There is no question that the SMB market space has
become a key battleground for customer relationship management
suppliers. With a wealth of software offerings available from such
heavy hitters as Sage, Salesforce.com, Microsoft and Siebel, there
is no shortage of options or marketing dollars to convey the speed
and simplicity of the path to CRM success.
The vision is undoubtedly an appealing one. CRM technology
allows companies to automate customer-facing activities such as
sales, marketing and service within a single database, and in so
doing produces such desirable outputs as enhanced customer
knowledge and service, more effective marketing, increased sales
and more immediate and comprehensive management reporting.
For those who get it right, CRM technology provides a
high-return route to sustained competitive advantage - an
attractive proposition in a world where product and service
differentiation is becoming harder and more transient.
However, for many the results have been less than compelling.
Unlike many of their larger counterparts, SMBs have generally
managed to get their systems up and running but have struggled with
data quality issues and inconsistent usage. The reality, in
general, has fallen well short of the expectation.
At the heart of the problem is a tendency for buyers and sellers
to focus almost exclusively on the single dimension of the
technology itself. The prevailing philosophy has been that success
is largely a function of picking the right software. Choose well
and you can sit back and enjoy the spoils.
Although product selection is undoubtedly important, it is
probably not as important as two other dimensions that have
historically received less attention. First, that the system will
need to be set up in a way that enhances the operation of the
business and second, that staff will need to use the system in a
consistent and structured manner.
Neither area is as simple as it sounds. The introduction of an
enabling technology such as CRM means that existing business
processes will need to be adapted and new processes introduced to
capitalise on the new capabilities. This re-modelling of the
operation of the business itself can demand high levels of
executive involvement and brings a whole new set of skills into the
implementation which traditional CRM suppliers may not be
structured to provide.
Equally, user adoption cannot be taken for granted and it is
here that many projects have foundered. Effective systems rely on
consistent comprehensive data entry and CRM is no exception. It
does not take non-compliance by many to invalidate the outputs for
all. The fact that the technology is being introduced into areas of
the business that have not been systemised and have an inbuilt
tendency towards individualism makes this a not insubstantial
challenge.
A greater appreciation of the inherent complexities involved in
extracting value from CRM should foster an increasing emphasis on
planning. Careful preparation prior to initiating a project will go
a long way towards minimising risks and maximising the rewards.
Particular attention should be given to defining business
objectives and the deliverables by which success can be measured. A
detailed analysis of the business requirements and their relative
priorities should be undertaken before technology selection to
minimise the potential of a mismatch between your needs and the
capabilities of the technology.
Specific strategies should be in place to address adoption
issues and thorough consideration given to the internal and
external resources necessary to reach your destination. As in air
travel, it is wise to know in advance that you have enough fuel in
the tank to complete the journey.
Richard Boardman is founder and managing director of
independent consultancy Mareeba CRM Consulting