| Customer Relationship Management has been a holy | | | | talent or resources to customize an existing application |
| grail for Big Business for the past ten years. So what | | | | or build from the ground. ASPs are good bet if |
| about Small to Mid-sized Business (SMB) applications? | | | | you’re an internet based business or small |
| If you talk to CRM software vendors they will claim | | | | business that needs a fast and low-cost start-up |
| that CRM systems help SMBs become more efficient, | | | | solution. |
| drive more sales (your ROI) and increase the | | | | Pros |
| accuracy of your forecast. | | | | * No software updates to manage or install |
| A few consultants have an alternative view: they see | | | | * No servers to support or purchase |
| CRM as a process rather than a software product. A | | | | * No back-ups of critical customer information required |
| CRM process allows you to effectively manage your | | | | * Generally low start up cost (hardware, software and |
| customer interactions (get to know your customers). | | | | training included) |
| This way you actually get to use the nice shiny tools | | | | Cons |
| that the CRM software vendors offer. | | | | * ASP's can go out of business, taking critical |
| While I tend to agree with the latter, my experience | | | | customer information with them |
| with databases is as my algebra teacher used to say: | | | | * High-speed internet connection required |
| GIGO! (Garbage-In Garbage-Out). | | | | * Internet connection outage means critical customer |
| Regardless of which view you take, you’re | | | | information is not available |
| going to need to do a lot of research and | | | | Boxed or Off-the-shelf software |
| soul-searching within your organization in order to get | | | | Several software manufacturers produce CRM |
| the most from your CRM. Here is what you need to | | | | solutions that work with existing packages (Lotus, |
| think about to get started: | | | | Outlook). Often these companies offer stripped down |
| What is Customer Relationship Management? | | | | or basic versions of their packages targeted to small |
| Well...the answer depends not only on who you talk to, | | | | businesses. This can be low-cost solution if |
| but also on who you are. | | | | you’ve already invested in standard Microsoft |
| If you are a sales rep, CRM simply means effectively | | | | business applications and can deal with most of the |
| using Outlook or Act or some other contact manager | | | | standard modules they offer. If you’re flexible |
| to track potential customers as they move through | | | | and willing trade some functionality for convenience |
| your sales cycle. | | | | and price then boxed software may work for you. |
| If you're a business owner or CEO then it means | | | | Pros |
| tracking all of your customer's information as they | | | | * Application is theoretically available on a 24/7 basis |
| touch your organization at key points. This is how you | | | | * No high-speed internet connection required |
| know when they'll need to buy your widget or have | | | | * Business critical information is securely stored on |
| their new wiget serviced or whether they'll want to | | | | company servers and back-ups are easily accessible |
| know about an upgrade to a particular line of widgets. | | | | * Business is not immediately interrupted due to a |
| As the owner, CRM means you will be able to provide | | | | change in the developers business situation |
| your employees with access to customer information | | | | Cons |
| at all levels of your organization from a centrally | | | | * Generally high-start-up costs (server hardware, |
| managed location. This improves service and aids in | | | | software and training) |
| customer retention. | | | | * On-going support required: Back-ups, updates and |
| The big idea here is to keep vital knowledge about | | | | service packs etc. |
| your customers within your organization, even if your | | | | * Data can often be stored in a proprietary format that |
| employees change. | | | | will require conversion in to new format |
| Is CRM Right for You? | | | | Other CRM Solutions: |
| It depends on who you are, and how you apply it. | | | | Custom Development |
| If you're a Big Company CEO then you've probably | | | | If you’ve the budget, time and patience then a |
| already sunk millions into a strategic alliance (bought | | | | gaggle of consultants, CRM solution providers and |
| their product) with Oracle or SAP. Then you paid their | | | | software engineers will beat down your doors to |
| developers millions more to automate your broken | | | | develop a custom CRM system that works flawlessly |
| business processes. This generates tons of overtime | | | | with your existing systems. I’d recommend this |
| hours from overworked employees as they fix | | | | option only if you’re spending other |
| customer issues "in the back office". Fortunately, your | | | | people’s money, get a big bonus and then are |
| stock went up anyway because you talked big to Wall | | | | able to leave the company before it falls apart. If you |
| Street analysts about your million dollar magic | | | | do select this path, carefully work through your |
| database system which makes your organization | | | | specifications with your “partners” and |
| appear more efficient. Operational inefficiencies are | | | | good luck! |
| quietly choking this organization, but your golden | | | | Managed Solutions |
| parachute will probably open out as soon as the fan | | | | ASPs offer to create a customized brand-version |
| begins to blow your way. | | | | web of their web CRM applications. These are usually |
| HOWEVER, in all likelihood if you are reading this | | | | on a dedicated server and often sell for a flat |
| you're probably not a Big Company CEO. Perhaps | | | | development fee PLUS lots of other customized |
| instead you run a mid-sized private company with | | | | options. It can be solid choice if you’ve got the |
| multiple regional locations. In this case you may have | | | | budget and are willing to be flexible with some of the |
| several different systems that require your employees | | | | functionality. |
| to spend their time faxing documents back and forth | | | | Who Are The Players? |
| between departments. Despite this your customers | | | | Unfortunately, in the CRM market the question is more |
| are pretty happy because they get to speak with Sally | | | | like who isn't a player. Using the broadest terms you |
| (their favorite customer service rep) everyday and the | | | | can call a Rolodex a CRM system. The important thing |
| product gets out the door. | | | | is to define CRM for your organization. |
| OR you’re a small business owner that knows | | | | Regardless, here’s a quick list: |
| almost all of his customers by name because | | | | Product Name: Sage CRM Solutions |
| you’ve managed to enter MOST of them into | | | | Software: Sage SolutionsFeatures: Customer Care, |
| your Outlook address folder. SOMEDAY you’ll | | | | Marketing Automation, Microsoft Outlook Integration, |
| be able to find the rest of those business cards from | | | | Offline Synchronization, Sales Automation, Wireless |
| last year’s convention. Anyway, you’ve | | | | PDA Access, Customer Care, Marketing Automation, |
| managed hire a few key employees that remember | | | | Microsoft Outlook Integration, Offline Synchronization, |
| the rest of your customer’s names, what | | | | Sales Automation, Why On-Demand CRM |
| they’ve ordered and when they’ll need to | | | | Microsoft Windows, Microsoft SQL; Oracle DBMS'. |
| re-order new stock. Because of this you can usually | | | | Product Name: Microsoft Dynamics CRM 3.0 |
| come close to a forecast of next month’s sales. | | | | Company: Microsoft |
| Now for the nitty gritty: | | | | Price: $5,000 to $50,000 |
| So, what can CRM do for a Small to Mid-sized | | | | Features: Sales, Customer Service, CRM Mobile, |
| Business? | | | | Marketing, Suns Legacy Partners, Hutchinson and |
| Properly applied, CRM can: | | | | Bloodgood, Kindermusik International |
| * Make every customer count - The cost associated | | | | Microsoft Windows;Microsoft SQL. ASP/Web |
| with finding a customer means that you need to make | | | | interface environment; Microsoft .NET Framework |
| every customer count. While it’s important to | | | | Product Name: SAP Business One CRM |
| secure new business, it’s your repeat business | | | | Company: SAP America, Inc. |
| that means long term success. | | | | Price: $11,250+ |
| * Help you know your customers - When you're a | | | | Features: Sales Opportunity Management, Business |
| small business knowing your customer means knowing | | | | Partner Management, Service Managementbuilt-in |
| what they need now and what they may need 30/60 | | | | reporting, internal workflow and alerts, highly |
| 90 days from now. This knowledge is often the key to | | | | customizable, embedded CRM. |
| survival. | | | | Product Name: Oncontact V |
| * Generate cross-selling (making suggestions) of | | | | Company: Oncontact Software |
| product enhancements or alternatives. | | | | Price: $1,000-$1,500/user |
| * Target marketing communications to your | | | | Features: CRM Account Management, Sales, |
| customer’s specific needs. | | | | Marketing, Customer Service, Toolkits |
| * Increase customer retention and repeat business. | | | | Microsoft C#;Microsoft .NET platform. |
| Repeat business from existing customers means | | | | Product Name: Entellium CRM |
| reduction in overall cost of sales. | | | | Company: Entellium |
| Okay. So you’ve decided that you’re sold | | | | Price: $50 per user / montheSalesForce, |
| on CRM and you want to buy a system to bring in | | | | eCustomerCenter, eMobile, My*Entellium ASP |
| those customers, get inside their heads and bring | | | | Product: Neocase |
| ‘em back for more. Now you’re going to | | | | Company: Neocase Software, Inc. |
| need to know your CRM options in terms of software | | | | Price: You can contact Jason at: This article maybe |
| systems. | | | | freely distributed without modification and provided that |
| Pros and Cons of ASP vs. Boxed Software: | | | | the copyright notice and author information remain |
| There are two models for CRM. Application Service | | | | intact |
| Provider model and software based. There are a | | | | Copyright 2006 *net.marketing associates All Rights |
| number of advantages to both the ASP and software | | | | Reserved. *net.marketing associates is service mark |
| models. | | | | of *net.marketing associates. |
| Application Service Providers | | | | ===================================Is |
| ASPs offer web-based CRM services. The ASP | | | | Customer Relationship Management Right for your |
| model is a decent option if you want to implement a | | | | Small to Mid-sized Business? |
| solution quickly and your organization lacks the in-house | | | | |