Why would you implement a CRM system?
There are many different views and opinions out there on what CRM is and what it is intended for. Firstly, its acronym, what does it actually stand for? Customer Relationship Management. It’s all about managing, and keeping control, of a business’ relationships with its customers. In the good old days this was easy – every business generally had personal contact with its customers. In some sectors this remains true however even in traditional businesses the business dynamic has changed. Sales reps no longer stay in the job for a lifetime, and they are now normally a member of a sales team, with a manager above. Andre in the newer style businesses, such as distributors, internet shops, green businesses, etc. where personal contact is non-existant, good information on profiling customer activities and trends is critical to sales growth. So how can CRM be used to help business?

What does a CRM system provide?
A good CRM system will provide various modules which can be enabled/disabled for certain users. You would expect to have modules for managing contacts, a separate area for leads (firms with whom we hope to do business at some point), facilities for generating marketing material (e-mail and letters), support for raising quotations, orders and invoices, and a shared calendar as a minimum. It’s important to be able to track the sales pipeline and allocate everything to an individual user. Some of the newer systems are beginning to include customer service automation as well – trouble ticketing/fault logging, follow ups and basic stock control are important for keeping customers up to date on where things are at.

What about the customer?
As with all facets of business, the customer is always of most importance. Bear in mind that a computer system is just that – it can’t forge a relationship with clients all of its own accord. It is a very useful tool for helping in the process but users must use it and remember that it is not there to do the job for them, but to help. So prior to implementing, it is a good idea to conduct a review of all customer-facing processes in the business. It should then be possible to identify areas for improvement, and how the system features can be used to this end.

So what about Marketing Automation?
This is one of the quickest immediate gains acheiveable from implementation of a CRM system. As soon as the data is cleansed and loaded, marketing can begin. But to do it right, it’s important that you target market is analysed and segmented. You can then tune the message depending on sector, region, industry, number of employees, emerging trends or a combination of these factors. This gives a a subset of the market to target at a micro level.

And the Pipeline?
By defining a number of sales stages it is possible to review on screen or paper the current status of the sales pipeline. This is a huge benefit of CRM – if the data is input correctly then it is easy to identify what’s coming down the line in terms of sales. Each potential sale should be logged as it arises and allocated to a sales stage. As negotiations evolve, the stage is updated, such that the potential value at each stage can be analysed.

What about reports?
Once the system has been running for a short while, reporting can be used to develop trend analysis and get information back from the system. Sales in a particular sector drop on Fridays. Why is that? What can we do – maybe ensure that customers/prospects in that sector are contacted every Thursday. We can also begin to focus on performance of sales reps, teams and customer service.

The above are but a few of the benefits that can be realised by implementing a well-balanced CRM system. The good news is that for most businesses, it can be a relatively painless process, provided that the steps are followed and there is a willingness to take the implementation one step at a time.

We have heard it hundreds if not thousands of times at this stage. There would appear to be general consensus amongst experts that economic recovery is on the horizon and Ireland will finally pull out of recession (at least officially) in 2010. The only point is that there does not appear to be agreement on is when exactly this will happen. However, with regard to taking advantage from a sales perspective, the most critical factor is to be ready for it when it arrives. Laying the groundwork now means that when the time comes, you’re ready for it. While it’s often said that a rising tide lifts all boats, that’s not strictly true. The ones with the holes in them go under. So what can we do to ensure maximum advantage when the tide turns? Some useful tips below.

Make sure your market knows who you are
Sounds simple doesn’t it? But if your prospects and customers don’t know you exist, they can’t contact you. Advertising budgets have been slashed, sales teams reduced so it may not seem as easy as it once was to contact your market. However it is possible at a much lower cost using direct marketing techniques – email, or direct letter advertising and/or cold calls. Plus when done correctly it has a measurable return and much higher hit rate than media advertising.

Don’t forget Customer Service
Make no mistake, your customer list is your most important asset. Treat it as such and you will likely keep the majority. Now is the time to maintain regular contact – call them, talk to them, e-mail them, write to them. If a customer complains or raises an issue, ensure that it is dealt with efficiently and quickly. Customer Service was forgotten in place of more business by many companies during the boom. Many have since been unable to resurrect the art. Set yourself aside from your competition. As we emerge from recession, value is set to over-take price as the critical factor in business decsion making. FACT – you will be valued more highly if you are known to provide better customer service.

Follow up on old customers
It might sound simple, but many just don’t do it. You had a regular customer 12 or 18 months ago, but they’ve disappeared. Contact them! Maybe the went out of business, maybe the went to a competitor. You won’t know until you try to get in touch. Often a telephone campaign targetting older customers can dig up some new business.

Segment your customer/prospect list by industry/region
If your product offering appeals to a wide range of customer profiles you need to segment your target market and deliver a specific message to each industry. For example a packaging manufacturer needs a different campaign for healthcare businesses than for example for the food processing industry. Also location can be important. There might be a specific event in a county or country. The London Olympics 2012 is an example. There is a requirement for everything from construction supplies to sportswear, they’re even predicting a surge in sales of cheap sunglasses (or maybe umbrellas!)

As we prepare to emerge from the recession which has plagued business over the past two years, there are many opportunities to take advantage of the increase in activity. Instead of being dragged into day to day survival strategies, try to make time to explore some of the areas outlined above. Here’s to success in 2010!