The problem lies in the fact that most businesses view CRM software as some sort of turn-key “out of the box solution” like an appliance that you plug-in the wall.  It’s not.  CRM is complicated and requires proper training and customization to address unique business requirements.  Part of the problem also comes from a failed CRM selection process whereby management has not taken the time to outline their business requirements.  As a result, they often select a solution based on popularity and price only to find out later that they made the wrong decision.

Small to mid-size businesses looking for help with the CRM selection process will find substantial value in the attached white paper, available from the link below.

Don’t Make a CRM Buying Mistake – 7 Points to Consider

Image “We Deliver” owned by Chris (cc)

By Dave Kahle

In my first professional sales position, I spent six full weeks in sales training before I was released to go out into my territory.  Sales training was defined as memorizing two five-page, single-spaced sales presentations, presenting them to the sales training class, critiquing the video-taped playback of the presentation, and then doing it all again – for six weeks! At the end of those six weeks, every one of us could give those two presentations masterfully.

While the use of prewritten, memorized sales presentations still continues today, it’s only rarely used in the business-to-business selling environment.  It may be that today’s frantic pace of new product development makes the time it takes to memorize a sales presentation seem less valuable.  Or it may be that today’s salesperson is more sophisticated and able to adjust the sales presentation to the needs of each individual customer.

While memorized presentations may be a vestige of years gone by, that in no way reduces the need to make a well designed, practiced sales presentation. The ability to routinely make powerful, persuasive sales presentations, regardless of the customer or product, is one of the practices of the best.

The world is full of salespeople who take a casual attitude toward a sales presentation.  Some think that they know the product so well that their superior product knowledge will ooze out during the presentation, impressing the customer into buying.  Others do not put in the necessary preparation and practice time, and, in an attempt to cover their lack of confidence, focus on those parts of the presentation with which they feel most comfortable.  Still others feel that their ability to improvise will eventually lead them to a persuasive presentation.

The truth is that there is no shortcut to a persuasive presentation.  It begins with studying the customer as well as the product or service.  It takes preparation to decide which of the customer’s issues to address, and which specific features of your offer to emphasize.  It takes time to organize the facts and features into a cohesive presentation.  It takes time to build in interactive elements, and to gather the right samples and documents.  And it takes time to practice (yes, practice) the presentation before you actually make it.  A persuasive presentation begins with methodical preparation.

Maybe that’s why so few salespeople give this aspect of their job the attention that it deserves.  And maybe that’s why routinely making powerful and persuasive presentations is a practice of the very best.

To learn more about this practice, review these resources: The CD, How to Make Powerful and Persuasive Presentations, or the Video version: Persuasive Presentations, Part 1 & 2.

If you are a member of The Sales Resource Center™, consider The One Month ‘Persuasive Presentations’ Course, or The Six Month ‘Consultative Selling’ Course.

About the Author:

Dave Kahle is one of the world’s leading sales educators. He’s written nine books, presented in 47 states and seven countries, and has helped enrich tens of thousands of sales people and transform hundreds of sales organizations.  Sign up for his free weekly Ezine, and visit his blog.  For a limited time, receive $547 of free bonuses with the purchase of his latest book, How to Sell Anything to Anyone Anytime.

Copyright MMXI by Dave Kahle
All Rights Reserved.

[Image "Day 32: Yahoo BT sales exercise" by Kerry Vaughan on Flickr under Creative Commons license]

By Dave Kahle

Q. What do I do when my goals don’t match the company’s goals for me?

A.  I can look at this is in two ways – expressing two different situations.  In the first, there is a legitimate difference in the expectations for a sales person, but a basic agreement on the issues on which to be focused, as well as the values of the organization.  In the second, there is a deeper and more significant difference of opinion.

A little reality check

Let’s consider each separately.  In the first scenario, the sales person and the company differ on the degree of what is possible.  The sales person expects a 10% increase, while the company thinks 15% is reasonable.  Both agree that sales growth is reasonable, but the amount of growth is the issue.  What do you, the sales person, do in this case?

Persuade and negotiate.  Try to convince your boss that your perspective is more accurate than his/hers.  Don’t just assert that, be convincing.  Back up your beliefs with substance.  Describe specific situations and accounts, and explain why you think about them the way you do.  Prove your point.

At some point in this process, there is going to be a resolution.  There will be a quota or a goal.  Whether it is your idea of what it should be, or your manager’s version, or some compromise, it doesn’t matter.  At that point, when the issue is resolved and the number is set, your job is to give all of your best efforts to doing what your company wants you to do.

You are, after all, an employee of the company.  Your job is to do what your company wants you to do.  That’s what they pay you for.

Sometimes sales people can get a little too convinced of their own importance.  I succumbed to that temptation more than once when I was selling full time.  We think that we really are in business for ourselves, that we own our customers, and that we know what is best for the company and the customer.  So, therefore, we become agitated and upset when the company asks for a 15% increase and we think 5% is reasonable.  We are tempted to go off mumbling under our breath about the screwy management, and we decide we are going to do what we want to do instead.

A little reality check is in order under these circumstances.  If you worked in the warehouse, would you be able to decide what you wanted to do today?  If you were a customer service rep, would you get to determine how best to spend your day, and which parts of your job you’d really do?  If you were in the purchasing department, if you didn’t like the company’s direction, would you have the freedom to ignore it?

So what makes you think you are so special?  Answer — nothing.  Let’s put the freedom that we enjoy and the money that we make in perspective.  We are, when all is said and done, employees of the company.  And, I believe, we have a moral obligation to give our best efforts to that company for as long as we accept a paycheck.

Sometimes the price is high

Which brings us to the second situation.  You have some major difference of opinion in not only the degree of what is expected, but a deep-seated difference of opinion in the basic issues themselves.  I’m not talking about issues like you think you need to focus on your current customers and your company wants you to sell new customers.  Those are relatively superficial issues that fit into the previous discussion.

Instead, I’m talking about differences in fundamental values and ethics.  Here’s an example from my own experience.  I once worked for a company that introduced a new product, and developed a quota for each of us to sell that product.  The problem was, the product never worked.  It didn’t do what the company said it was going to do.  We, the sales people, knew it, and the company knew it.  Yet, they still wanted us to sell it.  We were given quotas and strongly directed to go out and get orders at all costs.  They directed us to, in effect, lie to our customers.

I left the company shortly thereafter.

The issue wasn’t “Do I sell 100 or 130 of these?”  That’s an issue of degree.  Instead, the issue was, “Do I lie to my customers?”  That’s an ethical issue.

If it’s an ethical issue, then I think you have only one choice.  Find another job.  Life is too short to spend it violating your ethics and compromising your integrity.

That sounds simple, and it rarely is that black and white.  It almost never happens that your manager sends you an email that says, “From this day forward you will lie to your customers.”  Instead, it is more likely that a pattern emerges over a period of time.  One incident is generally not representative of a character flaw.  But, when you see a pattern of cutting ethical corners, of disdain for integrity, of fuzzy moral boundaries, then you can conclude that those are expressions of a corporate character flaw.

In my situation, the “lie to your customers” direction was not the first indication of a lack of moral compatibility between me and the company.  It was, however, the final one for me – the most recent and blatant of a string of incidents that made me feel uncomfortable with myself for being a part of it.

Also, sometimes the price is high.  The position I left was the most fun, most challenging, best paying job I ever had.  It was 15 years before I made the kind of money again that I made in that job.  Believe me, leaving that job for ethical reasons was a difficult decision.

Money is just money.  It comes and it goes.  People, and sales people particularly, who will do anything for money, who evidence no compulsion and no moral boundaries, are sad characters.  They have succumbed to the most superficial of temptations and displayed themselves to all those around them as people with little integrity.  They are unfortunate examples to their families, friends, and all who know them.

You only have to read the newspapers over the last year or so to see multiple examples of the damage that greed, un-tempered by morality, can do.  The real damage, though, is not the highly visible corporate crooks that we read about every day.  The real tragedy is all the less visible managers and sales people who we don’t read about – those business people who share the same “money at all costs” attitude – whose legacy is not as public, but none-the-less still damaging.

I would hope that you would not be one of those.  That you would have the strength of character to disassociate yourself from a situation that comprised your integrity.

So, when it becomes an issue of morality, I think it’s time to leave.

Good luck.  Sell well.

P.S. I expect that my comments may generate some responses.  Feel free to email a comment to me.

********************************************************************************************

You may want to dig deeper into the issues uncovered in this article.  I’d recommend the book, “Take Your Performance Up-a-Notch.”

If you are a member of The Sales Resource Center ™  consider reviewing these lessons:  Pod-21: “Goal-Setting,” or  Pod-34: “Ethics for the Professional Sales Person.”

Image “tired and dirty” owned by Rennett Stowe (cc)
Image “Sour Lemon” owned by Alan Maddox (cc)

About the Author:

Dave Kahle is one of the world’s leadng sales educators. He’s written nine books, presented in 47 states and seven countries, and has helped enrich tens of thousands of sales people and transform hundreds of sales organizations.  Sign up for his free weekly Ezine, and visit his blog.  For a limited time, receive $547 of free bonuses with the purchase of his latest book, How to Sell Anything to Anyone Anytime.

Copyright MMXI by Dave Kahle

All Rights Reserved.

By Dave Kahle

Q. How do I ensure that I get the last look in a competitive bid situation?

A.  This is a question that I’m often asked.  In a lot of industries, particularly those involved in construction, government purchases and large-volume manufacturing, most of the customers require an official bid.  It’s not unusual for these to be highly formal and structured.

Here’s a typical scenario.  The customer sends a bid to five suppliers, and each responds with a written document by a certain specified date.  The customer reviews the bids, and awards the business.

The writer of the question wants the ability to go in after the bids have been submitted, to look at the competitive bids or at least the lowest bid prices, and to change his/her prices in order to be awarded the business.

First, it should be noted that in some instances, the “last look” is illegal.  In many cases, it’s viewed as unethical.  In other industries and situations, it’s viewed as business-as-usual.  This question and answer is only relevant to the latter situation.

I have responses for this on several different levels.

1.  Avoiding a bid situation to begin with.

2.  Making a last look unnecessary.

3.  When all else fails, insuring that you get a last look.

Let’s think about each one separately.

1.  Avoiding a bid situation to begin with.

OK, I know that bids are standard operating procedures in your business.  But, I also know that a lot of business is “negotiated.”  In other words, the customer selects the vendor he/she wants to work with, and then negotiates the best deal with that customer.

I’d much rather you get yourself into a negotiating rather than a bid situation.  That way,  you’d avoid the bid scenario altogether.

And, while it is true that you’ll never convince 100% of your customers to negotiate with you rather than send out bids, if you are successful over the next few years in moving 20 – 30% of your customers to negotiating status, you’ll see a tremendous improvement in your sales.

How do you earn that position?  Two ways:  First, build powerful business relationships, be a reliable supplier, and offer a special relationship – “negotiating” – with all your good customers.

In other words, bring the subject up regularly, plant the seed in your customer’s brain, tell stories about how you were able to work effectively with others – how they cut costs, paperwork and time out of the cycle by working with you.

If you are good, and persistent, you’ll eventually convert a significant chunk of your customers.

The second way to operate effectively in this situation is to become more deeply involved in the customer’s buying process and influence the creation of the specifications in such a way so as you are the only one who can meet those specifications.  The bid then, becomes superfluous.

Some of you who have been in my programs have heard me tell the story of how I did the most profitable transaction of my life in an account whose policy it was to bid everything to five vendors.

2.  Making a last look unnecessary.

“…if you have some aspect of your product, service or offer that sets you apart from the competitors… then the customer should be happy to do business with you even if you are not the absolute lowest price.”

The whole concept of a “last look” implies that the reason the customer would do business with you is that you are the lowest price of the group of bidders.  While there is a time and place to be the low price, I’d like for you to question whether or not this is how you’d like the customer to think of you.  If you have done a good job in the past for the supplier, if you have become the low-risk supplier, if you have understood the customer’s situation at a deeper level than your competitors, if you have some aspect of your product, service or offer that sets you apart from the competitors, if you have communicated those things in a persuasive way, then the customer should be happy to do business with you even if you are not the absolute lowest price.

In other words, if you have done a good job of selling, then a couple percentage points in the price should have no impact on the deal.

So, rather than try to be the low price, I’d prefer that you do a deeper, better job of selling this account so that you don’t have to be the lowest price. And that means that you have created powerful, trusting relationships with the key people, that you have understood the dynamics of their situation at a deeper and more detailed level than any of your competitors, and that you have fashioned a unique proposal that meets their deeper needs.

When you do that, you don’t need to worry about the last look.

3.  Insuring that you get a last look.

While everything I said above is fine, the reality is that there will still be some situations where you won’t be able to implement those strategies, and are reduced to one option – be the low bidder.

Some of your customers negotiate the business with you, and the last look is, of course, not an issue with them.  Some of them will buy from you because of the good job of selling you did, and the last look, with them, is not an issue.

But you will still probably be left with those who are going to bid and award the business primarily on the basis of price.  It’s that group for which you’d like to have the last look.

How do you do that?  By achieving excellence in the basics:  building powerful, positive business relationships with those key contacts, by understanding their needs in deeper and more detailed ways than any of your competitors, by doing everything you can to assure that your company is highly respected by the customer, and finally, by asking for the opportunity.

What you are really asking for is the preference of the customer.  In other words, where the customer sees no difference between you and the other guy in your offer, he still prefers doing business with you.  This scenario assumes that there is no difference between you and your competitor, and there is no reason for the customer to pay a little more to do business with you.  Your only hope is that the customer will prefer to do business with you, providing you are the lowest price.

Ask yourself why the customer would prefer you.  Create a detailed answer. Then set about becoming the supplier with which your customer would want to do business.  And, continually ask for the opportunity to have a last look.

Remember that getting the last look is the last, least desirable strategy to pursue. While there will always be times and situations where it is your last resort, those times and situations should be minimal.

If these ideas resonate with you, you may want to dig deeper into the concepts expressed above.  Consider the CD’s, “Conquering the Number One Buying Obstacle: Reducing the Risk.” or “Sales Practices to Increase Margins.”

If you are a member of The Sales Resource Center ™, review Cluster CL-1: “Preventing the Price Objection,” and CL-11: “Price Pressures”.  Take the lessons in Pod-16: “Successfully Selling in a Price Sensitive Market,” and Pod-18: “How to Sell Value, Not Price.”

Image owned by Amanda G (cc)

About the Author:

Dave Kahle is one of the world’s leadng sales educators. He’s written nine books, presented in 47 states and seven countries, and has helped enrich tens of thousands of sales people and transform hundreds of sales organizations.  Sign up for his free weekly Ezine, and visit his blog.  For a limited time, receive $547 of free bonuses with the purchase of his latest book, How to Sell Anything to Anyone Anytime.

Copyright MMXI by Dave Kahle

All Rights Reserved.

One Central Database of All Customer Information

First is data consolidation. This enables you to capture, track, manage and share vital customer information with the people and departments that require it to efficiently do their jobs.  Previously known as contact management, this functionality is traditionally found in even the most basic CRM systems and is fine for those companies simply looking to get away from managing their business using an Excel spreadsheet.  But what if you need more?

Drive More Business and Close More deals

The next core functionality requirement most businesses have is how to get the telephone to ring more. Most businesses need more leads and may not have a structured sales process in place to ensure that both new leads and the sales cycle are properly managed to closure.  While lower cost CRM systems offer some basic sales management and reporting, you need to consider a mid-market offering that offers the work flow processes for creating marketing campaigns that generate new leads, qualifying or scoring the leads and automating the entire sales process.

Improve Your Customer’s Buying Experience

Lastly, providing world class customer service may be the difference between earning new and recurring business and losing to your competition.  More robust CRM systems offer a customer support application that provides service representatives with access to a complete customer profile. This enables them to react immediately to customer inquiries or complaints. Higher end CRM systems may also include a customer portal that allows the customer to check the status of their order or service ticket or edit their profile right within the CRM system.  This new self-service component provides customers with a better buying experience and gives your business a leg up on the competition.

Choosing a CRM Vendor

So now that you are thinking about your specific business challenges it’s time to start short listing some CRM vendors.  Most CRM companies target a specific market based on the functionality they offer.  The most basic low cost contact management solutions tend to sell to small office or small home businesses, while mid-market CRM providers focus on companies that have greater business requirements.  Enterprise CRM solutions offer scalable platforms that can support hundreds and even thousands of employees and as such tend to focus on this market segment.  So the question you need to ask is where do you fit?

Next, I would take a look at the CRM vendor’s track record. How long have they been in business? How many customers do they have that are similar to your business and what level of customer support do they provide?

While there are dozens of CRM software providers in the industry, one of the most popular CRM systems that appeals to mid-size and small enterprises is Commence CRM.  Commence has been providing CRM software solutions to this segment for more than twenty years and has been rated one of the best CRM software programs based on its robust functionality and attractive price points. Commence CRM is a web based CRM solution that provides online real time access to data from anywhere in the world.  What is also appealing about Commence CRM is that it may be deployed as a cloud based CRM program or implemented on premise.  Commence is ideal for mid-size companies that need a robust online CRM solution at an affordable price point.  For more information about Commence CRM software, visit the company’s web site at Commence.com.

Customers Offered Big Discounts on Top Rated CRM Software

TINTON FALLS, N.J. (March 01, 2011) – Commence Corporation, a leading provider of Customer Relationship Management software (CRM), is offering new customers big discounts on their world class online CRM software during the month of March.  “March is the company’s fiscal year end and we are looking to sign up as many new customers as possible” says Larry Caretsky, president of Commence Corporation.  “In order to achieve this we are offering substantial incentives to earn their business. We appreciate that customers have a lot of options to choose from, but Commence is a top rated CRM solution from a company with a twenty-three year track record of performance.  The incentives we are offering should make the selection of Commence an easy decision over competitive offerings.”

“We are taking a page out of the college basketball March Madness program says Tom Gibson, a senior account manager with Commence.  In week one, the first (64) companies to sign up will get the first incentive, in week two, (32) companies will receive a different offer, in week three, (16) and so on until the final week.  Each week the offers will be posted on the company’s web site in the CRM pricing section.  This is an exciting program that will provide exceptional value to new customers continued Gibson.  I am confident a large number of them will take advantage of it.  It’s a “win-win”; great for the customers and good for Commence Corporation”.

About Commence Corporation:

Founded in 1988, Commence develops and delivers a diverse suite of award winning CRM software that integrates people, processes and technology.  Commence CRM is used by several thousand businesses to streamline the front office business processes that directly impact sales execution and customer service.  As a result, Commence clients increase workforce productivity, generate positive customer interactions and reduce operational cost.  For additional information visit www.commence.com or call 1-877- 266-6362.

Media Contact:

Nicole Reed
info@commence.com

As a leading CRM software provider I can appreciate the competitive nature of the industry and how hungry for business all CRM vendors are.  But I continue to see something on many of the CRM vendor’s sites that I find disturbing, and that is the “Buy Now” button.  The reason I feel this way and you should too, is because CRM software is not a toy or an electronic gadget that you buy over the Internet with a credit card, and if you think it is, you’re dead wrong.

CRM is a business strategy and a commitment to streamlining the internal business processes that impact how you market, sell and provide service to your customers.  CRM software programs that address these key business requirements need to be carefully reviewed and will require you to engage the vendor before, during and after the sale in order to maximize the value you will realize from their CRM solution.  High quality CRM solution providers like Commence Corporation complement their CRM software with a set of best practices for sales management and sales execution.  This provides value added services to the customer while differentiating Commence from other CRM solution providers.

CRM vendors whose business model relies on the “Buy Now” button have made it perfectly clear that they either have no interest in understanding your business requirements or perhaps do not have the resources to engage you in direct conversation.  Either way this is not the type of CRM vendor I would recommend doing business with and may be the main reason so many businesses that have gone this route are not satisfied with the CRM solution they selected.

I do appreciate that the majority of these CRM solution providers offer a very low cost  product and because of this they simply cannot afford to offer any type of service that requires human intervention.  But let me ask you this:  Who wins here? you or the vendor?  The “Buy Now” button only works for companies that are buying a CRM solution based solely on price.  These companies traditionally have not done an appropriate job of documenting their requirements and as such they don’t fully understand what the CRM system will provide for them.  As a result, they believe all CRM systems are alike and therefore use price as their main selection criteria.

Here is my point.  If you are serious about addressing specific business requirements and improving the operations of your business you’ll need to take the time to properly document your business requirements and challenge the vendors you are interested in to demonstrate their ability to meet those requirements.  Top rated CRM solution providers like Commence CRM will gladly accept this challenge and provide the advice and counsel to help you make an informed decision.   Many other CRM vendors will suggest you click the “Buy Now” button.

About the author: Larry Caretsky is president of Commence Corporation and the author of several white papers on the subject of CRM, including 7 Points to Consider Before Selecting your CRM system, Getting Back to Basics and Best Practices for Sales Execution and Management.  These papers are available on the Commence web site at www.commence.com.

Commence Corporation is one of these companies.  Commence has a rich history and has been providing on-premise CRM software to small enterprises and mid-size companies for more than two decades. In fact, Commence was the original developer of IBM Current, a desktop contact manager, and SuperSELL, IBM’s sales force automation offering. As such, Commence is no stranger to the CRM sector.  A few years ago the company expanded its product line by migrating its award winning desktop CRM software to the cloud.  Commence is one of the only companies that offers its customers the “freedom of choice” to deploy the software via the cloud or on premise.

Why Commence Makes Sense

One of the key CRM selection criteria that are driving customers to Commence CRM is that the company does not force you into a “pre-defined” box. Salesforce.com forces customers like you to select a specific product edition that locks you into a set of pre-defined features or limits the number of users you may have based on the price you paid. In fact, Commence does not have any restrictions of any kind.  The product is modular in design which means you can select the functionality you require today and add additional modules or users at any time without incurring a substantial price increase, just because you switched to a different “pre-defined” box or edition, or added additional people.

If you took a survey of companies that have selected CRM software, you will discover that many of them fell into the feature trap, where they ended up paying for more functionality than they end up using. This is because the vendor has forced them into buying a product edition with pre-set functionality as mentioned above.  This just doesn’t make sense.  To make matters worse, the majority of these companies are utilizing functionality that is standard in most quality CRM solutions like Commence, such as account and contact management, activity management, sales management, lead management, and Outlook and email integration.  Add those that also use it for marketing campaigns or mobile access and you have covered the lion share of the market.  Commence offers all of the above along with a help desk or customer support module, a document library, a project management application and integration with accounting systems like QuickBooks.

The point is this:  Trusted CRM providers like Commence have leveled the playing field and can provide similar functionality to products like Salesforce.com at a fraction of the cost.  If you’re an organization that requires a lot of users, the cost savings with Commence can be substantial.  If you are considering a CRM solution, take a few moments to evaluate Commence CRM. To learn more about Commence visit the company’s web site at www.commence.com or ask for a free CRM trial and experience Commence CRM for yourself.

Why are so many people disappointed with their CRM system?  Nigel Park, Managing Director of TPS Consulting believes he has the answer.  “Customers are simply not experts in selecting CRM software.  I often find that they have not properly documented their critical requirements list.  As a result, these firms have tendency to shop solely on price because they perceive that all CRM offerings are the same. They find out later that there are limitations they were unaware of.  Another reason customers may be hesitant about making a decision is because the vendor’s free trial offering does not enable the customer to truly ensure that the software meets their requirements.  The free trials often consists of a vanilla out of the box program that is not tailored for the customer’s business so while free, they have limited value.  Unique work flow capabilities may not be incorporated in the trial versions and other key components such as e-mail integration that traditionally involve some assistance from the vendor cannot be properly tested.  And because it’s just a trial, customers are unable to take advantage of the vendor’s expertise in helping them to realize the maximum value from their software.  I don’t blame the vendors says Park, because they cannot afford to address questions, tailor the software, integrate e-mail, and provide support services for a free trial, but if I am a customer I want to ensure that the software will work as advertised,”  he concluded.

Commence Corporation has introduced a unique solution to this problem by offering customers a 90 day pilot program that includes the company’s award winning CRM software coupled with a set of best practices that ensure that the customer attains immediate value from the solution.  “We appreciate that customers may be apprehensive about making a CRM decision and may not fully understand the value they can realize from our software, said Larry Caretsky, president of Commence Corporation.  We want to mitigate the risk for them by providing them with an opportunity to utilize our software and provide the professional expertise to solve their business requirements.  Our professional services staff will implement the software, assist the customer with the customization they require, integrate their e-mail, Outlook, calendar, mobile devices, and even provide training.”

View the full press release.

The days of thinking you could manage all of your customers using a paper filing system are long gone, and in most cases you have far too many clients to even begin tracking in this archaic fashion. Today there are numerous choices when it comes to finding the right CRM software for your business.  For the past few decades the most common solution was desktop based contact management software that was installed on your internal PCs and server.   These programs did a good job of tracking basic customer information, but were limited in functionality and scalability.  Many were also proprietary solutions that required updates each year in order to take advantage of new features or remain compatible with desktop operating systems.  Customers that did not upgrade their software often found themselves in a very difficult and costly position as conversion to current versions of the software were expensive and simply not as easy as they had anticipated.

As with many other platforms, customer relationship management software has begun the move from internal servers to the cloud.  This migration to cloud based computing offers several benefits and customers who have switched to an online CRM service are realizing a higher degree of value than they did with previous platforms. Perhaps the biggest benefit is simply the ability to access data anytime and from anywhere via an internet connection.   In the past, employees using desktop CRM software often found themselves tethered to their desktop computer with access only to e-mail via their cell phone while away from the office.

The newer hosted CRM services have implemented mobile platform support for use with the latest smart phone or handheld devices. This makes it possible for your staff to access information on the go, providing sales people with the opportunity to immediately follow-up on new inquiries while your support team delights your customers with rapid customer service.   Hosted CRM services also provide you with product updates and enhancements that are fully implemented for you and ensure that you remain current with the latest technology advances.  This has proven to be an arduous task for IT managers maintaining in-house environments where the updates must be installed on in-house servers and desktop PCs.

Some company IT executives continue to debate the issue of desktop or on premise CRM software vs. online CRM claiming security concerns and runaway costs for hosted services each year, but industry reports indicate that web based CRM solutions are growing at a pace of more than double that of desktop software offerings. Companies are also finding that security concerns have been addressed and that due to the competitive landscape, online or web CRM offerings are now more affordable than ever.  This makes the case for hosted CRM quite compelling.

If you are looking for a cost efficient way to improve sales execution and customer service and provide your staff with anytime, anywhere access to vital customer data using a PC, Apple Mac, or Mobile device, you should strongly consider an online CRM solution hosted by a reputable company.  If this sounds like the winning formula for you, consider Commence CRM from Commence Corporation. The company has a twenty year track record for delivering comprehensive CRM software applications and high quality customer service.

I think people have grown tired of the term CRM and often look at CRM software packages as nothing more than a commodity.  Perhaps this is why price has become such an important decision criteria.  Heck, if they are all the same, why not buy the least expensive offering.  This makes perfect sense.  But making decisions based solely on price is significantly impacting the CRM sector.

Industry analysts continue to document that more than 70% of CRM systems fail to get properly implemented or utilized.  This concern was once blamed on systems that were simply too hard to implement and too hard to use. The Internet and the introduction of web based CRM software was supposed to change all of that, but it hasn’t.  The rate of failed implementations continues to be one of the highest in the software industry.  So why does this continue to be such a problem with CRM software?  Let’s dig a little deeper and find out why.

Customer Relationship Management software is designed to help you organize customer data, build brand recognition, impact sales execution and improve the customers’ buying experience, but CRM software is not a toy or something you purchase over the Internet with your credit card.  Yet many small to mid-size companies believe it is and accept the promise of more leads, increased sales and improved customer service for just a few dollars a month.  There is no implementation fee because the program is web based and no need for training because the product is so easy to use.  And don’t worry about your data we even manage and maintain it for the same low price.

The whole story can be quite convincing, but it’s just not true and has led to frustration and failed expectations.

The successful implementation and utilization of CRM software requires a level of expertise that small to mid-size businesses often do not have.  Those that recognize this engage the services of the CRM vendor or an experienced third party for assistance and the results are encouraging. But not all CRM providers offer this level of service.  The low cost providers do not have experienced sales, marketing or customer service people on their staff to assist you with the implementation or the proper utilization of their software. Customer service consists of nothing more than sending in an e-mail with your inquiry and hoping for a quality and timely response.  Is this the partnership you’re looking for?  This however is exactly what separates a quality CRM provider from the others and may very well determine the level of success or failure your business will realize with Customer Relationship Management software.

So when I say is price killing the CRM industry, this is what I mean.  The CRM sector is one of the most competitive in the software industry with hundreds of offerings and vendors that will do anything to earn your business, but it an industry chock full of promises and short on deliverables. While I stated earlier that more than 70% percent of CRM solutions fail to get properly implemented or utilized, industry reports also point out that more than 20% of companies that selected CRM software did not renew their annual contract.  I suspect this is because they failed to realize a return on their investment.

Don’t fall into the trap of selecting a CRM solution based solely on price. If you fully expect to improve how you market, sell and provide service to your customers you need to invest in a quality solution and a quality business partner.  If you don’t, chances are you’ll become part of the statistic for failed implementations.  For more information about selecting the right CRM solution see my white paper, “Don’t Make a CRM Buying Mistake”  at www.commence.com.

About the author: Larry Caretsky is the president of Commence Corporation, a leading provider of CRM software for small and mid-size businesses. Caretsky is considered an expert in Customer Relationship Management and has written numerous white papers on the subject. They may be accessed via the company’s web site at www.commence.com.

It seems like manufacturers of Customer Relationship Management software are doing almost anything these days to add new subscribers.   Some are offering free utilization for the first few months, others money back guarantees and a few are even offering utilization of their software as a monthly service with no contract at all.  Price points are all over the map and they have consistently changed to attract new customers.  It’s gotten so crazy that if you need a CRM system right away some vendors will allow you to enter your credit card and for a few bucks you’ll be up and running in minutes.  In some cases the service is even free.  But wait a minute.  Is this a business solution that is going to address my requirements for improving how I sell and provide services to my customers?  It sounds more like I am buying an out of the box contact manager.

The fast sale & low cost craze must be working however, because CRM vendors like Salesforce and Microsoft — two of the recognized leaders — have continued to repackage their offering and lower their price.  Just a few weeks ago a small company of two people could purchase Salesforce CRM for $9 per user per month.  A few months earlier up to ten users could take advantage of this offer.  Recently the program changed again and now five users can purchase the product for $5 per user.  I appreciate that CRM vendors are having a tough time differentiating themselves, but are they now convinced that the sole driver of CRM decisions among small to mid-size companies is price?   This CEO is not.

Warren Buffet once said, “Price is what you pay. Value is what you get.” Seems appropriate here doesn’t it.   My firm Commence Corporation has been providing CRM software solutions to small and mid-size business for two decades. Most of the executives we work with are entrepreneurial and savvy operators.  Sure they want the best price they can get, but they are more interested in addressing their business requirements and improving their business than finding the lowest price.   Sometimes their requirements are as simple as data consolidation.  They may be managing their customer data using excel spreadsheets or a contact manager and are unable to consolidate and share the information with the people and departments that need it to efficiently do their jobs.   Some are frustrated with their inability to organize and manage their sales organization and are looking for tools and expertise to assist them. But one thing is for sure: they recognize that a CRM tool on its own at any price is not going to solve their business needs.  They want a CRM partner.

Value Added Services, the True Differentiator

So what do I get for $5 dollars or $9 dollars per user anyway?  What level of service should I expect?  Do I get a documented installation plan that will ensure the successful implementation of the CRM system?  Do I get assistance with data migration? What about training?  Is the CRM vendor available to assist my staff with best practices for data consolidation and data sharing, sales optimization and measurement of sales performance?  Will I get the services I need to address my business challenges and improve my business?   After all, this is why I began the search for a CRM system in the first place.

CRM Partner vs. CRM Vendor

Addressing your business challenges will not be met by the selection of a low cost CRM solution, but instead by engaging the expertise and domain experience of a true business partner. A partner will take responsibility of the successful implementation and utilization of the CRM system.   A partner will provide a high level of service before, during and after the sale and supply the industry and product expertise to ensure that you realize the maximum value from their solution.  The only problem is you cannot get a partner for $5 per user.

Commence Differentiators

Commence Corporation has taken pride not only in our top rated CRM software, but in the world-class service we have provided to our customers.  For more than two decades Commence customers have relied on our expertise and domain experience to ensure the successful utilization of our product and the growth of their business.  This partnership between Commence and our customers have ensured their success as well as ours.

See what customers say about Commence and take a look at my white paper “Don’t Make a CRM Buying Mistake” at www.commence.com.