Data & Mash

As we go about our business, advising on CRM and other sales and marketing technology we hit a common challenge. People have objectives for their CRM implementation which fundamentally, a CRM system will not deliver. We (at Mayfield Solutions) do use the term CRM in its narrowest sense – a piece of software with a database attached (see our definitions).

So we often start projects, debunking myths about what a CRM solution will deliver in a business. Typically people turn to a CRM solution to solve these problems and are disappointed if it is not able:

1. To make teams work better together and cooperate more
That is a process and people problem and needs addressing before you implement a CRM solution. A CRM will support good team work and cooperation but it will not create it.

2. To improve data quality
It’s a cliché to say “rubbish in rubbish” out but it takes diligence, consistency of approach and usually time and money, to maintain your data and keep it accurate and recent, CRM’s on their own will not do this. If you want improved data quality there are many steps that you need to take that do not need a CRM, their are some that will be supported by a CRM but a CRM on its own is not a solution to data quality problems. Furthermore, most CRM solutions (as per our definitions) have quite weak data processing functionality. Marketing databases and other solutions are much more sophisticated than CRM.

3. To increase revenues
Now…this one is a bit more tricky. If you are not using a CRM and have an active sales programme, it is very likely using a CRM will increase your revenues. This is because it should, increase sales-team productivity, reduce the number of leads that fall between the cracks, improve visibility on sales performance and enable managers to improve their sales teams skills, justify investment in more sales people where appropriate, spot weak performers and provide a more coherent communication approach for prospects and customers where sales people can speak for each other in cases of absence. It will only do this if you have a product and market that is capable of delivering more revenue to your business, the CRM is implemented well and supported by management and the team using it.

4. To improve our direct marketing
CRM’s grew out of sales systems and then marketing was added later. Originally the marketing modules were hopeless for direct marketing. They are better now but still, if direct marketing is your reason for looking at CRM, think again. (With one qualifier, the term CRM has been adopted by other software which we would classify as marketing database or other types of software).

5. To find efficiencies and save money
CRM can bring efficiencies and cost-savings to your business but if this is your only objective, there are probably other ways to achieve those goals. CRM is really about increasing revenues, improving your business and increasing retention.

If that’s what CRM is not, then what is CRM for?

In our view, all sales teams should use CRM or sales automation for the sake of the business (risk protection, continuity, management information) and for the sake of the sales people (so you can sell more and manage your time better).

In some businesses a pre-integrated sales and marketing software solution is appropriate and CRM is good for that because integration of separate systems is complex and can be expensive and if a CRM does everything you need for sales and marketing, that’s great.

Sales and customer services should often work from the same database so that they can provide a seamless and professional response to customers. If the CRM does what both teams need, then CRM is great for this.

And remembers, all the above things can and should be addressed in other ways and may form part of a CRM implementation. Some of them can be solved using great technology and the right software, but it might not be CRM that you need.

~ by Kate Mayfield on 2 August 2010.

Posted in CRM, data management, sales automation
Tags: CRM, marketing databases, what is CRM?