Customer relationship management (CRM) technology is no longer a privilege reserved for multinationals or sectors that master information technology. Whatever the size of your business, there is a CRM system to suit your needs. Many SMEs have turned away from CRM due to misconceptions about costs. Maybe they just haven't adopted new technologies. Perhaps the biggest barrier to small business use of CRMs is the lack of understanding and education in this area. By the time you have read this article, we hope we have done something to alleviate this problem.
So what is customer relationship management technology?
Customer relationship management is the process by which a company organizes and orders all its interactions with its customers and prospects. This could include marketing campaigns, financial exchanges, document storage, etc. Most businesses use a combination of computers, the Internet, and paper records to facilitate CRM processes. CRM technology allows this to be done in one central location using software.
The main advantage of these software is that they provide a central repository for all business needs. They only have to search for information in a single system. They don't need to search in different areas or open multiple applications and systems at the same time. The more integrated the system is within an organization, the more streamlined workflow processes will be.
Buy the CRM or rent it?
All suppliers do not give you the choice, but some will do so. A basic CRM can be purchased in a single transaction and installed internally in your back office. The other option is to take advantage of payment solutions as you go, more and more available. These systems are rented on the internet. You pay for each user on the basis of a monthly rate. This solution is often called "hosted" CRM. free CRM software that is rented for free on the Internet. However, you usually have to pay assistance for system maintenance, which is quite rigid.
Hosted CRM has the advantage of being more flexible in where you can access it. As it can be accessed securely from any internet-connected PC, it is suitable for businesses with employees working remotely. Purchasing the software outright can be beneficial for SMEs with IT expertise. However, for most businesses, adaptation will become costly, as they will need to seek outside technical assistance.
Renting software over the Internet can also provide other benefits to small businesses. They can, for example, choose CRM software and outsource secure data backups. This way, in the event of a system failure, essential customer information is copied and searchable. If your CRM provider offers IT support services , it may be worth working with an organization that can take care of all your IT systems and infrastructure (web hosting, disaster recovery, network support). With a hosted CRM, you have more flexibility to choose the elements you want that match your business needs.
READ ALSO: CRM Score: Maximizing the Effectiveness of Your Customer Relationship Management Strategy
Customized CRM or generic CRM?
Custom CRM systems are usually the most expensive option. However, if designed well they can work effectively alongside your existing business processes. They can provide a long-term solution to your needs. SMEs therefore need to consider how quickly they should see a return on investment. In fact, it can take longer with a tailor-made CRM than with a system that you can start using immediately.
An alternative to a bespoke CRM is an industry CRM , which has been designed for similar types of businesses and is usually only tailored to that specific industry. These solutions can be beneficial because they can offer a certain level of customization to your business as standard. However, you can find better alternatives than generic solutions with flexible usage options.
Improvements, additions and hidden costs
The majority of CRM providers are constantly updating and reviewing their systems. So they can offer better functionality and variety to their customers. These upgrade costs are usually passed on to the consumer who pays for updated versions of their software (usually on an annual basis). They can also take the form of additional modules.
This is where a new feature is added to your existing CRM, for a fee. Some Internet service providers include all upgrade costs in the price of your user license. If you need to transfer customer information, additional costs may be incurred depending on the ease of retrieval and the amount of data to be transferred. These fees are for example related to history, notes and previous correspondence from your old system to the new one.
In addition to the purchase of the software , it is likely that costs are associated with the training of your employees in the use of the application. These service costs are not negligible and any company that plans to implement the application should take it into account in its budget. Personalization costs are also a potential source of hidden costs. Indeed, a generic CRM may have to be reconfigured in one way or another to meet the requirements of your business. The possibility of customizing the CRM at the user level (without having to pay consultants to do so for you) is an interesting feature to take into account for any CRM.
Consider your end users
At the heart of a successful customer relationship management implementation are the people who use it every day. Changing work culture can be a long and painful process for any company. Staff must see the benefits for themselves and the business as a whole if CRM is to deliver a successful return on investment. This is why it makes sense to involve your end users in discussions during the pre-screening and final selection phases. This user involvement is a common obstacle to many CRM initiatives. This is why many of them are considered ineffective.
If you can maintain some familiarity with the system change, it should make the transition from the old system to the new CRM easier. It's usually best to proceed gradually and not try to make a drastic change. Make sure everyone has mastered the basics before introducing the more advanced features.
If you're using a standalone accounting system, see if your chosen CRM can be integrated with it to keep all the data. Some providers have partners with accounting software. So they are designed to work together seamlessly. However, be careful not to fall into the trap of purchasing CRM on this basis alone and neglecting what's really important overall.
Customer relationship management must be the subject of careful and logical thought. SMEs can benefit enormously from customer relationship management if it meets their present and future needs. It is also essential to plan for what the business will need in one or five years, as well as in the present. So they can choose the right long-term solution. If all these elements are taken into account thoroughly, customer relationship management can be a blessing for SMEs.
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