The end of the first decade of the 21st century is also the end of posts to this blog, it is a time to move on to new fields after 20 years CRM project experience. CRM has become an accepted application area with largely standardised functionality and there is now little to say which has not been said many times before.
Thank you to all my visitors and followers. This is the very last post from crmquergedacht. Though CRM is of continuing interest, I will be concerned with an analysis of the real business value of real and virtual personal networks, for a start comparing the value of BNI in relation to LinkedIn. A new blog on this subject will arrive in due course.
“Buyer beware” is beginning to have a new meaning. A new CRM-Add-In was offered to me today. The tool, when integrated into a CRM-Application, measures the extent to which the person is networked in Facebook, XING, Twitter etc. and gives a score according to the size of the network. The idea is of course, that people with a large network need to be more carefully handled than others.
From the point of view of the customer, this would mean that it is necessary to invest time in maintaining a network in order to get good service. That does not sound too good.
Maybe the saying “we are what we eat” should be changed to “we are what we buy”. Something to think about the next time you buy something on the internet.
Tags: Social Networks
In theory all sales, marketing and support functions can be found in one gigantic application. This does have the advantage that customer relevant data can be gathered in one place, but think of what happened to programms like Open Access or Lotus 1-2-3: they were replaced by single programms such as those making up Microsoft Office.
There is much to be said for using separate applications for these three functions, just as Front and Back Office are separated. True, many ERP-Vendors offer a CRM component, but in most cases this only demonstrates that no-one can do everything. SAP may appear to combine these functions, but looking carefully one sees two products with a single marketing blanket.
The market seems to be moving away from fully integrated solutions. Companies today are looking for tools to improve sales efficiency without involving support and help desk groups – the more complex the support operation, the more is this apparent.
Tags: crm, ERP, Microsoft, SAP
OK, this blog is to do with CRM processes and not with specific products, but still, take a look at www.zoho.com. You will be surprised to find how much functionality is available in a not-expensive SaaS solution – ideal for small companies and start ups. Anyone looking for consulting support could even turn to the author …..
Tags: SaaS
Frequently I am asked to show how a CRM System can be used to compare achieved sales with sales targets. The subject sounds simple enough but in fact has considerable implications.
Even assuming that a sales planning process is defined or in place, which is often not the case, it is important to consider how and why a CRM system is required. A comparison of actuals and targets is only of importance for controlling the performance of a sales force or possibly for production or purchase planning. For production and purchasing purposes, much better information can be gained from back office systems, so the only real reason for wanting this functionality is for controlling sales performance.
The aim of CRM however is to increase sales success by helping all those with customer contact to provide a higher level of service to customers and prospects. It may be necessary to set targets so as to provide direction, but neither the targets, nor controlling will
- help to gain more leads
- improve the lead conversion rate
- improve service levels
- increase customer satisfaction
- increase customer loyalty
- improve sales and service efficiency
Since these are the main aims of a CRM application, it is apparent that functionality for sales controlling must take a subordinate role. For this reason, it is better not to place too much focus on quotas and achievement. These functions can be more easily incorporated in a back office system where most of the information originates and where the data input can be carried out by people used to working with financial controls.
Good news from Nürnberg – the CRM Expo attracted more qualified visitors than in the previous year. Not all suppliers were represented but SAP, Microsoft, Salesforce and CDC (Pivotal) were there for the enterprise sector, with cobra, pisa, julitech and addito for the mid-market/SOHO sector. The stands could have been busier, but exhibitors were content with the number and quality of contacts.
As to be expected interest in SaaS solutions, Social Media and BI was predominant
Tags: SaaS, Social Media
5 Good Reasons not to visit the CRM Expo in Nuernberg
- Too much travel time
- Too many sales pitches
- You can find all the information you need on the internet
- All you see are superficial demos
- Sales people will come and visit me when I am interested
5 Very Good Reasons for visiting the CRM Expo
- Nuernberg is a great place to go to
- How else can you get a peek so many products in one day?
- You get to know real people
- You get to know real people
- You get to know real people
Let’s face it, once you have decided on the type of product you need, you will find several possible solutions,each of which will have some advantages and some disadvantages, there will be more than one suitable product, but you will need to make a decision. A technical comparison alone will not produce clear results (unless the comparison is weighted in someone’s favor).
What makes the difference are the people behind the solution. Any CRM project regardless of size will at some stage require some creative thinking and flexibility, so it is important to have a good working relationship with your supplier. In most cases, you will work with a partner of the manufacturer, choosing the right partner is just as important as choosing the right manufacturer. CRM Expo gives you a chance to meet and evaluate many of these partners.
At a recent BI-congress I listened to a presentation of a solution for the measurement of customer value. In this case, the visually attractive graphical representation showed the “value” of each customer in four quadrants and the suggestion was, that customers shown to be unprofitable should be phased out. That sounded reasonable, but on more careful examination a number of questions were raised.
A more careful look at the basic data showed many weaknesses which could lead to damaging decisions. The calculation was made on the basis of invoiced goods and services minus costs. OK, but how are costs measured and applied? It appeared that in this case many of the costs were estimated, cost of sales for example, or support costs on the basis of a calculated cost per hour.
This raises two questions:
- How should calculated sales, marketing and support costs be applied to individual customers?
- Can customer value be defined purely on the basis of profitability?
The first point is a question for controlling and relates to processes and practices in the company. The second point is more interesting from the CRM point of view.
What is customer value? Is lifetime value the criterium or the value over a specific period? Which factors should make up value?
From the CRM point of view, the pure financial situation over a given period is only one aspect. The following aspects should be considered in any analysis:
- Does the customer have more potential?
- Is the customer important as a reference?
- Does the customer provide leads or other marketing value?
- Is the customer networked with other customers or potential customers?
- Is market share important for the acquisition of new leads?
These aspects may not be easy to handle with the BI Tools currently available, but are of critical importance to sales and marketing. An analysis without reference to these factors will produce misleading results and a frustrated sales force.
Tags: BI, Customer Value
Sorry, Thursdays blog will arrive on Friday
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