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Posts Tagged ‘CRM software’

Why Settle for CRM Software for the Masses

February 12th, 2013

Your business is unique, and the CRM software used to manage it should be unique as well. A one-size-fits-all solution does not streamline most companies to their fullest potential. This leaves a business struggling to meet the format of their CRM system rather than enjoying the benefits of a platform that rises to meet their needs.

Why Generic CRM Doesn’t Work

Non-customized CRM software platforms can seem effective in theory, but in application they never reach their full potential. That’s because they are usually implemented though either software or a web-based hosting service that offers one platform to all businesses, regardless of the type of business they operate. General-needs software is not adequate for all types of businesses.

In theory, all businesses are selling something, usually a product or service, but not always. And a business that sells used cars, for example, wins and attracts clients differently than a business selling vacation packages, and their interactions with their clients are different too. The used car dealership may experience most of their customer interactions in person at the dealership, while the vacations business may conduct all of their business over the phone and online, without ever coming face to face with a customer. A used car dealership is usually working to make a one-time sale (although they still want to create customer loyalty so the buyer will return or refer their friends and family for the next car), while the vacations provider is looking for repeat vacationers and client retention.

Nonprofit organizations function like for-profit businesses in many ways, but their “sales” are unique. Not called sales at all, these organizations are effectively selling not a product or a service but a need. Nonprofit business models are fundraising based and they aim to attract clients and customers of all types. Most nonprofits rely on revenues from a variety of different places: grant-awarding foundations, individual/private donors, fundraising campaigns, and selling a product and/or service. Each revenue-earning sector of the nonprofit may be run like a different business, but the same staff may be running and managing each sector.

Most businesses operate more like the nonprofit (in a variety of unique ways) than on the cut-and-dry sales model. A successful business, regardless of industry, markets, wins clients, makes sales, and retains clients in multiple ways rather than through the platform of a confining business model. And a CRM system should help a business better manage its employees, customer relationships, and use of technology, not dictate the ways they perform these functions.

How is custom CRM different?

Custom CRM is unique like your business. When you run your business using customized CRM software, your business is operating on a platform that’s different from every other information management system out there. The platform may begin with a framework like FileMaker Pro, but it is customized to suit the business’s individual needs along the way. It doesn’t contain functions your business never uses and it can be changed and modified when it’s no longer meeting the business’s needs to its fullest potential.

A successful business is constantly growing and changing. A successful business revamps its sales and marketing techniques when revenues are down, whether it’s because of the loss of a big client or a change in the economy. A successful business also changes when profits are up, by identifying what worked and using that forward momentum to increase profits more. A business that can’t change because of an inflexible management platform won’t be able to live up to its fullest potential.

It makes sense to adopt an information management system that’s custom built to your individual needs from day one, tailored to your changing business when needed—and that comes with the technical support and expertise necessary to make those changes.

What Is Customer Relationship Management?

January 31st, 2013

A large amount of any company’s efforts and budget go toward finding and retaining customers. What if database and programming technology combined with innovation could automate much of this work, reduce costs, and improve customer relations, all while improving overall efficiency and value to the customer? It can, in fact! Effective customer relationship management is vital to any business, and CRM software makes the entire process much more successful.

But what is customer relationship management? Below is a brief description of the customer relationship management model, how it works, what might keep it from working to its greatest potential, and some related trends that it has recently created in the marketplace.

What is it?

Customer relationship management (CRM) is a model for managing the interactions of a company with its customers, clients, and prospective sales contacts. It manages sales activity, customer support, technical support, and marketing by automating and synchronizing similar processes throughout a business. The goals of CRM are attracting and keeping customers, bringing former customers back into the fold, and streamlining activities to reduce the costs of marketing and customer service. The model is also used to simplify and organize internal company relationships.

Benefits of CRM

Although a CRM model is intended to save a business money, its primary goal is to improve efficiency and relationships with clients. The benefits of adopting a CRM model include the following:

  • Quality and efficiency
  • Lower overall costs
  • Higher productivity

A well-thought-out model will create a seamless interface and help a company realize its full potential, but businesses often experience some challenges getting into a streamlined CRM process. These initial hurdles are completely normal, and are overcome with some time and practice. Challenges can include a lack of training for employees, a lack of commitment or continuity from senior executives, and an overly complex or unwieldy interface. Certain areas of the model may be more difficult to manage and therefore can be ignored or underused by employees, which leads to fragmentation and inefficiency. If the interface is difficult to navigate, it presents obstacles for both employees and customers. Hiring talented technical staff to create an interface that is usable and can grow and flex with an increasingly complicated business model and data set, as well as securing a commitment from employees at all levels, are at the heart of a successful CRM model and a sustainable implementation.

Types of CRM

  • CRM automation uses a contact management system to track every stage of the sales process, requiring fewer representatives to initiate and maintain contact with potential and existing customers.
  • Marketing processes track and measure multichannel campaigns, including social media and direct email or mail, to generate leads. A model called prospect relationship management (PRM) tracks customer behavior and brings them to the first sale, cutting out active sales campaigns entirely.
  • Software for customer support, such as call center programs, also helps to reduce the work force required to manage existing customers. It is designed not only to assist clients with problems but also to identify and reward loyal customers.
  • CRM models have also been designed and implemented for the special requirements of small businesses, social media channels, and not-for-profit organizations.

Similar Trends

  • Cloud computing and “software as a service” (SaaS) allow customers to subscribe to a cloud and access software for a reasonable subscription fee.
  • Vendor relationship management (VRM) is a counterpart of CRM that allows customers to access vendors without forming long-term relationships with them.
  • Extended relationship management (XRM) is in part the practice of applying CRM disciplines and technologies to all levels of the enterprise and all associated constituents. This involves not only the associated customers, but other levels of partnership such as the government and the media.

CRM is changing the intricate relationships among companies, customers, vendors, and other business partners. Technology has made it possible to track consumer behavior precisely and make successful sales happen with virtually no exhaustive effort on the part of the company, allowing them to focus efforts on nurturing new and existing relationships, and placing efforts into other areas of company growth.