When
people ask, "What is CRM?" the literal answer is, "Customer
Relationship Management," but that doesn't really convey much in terms
of what all CRM does for a business. This CRM definition is too narrow
to really explain everything the system does if it is working to its
fullest potential and
is user-friendly enough to expand and grow as a customer-client relationship changes and grows.
CRM
in the broader sense encompasses not only customer relationship
management itself but how customer relationship management is handled
and the most important elements of a CRM program that are essential to
its being successful. The range of CRM software options vary from those
that provide simple customer tracking and live chat capabilities to the
more complex CRM solutions that can integrate all of the customer
relationship data an enterprise has on each client past, present and
future in a dynamic information data
network.
What should I look for in a CRM software package?
If
there's an ideal CRM software package that works for every company and
every situation, it hasn't been discovered yet, simply because every
company has slightly different needs for their customer relationship
management needs as well as software implementation.
In
general, however, when you are looking for a strong CRM software
package there are a few things to keep in mind. If you are shopping for a
CRM package, try to forget about the initial price tag at first (as
difficult as this may be) and focus on the adaptability, usability and
integrity of each system you
evaluate as it relates to your particular needs. A few things to consider:
What are the most important facets of customer relations are we looking
to address, and does this CRM software support tracking and updating
all aspects of this? For example, if your company wants to customer
service to have ready access to changes in customer spending habits
and an opportunity to offer new product options based on these
records, make sure this capability is built into the software.
Customization down the line will be time-consuming and expensive -- if you have a primary goal, make sure it is standard in your CRM software package.
Will the CRM software package integrate smoothly with all platforms
currently in use at your company? If you will have to re-enter all
databases such as client names, addresses and phone numbers, this will
significantly increase the amount of money you'll spend in the long
run. Make sure that you can either integrate smoothly or import all
information needed flawlessly.
Is the product more than you need? An enterprise solution that offers
fifteen functions you don't need and never will isn't a bargain if you
will never expand into that market niche. Just because it's available
doesn't mean you have to have it. Selling custom-sewn hats? You won't
need a CRM software
package for tracking million-dollar overseas accounts.
Has this CRM software package been used for a company of your size
before? If it has been used for companies up to 10,000 and you have
150,000, the system may simply not be able to sustain the volume of
data and crash or develop glitches. Look for something more powerful
with a support system capable of understanding the size of your
company.
Can you build me a dream CRM software package?
Hmm...let's
see. The best CRM software package would be optimally functional across
all platforms and have its own customer support backing it, and ....
Well, let's take a look at our own list of what we'd really like in a
CRM software package if money was no object and we could "have it all,"
so to speak:
A CRM software provider that has partnerships with other vendors for
support in the event you need it for integration of platforms.
Extensive training from certified CRM software technicians who will
walk your people through the process of setting up, using and training
others on the system.
Full data migration capabilities to and from all programs in current use to the new CRM software.
Offsite server storage backup for all information in the CRM system for added security.
A toolbox for company programmers for customizing templates for company
use -- this will save huge amounts of time by eliminating the need to
write custom codes from scratch.
Either in-house consultants or a choice of contracted consultants they
recommend (try not to be at the mercy of one consultant when there is a
problem).
A CRM software package designed by a company familiar with our specific industry and its structural needs.
The
best CRM software packages enable customer service representatives to
review the account information of each client or customer when they are
talking to him or her and immediately understand something about that
person's needs, wants and spending patterns.
For
banks, CRM software can indicate their banking patterns -- are they
investing through the bank? Have they recently looked into a money
market fund? Do they have substantial funds that could be put to better
use than languishing in a simple CD?
A
mail order company can note your shopping tendencies and make Christmas
shopping suggestions based on past purchases by seeing that you buy a
lot of kids' clothes and that you spend about $200 each holiday. Used
correctly, a toy company can steer you toward some bargains and suggest
alternatives, enriching your shopping experience and building customer
loyalty.
Why does CRM software fail so often after it's put into place?
You've
heard the stories about a company buying a CRM software package and
then realizing it hasn't really changed anything. The big-wigs are
disappointed, customer service is frustrated, and the clients are
aggravated with the newchanges that don't seem to show any improvements in customer service or client relations. How does it happen?
Because
CRM software was purchased that wasn't appropriate, was purchased too
soon, or wasn't implemented properly. If you don't purchase CRM software
thatspecifically
addresses what your customer concerns are, you may have software that
is very detailed in an area you don't need and somewhat lacking in
exactly what you do need.
Purchasing
too soon means you bought the software before you had evaluated what
you really wanted. Many companies by CRM software with a goal "to
improve customer relations," which is not a clear business goal! You
should have a veryspecific,
well-defined objective that your CRM software solution can address, and
you company should have developed a formal objective before you went
shopping for a solution. Retaining customers? Improving the size of
currentcustomer
portfolios? Penetrating a new market niche? Reduce customer complaints?
Improve customer repair response? Determine what it is you want to
focus on as agoal, and then choose your CRM software solution based on how it will address it.
Finally,
implementation of a new CRM program requires proper management support
and effective training. That means that management must be behind it one
hundred percent, and not have "head in the sand" approach where they
determine that "that's for customer service, I never did understand that
stuff," and avoid learning how the CRM software works. It is an
attitude that will pervade the company.
Second,
training is essential and must encompass the company to ensure that all
levels of personnel will embrace the new system and understand the
genuine need for it and the real goal of what you are trying to achieve
with your new CRM software solution.
Some CRM software options for small and medium sized businesses
For
small and medium businesses, the most common customer relations
management software request is for anything that enhances online
communicationsand improves the time between a customer complaint or question and resolution ofthe issue for them.
For
many companies, there are software solutions that can be purchased or
downloaded to be used through their Internet website for basic services
such as online customer support through live chat and customer
assistance with onlinepurchasing
that is both efficient and relatively inexpensive. If your need is
primarily to improve sales volume, improve response to customer
questions and complaints and to make your company website more
personalized, look into thesesolutions that are at the lower end of the price spectrum while providing solid CRM products:
LivePerson offers two different versions, Basic and Enterprise that
provide live chat, email and a variety of interactive forms customized
to meet companies' needs for customer relations. This company has
developed live chat
solutions and online forms for everything from universities to
financial services firms. This company provides a wide range of
services, including online marketing, case studies, and software
designed to improve online shopping cart capabilities.
LiveHelper offers many of the same features, and adds real time
traffic monitoring and other data assessment features as well. For the
price, LiveHelper is a very good CRM software value.
GroopZ includes customer routing software so that you can transfer
entire chat strings from one customer service rep to another if you need
be, along with an efficient filing system for chat transcripts and
customer records. For improving customer relations, the software
support suggests pre-
and post-service questions for all customers who contact you.
Also included are templates you can set up with specific, pre-scripted
answers to frequently asked questions in online chat to save customer
service representatives time and make the process clearer and more
efficient. This company does a bit more customizing on the front end
to fit your needs, and pricing is adjusted accordingly.
SupportWizard gives you three CRM options that give you some
flexibility -- you can buy, lease or let them host your customer
service/relations solutions. Interactive FAQs, live chat, standard
answers to frequent questions, and Boolean search capabilities to
review past interactions all make this package extremely effective.
SupportWizard also has
more customizable features than some, including an "escalation alert"
that can be tailored to specific situations when a supervisor would be
notified if a customer service situation exceeds certain parameters.
This is one of the more expensive packages available, but rather than a
monthly fee you are paying for lease or outright purchase options, so
factor this into the cost. You will also get spectacular customer
support and constant upgrades and patches when necessary. The
integration of email, live chat and telephone information into one database is also a plus with SupportWizard.
BoldChat offers free CRM software for online customer service chat
that you can use for a limited time, and offers a $9.95/month and a
$39.95/month customized version of their CRM software. Both offer live
customer service chat, but one adds customized windows and more options
on buttons and the number of available customer service reps you can
add.
CSLive offers the most comprehensive CRM software solution available
for small and medium businesses, with live chat, email, and the usual
customer service features you expect from a small business CRM solution,
but with plenty of extras. CSLive also offers an extensive tracking
and filing
system, an Internet server site where you can upload and store files of
customer help articles that customers can be referred to that can by
emailed directly to clients by your reps. Throw in the message center
and online meetings, and this is practically an enterprise sized
solution at a small business price of $29.95 a month.
CRM
software, whether on a monthly user basis or purchased outright and
downloaded onto your own server, will make serving and understanding
your clients and customers a more productive experience, and you will
all be happier for it.
This article on the "How CRM Software Works" reprinted with
permission..
Copyright © 2004-2005 Evaluseek Publishing.
About the Author
Lucy
P. Roberts is a successful freelance writer providing practical
information and advice for businesses about everything related to CRM
software solutions and live chat software. Her numerous articles
include tips for saving both time and money; product reviews and
reports; and other valuable insights for persons searching the Internet
for information about the history of CRM and related topics.