1. ProspectSoft CRM Plan for CRM Success SPECIAL REPORT PLAN FOR CRM SUCCESS... ...AND SELECT THE RIGHT CRM SOLUTION TO GROW YOUR BUSINESS. Part 4 of the ProspectSoft Growing Business Series

2. CRM bringing itall together. 3. ProspectSoft CRM Part 4 Growing Business SeriesFrom the EditorDear ReaderWelcome to Part 4 of the ProspectSoft Growing Business series, how to Planfor CRM Success and Select the Right CRM Solution to Grow Your Business.This report follows on from Part 3: Locking Your Customers In For Life, whichwas well received by over 5000 customers.In Part 1 of the series we concentrated on Boosting Lead Generation, whereasPart 2 was focussed on Managing the Sales Process. In Part 3 we talked about CustomerRetention, and in Part 4 we focus on making the right Customer Relationship Management(CRM) choices to best support your growth strategy.In our experience any successful project is underpinned by thorough planning, so naturallythe first part of the report is all about Planning for CRM Success. In this section you willlearn about traditional and contemporary methods of CRM planning. Our emphasis here isto empower you with advanced procedures of CRM Planning which relate to your particularbusiness strategy. This core section of the report is the result of years of experience inconsultative selling and CRM implementations.This is followed by more specific advice on CRM selection, with guidance on five areas youwill need to focus on to make sure you choose the right system for your needs.This report is all about getting the most from your CRM system, and to do this CRM needs tobe underpinned by strong strategies for lead generation, effective sales conversion, and anoutstanding customer experience. If you would like more information on how to apply thesegrowth strategies to your business, you may benefit from reading our other Special Reports,which are available at www.prospectsoft.com/specialreportsWhatever your chosen growth strategy, read on to find out how to ensure successfulselection and implementation of CRM in your business.David HunterReport EditorProspectSoft Ltd Copyright (C) 2007, ProspectSoft Ltd. All rights reserved. 4. ProspectSoft CRM Part 4 Growing Business Series Contents Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 Planning for CRM Success . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8CRM and your business strategy . . . . . . . . . . . . . . . . . . . . . . . . . . 9 Evaluating your options . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13Improving staff efficiency with CRM . . . . . . . . . . . . . . . . . . . . . . . 14CRM selection . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 What next . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 184 5. Planning for CRM Successand how to make sure you getthe results you want. 5 6. ProspectSoft CRM Part 4 Growing Business Series Introduction How to select a CRM solution... and how to make sure you get the results you want. Too many failed CRM Projects...There are clearly some poor software packageson the market, but in reality most businesses How many times have we heard about faileddont actually buy poor software, they just buy CRM projects? How many times in fact havethe wrong software, perhaps for the wrong we heard about failed, over-budget or under- reasons, or are simply implementing their performing IT Projects? Plenty I am sure!systems inadequately. Even worse... many But for every failure there are tens or even businesses are selecting the wrong software, for hundreds of successful projects whetherthe wrong reasons and then implementing it we are talking CRM or anything else. poorly too! Inevitably this is a result of both poor So, as a potential CRM buyer or user, what is it customer awareness and poor advice from that differentiates success from failure and how a vendor or reseller. can we ensure that our CRM project delivers real, tangible business success?CRM Made Easy What goes wrong? So, what can you do to ensure you implementthe right CRM for your business and avoid The reality is that very few companies actuallybecoming just another statistic? This guide is select poor software. Most software on the based on over 10 years experience in selling, market is pretty good at what it is intended toimplementing and maintaining successful CRM do the real question is whether the buyer is Software. In the following pages, we reveal selecting the right tools for the right job. what we have found to be the best practice forselecting and implementing successful CRM, The most likely causes of dissatisfaction with aand take the first step to unlocking the potential CRM purchase are:lifetime value of your CRM investment. 1. Choosing perfectly good software (perfectlygood, that is, for someone elses business) butone that is wrong for your business. 2. Setting your sights too low looking only attactical issues and failing to see CRM as astrategic tool to deliver business advantage. 3. Failing to plan, implement and use newsystems effectively and simply not beingin a position to take advantage of what hasbeen purchased. 6 7. You only need to search the internet to see how many CRM solutions have failed even at large companies with huge resources. The reality is that SMEs can ill-afford such IT failures they need success first time round.Andrew ArdronProspectSoft Managing DirectorTypically, survey results say thatanywhere from 60% to 80% ofCRM projects fail within their first12 Months.www.crmblogger.com 7 8. ProspectSoft CRM Part 4 Growing Business Series Planning for CRM success Of course, planning your CRM project is vitally important, but thinking about planning the right way will go a long way to helping your project be successful. The wrong way... The wrong way is to start writing out a list of actions and processes that need to be supported, defining what you do and how you do it, perhaps even listing what you do within your current system and where it needs to be better. Despite the fact that this seems a very logical plan, it is perhaps the worst plan you could come up with perhaps worse than no planning at all. Why? The problem with this classic approach (taken by many companies all over the world) is that it typically results in: 1. Automation for automations2. An over-budget and expensivesake - simply automating the currentimplementation - defining the manual processes, without askingprocesses in detail before making a whether automation is actually going to tentative CRM software selection usually help this particular activity or taking fullleads to trying to use the software in a advantage of how the technology could different way to which it was designed. improve and alter those processes, andThis results in a complex and heavily consequently generating very little inbespoked solution which rapidly becomes the way of real efficiency gains. overly expensive and even difficult to use. If you have unlimited budgets and time go ahead! 3. An inflexible system that4. One step forward, two stepsslowly falls into disuse - by back. Most critically, you will being too specific up front, you risk implement a system that keeps you implementing a system that is where you are, or if you are lucky inflexible and unable to evolve moves you forward a small step. You with your business over the years could even take a few steps backwards. to come.Rather than providing a medium for growth and change, you will put a shackle around your corporate neck and hold yourselves back. 8 9. CRM and Your Business StrategyThe right way... So whats our CRM Strategy?The right way is to forget about the detail for aYou may already have a good business strategy and knowwhile (dont worry we will come back to it later) andwhat needs to change in the next two years to grow andconcentrate on the bigger picture... The really importantimprove your business. In which case you can skip thisquestion is what are you trying to achieve? Why are yousection. However, if you are like most SMEs - run a goodlooking to spend so much money and expend so muchbusiness; make a good profit; but rely (at least partially)effort? You must have a good reason! Dont you? After allon lady luck for strategy and improvement - then now isyou are thinking of committing your business to expensea good time to make some more concrete plans aboutin both time and money along with the frustrations thatwhich areas of your business you would like to impactgo with any changes in practice! Or, maybe you are surewith a CRM solution.there is a good reason, you just cant say what it is? The first step is to open your mind and unleash yourImplementing a CRM system is not going to be easy andimagination. What do you want your business to lookeven after it is working, you will go on spending time,like? If you are after growth, how much and how areeffort and money tweaking it and adjusting it as youryou going to achieve it? If you are after stability, whatmarket and customers change, and as you continuallychanges in your business will be required to get there?evolve the customer-facing side of your business. For example, if you are after 50% growth over the next 3Most importantly, you need to realise that implementing years then how will this be achieved? If it was as simplea CRM system will NOT improve or grow your business. In as installing a bit of software and automating a fewthe same way that a hammer on its own will not nail two processes then everyone would be able to do it! We allpieces of wood together; you need to wield the hammer, know that any Venture Capitalist investing in a businesshold it the right way round, take aim and add some effort looks at the management team and the business planto swing it. Similarly, in order for your CRM system to long before they worry about the business systemsimprove your business, you need to see it purely as a tool why? Because without a plan for change and the willto be used the right way, aimed at a target and wielded to implement it, the systems alone will achieve nothingfor maximum impact. CRM is a tool, not a strategy. than perpetuating the status quo.If you havent already thought about it, or you are in a hurry, then there are a few readymade strategies that CRM is generally well-equipped for. The diagram below shows the keystrategies that any business could deploy for growth: Simple but Successful Business Growth Strategies1. More Marketing Enquiries in3. Customer Retension 5. Referrals 2. ImprovedConversion4. Customer ValueEnquiries Interest OrderSuccess:Prot Generated 9 10. ProspectSoft CRM Part 4 Growing Business Series So CRM could help grow your business through:1. Generating more enquiries2. Improving the conversion - this will inevitably increase the numberratios and value - ensure that more of customers gained and consequently theof the enquiries that you get turn into profit in almost any business. Even without customers increase your value per sale increasing your sales capacity, it will and simultaneously reduce your cost per allow the sales team to go after the best order. opportunities, acquiring more and higher value customers.3. Improving customer retention - 4. Increasing the value of each whatever your current rate of gaining new customer - with greater up-selling and customers, retaining each customer forcross-selling of your products and services, longer will ensure that lost customers do or simply increasing the frequency of not detract from this success. On a rolling purchase will grow your business. You can basis, the average customer base will bedramatically improve profit - even without higher, resulting in more sales opportunity.gaining any new customers.5. Finally, leveraging your customers as a sales and Of course, you could choose to tackle more marketing force - can generate than one, or even all of them. Although, referrals, recommendations,be warned - biting off more than you can testimonials and references. This canchew, especially with software, can lead become a strategy on its own or a greatto an inevitable consequence of achieving way to increase the success of any ofvery little in any area. the other four strategies.10 11. Efcient processes are crucial for any business, but they wont spell success unless efciency is considered secondary to the result. A successful business needs to consider whats important before considering whats efcient. Peter Thompson, one of the UKs leading authors and strategists on business and personal growth. The devil in the detail...Try answering these questions: Having selected a high level strategy, we now need to spend some time and effort deciding on what activities1. What do you want your businessand changes to our business practice are going to deliver to look like in 3-5 years time? on these strategies and how CRM might help with these Whats different? activities. We cant simply say Make it so! and expect more leads or a better close-rate to magically appear. However, in our experience, working out what we need2. What level of growth are youto do differently is not hard... and most business owners looking for? 10%? 30%? 50?and managers have plenty of ideas on what could be 200%? done better. Often the remedy is simply sending more mailers, better customer profiling, better customer3. How many leads does yourintelligence, better proposal documents, more regular business receive per month? and timely chasing up of proposals, up-sell product matrices etc. and you can be certain that CRM (if well How many would you like?implemented) can help with all of these.4. How good are you at convertingSo we wont dwell on the detail of each strategy here enquiries to business? Are some every business will be different and you will, I am sales people better than others?sure, have plenty ideas. If you would however, like some Why are they? inspiration and ideas for each of these strategies, you can download Special Reports on each of these growth strategies from: www.prospectsoft.com/specialreports5. How long do you keep your average customer for? How much is each customer worth per annum? What impact would keeping each one, one year longer make?6. How could you raise the average customer lifetime value by 10%? Identify up-sell and cross-sell opportunities? Identify and target customers who stop buying or buy less?7. How could you actively target your customer base for more references, referrals and recommendations? 11 12. ProspectSoft CRM Part 4 Growing Business SeriesReports that say that something hasnt happened arealways interesting to me, because as we know, thereare known knowns; there are things we know weknow. We also know there are known unknowns; thatis to say we know there are some things we do notknow. But there are also unknown unknowns - theones we dont know we dont know.Donald Rumsfeld, former US Secretary of Defence (on the importance of accurate reporting there are plenty of business managers who know just how he feels!) We have our strategy, so lets select a CRM system to support it... well not quite yet! Unfortunately, knowing what we want to achieve, and even having a plan as to how to get there isnt the whole story. Almost every business I have ever met has at some time or another (if not constantly) had one or more good ideas on how they could improve their business. I know that I am always thinking up things that we could do better! But, time and again, these businesses then fail to implement their great ideas. The question is why? And how can you make sure your ideas get off the starting blocks? 12 13. Evaluating Your OptionsSo, why do most businesses Strong, fast and accuratefail to implement their good reportingideas and strategies?Quite simply, while trying to expand, change or just improve our business, as business owners and managers,Well the answer as always is obvious. Implementing any we need to ensure that the organisation doesnt losesort of change takes time, energy and focus if not a focus on whats important. We need everyone to keeplittle money. Everyone comes up with good ideas, but the doing whatevers required to keep the existing businessonly companies that can make them stick and become running smoothly and profitably. Instead of having totruly successful are those that create the space to make spend all day worrying about the business, we needthose ideas become a reality.strong, fast and accurate reporting on day-to-day activities. Ideally we would be able to spend just 10Creating the space for change requires minutes every day, or every week looking at key businesstwo slightly different but related steps:metrics and key activity reports that gives us confidence that our business is going to generate the desired results this month, next month and some way into the future.Creating the space for changeOnce we have this information, accurately and succinctly presented on a regular basis, we can shift our focusrequires two slightly differentfrom worrying about what the business is doing today,but related steps: onto what we want to do differently tomorrow; from chasing everyone to do their jobs, on to communication,1. Free up the Directors and/ormentoring and strategy. Managers from worrying aboutSo how does this need to report on and mange the the business you already have business impact our CRM system selection? at least for some of the time inGenerally speaking, if you select appropriate software order that they can spend part of that allows you to record the right level of detail, their time and focus on planning, the reporting capabilities will be quite good. The real communicating and driving the challenge of course is to know what reports are needed, and to ensure that the system selected will be flexible changes that you need.enough for these reporting requirements to further evolve over time. So before or during your selection2. Make the staff who do the workprocess you will have to answer the vital question more efficient in order that they which business metrics are important for measuring can spend time supporting the day-to-day business activities and progress towards our change through their activities strategic plan? and behaviour. It takes longer to do things differently, people may need training or mentoring and they will certainly need to think about what they are doing before the new strategy becomes second nature.13 14. ProspectSoft CRM Part 4 Growing Business Series Improving staff efficiency with CRM Once our managers and directors areIn any business today, there isnt normally a lot of slack tomake these things happen, so creating this time through ready to roll out their growth strategies, making what we do more efficient is an essential step in someone has to be ready to take on allowing our growth strategy to take effect. these new or improved activities andFortunately, process and staff efficiency is where most processes. That means they have to beCRM systems excel. You can gain vast efficiency savings able to spend time in training, thinking by automating some of the little tasks that your staff about what they are doing, making thecurrently perform many times each day. Every CRMsystem is different and will offer different efficiency effort to act differently and perhapssavings, but if you work closely with your vendor, taking on new activities.it should become apparent where these savingscan be made.14 15. Efciency is doing thingsright; Effectiveness isdoing the right things.Peter Drucker Legendary Management Consultant So, if efficiency is easy to deliver withCurious FactsCRM, why is efficiency the last itemFrom a recent series of studies focusing onon our list? Because while CRMorganizations that are currently measuring systems do it really well, it is actuallyand monitoring business activities and the least important!processes, one survey asked participants to Despite the fact that most companies setting out onprovide their top three business reasons for a CRM project start with this fine detail of processesdoing so.and efficiency, this is a very short sighted and deluded approach and will deliver very limited results. In theOut of 713 respondents, improvingworst cases, it will simply transfer your processes to aefficiency and managing or reducing costscomputer and make your organisation a slave to theranked highest, followed by increasing system.focus on revenue opportunities. Retailand professional services were the onlySure, every business needs efficiency gains. But in realityindustries placing a higher priority onyou will gain some efficiency from almost any system you choose.increasing focus on revenue opportunitiesthan improving efficiency and managing orYou should, before making your final decision expectreducing costs.your chosen vendor to demonstrate efficiency gains (we guarantee they will be able to). However you should notOrganizations cannot afford to emphasize put this first on your list.efficiency and managing costs at theexpense of other priorities, such as As a final tip you should also not try to pre-determineresponding to competitors or aligningwhat these efficiency gains might be. Until you haveindividual actions. Balancing these priorities made your initial selection you will have little or nois the way to ensure success.prior knowledge of how the system is designed to work or what efficiency gains the system offers. Your bestwww.intelligententerprise.comapproach is to leave efficiency to the end of your process and ask your vendor (who knows the system best) to demonstrate the areas in which the system will make your business more efficient. 15 16. ProspectSoft CRM Part 4 Growing Business Series CRM selection Having considered our overall strategic aim and how we might get there, plus how we can ensure our management and staff can give the strategy their focus and attention, we are finally ready to select our CRM system. Use the checklist below and your chances of getting real results from your CRM project will be greatly improved:1. Do not begin with a list of required2. Decide what changes you needfeatures, have a clear business strategy for to make in order to implement yourchange and look for a CRM system to help strategy; then look for a CRM systemyou drive it forward.that will underpin each of these activities (i.e. view the system as a tool to support your strategy not a strategy in itself).3. Decide what reporting you need to 4. Ensure that the final CRM system youhelp better manage your business and freeselect will bring some increased efficiencyup director and senior management time.but dont start worrying too early on what those efficiencies might be, at least not until you have an initial selection, have seen the software in action and have an idea how it will work for you.5. Finally, make your vendor work hardfor you dont let them take the easyoption of just trying to impress you witha flashy demo use their experience andexpertise to refine your strategy, helpyou build your plan, define your reportingneeds and identify potential efficiencysavings. After all, they have done it plentyof times before and challenging them tohelp early on will give you confidence thatthey can deliver as the project progresses. 16 17. CRM is a business strategy to improve customer retention,acquire new customers and enhance your relationship withexisting ones, to increase customer life time value. CRM isnot just about customers, it is a complete business practicewhich adds value to different organisational functions.To guarantee success, a scalable, agile and customisableCRM solution is essential.Asif Malik, Prospectsoft Marketing Manager Good Initial Requirement Examples Increase customers 11% p.a. through more effective marketing Raise average quotation value by 15% through offering up-sell combinations Increase quotation close rate by ensuring that all quotes are followed up quickly Reduce customer attrition by improving customer service responsiveness and tracking Poor Initial Requirement Examples Quotation outputs need to be Excel format... Customer records need fields for... Pie chart report of x against y in date range... In defining the detail of how you want the system to work, you can overly restrict the solution and fail to benefit from different ways in which CRM systems can help you. 17 18. ProspectSoft CRM Part 4 Growing Business Series What next?ProspectSoft is widelyrecognised in the CRMand mobile solutionsmarket with highappreciation fromprominent customers.Florian Piroth, Intel Software Enabling Team Talk to UsAbout ProspectSoft If you would like to find out more about ProspectSoft ProspectSoft Ltd is the Number One supplier of CRM CRM and how we can help you define and implementsystems for growing businesses. With a genuine focus a great CRM project, then we would love to help you on business needs, ProspectSoft is committed to helping start off on the right foot. We wont just turn up andbusinesses to succeed, develop and grow. Based in start trying to impress you with great CRM features; we the UK and supported by a national and international promise that we and our partners will spend the timenetwork of committed resellers, we are here to help, necessary to help you establish what your company wherever you are, and whatever your business needs. needs, and then see if we can genuinely help you www.prospectsoft.com achieve your goals and ambitions. To book a consultation, please visit www.prospectsoft.com/consultation. Alternatively, if you are not sure if CRM is right for you, or how it might be able to help you grow your business, then why not download one of our Business Growth Special Reports from www.prospectsoft.com/ specialreports or book a place on one of our many Workshops and online events via www.prospectsoft. com/events. About CRM ProspectSoft is the No. 1 supplier of CRM for Growing Businesses! Customer Relationship Management (CRM) is the ultimate tool for attracting, developing and most importantly retaining customers. Find out more about ProspectSoft CRM and how we can help you grow your business online at: Copyright 2007, ProspectSoft Ltd. All rights reserved. www.prospectsoft.com or call us onProspectSoft and the ProspectSoft logo, are trademarks of ProspectSoft Reproduction of this publication in any Tel: +44 (0)1494 486 301form without prior written permission is forbidden. 18 19. Turnover is up by nearly 50% over the last year and this is in no small part due to the extra management control that Prospectsoft CRM gives us.Andrew Watson, General manager Bathing Solutions Ltd 19 20. P105-074ProspectSoft is the No.1 supplierof CRM for Growing Businesses!Customer Relationship Management (CRM) is theultimate tool for attracting, developing and mostimportantly retaining customers.Find out more about ProspectSoft CRM and howwe can help you to grow your business online at:www.prospectsoft.com or call us onTel: +44 (0) 1494 486 301.Copyright (C) 2007, ProspectSoft Ltd. All rights reserved.ProspectSoft and the ProspectSoft logo, are trademarks of ProspectSoft.Reproduction of this publication in any form without a prior written permission is forbidden.