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.

Better known for its on premise desktop CRM software, Commence Corporation has been providing contact management, sales force automation and marketing campaign management solutions to small and mid-size companies for more than two decades.  The company introduced a web-based hosted version of their popular CRM software and is gaining notoriety.   With an outstanding track record for performance, reliability and world-class customer service Commence is a strong competitor and becoming a favorite among smaller businesses looking for a flexible hosted CRM solution with productivity tools that are easy to use.

“Commence web CRM has an impressive and unique user interface that makes the product very easy to use and navigate” says Gary Sanders of OK! Magazine.  “The product’s Home Page or Dashboard is completely customizable by individual or job function.  This allows each user to create a dashboard to the way they work.  The value here is that you can place the functions you use most right on the home page, such as today’s calendar and activities, e-mail, sales opportunities, leads, reminders and even an interactive sales funnel.  We hadn’t seen this in any other CRM solution.  This flexibility enables people to conduct 90% of their daily activities without ever leaving the Home Page and has really improved productivity.” 

Commence Home Page

Karen Deneau, Director of Marketing with Center for Film Studies, needed CRM software that her staff would feel comfortable with.   “When selecting a CRM solution, you worry about utilization, but we were confident that our staff would adapt well to Commence CRM and they have.   We also liked that Commence is modular in design, which allowed us to select only the functionality we required. We weren’t forced to purchase a package with a dozen features we would never use.  Commence’s strength clearly lies in its ease of use.  Within two weeks we had marketing campaigns out the door and leads captured from our web site were integrated directly into the Commence CRM system.  The staff at Commence was also extremely helpful in ensuring that we quickly realized value from their solution.”

Key Differentiators

Commence’s modular design provides the flexibility to start with basic CRM functionality such as Account and Contact Management, E-Mail integration and Sales Pipeline Management, then add additional features such as Quoting, Marketing Campaign Management and Project Management when you’re ready.  Integration to disparate systems can be achieved via an Application Programming Interface or API, and Commence CRM supports the majority of popular Mobile devices.

Another key differentiator of Commence CRM is the product’s lead qualification and sales reporting capability. The leads module includes an automated business process that scores leads based on pre-defined criteria, then color codes them based on how well defined they are.  This capability is unique to Commence CRM, and ensures that your sales team is working on the most qualified opportunities and not chasing tire kickers. 

Lead Scoring Screen

Reporting

The reporting engine offers three levels of data analysis.  A set of pre-defined reports for sales management, marketing and customer support can be viewed with a single click and modified just as easily.  A built in report writer allows you to create customer reports against any field in the database, including custom fields.  Lastly, Commence CRM includes a pre-built set of graphical and analytical reports for all sales activity, marketing, lead generation and customer support.

Reports

Commence offers the freedom of choice to deploy CRM software on premise or as a hosted web based solution and offers a level of functionality traditionally only provided by enterprise level solutions. Commence products are distributed around the world in more than 22 countries and 35 different industries.  The company’s track record for providing high quality reliable products and outstanding customer service make it a solid choice for growing businesses.

About the Author:  Jim Smith is the founder and managing partner of YCHANGE INTERNATIONAL,  a management consultancy specializing in helping small to mid-size businesses expand or execute a turnaround strategy.  Jim is a commissioner for the Housing Authority of Portland, Oregon and serves as a member of the newly formed economic cabinet of Portland. Jim is a motivational speaker and trainer and lectures on Customer Relationship Management in the areas of sales, marketing, business and leadership.  He is an avid blogger on www.ychange.com/ychangeblog.

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.