Module06Lesson1.docx

Researching and Evaluating CRM Option

CRM (customer relationship management) systems are great tools for the sales teams. They have access to and can additionally organize critical customer data. There are multiple companies in the marketplace that sell CRM systems. A smart decision on which company is chosen as a CRM partner can offer increased sales and profit as well as other important benefit to the sales team.

Assembling your team

· As CRM systems are not inexpensive for most companies, the first step is to assemble a team from your organization. Clearly, representatives from sales and marketing should be included, but thoughtful consideration should also go into adding members from other departments like IT, finance and logistics. If customer service is not considered part of the sales team, a representative from customer service would be a valuable addition.

Goals

· Determine the needs for CRM and the problems that it can solve at your organization. Then seek out CRM companies that can help. Some CRM systems operate on a “buy once” style—that would typically be a software purchase or other CRM systems or services.
· What are your team’s/company’s goals for the new CRM system? Is it to just store historical and primary date such as contacts, communications and promotions? Are you looking for a system that can offer insights for the sale team?

Research

· Once your team is assembled, collecting information about your company’s exact needs and wants begins. From that, your team can then begin researching options. There are many options, so a realistic goal is to find 3—5 suppliers that you think are best to evaluate.
· The team can create a document that provides for the needs of your organization and then share that information with potential partners. Often a RFP (Request for Proposal) is created which is a formal document. The RFP outlines the specifics for a proposal including features and benefits, current systems that the new system must be able to be integrated with, as well as your companies goals & objectives.

Evaluation

Once the research is completed and you have the list of 3—5 suppliers you are interested in, the evaluation process can begin. A typical method of evaluation would be to create a chart listing your company’s key criteria on one side and the potential partners’ ability to meet that criteria on the other side.
There are different criteria to consider. Some of the global criteria that most companies consider include:
1. Annual Cost: This may fluctuate based on the number of users.
2. Initial Cost, Including Cost of Implementation: Some systems can be implemented internally while others require outside expertise that may or may not be included in the Annual Cost.
3. Implementation Time: Understand the length of time to implement and if a project is completed start-to-finish or if there are steps/phases to implementation.
4. Level of Mobility: How will the employees access the CRM? Through their desktop computers or is a mobile component necessary?
5. Ease of Integration: Which other IT systems do you have at work? How well does each CRM system work with what you already have in place?
6. Customization
7. Automation
8. Scalable
9. Access to Data
10. Analytical Capabilities: How robust is the reporting? Is the system able to provide what you need it to in terms of insights, analytics and basic reporting?
11. Customer Service: How easy will it be able to get help when you need it? Is there a 24/7 service or limited hours? Do you work through the team that sells you the CRM system or is there a dedicated customer service area?

These are just some of the basic criteria, a specific company may rank these or may find other criteria not listed as critically important in their industry.

Selection & Feedback

· Once each potential service provider’s criteria has been identified, a score or similar evaluation tool can be used. Compare the results. Ideally, the company with the highest score would be selected, but it is worthwhile to reconnect with the top contenders and ask about areas where a low score exists to ensure you have all the decision criteria correct. Finally, a selection is made.
· After the final selection, there is negotiation and purchase. The process does not end there; like with every big decision, time should be spent after implementation to develop feedback and to analyze the decision. There may be time to make edits or a plan can be put into place to make sure the CRM system is working as planned and that the company is meeting the objectives created for the system.

There is a logical progression of events for a CRM project to be launched at an organization. This series of events includes assembling a team, creating goals, preparing research, evaluating options, developing an evaluation process, making a selection and then providing feedback.