There are a number of software packages available that can help you manage this data and analyse it in different ways, with the aim of benefiting your business. The software can keep track of all the contact your business has with each individual customer, whether by phone, email or face-to-face. CRM is essentially a database for recording interactions with customers and potential clients; the theory being that the more information you have on customers and leads, the more you can improve customer service and market new products and services to clients.
Technically, CRM comprises a database at the back-end, and a user interface at the front-end. Typically, there is also some sort of middleware in between the two. Middleware is software that links applications and components, such as web servers or content management systems.
Pros and cons
CRM has a number of benefits, from tracking all of your customer interactions to analysing customer habits so you can predict future trends. It can also bring additional benefits such as making your work processes more efficient, and informing the design of marketing strategies.
Like any software application, however, there are some downsides to CRM:
- Return on investment: It can be difficult to measure the return on the investment (ROI). Businesses should have an idea of what they expect the system to do for their business, as it will make it easier to measure the success of the investment.
- Disruption: Installing the system can be disruptive for a time, particularly if it involves implementing new infrastructure to support it.
- Proper use: Getting employees to use the system correctly can also present issues. Ensure that all staff are properly trained in how to use the new system, or else your perfectly planned investment may go to waste.
- Costs: There are costs involved in implementing most CRM systems, for elements such as infrastructure investment and maintenance fees. However, alternative options such as CRM-on-demand (see below) may eliminate some, although not all, of these costs.
Making a choice
Before selecting a CRM package from the many on offer, there are a number of considerations to take into account:
- Functionality: Will the new system fulfil all the tasks your company requires? Will it handle the information that you need it to and produce the reports required?
- Usability: Is it an intuitive, easy-to-use system? Can it be integrated with back-end systems without too much difficulty?
- Scalability: Your business may be small now, but that is not necessarily how it will stay. Can the system grow with your business? And how much will it cost to expand it?
Software packages
There are plenty of companies offering CRM software, including Microsoft, Salesforce.com, Siebel (now part of Oracle), SAP, Sage and PeopleSoft, to name but a few.
For basic CRM packages, businesses could opt to use Microsoft Office Small Business Edition's business contact manager. However, the firm has also developed Dynamics CRM for its 2007 Microsoft Office system and Windows Vista. The new Dynamics CRM package opens users up to CRM capabilities through Microsoft Office Outlook, Internet Explorer and a broad range of mobile devices, and it uses Vista Gadgets to put Microsoft Dynamics CRM activities, analytics and alerts directly onto the desktop or home page.
Other major players, including PeopleSoft and Sage, have begun targeting smaller firms, in an effort to offer them the same tools their larger competitors are already using.
Meanwhile, Salesforce.com has teamed up with Google to offer Salesforce.com Group Edition featuring Google AdWords. This new offering combines Salesforce.com's on-demand CRM application with the Google AdWords platform, integrating sales and marketing. The application allows users to manage and keep track of their search engine marketing campaigns with Google Adwords from within the Salesforce platform.
On-demand options
CRM on-demand might well be a more attractive option for firms who don't want to invest in a full-scale solution that may require quite a bit of capital outlay. The on-demand model uses the concept of 'software as a service' as a foundation and can provide a flexible solution for businesses who find themselves in need of CRM. It can be lower cost to implement and more scalable than other solutions.
Typically, on-demand CRM applications are web-based and use a browser interface, which means they can be accessed regardless of the user's location. As broadband technologies become more advanced, the growth of the on-demand model seems inevitable, and some of the big players, such as SAP and Siebel, are already getting in on the act.
Regardless of which option or supplier you choose, the key advice is to ensure that your CRM model is aligned with your business goals, rather than driven by the technology itself. Keeping your business aims in mind is crucial for the system's successful integration into the business - and vital if you want to see a return on your investment.
Useful links: