Why is Selecting a CRM Solution so Hard?

Posted by Commence on January 19, 2011 under Commence News, Press Release | 5 Comments to Read

Commence Corporation Makes the Selection Process Easier with “Try Before You Buy” CRM Program

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.

Hosted CRM Makes Good Sense

Posted by Commence on November 12, 2010 under CEO Corner | Read the First Comment

Staying in touch with your customers has never been more important than it is in today’s business environment. The competition for every dollar of revenue has never been this fierce and the more the economy continues to stagger along, the harder it gets. If you want to be able to take care of your customers in an expeditious manner you need customer relationship management software that enables you to capture, track, manage and share vital information with the people and departments that need it to efficiently do their jobs.

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.

Is Price Killing the CRM Industry?

Posted by Commence on September 9, 2010 under CEO Corner | 6 Comments to Read

Selecting a CRM solution can be a daunting exercise.  According to industry reports there are several hundred vendors that provide some component of Customer Relationship Management software.  In addition, the price points and list of features available couldn’t be more confusing for the consumer and when people are confused they tend to make their decision based primarily on one criterion, price.

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.

Image by Luc Galoppin on Flickr under Creative Commons license.

CRM Price Wars Continue, But Who Wins In The End?

Posted by Commence on December 1, 2009 under CEO Corner | Read the First Comment

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.