Is CRM Worth It for a Small Business?

Small businesses may find themselves inundated with information on the latest and greatest in customer relationship management (CRM) software, which may be confusing and overwhelming. It is common to hear each seller brag about the countless features and perks that distinguish them from the competition. As a result, deciding which CRM system is the best fit for your company becomes increasingly complex. Until now, your company may have been content using a combination of Outlook and Excel to meet the majority of its basic CRM requirements, which, in all honesty, would have been more than sufficient to get started. Alternatively, you may be considering expanding your existing customer base by recruiting a distributed sales staff, or you may be considering introducing a new product line to complement your current offering. When looking into a crystal ball for your company’s future, you may be concerned that the current systems in place will not be able to cope with the influx of new consumers if the company’s growth trajectory is extrapolated. Similar to a ship entering uncharted waters to reach a location, you want to make sure that you have the correct crew, procedures, and equipment in place before embarking on a voyage across unfamiliar waters to reach your objective safely. The purpose of this post is to attempt to answer a few questions. Do I require a customer relationship management system (CRM)? What exactly should I be looking for? Is it worthwhile for a small firm to invest the time and money?

The term customer relationship management (CRM) was first used in the high-end enterprise sector. The advantages of a customer relationship management system, on the other hand, are tangible in industries of all sizes. The principle is straightforward, and it is defined in every marketing textbook. Although technology tools have evolved through time, the fundamental concept of a customer relationship management system (CRM) has remained the same. The other day, an entrepreneur presented his business model to me, saying, “Customers will buy from you because of the experience you provide them; make the experience as delightful as possible and they will keep coming back.” The main function of a customer relationship management system is to manage the customer experience across all touch points.

The foundations of implementing a customer relationship management system are the same regardless of company size. Examine your company’s internal operations and overall business plan before selecting a CRM vendor or even evaluating whether or not a CRM is even appropriate for your company’s needs. Take an inside-out approach and conduct a reality check on where your company is now, where you want it to go, and how you want to get there, before you begin. When designing a plan, take into consideration your industry, competitors, client segments, and the overall economic situation during this process. Your self-image may be extremely different from the way your potential clients perceive you, which you may come to realize. Following a solid grasp of your company strategy, your marketing strategy will be dictated by that understanding going forward. You must establish what your marketing objectives are at this point: is it to expand into new markets? Specifically, is it to move you up or down on the consumer perceptional map? Is it to boost the number of repeat customers? Once you have carefully reviewed all of your strategic possibilities and decided on which one to pursue, you should detail the specific tactical stages, milestones, and measures that will be taken to attain the overall goal you have set for yourself. The capabilities you will require from a customer relationship management system will organically emerge from this rigorous approach and bubble to the top of the pile. These are the functional characteristics that serve as the foundation for deciding which CRM vendor to chose while shortlisting potential candidates.

Doing this analysis is important because it will help to make the CRM selection and adoption process as smooth as possible for everyone involved. Consider it akin to the process of building a house. If you provide an architect with a detailed description of how you want your home to look, the end result will be significantly better. Despite the fact that you may not be aware of every descriptive element beforehand, and that the fixtures may vary throughout the process, the fundamentals remain the same. Quality of input you can supply up front will have an impact on the final result you will obtain at the conclusion of the process. When it comes to software adoption, the procedure is the same. When you contract with a software vendor, you will disclose to the vendor what you know and what you require, and then an experienced vendor will probe for as much information below the surface as possible through a systematic discovery process. That all sides participate in this information gathering exercise before reaching an agreement on a solution is in the best interests of all parties involved.

Keep in mind that no piece of software will ever be the silver bullet that solves all of your problems. When you have the wrong sales reps, no CRM will help them sell more; nothing will make your support reps more proactive if there are no incentives in place to motivate them; and it is impossible to eliminate customer churn if your product or processes are fundamentally flawed in the first place, no matter how sophisticated your CRM system is. All of this change must come from within and be motivated by your overarching strategic goal. It is vital to remember that, based on past experience, the majority of CRM or software failures have little to do with the technology itself and more to do with the challenges that humans have. It will be possible to prevent this dangerous fate if the main stakeholders and end-users are allowed to participate in the planning and selecting processes. The greater the involvement of stakeholders in the definition and refinement of criteria, the more efficient the selection process will be, and the greater the degree to which your people will finally take ownership of the solution, says the author. It is critical to remember that a CRM, if chosen for the proper reasons, will serve as a support fabric and will aid in the facilitation of tactical initiatives to achieve your overall strategic objectives.

When selecting a provider, software should not be the only factor to consider. When it comes to software, you must be certain that you choose a vendor who will not only give you with the software but will also work with you throughout the lifecycle of your firm, as described in this article. Businesses are similar to species in that they evolve with time. Market conditions shift, industries shift, and competitors enter and exit the scene. Therefore, you must ensure that your software and vendor have the flexibility to adapt your procedures incrementally as your business evolves. If you don’t, you’ll be forced to rely on antiquated methods that will diminish the value of what you deliver to the market.

Investing in a customer relationship management (CRM) solution is a significant decision for a small organization. Make an informed judgment when selecting a CRM application because the price of switching if you make the wrong choice might be extremely expensive. As soon as you have completed a thorough strategic analysis in order to determine your company’s direction, make sure you find a vendor who not only meets all of your functional requirements, but also one whom you can trust, one who goes out of their way to understand your business, and one whom you believe will be a long-term strategic partner. To return to the ship example, when sailing uncharted waters, make sure you have the correct personnel on board, decide where you want to go as a group, put in place the proper procedures, and then choose the appropriate equipment for the voyage. The CRM system should be involved in the final stages of this process. This process should not be rushed, as it will result in your investment becoming worthless, but careful preparation and analysis will help to ensure that aligning the correct CRM system with your entire strategy will be worthwhile for many years.