Don’t Make a CRM Buying Mistake

Customer Relationship Management is one of the fastest growing sectors of the computer software industry. In order to gain a competitive edge, companies of all sizes are looking for ways to improve how they market, sell and provide service to their customers. Many are turning their attention to Customer Relationship Management software as a tool that will enable them to effectively manage their customer relationships before, during and after the sale.

The rapid growth of this sector has attracted dozens of software solution providers many who have taken advantage of the popularity of software as service or SaaS, as a vehicle to deliver their solutions over the Internet. SaaS has paved the way for the introduction of a myriad of new product offerings from specific vertical industry solutions to pure play CRM vendors that sell their solutions across all industry sectors, (enterprise, mid-market and small business). In fact, there are now so many offerings that companies engaged in a CRM initiative have found the evaluation and selection process simply daunting. The challenge is simply trying to differentiate the products because so many of them make similar claims. But, just because these solutions appear alike, don’t be fooled into thinking they are. There are some significant differences that you need to be aware of before making your selection.

One of the ways to narrow the field is to utilize industry reviews, ask for vendor references and utilize this white paper; "7 Points to Consider Before Selecting Your CRM Solution”.

Step 1) Select a mature solution provider.

With today’s economic uncertainty, it’s extremely important to select a solution provider with a trusted reputation and long-standing track record for delivering high quality products and services in your industry. There are no guarantees today, but a company that has been in business for a decade or more with an established customer base is clearly a safer bet then the one that’s just getting started. It’s also a good idea to research the vendor’s customer base and ask for references that can discuss the provider’s commitment to quality customer service and product enhancements.

Step 2) Know your requirements before hand.

Don’t make your selection of a CRM solution a beauty contest. Take the time to document the core requirements that you are looking for and make sure you fully understand the workflow of your internal business processes. Smaller businesses tend to lose site of this during the evaluation process and become too focused on cosmetic appearance and price. As a result, they are often disappointed in the products inability to support the unique business requirements that were not part of the initial demonstration.

Step 3) Where’s my data.

Your customer information is your lifeline. Without it you’re out of business. Don’t be afraid to ask where your data is being hosted and by whom. Most vendors’ utilize a third party service to host your data. Ask who they use and check into the company’s track record for performance and reliability. You may also want to inquire about back up and recovery along with their procedures for attaining your data should you discontinue the service. This is one of the most important yet overlooked aspects of you decision process.

Step 4) Scalability

Your business is going to grow. If you didn’t believe this you wouldn’t be in business. I stated earlier that there are a myriad of CRM product offerings available. I didn’t say they could all meet your current and future business requirements. In fact, many are designed for very small businesses and will not perform well when pushed to higher levels of utilization. Make sure the product incorporates a comprehensive set of applications even if you are not planning to utilize them today. Furthermore, make sure the solution you select has proven to perform at two to three times the current number of users you plan to have.

Step 5) Back-end integration

While this may not be your top priority, CRM is the front-end to all backend processes and sooner or later you are going to want to integrate customer data with your accounting or ERP system. Make sure the vendor you are most interested in offers an application programming interface or API that enables back-end integration.

Step 6) Select a partner not a vendor.

If you have made a decision to implement a CRM system because you are committed to becoming a more effective sales and service organization then you need to select a partner and not a vendor. A partner will provide you with a proven implementation plan and best practices to ensure that you realize that maximum value from their solution. A vendor will sell you their solution then suggest you send an e-mail if you require help. CRM is not a toy or an electronic gadget you simply plug in the wall. You will require professional assistance from the CRM provider in order to maximize the value any CRM solution. Make sure you select a partner who has a solid track record for providing this level of support.

Step 7) Stay away from free.

Nothing good comes out of free. Not good products and not good services. A world class product from a trusted solution provider who can protect your data with a reliable hosting service, provide a high level of performance, offer scalability and growth, enable back-end integration and partner with you to ensure your business objectives are met isn’t cheap and doesn’t come free. This is an important decision for your business and the difference between a top rated trusted solution provider and a low cost one may be just a few dollars a month.