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James W. Osborne II, CNA, MCP, MCSA, IT Manager

Is There A Better Way?

Picture if you will, a world of shared knowledge…a world where the information contained in each employee's head is available to your entire work force. Imagine a world where the accounting department is aware of the special rate your sales rep promised to your best client, and the shipping department knows that your hot prospect will be at their vacation home next week, and sends the product mockups there automatically. Imagine the boost in sales, improved morale, and better client service this would bring. Welcome to the CRM Zone.

Ok, pardon my cheesy homage to a classic TV series. We all know this isn't yet possible. What is in one person's head all too often stays there, unless she tells her co-workers. Each of your employees has vital bits of information known only to him/her. But Customer Relationship Management (CRM) can change that.

CRM is the combination of policies, processes, strategies, and software put in place by an organization to unify its customer interaction. It is a mechanism for tracking and recording all the individual bits of information contained in various employees' heads. CRM combines these bits of data into a comprehensive view of each customer, supplier, referral source, etc., in real time. In short, it is a pool of shared knowledge – a single source of information about each of your relationships. It should go without saying, in this day and age, information is an extremely valuable asset.

Along with many of the other alphabet soup acronyms that have popped up in modern business parlance, CRM is a 'new' application of an older concept, with a fancy new name. In this case, it is the application of new technology to an existing concept: maintaining quality relationships with your customers. CRM was initially viewed by many as merely a software application. While software is usually a key component of an effective CRM system, it is just a tool to be used to further a purpose. CRM is not so much a technology as a methodology. To make a difference, any software application that is put in place must be accompanied by a comprehensive, focused philosophy fully embraced by the entire organization.

With an effective CRM system, every customer interaction is recorded and this data can be easily accessed. Generally, utilizing CRM can improve customer service, increase profitability, increase productivity, and even tie in with succession planning.

CRM improves customer service. The entire history of interaction with each customer, as well as notes (such as the customer recently had a child, or has special packaging requirements, etc.) is readily accessible to all – whether it is the receptionist, an administrative assistant, a sales representative, etc.

CRM can increase profitability. A satisfied customer is generally a loyal, profitable customer. A loyal customer is often an evangelist for the company. Most business experts will tout statistics that it is cheaper and easier to maintain a customer than it is to develop a new customer. With happy customers, it's possible to accomplish both.

CRM increases productivity. Employees' jobs are easier. Rather than having to ‘reinvent the wheel' every time a special order is placed, they have access to the entire order history. Marketing is more effective when a targeted campaign is undertaken. How is the target audience determined? By understanding customer relationships.

CRM can also aid in succession planning, an important consideration for any company. When vital information is not shared, it can be lost. If the main customer contact leaves the company, retires or dies, that information and relationship could be in jeopardy.

However, successful incorporation of CRM into your organization is not guaranteed. As stated earlier, CRM is more a methodology that a product or software. Purchasing CRM software or developing procedures only gets management so far. The methodology must be embraced by the entire team or its effectiveness will be minimized. If utilized sporadically, the value of the data collected is in doubt. Is the note about a customer's temporary fax number still applicable? Do they still want these special shipping options? Is this person even still with the company? Without some assurances that the data is current and accurate, it will not be trusted, and the benefit is lost. Make sure everyone involved is "on board" before proceeding.

CRM, if utilized properly, provides employees with the information and processes necessary to better know their customers, and to better understand their customers' needs. It can allow the company to work smarter in fulfilling those customers' needs, and can increase customer loyalty while improving productivity. CRM should help to build and maintain the relationship between the company and its customer base.

If you are interested in learning more about CRM and how it may help your organization reap the benefits mentioned above, register for our upcoming seminar on October 23rd (see Upcoming Seminars).

Contact James at James_Osborne@mnccpa.com.