffle. Prior CEO Eric Schmidt was previously CEO of Novell, and before that CTO of Sun Microsystems. Enterprise software is in his DNA. The new CEO, founder Larry Page, is an ad man. Well, he’s a search genius who figured out the ad thing pretty darn well. Many have questions whether Page will remain committed to enterprise apps, given his predisposition to search and ads. Paul Greenberg says, “If Eric Schmidt was still the chief there, I would probably say, ‘You know, maybe they would want to go into the CRM market.’ But when push comes to shove, Larry Page doesn’t know the enterprise.”

Although cloud-based CRM is a $2.3 billion market, Google made over $28 billion in advertising last year. With the creation of the Apps Marketplace, Google is allowing players from all over to integrate with their strong provisioning platform. Because of this, they can expand their offering to Google App users, while keeping their primary focus on the cash cow, ads.

The Verdict

There is a lot of potential for Google as a CRM vendor. Laurence Buchanan wrote some interesting thoughts on what Google CRM might look like. Then again, they might be gun-shy when it comes to attacking new business apps. RIP, Google Wave?

I predict Google will keep dipping their toes in the CRM pool, but they will do so in a novel way. I believe they will extend their current apps to include more CRM capabilities, but most of these functional enhancements will center on social interactivity. This approach feels more strategic, and will make their platform more appealing amidst the new wave of social media.

Sales Force Automation CRM , , , , ,

Social-ized CRM. Is it actually Social?

Posted on July 15, 2011 by Trushit Buch | Permalink 0

If you live somewhere in the United States or south east Asia or for that matter India there’s a pretty good chance a member of Congress has been in your area holding a town hall meeting.

And there’s a pretty good chance you heard someone screaming that President’s plan for national health insurance was “Socialism” or “Socialized medicine.” One woman, went so far as to say “I don’t want this country turning into Russia, turning into a socialized country.”

What you, and they, might have missed is that this is already happening in CRM….well, the “social” part anyway.

Social_CRM_onion_model_2

Social_CRM

Social CRM has been a subject of discussion for more than a year now, promoted by consultants, analysts and social network experts eager to see their passion extend to the way companies deal with their customers.

More recently, the vendor community has taken heed of “socialized” CRM. To be sure, plenty of technology vendors have seen the importance and potential of uniting social networks and CRM strategy, notably Oracle, which rolled out a set of Social CRM applications more than a year ago (though it should be noted these are more collaboration tools for people using CRM applications in a “social” manner than fostering any social connection to the customer).

Yet in the last month or so, I’ve had a wave of pitches and product announcements flood into my inbox, with vendors proclaiming their new “Social CRM” application.

SOCIAL CRM

SOCIAL CRM

There are many more integrating features or monitoring tools. More, no doubt, will emerge in the coming months.

But I wonder how difficult some of this is, particularly something like feeding some Twitter search results into a CRM workflow. Judging from the pace at which that particular feature is being released, it would seem not very difficult. Indeed, it looks like the far more difficult part of the social CRM phenomenon would seem to be building the strategy around serving, marketing, selling and most importantly, engaging, customers.

Social Media Marketing CRM , , , , , ,

Patient Service Doesn’t Stop at the Hospital Door

Posted on July 13, 2011 by Trushit Buch | Permalink 0

Many healthcare organizations consider the lifetime value of their patient base as a primary financial lever in capital transactions and debt ratings. Healthcare is a zero-sum game because when you lose a patient, your competitor gains one. As a result of that dynamic, patient loyalty is critical to your long-term profitability.

Typically, healthcare organizations receive payments from health plans that arrive quickly and reliably and don’t require specialized software. As responsibility shifts, most providers haven’t yet developed the tools and processes required to manage a large number of diverse patient payers. And they have failed to address the fundamental reasons that patients often don’t pay: poor communication and education, confusing invoices, and limited payment options.

Working effectively with patients who owe money is a tricky proposition. However, the right communications strategy would engage a diverse set of patients in a way that’s highly personalized, respectful, and easy to understand. The right message to the right customer at the right time, and through the right channel, greatly increases patient satisfaction and your response rate. A few best practices include:

Communicate early. Don’t reach out to patients only when they owe money. Before an invoice is ever sent, you should educate patients on what to expect and provide an overview of available services, notify them about any pieces of missing account information, and inquire about any questions.

Need for Healthcare CRM

Need for Healthcare CRM

Doing so would eliminate much of the initial confusion and simplify the process for patients when an invoice does arrive.

Let your customer choose the best way to reach them. If your only channel for communications is through the phone, you may alienate a customer who doesn’t want to be called. Plus, you may not be able to reach and interact effectively with a customer who travels or is hard to get on the phone.

Physician Talking to Patient

Physician Talking to Patient

Your strategy should include a combination of multiple channels, such as phone, email, SMS text messages, or fax.

Be highly interactive. Regardless of which communication channel is used, consumers want a real-time dialogue. Instead of a basic notification that forces a patient to make an inconvenient call to the contact center, let the patient choose from among multiple options—such as connecting automatically to their nurse or doctor—all during the call or via text message.

Automate. Automated communications can complement your existing resources, making them more effective, and provide a more cost-effective way to engage. Using that approach, companies can routinely achieve results far above outcomes when using agents to manually call patients. Why? It’s faster and simpler to deal with an automated message. And, when dealing with a live agent, patients sometimes will promise to pay just to get off the phone. Automated communications do not “push” for promises to pay, instead offering patients the option professionally and courteously at exactly the right time, as defined by best practices and business rules.

healthcare-crm

healthcare-crm

Get meaningful customer data back. The more you know about your customers, the better you can tailor future messages. Make sure you capture any preferences (such as what time of day they prefer to be called) and apply these insights to future interactions, keeping your messages personalized and relevant for each patient.

Healthcare institutions must begin to operate as other retail service providers—designing experiences and delivering care around the convenience of consumers rather than the preferences of providers. There’s a major opportunity to improve collection outcomes and the overall patient experience at the same time. The right strategy will bridge the gap between the need for patient payments and delivering a good patient experience.

CRM in Healthcare , , , ,

Customer Concerns for SaaS (Hosted/Web-based) CRM

Posted on July 11, 2011 by Trushit Buch | Permalink 0

We recently run a survey and asked 1000 randomly selected users what are their main concerns for SaaS(software as a service) CRM in general.

As of the writing of this post, we’ve collected 638 responses, amazingly, 86% of them say that they’ve used at least one other SaaS CRM before TESTING On-Site Web based AquaCRM

Please allow us to express our thanks to the many users who sent their feedback, and here are the top 3 concerns from the respondents:

SaaS-CRM

SaaS-CRM

Too complicated to use (42%)

complicated to use

complicated to use

The learning curve for SaaS CRM is too long and there are too many features they don’t care. Most screens are full of confusing buttons and links, which make people lose confidence to use it. Also, it is so painful and cost ineffective to learn a new system or to train somebody to use it.

System reliability (27%)

default_404 - Page not found

Page not found

The most scary thing of using SaaS CRM is that it gives you a ‘service unavailable notice’ when you try to login. In that case, you can do nothing to help your clients but to  tell them your CRM system is down, and that will not only make you look silly but also letting business opportunities go.

Data security (12%)

Data Security and Backup

Data Security and Backup

Based on the survey, most people would only use systems with SSL, which is the same technology that online banks use. Also, they would like to know how do you backup the database although they don’t want a copy of their data on regular basis.

On-Demand CRM , , , ,

Just the Facts? Not Really

Posted on July 8, 2011 by Trushit Buch | Permalink 0

Many firms use analytics data inconsistently and rely on personal experiences when engaging customers.

Asked to evaluate how well they use analytics to drive decisions and enhance the customer experience, most organizations respond with perceptions that are very different from reality, according to research from Accenture.

Accenture’s Customer Analytics Survey of 800 directors and senior managers at blue-chip companies in Brazil, Canada, China, Germany, Ireland, Italy, Japan, Spain, the United Kingdom, and the United States found that 55 percent of respondents believe their methods for segmenting customers and providing relevant experiences either are “ideal” or “very good.” But, in reality, more than half of the organizations surveyed do not take advantage of analytics to help them target, service, or interact with customers, suggesting that many organizations might not know what is really important to customers and cannot measure their performance in engaging with them.

CRM ANALYTICS

CRM ANALYTICS


In fact, organizations are just as likely to rely on personal, on-the-job experiences (which 23 percent of respondents described as “very important”) as they are on hard data and facts provided by analytics solutions (which 22 percent called “very important”).

But relying on personal experiences alone or eschewing hard data in favor of those experiences is shortsighted,  companies need to rely on both. “Experience, while good and valuable, when coupled with facts will make for better decisions”

“Because the environment has changed so much, some of what you’ve done in the past will not help today with all the new technologies, like social media and Web channels for interaction,”

Even among organizations actively using analytics in marketing, sales, and service, most are not applying it broadly across the full spectrum of marketing and customer activities. That would include critical areas, such as pricing (86 percent of respondents not using), product/service delivery (77 percent not using), and product development (59 percent not using).

The reasons for not fully exploiting analytics included: the data often is not accessible or takes too long to get, decision-makers are not getting the information they need, corporate leadership does not believe the data provided, and not everyone has access to the same data, Accenture found. Corporate culture also poses a challenge.

Accenture’s research found that companies less experienced with analytics are more likely to cite overall corporate culture as a major barrier (42 percent of respondents versus 33 percent of more analytically mature firms). The more analytically mature firms cite budget limitations (47 percent versus 29 percent), departmental culture (40 percent versus 29 percent of less analytically mature firms), and senior management support (45 percent versus 31 percent) as obstacles to better segmentation.

Furthermore, less analytically mature companies are much more likely to perceive their data sources as accurate and reliable than organizations with more developed analytics capabilities. This might be because larger companies are conducting more regular and complex data manipulation and, as a result, are more aware of the shortcomings of their data and analytical capabilities, the report says.

CRM SALES PIPELINE - ANALYTIC DATA

CRM SALES PIPELINE - ANALYTIC DATA

Accenture’s research also suggests that most organizations analyze and segment customers according to their value to the organization, rather than according to their unique needs and preferences. The most commonly used metrics to segment customers tend to be company-focused, such as profit per customer (cited by 41 percent), lifetime value (27 percent), and how much of a customer’s total spending occurs with the company (24 percent). By contrast, indicators of customer requirements, such as customer needs and behaviors, service levels received, and psychographics, are frequently used the least.

“Leadership creates the environment,”  “When you have a strong leader asking the tough questions, that drives people to get the right answers. That can’t be overstated.”

One of the most important questions is this seven-word query: “Do you know or do you think?”

CRM Analytic , , , , , , ,

Medical Rep need to make most of face time with doctor

Posted on July 6, 2011 by Trushit Buch | Permalink 0

Does this sound familiar? “Ask your doctor if [medication name] is right for you.” The barrage of direct-to-consumer pharmaceutical ads and the availability of medical information over the Internet are creating the most knowledgeable customer base ever, but as consumer awareness increases, so do antacid prescriptions for pharmaceutical marketers.

The ad campaigns create a pull-marketing effect, bringing patients into doctors’ offices with product-specific questions. The challenge is keeping physicians up-to-date on new products, customized content, clinical evidence, and comparative analysis of medicines. According to an Accenture survey of 400 physicians conducted last year, 30 percent stated that pharmaceutical sales reps are important sources for this kind of information–but good luck getting face time with a doctor.

CRM for Pharma vertical

Complicating the matter is the upsurge in the total number of pharmaceutical sales reps, which has quadrupled to 90,000 in the United States over the past decade, according to Tom Schwenger, a partner in the Health and Life Sciences practice at Accenture. As a result, the average talk time a sales rep has with a doctor has dwindled to only two minutes. “We’ve reached a point where doctors don’t have any more time to give to sales reps,” Schwenger says.

So when a rep can squeeze in time with physicians it is paramount to bring the right message to the right doctors at the right time. To do so, more pharmaceutical companies are turning to vendors that offer pharmaceutical-specific CRM products.

Dale Hagemeyer, principal research analyst of the CRM practice at Gartner, says pharmaceutical companies should “put the icing on their sales force automation cake,” with tablet PCs to make it easier for reps to take tailored messages to doctors. Siebel Systems, which analysts agree leads the way in the pharmaceutical CRM market, has partnered with Microsoft, Pharmetica, Proscape, and Accenture to provide interactive multimedia content on tablet PCs in which the messaging changes as reps go through the presentation. And as with most tablet PC programs, the information reps collect doesn’t need to be reentered into the system. What’s more, firms can–and do–use that information to improve marketing and sales efforts.

“The concept of closed-loop promotion is really about to have a major shift,” Accenture’s Schwenger says. “This is going to have a significant impact on the way salespeople do their jobs.”

Hagemeyer also suggests that to support their CRM efforts, pharmaceutical firms invest in analytics that, when cross-referenced with IMS Health’s database of pharmaceutical sales activity, would identify when a doctor switches a patient from one product to a similar product from another company. This would alert the salesperson from the original firm to call that doctor to follow up.

Finally, Hagemeyer says that pharmaceutical vendors should consider a portal and call center for support and education purposes. He suggests starting with the portal because the “outlay is significantly less” than creating a call center or contracting outsourced call center services.


CRM in Healthcare , , , , , , ,

Identify your need before investing in CRM

Posted on June 28, 2011 by Trushit Buch | Permalink 0

I often get asked or see on-line posts asking this question and people seem surprised when I, as an AquaCRM Evangelist, tell then that it can’t be answered without more detailed information. This is especially important in the SME market where there is a greater range of options available than in the Enterprise space.

Any recommendations without this info would be like asking for the best car or religion, and any suggestions would be akin to the adage “If the only tool you have is a hammer, all problems look like nails”

You need to identify your needs:

  • How many users are you expecting to have? Now and over the next 12-18 months.
  • How many records (contacts and/or companies)? Also now and over next 12-18 months
  • Where is your data sourced from (initial setup and on-going leads)?
    For example: your web site, external companies, social media, Excel, paper entry
  • What do you want to do with the data? Reports, email merges, news letters, etc
    You need to involve internal users at different levels (sales, marketing, management)
  • Do you want to integrate with legacy systems – accounting, ERP or other software?
  • Do you want to integrate with new technologies – social media, Twitter, LinkedIN, etc?
  • Do you want remote access – remote offices, laptop users, smart phones?
    If so, do you have reliable internet connectivity?
  • What sort of security is important to you? Eg should all users be able to see/edit all records?
  • What sort of infrastructure do you have – operating systems, hardware, network.
    Would you be prepared to invest in improving this?
  • Do you have your own IT? If so, will they need training to administer the new system?
  • What sort of support do you think you’ll need?
  • What sort of budget do you have?

One common issue is looking at management needs (administration and reporting) over usability… if the users find it to complex to use or un-helpful to them, they won’t enter good data. Then any reports will be meaningless.

You really want to know “What’s the best CRM solution for YOU?” Anyone who makes a recommendation without knowing or asking these questions can’t possibly be answering that.


CRM compare , , , , , ,

How does AquaCRM stack up against sugarcrm?

Posted on February 1, 2011 by Trushit Buch | Permalink 0

In the LAMP based CRM world, there are 2 major players providing competing products:  AquaCRM(www.aquacrmsoftware.com) and sugarCRM.  Recently I installed and tested both of them in an effort to determine which one better suits my needs.

Initial impressions

Both software packages were easy to install using the SimpleScripts process. The AquaCRM(www.aquacrmsoftware.com) seems to be a bit more intuitive in the user interface area, but not by much.   I spent several frustrating hours trying to figure out why some features in sugarCRM didn’t work, only to realize that I installed a beta version.  SimpleScripts defaulted it for me automatically.  As soon as I reverted to a previous stable version, sugarCRM started to behave nicely.  The response time of AquaCRM(www.aquacrmsoftware.com) is better overall.  Also AquaCRM(www.aquacrmsoftware.com) has a cleaner look and feel to it.  sugarCRM throws advertising in the header area, trying to sell the more expensive versions of its software.

sugarCRM

Likes

Website integration Form – quickly able to drag/drop and publish a Contact Subscription form.  When the user fills it in and clicks submit, the software automatically creates a Lead in the sugarCRM database.

Built-in mailing list functionality with capabilities to track messages that were Bounced, Opened,  Clicked-thru, etc.

Dislikes

Dependency on an outside cron job (scheduling entry) to send out campaign emails.  Not a difficult task to setup, but it requires technical knowledge

No reports available, only online queries.

AQUACRM - crm software

AQUACRM - crm software


AquaCRM(www.aquacrmsoftware.com)

Likes

Faster than sugarCRM

Completely free, not just a starter edition with limited functionality.

Numerous analytics and reports are included

Microsoft Outlook plug-in available for synchronization

Many more modules available than sugarCRM:

  • Inventory Module
  • Products
  • Vendors
  • Purchase Orders
  • Sales Orders
  • Service Contracts
  • Trouble Tickets

Available Customer Portal to allow customers to enter and track open help desk tickets as well as FAQ’s, Products, Services, Documents, Contacts and Accounts.

Dislikes

No built-in mailing list functionality.  One plug-in recently added (PHPListSync) that allows for contact sync between AquaCRM(www.aquacrmsoftware.com) and phpList, but I couldn’t get it to work.

Similarities

There are lots of similarities between the 2 CRM packages, which is to be expected.  The concepts of Campaigns, Leads, Contacts and Accounts is the same.  So is the ability to create new fields and modify existing forms in the Studio module.  Security is similar with Users, Roles, Profiles and Groups.

Bottom line

AquaCRM(www.aquacrmsoftware.com) beats sugarCRM in a lot of areas.  But the one critical component missing in AquaCRM(www.aquacrmsoftware.com) is the mailing list functionality.  In my case, it would have been too awkward to constantly export data out of AquaCRM(www.aquacrmsoftware.com) and import it into a mailing list application

AquaCRM Software, CRM compare , , , , , , , , , ,

Demystifying the ROI of CRM

Posted on February 1, 2011 by Trushit Buch | Permalink 0

Undoubtedly, the most common question I hear from companies is “How do I cost justify my CRM investment?” While project costs have come down over the past 12 to 18 months, this remains a key issue. What surprises me now, however, is that this matter frequently arises for the first time in earnest near the end of the evaluation–sometimes right before the project plan is presented to management for approval.

Higher-ROI-from-your-CRM

Higher-ROI-from-your-CRM

By this time the project team has the expense side of the equation nailed down: software license fees, maintenance, consulting support, hardware, administrative support, training, help desk, etc. The team can recite the dollars-out half of equation in its sleep, but what about the dollars back?

Often what the team wants to hear from me is how other companies have dealt with ROI. CSO Insights has surveyed several thousand CRM projects over the years, and has compiled a wealth of case studies. For example, a manufacturing company reduced its order error rate from 23 percent to less than 0.5 percent; a distribution firm cut the time it took to get new salespeople fully productive from nine months to four; and a financial services group increased the number of leads generated per day, per telemarketing rep, from 1.5 to seven.

crm_360view

crm_360view

These are all impressive numbers, but I caution the executive sponsors of a CRM initiative that the numbers only have meaning to the company that achieved them. In no way should sponsors infer that they will duplicate that level of performance improvement simply by buying a similar technology framework. CRM ROI is a personal experience–no two companies market to, sell to, or service customers exactly the same. So how do you go about finding ROI truth? Here’s a simple framework: Start by calculating what it is costing your company to not implement CRM.

CRM technology is a tool set designed to fix problems. You have to know what your problems are. The ROI calculation is the self-evident result of the process improvement that will take place through the implementation of CRM. We benchmarked the problem for a computer firm: 18 percent of the people calling its 800 number hung up before talking to a contact center rep. For a pet food manufacturer the issue was a 42 percent error rate in its sales forecasts, and for a distribution firm the issue was that voluntary rep turnover had soared to 48 percent.

Having identified their pain point, each of these firms calculated the business costs of letting their respective problems continue to exist: lost revenue from customers hanging up and buying a competitive offering, excessive inventory from buying the wrong raw materials to match inaccurate product forecasts, lost territory revenue from continually ramping up new reps.

Knowing the problem and the cost, the CRM evaluation goal was to determine if and how technology could help minimize or eliminate that problem. A company will gain X additional customers by minimizing prospects abandoning calls, will achieve Y dollars in savings by better managing inventory, and see Z dollars for having experienced reps stay in the territories longer.

The case of business improvement should drive CRM projects from day one. If you cannot quickly list the top-three improvements you expect to achieve by implementing CRM, you are making the error of looking to buy a solution before you find the problem. Reverse the order–first identify the problem, then find the solution–and CRM ROI will then become a much simpler matter.

CRM ROI , , , , , , , ,