As any one who works in sales knows, customer relationship management (CRM) systems have come a long way in recent years. Where once they just provided a place for storing clients’ details, recent technological advances and an injection of intelligent software design mean that now they are often integral components within the sales cycle. Yet, in the present economic climate, when cost cutting is the order of the day at most organisations, can investment in a CRM system be justified?

 

 

CRM systems have advanced in several important ways. Firstly systems from providers such as Sugar CRM, Really Simple Systems (RSS) and Maximizer now all incorporate mobile technologies that allow sales professionals to access and operate their systems while out of the office. This allows them to record and analyse information in a live environment rather than updating information at a later date.

While some users question whether this is little more than a device for micro-management of the already hard-pressed sales executive, Vivek Thomas, Managing Director EMEA for Maximizer, argues that in fact it helps those executives to establish a good work-life balance and to communicate more rapidly and easily with prospects.

The second major development has been with Cloud Connectors. Martin Schneider, Director of Product Marketing at Sugar CRM, offer this explanation of Cloud Connectors: “They are buttons that can link the CRM system with social networking sites like Linked-In or to information providers like Hoovers. This development gives the tools to the sales professional to allow them to be better.”

Thomas at Maximizer agrees, saying: “CRM systems are, and will be, moving more into social networking sites to help add further strings to the sales professional’s bow.”

 

 

These developments may well be impressive, and a CRM system may well provide the sales team with tools that will increase their productivity and add to their sales figures. However, any CRM system is still a significant investment. How can the sales department persuade the Financial Director to loosen the purse strings for this important purchase?

Jason Nash, CRM Product Solutions Marketing Manager at Microsoft comments: “Keeping track of customers, servicing their needs and managing those relationships is critical if service level agreements are to be met, new customers are to won and existing customers are to be retained. This is never more important than in a downturn”.

For his part, Thomas says: “A bird in the hand is worth two in the bush - or five in the bush in this economy. Knowing your customer base is one of the most valuable assets to an organisation and its sales team, especially now.”

John Paterson CEO of RSS adds: “When new enquiries are thin on the ground you need to be sharper and make sure that every lead is followed up”.

Schneider joins the chorus of voices stressing the importance of CRM systems in the current climate. He says: “In uncertain times, where people are unsure of future figures and financials, the CRM system gives consistent and accurate information and data. This makes forecasting easier and this is no longer something which is merely desirable; it is now essential.

Finally, Tim Barker, Senior Director of Product Marketing EMEA at Salesforce.com, sums up the value of a CRM system in the present climate by adding: “In today’s economic climate, it is easy for businesses to get distracted with other issues. As customer behaviour changes rapidly, businesses need the insight to be able to react in real time. That requires greater innovation around managing customer relationships, and CRM systems can provide exactly that.”

 

 

There is a widespread belief that CRM systems are very expensive and require a great deal of technological knowledge to implement and operate. Both are incorrect, and suppliers are working hard to address these two misconceptions.

Sugar CRM has over 3,000 customers and almost 500,000 users, and is best known for delivering open source and on-demand applications which are both relatively low cost and very simple to use. Schneider says: “Open source software promotes more flexibility and control over how the application is installed, customised and used. On demand gives users the ability to use CRM software without having technical expertise.” 

You can in fact download a basic CRM solution from Sugar CRM for free, and they have had over 5.2 million downloads to date. Schneider adds: “When sales managers and directors are buying into CRM systems they are looking to eliminate risk. Our free introductory package gives them a risk-free introduction into the Sugar CRM application.”

RSS is also looking to address the challenge of persuading sales managers and directors that the introduction of a CRM system needn’t be complicated or costly. Paterson says: “We have over 100 clients and 1,000 users, many of which are in the SME market. So, our product is web-based, fully-featured, easy to use and with zero IT overheads. It is simple not simplistic. CRM systems have to be easy and not take long for salesperson to enter data. Sales people are not stupid - they are busy.”

He continues: “CRM has nothing to do with technology, IT or integration; it has everything to do with getting people to use it properly. The problem is that sales professionals are used to carry business cards and contact information in a filofax, and many would like to keep it that way.”

Maximizer’s Thomas talks about user adoption as the most common and the most challenging issue he faces. He explains: “The key to getting a sales team to buy into a CRM is around showing them directly what can be achieved.”

Scheneider backs this up, saying: “The success of a CRM system is dependent on friendly user interfaces. The real win for companies is when every sales professional uses it for several hours a day. This requires a web interface that allows people to live in the CRM system”.

 

 

So, what should you look for in a CRM system? At Microsoft Nash believes that sales managers should be looking for a high level of customisation, ease of installation and use, and the ability to manage vertical applications. Not everyone agrees. Paterson argues that companies should start simple and then add to it.

Thomas comments: ”Anyone can build to a complex request and over promise on delivery. Our salespeople aim to provide a solution that is simple and quick. It should easily integrate with any other system and quickly get information into the hands of the sales management team.”

He believes that Maximizer is the fastest out there for retrieving information, and he claims that that is a large part of the reason why the company has over one million users worldwide.

 

 

Paterson at RSS suggests that a CRM system can give good sales managers insight into their team, and help those who want to be a good sales manager to fulfill their ambition.

Thomas uses Maximizer’s own sales process to show how this can happen in practice: “Maximizer’s own sales team is asked to collect fifteen to eighteen key pieces of information when prospecting clients. This helps to draw a picture of the companies’ needs and to help illustrate buying reasons. This kind of understanding of a company’s own sales process can help drive best practice through the sales team via the CRM system. In short, a CRM system combines the sales processes, the people who work those processes and the CRM software”.

At Sugar CRM Schneider believes that the CRM system is the technology and the tool to help sales managers manage better, to better understand their team and their capabilities. He says: “It can also help to target coaching areas, and give data to help evaluate any problems with the sales process.”

Sadly however, no CRM system can do the work of a sales professional. As Thomas puts it: “Whether or not a salesperson closes more deals depends on the sales professional and the product; a good CRM system will help get them there though.”

 

 

In the present economic situation there needn’t be any major concern over the cost of introducing a CRM system. It should be considered as investment but not just in technology. CRM systems are about training, operational agility, networking, performance management and reporting as well as sales conversion. The real question is not whether you can afford it, but how you can best implement it to help your salespeople become better prepared, better equipped to sell, and perhaps even better at selling.

 

Ben Turner