We used the first installment of CRM Tips to discuss the definition of CRM and the importance of having good clean data as starting point.

Tip number 2 focuses on the reasons for having a CRM system and some of the problems an effective CRM strategy will solve.

Do these questions hit too close to home? Do you have the answers readily available?

  • Are you having problems responding to customer requests?
  • Are you closing enough deals?
  • Having trouble finding customer information quickly?
  • Any issues sharing customer information across the company?
  • Is your pipeline full?
  • Do e-mail campaigns work for you? Do you even have an e-mail campaign?
  • Lost any good customers lately? Who did you lose them to?
  • Can potential customers find you on the web?

Web.com (formerly Interland) conducted a study in 2005 that resulted in 4 key areas that CRM addressed to handle the 4 top Priorities of the SMB Market Segment:

  1. Revenue Growth (increasing sales)
  2. Customer Retention (keeping the customers you have)
  3. Minimize transaction barriers and reduce cost (having an efficient marketing, sales and service process)
  4. Enhance Brand Awareness (Marketing at its best to assist potential customers in finding you when they are searching and keeping your name in front of them)

Four very good reasons to review or implement your company’s CRM Strategy.

Defining CRM- The Right Mix

In understanding CRM there are basically 3 components that determine the success or effectiveness of your strategy. I will also add that the right mix of the 3 will assist in that determination:

The 3 components of CRM are:

  1. People (Customers, Prospects, Employees, Management, Partners) this counts for approximately 50% of the mix
  2. Process (Successful, repeatable processes in your marketing, sales and service strategy) this makes up roughly 30% of the mix
  3. Technology (Do you have the right system tools, can your business grow with system you choose) makes up the rest of the formula, supporting the people and processes that play the critical roles in your CRM initiative

All of the above should addressed and answered in developing your CRM strategy.