Discover CRM Misconceptions That Can Be Avoided
Most professionals, from sales to marketing to finance, recognize that a customer relationship management (CRM) is an important tool for the success of their business. Companies of all sizes continue to invest in CRMs to nurture and communicate with their customers and sales prospects, as well as interface with other platforms.
Today, there are many myths surrounding CRMs. These myths range from misconceptions about functionality to inflated expectations of ROI. Many businesses struggle with implementing a CRM that produces reliable results. To fully reap the benefits of a CRM, you must look past product reputations, and use case stereotypes to cultivate a process and system unique to your company’s needs.
7 Common Misconceptions About CRMs
#1 The Best CRM System Equals the Best Service
As technology evolves, it can be tempting to update your CRM software as well. Even the latest, most expensive CRM can still deliver a clunky user interface or limited functionality. The truth is, it takes an experienced team to run a CRM to optimize and integrate the CRM with other applications.Customers and clients judge your business’s credibility by its ability to promptly answer inquiries and solve problems. Expecting one piece of software to manage all aspects of the customer relationship without significant work from your sales team is not realistic.
The CRM can only be as effective as its users.
#2 One Size Fits All
Every CRM is unique, regardless of the industry. Every vendor has different methods for key management processes like data migration, training, workflows, and support. Finding the provider that fits your company is essential.
Generic CRM solutions can end up costing more time and money than a best-of-breed product solely due to a lack of pre-loaded items in the system.
Not all industries have a specific CRM solution, so this might not be an issue for you, but it’s important to always consider all options as you never know what might fit best for your company.
#3 Onboarding is All You Need
The biggest mistake that comes along with a CRM implementation is the lack of ongoing training.CRMs are powerful and customizable, over time your business use cases evolve and so can your CRM. Therefore, the more detailed and consistent training is, the more prosperous the results will be.
There are also updates and upgrades made to CRMs. If your vendor updates your software, there may be few or many significant changes. Retraining on these changes will save employees time and frustration, which will ultimately save money.
#4 The More Data, the Better
In a rush to understand and meet customer expectations, businesses have captured large volumes of unstructured – and perhaps un-useful – data.
“You can have too much of a good thing,” says Accenture Strategy’s Global Managing Director of Sales, Robert Wollan.
“We recommend a ‘data weight loss’ program that turns the telescope around – starting with the experiences and operations that will drive the most business value and reverse engineer what data the company needs to drive the results. The rest becomes candidates for complexity reduction.”
#5 All Data Must Be Clean
Businesses understand that accurate data is essentially the foundation of success for a CRM process. However, scrubbing a database of inaccuracies without clear goals can lead to an inefficient use of time and resources.
Kate Leggett, VP and Principal Analyst at Forrester Research says, “The problem is that data quality initiatives are difficult to undertake if they are not tied to a real CRM project with quantifiable benefits.”
“Best practices start with building a business case which focuses on the impact poor quality data has on critical business and customer-facing processes as opposed to just focusing on the data itself.”
For example, your operations team could spend time removing duplicate names, but those efforts would be wasted if the records are outdated or included in campaigns that are a high priority. Instead, Leggett recommends experts defining the following:
- Business processes, decisions, and customer interactions that are most important to their organization
- Data is used to support those processes
- Systems and processes are used to capture and update customer/prospect data
- Assign a score to measure the data’s accuracy and prospect engagement
#6 A Custom Solution Is a Good Idea
The idea of a CRM being tailored to your every need is certainly appealing.
Part of researching a CRM is that the evaluation process that highlights key points in your research.
The 3 What’s:
- What are your business needs?
- What business divisions are you supporting?
- What systems are you keeping and need to integrate?
The value can be seen immediately when implementing a CRM that aligns correctly with your business needs.
When you build your own, the opportunities to build key features can be missed. Support and training are directly impacted, especially if a someone with a major role within the administration of the CRM leaves the company.
#7 Little to No ROI
Return on investment is always the main factor when making any business decision. The bottom line is affected by all processes, decisions, and methods put in place.If all your company seeks is contact management, ideally you would go with a contact management solution rather than a CRM. On the other hand, if your company handles detailed marketing, sales, and customer service, a CRM would be most beneficial.
ROI can easily be tracked based on reporting. CRM reports can detail actions by users, times, and frequency. Whether it is increasing sales, improving customer satisfaction, or increasing leads, the ROI will be reflected in the reporting.
A substantial portion of successful business relies on business management process. Adapting and implementing an appropriately fitting CRM can not only help your business run more smoothly, and also increase your ROI.
Implementing the right CRM system for your business can completely transform your process.
With many myths regarding functionality and experiences, it can be discouraging when looking for a customer relationship management tool. Luckily, the JumpSales team is here to debunk and answer all your CRM and business management questions.
Contact us today or more information on how to take your marketing and sales strategies to the next level, and to learn which techniques are right for your specific business.