Having a mindset that CRM is Technology is certainly a limited approach. It restricts the long term relationship building success. Over 20 years ago I heard a wise CRM guru state that CRM is 60% about the people, 30% about the processes and only 10% about the technology.
The limiting mindset that CRM is just technology misses the core principles of business relationship development that is central to a CRM strategy and system.
It is the “relationships among people” that drive long term business success.
Yes, there are the external customers, clients, leads, prospects, vendors, patients, and so forth that are traditionally considered part of a “customer-centric” people strategy.
But let’s not forget the internal customers- the sales reps, the customer service reps, the receptionists and others within a business that really provide that front end to a positive customer experience. These are the front line resources a business helps to develop and to support with systems like CRM
The true believers of the broader purposes of CRM realize that intelligently moving through the know, like, trust relationship building process is critical for personal and business success.
How many times do we remember our commitments without a system to help us?
Do you remember the conversations you had with a prospect a month ago or the details of that quote from 6 weeks ago, without having a trusted database system?
Do you remember that her son is playing basketball for the Michigan State Spartans or his wife sits on the board of a local and influential not-for-profit organization?
Additionally when the sales representative is out on vacation or unavailable, can the customer service representative easily turn to their CRM system to get up to speed on the current relationship to quickly build rapport?
Making that external customer feel at home and comfortable quickly is a requirement in our crazy busy world for those businesses that want to excel.
Better Decisions:
Finally we can all use reliable information from our knowledge database system to make those quality executive decisions, faster and easier. The sales manager who can quickly view those opportunities that are stuck can now more intelligently provide support and advice- thus improving the relationship with the sales staff and the development of the relationship between the prospect and sales rep.
Journey and Mindset:
Achieving success with a CRM strategy, system, processes and technology is a journey. The right mindset on what’s important and where to focus can make or break a business.
What is your mindset, and is it holding you back from available opportunities?
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Is your business capable of being head and shoulders above the rest?
Customer Relationship Management is based on developing profitable, win-win relationships with prospective and existing customers. It's about nurturing that business relationship so the customer is retained and continually provided with value from your business's products.
CRM is the framework on which strong customer relationships are built. Personalization is key, but impossible to maintain on a large scale without a system. With CRM, you can keep track of past communications, scheduled commitments, contact names, birthdays, best method of contact, and other details that communicate a sense of community with the people who choose to do business with us.
Today’s customers want more than a generic product or service. They are looking for an experience. If you can make doing business with you a customized, personal experience, worthy of water cooler conversation, you have a customer for life.
CRM also allows for excellent customer service, time and time again. When a customer calls in with a concern, you have a way to note the concern as well as the steps taken to alleviate the problem. Even if the customer calls in repeatedly, anyone who takes the call can become apprised of the situation by checking the notes in the CRM system. You can also track recurring concerns and be proactive in preventing future issues.
The popular author of Permission Marketing and Purple Cow, Seth Godin, encourages a work environment where employees do not have to ask permission but rather can take the initiative to solve problems in their company. With a comprehensive CRM tool, all staff members have the resources and knowledge base to make wise decisions and come up with valuable business solutions. The result is a more effective and efficient sales staff.
To be a leader in today’s business world means more than being lean and mean. It’s about communicating knowledge, experience, and resources to potential customers who are seeking a solution.
A comprehensive CRM tool that both records and disseminates information quickly, allowing you to build relationships with your customers, will put your company head and shoulders above the rest.
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Customer service isn’t just one thing, it’s the whole enchilada. The service experience customers have will either make them glad or mad. Glad means they stay with you. Mad means they not only leave, but they probably tell their friends how rotten you are, too.
Sharon Drew Morgan gives a 'mad' example in "give 'em hell: getting a refund from bad providers". Oh, the power of the social media.
One ingredient is essential to your customers being treated well--employees who feel valued. It’s that simple.
Online clothing and shoe company Zappos was built on a culture of treating people as people. Their customer service is legendary. And why? Because from the beginning Zappos CEO Tony Hsieh made sure the employees knew they were valued.
Tony Schwartz tells the story in his book, The Way We’re Working Isn’t Working: The whole Zappos work environment was tailored to convey this. Hsieh gave them perks like free lunches, ice cream socials, and a life coach to help them through work-related issues. Employees are even empowered to give bonuses to each other for doing something special.
With management encouragement, Zappos employees stay on the phone as long as it takes for the customer to feel good about the outcome of the service issue. Obviously this time is not wasted—the company has grown to the point that Amazon purchased it last year for more than $900 million.
Check out, Zappos Insights, to learn how to create a strong culture where people love to work with service that WOW's your customers.
To transform your own work environment, Schwartz suggests four action steps for leaders:
- Think of a time when a leader or supervisor most inspired you. How would you describe that person? What would it take for that description to fit you? Emulate him or her in specific ways to light fires in those you lead.
- Write notes of appreciation to those you work with or lead. Be specific. Aim for at least one a week. As Schwartz says, “People are energized and inspired by feeling recognized and appreciated.”
- End meetings on a positive note.
- Is there some thorny issue you’ve failed to address? Often avoiding conflict just makes things worse. Make your approach open rather than accusatory, and ask questions as much as possible. Truly listen to other viewpoints before deciding how to resolve things.
In a business, CSR's, or customer service representatives, can access knowledge about their customer's interests quickly from their CRM system. A good system, well-implemented, also conserves your reps time and energy, which they'll definitely appreciate, and frees them to focus on people and creative solutions. Nothing feels quite as good as helping the customer quickly and providing valuable information!
Energy is contagious. Value those who work for you, and they’ll help you spread positive energy to customers like a virus for good. That’s what I call success.
More on Leadership development and organizational development...
As a business professional how can you provide a WOW experience for your customers?
How do you show your staff you value them?
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In its third Buyer Experience Study, IDC surveyed 213 IT buyers and learned that in 2009, sellers lost many deals due to factors that had nothing to do with the economy! Selling Power magazine reports that
the biggest culprit in lost deals is Poor Customer Relationships.
What the study discovered:
Two-thirds (67%) of buyers cite poor relationships as a reason for switching vendors in 2009, but the response jumped to 70% for companies spending more than $1 million on IT. So a larger percentage of reps lost those longer term, bigger purchases because of their inability to sustain a great relationship.
Sellers were not prepared. Buyers thought about their initial meeting with each of these reps and the rep's level of preparation. The responses were as follows:
very prepared = 29 percent
prepared = 17 percent
somewhat prepared = 30 percent
not prepared = 24 percent
This means that 54 percent of salespeople aren't prepared for their initial meetings with prospects. Too many reps come to the table and don't even know what the buyer purchased previously; the buyer has to tell them.
So how do you improve? Here is what buyers have to say:
There is a direct correlation between preparation and customer relationship.
The buyers' number one recommendation to sellers for improving relationships was to ditch the generic pitch. Buyers wanted sellers to engage them in real, substantive conversations about what's going on in their industry and organization at a strategic level.
Buyers' second recommendation for improving buyer/seller relationships was to bring the right people to the table at the right time. Salespeople must understand that they don't have all the right answers, nor are they expected to have them. But they're expected to understand to whom they should reach out in the buyer's organization and at what time.
Buyers' third and fourth recommendations to sellers for improving relationships were for reps to know more about 1) buyers and 2) their own products - not features and benefits, but how they solve broader business issues.
Thanks to Heather Baldwin and the Selling Power magazine report of this IDC buyer study.
Other useful suggestions that clients have relayed to me and I have used as our core beliefs in building a business with a CRM strategy.
Use the power of the Internet and perform searches on the company name, the management team contacts, the competitors, key customers, and their industry. {Make sure your company can also be easily found!}
Use Social Media tools such as LinkedIn to find people to people relationships that can be helpful. Review the companys' LinkedIn recommendations to discover other business relationships. More on success with social media and CRM......
Check for key bloggers that report on the industry with tools like Blogsearch.Google.com.
Use on line tools like Hoovers and First Research to get up to speed fast about company demographics and industry intelligence, respectively.
Check these links for more on the common business issues solved with CRM and the benefits of CRM.
Share with others on ways to build relationships and gain success with CRM. What is a best practice that works for your business?
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You've been reading about CRM. You think that a customized Customer Relationship Management system is for your business. Now what?
Well, there are definitely some things you should NOT do.
1. Buy it and do nothing with it.
A CRM system is an investment that requires an investment of time and creativity. A CRM consultant can help you figure out how to max out your investment and coach you to gain success with CRM.
2. Limit what you do with it.
An Excel spreadsheet can give you a list of your clients and their phone numbers. A CRM system can also keep track of client visits, client information (including birthdays and anniversaries), and social media interaction. It can automate different emails for different levels of client interest. Study your system so you can make the most of it.
3. Enter all your data and leave it.
A CRM system is a fluid system. It can change and grow as your business and your clientele change and grow. It's a fantastic tool, but it doesn't do any good sitting in your PC or on a server.
4. Focus only on the benefits to your company.
After implementation, a CRM system can save time and energy by having all your client information at your fingertips. However, it also benefits your client by being recognized by more than a number. Suddenly, everyone at your company knows what John Doe's preferences and buying habits are. Think Amazon.com.
5. Duplicate your efforts.
If you get the CRM system that fits your company best (you did go through a certified CRM consultant, right?), don't keep the old system also. Once you have put in the time and energy to update your new system, don't try to keep them both up to date. If you invest the time to do it right at first, you will reap the benefits.
6. Be impatient or expect miracles.
A top of the line CRM system is one tool in your marketing tool belt. No CRM system is going to save a business that sells an outdated product or even grow a business that sells a hot product overnight.
7. Shoot in the dark or shoot at everything.
Your business still needs goals and strategy to grow. The better the vision for your company, the better a CRM system will work for you. A CRM strategy is customer-centric.
8. Expect everyone to join the bandwagon immediately.
There will always be resistance to change, especially if it requires more work initially. Implement change in stages, and have at least one person at management level who will lead the charge in a positive manner.
9. Be inconsistent.
Keep at it. Use all your resources. Don't forget your CRM consultant. Re-evaluate your needs on a regular basis, and make changes to customize your CRM system to meet your needs. Personalization will greatly increase user acceptance. Include your business terminology and your business work flow.
10. Dismiss CRM out of hand.
Businesses of all sizes could use some help with efficiency and information management. CRM systems are completely customizable, and are sure to build your relationships with your clients and prospects.
There are core beliefs for Business Success with CRM......
The sum of the knowledge your business has about its prospects, customers, employees, competitors, partners, and other alliances is an appreciating asset. A successful, sustainable business relies on this knowledge and access to this to make smarter, faster decisions.
Additional resources:
Read the list of 18 requirements of Success with CRM, Results gained with CRM, Intangible Results gained with CRM and Tangible Rewards gained.
Stuck on deciding what the next step to take? We are here to help as consultants, implementers and coaches.
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So you have been selling your products and services for awhile now and have been using a CRM system to track communications, schedule meetings and identify the sales opportunities in your pipeline. What do you do with all that information? What are salespeople supposed to learn to get better?
The obvious answer: All of it is "proven and tested" to work, but only if the salesperson is willing, able and motivated to learn.
What works and for how long?
The obvious answer: None of them last. Sales training is like exercise. It has to be ongoing.
"Can you Really Get Better at Selling" is a recent Selling Power blog post by Gerhard Gschwandtner, founder and publisher of Selling Power magazine. (One of my favorite monthly magazines and a helpful web site).
Gerhard states the 5 learning methods for "How can we learn faster so we get ahead of forgetting?" Also, having the ability to quickly get a snapshot of a 360 degree view of the customer profile from your CRM system sure helps.
He states, "The Manager's ignorance is the biggest roadblock to training."
A good salesperson who gets promoted to sales management probably is not the best person in a "Manager" role. Sales leaders are not likely to lead by example when it comes to education.
Sales Management and Leadership Training is not taking place.
Case in point: There are over 5 million sales managers in the US. Less than 2,000 per year attend sales management or sales leadership conferences. Although there are fewer marketing managers than sales managers, every year over 20,000 marketing managers attend marketing conferences to advance their knowledge.
What's the solution to really getting better at selling?
I strongly support Gerhard's recommendation: "If you are a salesperson, don't depend on your company to hand you the key to sales success on a silver platter. Don't expect your sales manager to coach you. If you are lucky enough to work with a good coach, soak up every lesson and apply them on the job. Don't expect too much from a sales meeting, but use the breaks to learn as much as you can from the top performers. Seek out your own teachers."
Your best teachers are:
1. Your own curiosity.
2. Your ability to ask good questions.
3. Your customers. Learn how they think, feel and act. The more you know about your customers, the better you will be able to help them create value.
4. Your willingness to read more. There are over 5,000 books on the subject of selling. Read a book a week, apply a new idea each day and soon you'll be at the head of your team. Study the masters of success like Neil Rackham, Jeff Gitomer, Zig Ziglar, Tom Hopkins, Brian Tracy, Josiane Feigon, Jill Konrath, Barbara Sanfilippo, Tony Alessandra, Jim Cathcart, Harvey Mackay etc. Search for sales titles on Amazon.com. "
Jeff Gitomer, Tony Parinello, Neil Rackham, Jeff Thull, Brian Tracy and Jill Konrath are my favorite authors who get things done with sales training. Find one that fits your prospects and style. Also, the CanDoGo.com web site has topical sales presentions in audio/video format to gain quick ideas and tips.
I strongly recommend you review how you can use the other 6 recommended points of your best teachers. The full "How Can you really get better at Selling" can be found here.
Be yourself because customers can see right through you. Plus, being yourself is a whole lot easier and more productive. Your contacts want authenticity, creativity and above all integrity. They first must get to know you and like you before they will trust you. People will always buy first who you are before they will buy what you sell.
Top sales people have the ability to intuitively understand what works in selling, to constantly improve, and they are avid, life-long learners.
What have you found to be the best teachers to get better at selling?
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As a business person concerned about what your customer is thinking, the feedback you obtain from a survey can provide valuable insights.
Accessing survey results for each contact in your CRM system can help to increase business, obtain more insight into why your customer buys, and close new business faster. In what areas do they consider you excellent, good, average or poor?
In today's economy you need to continually acquire, develop and retain customer relationships. Surveys can help in all of these areas.
Benefits of Surveys
Obtain ideas for new products and services
Find out what products and services your best customers enjoy and which ones have the least favorable rating. Determine if you could supply related items as part of a more complete package or solution. Determine what products need improvements. Which services in your offering need to be enhanced, dropped or maybe created?
Include a survey in your drip marketing campaign to allow your prospect to be directed to a more appropriate follow-up process.
Improve all levels of service
Is your service level improving or falling off? Use a survey to gauge your customers' satisfaction. Are your customers more or less likely to recommend you to friends? Validate what you think your level of customer service is compared to the actual customer's feedback.
Obtain accurate and up-to-date contact information
Send a survey out to your current contacts to validate your existing contact information. I'm sure that over time your contact's phone numbers, email addresses and roles have changed.
Use an 'update contact' survey to give them the ability to stay informed about how you can help them. Maybe it is tips on using your product more effectively. It may be trends that are occurring where you can give them a 'heads-up'.
Engage your prospects and customers
People will want to keep updated if the information is valuable. Use a web survey form to invite them to subscribe to your electronic newsletter, register for an event, and subscribe to your business blog.
Absolutely make sure they will obtain something that will help them solve a problem, achieve an outcome, reduce risk or succeed with an opportunity.
Allow the survey to engage the reader so they feel more like providing honest, valuable feedback.
How to get started:
What is your defined outcome? What kind of feedback responses are you looking for?
Determine the best set of response-type of questions - usually a combination of true/false, multiple choice, ranking and fill-in-the-blank.
Want to provide a better customer experience? Ask them how you can help.
KISS - Keep it Simple S...... Think about the type of surveys that engaged you and you took time to fill out.
Provide an incentive- a free report, a trial download, a white paper about their industry.
Provide the survey as an accessible web form and link it to your web site and email.
Select a survey system that will be integrated with your contact management like ACT! by Sage or SalesLogix customer relationship management system. Often the survey system is part of a large e-marketing integrated system such as Swiftpage.
Analyze the survey responses with a tool that is capable of reporting a summary as well as details of the responses.
Ideally have the responses feed automatically back into your contact management or CRM system. Information that takes additional time to integrate will not be as timely and thus as useful.
Finally, consult with a business person who has experience in electronic marketing and certified in the products they represent.
Surveys are a valuable tool in your marketing and customer experience strategy for building business relationships.
What ideas have you used to survey your prospects and customers?
What questions have you observed to be the most engaging and provide the most valuable insights?
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When I discuss social media with clients, we consider various methods of building relationships with people and the development of a collaborative community of people interested in what they can provide. It brings to mind the similarities found in nature. It has been awhile since I had Plant Biology (college in early 70's) but because I have a strong background in farming and live in the country, I automatically picture plants and roots.
You will start out with a seed. With nourishment, care and some time it can turn into a thriving organism. "Organism" is another name for lots of cells relating to each other in an orderly way.
This analogy can also apply to a business that starts as a seed thought in the mind of an entrepreneur and blooms to a full-fledged profitable business.
Just like organisms, some business relationships have a long 'tap' root that goes deep and supports the relationship through the good and the bad times.
Other relationships seem to have a 'finer' touch and more breadth than depth.
So you see, relationships between people will have different patterns just as in nature.
As time passes, the relationship may become uncared for and "weeds of discontent" may develop. Over 60% of a businesses customers will leave because they don't feel that they are being cared for.
Make sure your business has a customer-centric business philosophy supported by a system for Success with CRM that nurtures and cares for them.
Take a hint from the Natural laws. Develop a strategic plan for building relationships and take the progressive actions in relationship development.
That way, when the time comes, the relationships have developed from Know to Like to Trust.
A blooming relationship whether in nature or in business is something to relish and smile about!
I certainly enjoy Spring and what is to come. How about you? We'd like to hear your comments below......
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To Obtain Success with CRM- consider the following requirements:
For Part I - 18 Requirements for Success with CRM
10. Communicate, Communicate, Communicate 
Keep people informed of the goals, objectives, and progress. People feel better during the management of this big business change if they know what's going on. Communicate the "quick wins" as they occur to fuel enthusiasm.
11. Invest in Training
Training helps to empower end users and helps them become involved. Training should not merely focus on demonstrating how to use the software's features. Instead, training should teach employees how to effectively execute the business process enabled by the CRM system. Give your end-users as much time as needed with the new solution before going live - it makes the transition much easier. Over time, additional reinforcement training will provide even more benefits.
12. Phase-In the Roll-Out
Focus each phase on a specific CRM objective that's designed to produce a "quick win" - that is, meaningful results in a reasonable amount of time. Smaller, more manageable phases can yield more momentum and higher end-user adoption. You're building a holistic approach, using a step-by-step process.
13. Start with and Maintain Quality Customer information
Behavioral data is the lifeblood of CRM. CRM requires accurate customer information, so start by cleaning up any migrated data and duplications. Do this before a roll-out. Make it easier for people to tackle the tough job of data quality, access, and maintenance.
Enhance personalization by identifying the customer's social network links - identify their LinkedIn, Facebook and Twitter handles.
14. Minimize Financial Risks
It's important that executives come to grips with the fact that CRM is not a one-time investment. As more and more users access the system, additional functionality will be found useful and other benefits become evident. CRM is a journey not a destination.
15. Consider Migration Paths
Understand where your company is heading. Make sure the software vendor you've selected can provide the additional functionality you might need in two or three years. Select one that will enable your CRM software to grow as your company grows. Make sure it can be customized for your business and personalized for the desired customer's experience.
16. Plan for Disruptions - Companies Change
Companies change. They make acquisitions or they get acquired, sections are sold off or outsourced, and executives get replaced. When implementing a CRM strategy, management must be ready for these kinds of changes. Refer to #15.
17. Measure, Monitor, and Track 
Once the system goes live, your company must measure, monitor, and track the system's effectiveness, with an eye to continuously improving performance. Changing behavior is a long-term process, so monitor to track progress.
18. Choose a Champion of Change
When you're making a full-suite implementation, start with a single department and let the dominoes fall into place. Choose a department with a manager who's behind the implementation, realizes its benefits, and whose department will also find the most success early on. Nothing jump-starts a CRM implementation more than a manager who always has that can-do attitude. CRM success can be contagious.
Back to Part I - 18 Requirements for Success with CRM
I designed and coded my first customer management system in 1983, later adding in sales force automation and integrating accounting systems. Today's commercial CRM software solutions, such as ACT! by Sage and SalesLogix, now provide the business processes and functionality for multiple business benefits so you can truly achieve faster success with CRM.
Our firm offers CRM readiness analysis and CRM optimization consulting services so you can grow your business faster and have a more integrated, effective system.
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Organizations rarely go it alone when they implement a Customer Relationship Management (CRM) strategy and its supporting technology. That's because it can get overwhelming: business strategies, technology, budgets, operational processes, change management issues, and more.
Good CRM practices and principles apply to companies across many industries. One core tenet of CRM is customer centricity.
Companies must instill a customer-centric focus throughout the organization to make a CRM initiative successful and to get the most "bang for the buck." Essentially, companies must not only focus on cutting costs and improving productivity, they must also enhance the experience of customers across all customer touch points.
To obtain the success you deserve with CRM- consider the following requirements:
1. Get Executive Buy-In 
Management must believe in a new CRM system and lead by using the system themselves. Support throughout all echelons of upper management affirms the company's commitment to the initiative, which will motivate all stakeholders below management. Success will come for a manager who realizes the value of CRM, understands the problems it's going to solve, and dedicates time and energy to making it happen. It's incredibly important to be involved directly.
2. Establish Measurable Business Goals.
Define specific business benefits that you expect the CRM initiative to deliver. Is it to decrease the customer churn rate or decrease the sales cycle time by a specific percent? Is it to increase the win-to-loss ratio of sales opportunities? Maybe it's to decrease the time that a service/support request is unresolved.
3. Let Business Goals Drive Functionality
Will a particular feature help your company better serve customers, improve efficiency in business processes, and lead to results that over-achieve the goals? Convert that big list of 'features' to benefits you hope to obtain by achieving the desired goals.
4. Avoid Automating Chaos
CRM Project leaders need to gain a 360-degree view of their own business first. Which business processes need to be rebuilt or simply need a little touch-up? What derails CRM initiatives very often is the lack of focus on the people and business processes.
Make sure you are not using technology to automate the same old 'cow-path'.
5. Consider All the Stakeholders Affected by the System
Understand what everyone stands to gain or lose. Actively involve end users in the solution design. Solicit and act upon end user input by providing WIIFT--"What's In It For Them." A change to being "customer-centric" from product- or operations-centric involves management of the change process among all users. Make sure the whole team knows what it means to deliver customer value.
6. Align All Departmental Strategies 
Each department, whether customer service, marketing team, or sales force, has its own requirements and goals. They are also, however, all part of an entity that should communicate a consistent message and brand experience across all customer touch points. Make sure all your departments' strategies converge on the customer as you intend.
7. Strategy First, Technology Second
The software is there to enable implementation of a CRM strategy, not the other way around. Reorganizing business process efficiencies and bolstering revenue are good drivers of a CRM strategy. Find out how your company's customer touch points can maximize those ideas, then give customers applications that work with them.
8. First, Use as Much Out-of-Box Functionality as You Can
Then customize for additional needs. By getting up to speed with core functionality you get faster ROI. By learning the CRM's functionality you'll be able to determine if there is a business process that needs changing or if customization is required. Refer to #4.
9. Use Experienced, Expert CRM Consultants
Your business success comes from knowing what you do best. Likewise CRM consultants live and breathe CRM and know what works and what doesn't. Ask the expert when faced with a problem, whether it's customization, functionality, or deployment strategy. CRM-specific knowledge will produce ROI faster.
Click here for part II - # 10 through #18
I designed and coded my first customer management system in 1983, later adding in sales force automation and integrating the accounting system. Today's commercial CRM software solutions, such as ACT! by Sage and SalesLogix, now provide the business processes and functionality for multiple business benefits so you can truly achieve faster success with CRM.
Our firm offers CRM readiness analysis and CRM optimization consulting services so you can grow your business faster and have a more integrated, effective system.
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