Every day I face the unfortunate opportunity to educate business owners and sales managers about the difference between salesforce automation and customer relationship management. There is a very significant difference between the two and it's not as simple as the industry would have you believe.
Salesforce automation is one piece of Customer Relationship Management; as is customer service, accounting, product management, product development and the ability to retrieve business intelligence by studying the data collected. CRM is the full integration of all areas of the business that affect your customers - internal and external.
Often the Sales Department opens the conversation of CRM while searching for a tool that allows them to efficiently gather leads and manage their sales process until the customer is sold and can be handed off to the Service Department. The truth is that all "off the shelf" CRM tools are really not much more than Salesforce Automation - especially the freeware and the low-cost solutions (from ACT! to Salesforce's Group and Professional versions). True CRM is seldom accomplished at the lowest level of deployment.
What excites the Sales Department about CRM is the possibility of automating many of their tasks, streamlining the process of proposal to invoice, easy access to monitor service issues registered by their own clients as well as the ability to easily report personal, team and department performance.
What should excite the business owner about CRM is the possibility of managing his/her entire business from one dashboard - at a glance, the CEO and other company leadership can monitor the performance of sales, service, accounting, R&D and Production.
We welcome the opportunity to visit with you about your company's needs to see how we can help your company find the right tool and move your business toward faster growth!
Showing posts with label CRM. Show all posts
Showing posts with label CRM. Show all posts
Sunday, February 26, 2012
Tuesday, December 6, 2011
What is the Value of CRM for Small Businesses?
CRM Tools have been a hot commodity for about a decade. Originally, only the largest corporations could afford to have such a luxury. But through desire comes innovation and visionaries like those who founded Salesforce and Zoho rose to the occasion.
Today, a CRM system can be as manual or automated as a business expects... the decision usually lies in the cost to automate. While one can purchase a database for as little as a few hundred dollars, the tool is manual upon implementation. To customize, a specialist must be retained - and all too often, the business keeps the manual tool because they are fearful that their investment will not pay off.
Here's how it will.
2010 - A start-up business installs Salesforce Group Edition, a CRM Expert is brought in to "train" them on usage. Because the Group Edition does not provide for automation, all processes are defined and handled manually. The company grew from a few thousand a month in sales to a consistent $5,000/month.
2011 - This second year business desired automation so their business would grow more quickly. ZohoCRM Enterprise Editions is installed and a CRM Expert is retained to customize and automate many processes. The company grew from $5,000/month in sales to $30,000/month between May and November!
Run the numbers... This business grew 3X . The cost of their system implementation was a mere $8,000 with all licenses, customization, automation, training and support provided by Brown Dog CRM Consulting. Their investment was paid back within the first 6 months!
Brown Dog CRM Consulting automates the Lead Generation, Sales and Client Retention Processes of your business. We can also automate billing, client support, project management and inventory management.
So, yes, having a CRM tool is half the battle and it will help you grow. But, the real value of a CRM tool is in the "future" revenues that will be generated as a result of customizing the tool to fit your business needs and automating processes so that opportunities do not fall through the cracks.
I'd like to help your business grow - call me at 615-429-6184 to schedule a Complimentary 90 minute Consultation.
Today, a CRM system can be as manual or automated as a business expects... the decision usually lies in the cost to automate. While one can purchase a database for as little as a few hundred dollars, the tool is manual upon implementation. To customize, a specialist must be retained - and all too often, the business keeps the manual tool because they are fearful that their investment will not pay off.
Here's how it will.
2010 - A start-up business installs Salesforce Group Edition, a CRM Expert is brought in to "train" them on usage. Because the Group Edition does not provide for automation, all processes are defined and handled manually. The company grew from a few thousand a month in sales to a consistent $5,000/month.
2011 - This second year business desired automation so their business would grow more quickly. ZohoCRM Enterprise Editions is installed and a CRM Expert is retained to customize and automate many processes. The company grew from $5,000/month in sales to $30,000/month between May and November!
Run the numbers... This business grew 3X . The cost of their system implementation was a mere $8,000 with all licenses, customization, automation, training and support provided by Brown Dog CRM Consulting. Their investment was paid back within the first 6 months!
Brown Dog CRM Consulting automates the Lead Generation, Sales and Client Retention Processes of your business. We can also automate billing, client support, project management and inventory management.
So, yes, having a CRM tool is half the battle and it will help you grow. But, the real value of a CRM tool is in the "future" revenues that will be generated as a result of customizing the tool to fit your business needs and automating processes so that opportunities do not fall through the cracks.
I'd like to help your business grow - call me at 615-429-6184 to schedule a Complimentary 90 minute Consultation.
Thursday, October 28, 2010
Retaining the Groupon Buyer
So, Groupon is getting a ton of negative publicity. Merchant participants say that the program is a "loss leader". Well, I'm sure it is... if those merchants aren't taking steps to proactively retain the Groupon buyer.
Programs like Groupon are excellent Acquisition Marketing Strategies. But a small, locally owned business will not survive unless the "new" customer becomes a repeat customer. This is where having a Customer Retention Strategy becomes critical. Here are eight things you should be doing to retain the "Groupon" buyer.
1. Provide excellent service from the moment they enter your business.
2. Engage them in a meaningful conversation while shopping.
3. Capture their contact information - name, email, address and phone.
4. Ask for their feedback at the end of their experience.
5. Track what they purchased and what they had interest in.
6. Use the information tracked to create meaningful conversations in the future.
7. Send a "thank you" - by email, mail or by phone.
8. Create a Retention Marketing Strategy and execute it!
And, there are a few things you should not do:
1. Do not immediately add them to your email list. Wait until after you've reconnected with them three times.
2. Do not treat them like a "discount shopper". While they are entering your business because of a great deal, this first experience will determine whether or not they come back. Assume that everyone will come back!
3. Do not expect that they will come back without you having to "work" for it. While a great experience heightens the desire for a shopper to return, people are busy today and need to be reminded.
4. Don't judge a book by its cover. Not all discount shoppers are "financially strapped". Many are incredibly wealthy, but not all dress like a million-bucks. Set your visual filters aside when interacting with these shoppers.
A Retention Marketing Strategy is a set of communications strategically crafted and executed to foster loyalty. It's more than just sending email blasts and direct mail pieces. A solid Retention Marketing Strategy will create conversations and foster loyalty to your brand. If you want help creating an effective Retention Marketing Strategy, call me!
Programs like Groupon are excellent Acquisition Marketing Strategies. But a small, locally owned business will not survive unless the "new" customer becomes a repeat customer. This is where having a Customer Retention Strategy becomes critical. Here are eight things you should be doing to retain the "Groupon" buyer.
1. Provide excellent service from the moment they enter your business.
2. Engage them in a meaningful conversation while shopping.
3. Capture their contact information - name, email, address and phone.
4. Ask for their feedback at the end of their experience.
5. Track what they purchased and what they had interest in.
6. Use the information tracked to create meaningful conversations in the future.
7. Send a "thank you" - by email, mail or by phone.
8. Create a Retention Marketing Strategy and execute it!
And, there are a few things you should not do:
1. Do not immediately add them to your email list. Wait until after you've reconnected with them three times.
2. Do not treat them like a "discount shopper". While they are entering your business because of a great deal, this first experience will determine whether or not they come back. Assume that everyone will come back!
3. Do not expect that they will come back without you having to "work" for it. While a great experience heightens the desire for a shopper to return, people are busy today and need to be reminded.
4. Don't judge a book by its cover. Not all discount shoppers are "financially strapped". Many are incredibly wealthy, but not all dress like a million-bucks. Set your visual filters aside when interacting with these shoppers.
A Retention Marketing Strategy is a set of communications strategically crafted and executed to foster loyalty. It's more than just sending email blasts and direct mail pieces. A solid Retention Marketing Strategy will create conversations and foster loyalty to your brand. If you want help creating an effective Retention Marketing Strategy, call me!
Sunday, May 17, 2009
The CRM Toolbox
I believe that for every job, there is a toolbox. And, in this toolbox, there are tools that can be used to achieve success. Some tools are small and take longer to accomplish the task. Other tools are more powerful and achieve results more quickly. But, regardless - they are all tools in a toolbox.
Take, for example, the CRM Toolbox... in some businesses the toolbox is the CRM software package and its many features are utilized to accomplish tasks at hand. In other businesses, those who do not have a CRM software package installed, the toolbox is made up of disparate communication vehicles through which tasks are accomplished. Let's talk about the tools specifically, since the toolbox itself is irrelevant.
The tools in a CRM Toolbox are communication mediums through which the business builds and strengthens a relationship with its customer. They are:
The Telephone: The telephone call will always be the single most efficient and most effective method of communicating with your customers. They always appreciate hearing your voice, especially when the call isn't always about selling them something! Find reasons to talk with your customer from time to time without making a sales pitch... you'll be surprised just how far that effort goes toward their loyalty to your business.
Direct Mail: Often considered the worst communication medium in today's hyper-paced business world. Again, when designed correctly and used to communicate ideas and information that are not always pushing a sale - direct mail is an integral piece of your communication strategy. What, besides the latest new product or "discount offer", can you communicate via a direct mail piece? Letters from the President, Testimonials by other customers, etc. are just a few ideas.
Email: The method everyone loves - rejection doesn't sting quite as much and most feel it's the fastest, easiest way to communicate. It has also become so overwhelming that many recipients delete or ignore emails they perceive are "selling" something. Again, a company must leverage this medium to do the most good possible, which means... at minimum, alternate the type of message communicated through email. Impersonal emails, form emails and other "short-cuts" can be spotted a mile away... Be sure to always add an element of something personal to each form-email you send.
Website: If your website is not interactive, then it can not do much in the way of building a relationship with your customer. However, if you can create a community where you capture their thoughts and feedback, allow them to recommend products/services, engage them in discussions on how to get more out of your products and services - you will win!
Social Networking Tools: LinkedIn, Facebook, MySpace, Twitter... they all have their place, strengths and weaknesses. LinkedIn is an excellent tool for business professionals to expand their sphere of influence, while Facebook and MySpace are excellent entertainment-business tools. At first brush, Twitter appeared to be a tool for the younger generation and entertainment industries, although recently professional service industries have found professional applications for it. These spaces are an excellent forum in which to re-connect with your customers and demonstrate that there is more to your business than just selling!
Blog & Article Posts: Blogging about your business - your whole business - gives your customer an opportunity to learn in bite-sized chunks. And, it's an opportunity for their feedback and, when the content is invaluable, an opportunity for your customer to evangelize about you! Take advantage of the blogging sites and article repositories.
The best CRM strategy utilizes all of these mediums and pushes communication through the channel(s) most preferred by each customer. However, just because your customer says that he/she prefers to receive email, doesn't mean that you cease communicating through other mediums (unless specifically requested) - you just minimize the information disseminated through alternative mediums.
I'd like to hear from you... What tools are in your CRM Toolbox? How are you leveraging today's communication methods to build relationships with your customers?
Take, for example, the CRM Toolbox... in some businesses the toolbox is the CRM software package and its many features are utilized to accomplish tasks at hand. In other businesses, those who do not have a CRM software package installed, the toolbox is made up of disparate communication vehicles through which tasks are accomplished. Let's talk about the tools specifically, since the toolbox itself is irrelevant.
The tools in a CRM Toolbox are communication mediums through which the business builds and strengthens a relationship with its customer. They are:
The Telephone: The telephone call will always be the single most efficient and most effective method of communicating with your customers. They always appreciate hearing your voice, especially when the call isn't always about selling them something! Find reasons to talk with your customer from time to time without making a sales pitch... you'll be surprised just how far that effort goes toward their loyalty to your business.
Direct Mail: Often considered the worst communication medium in today's hyper-paced business world. Again, when designed correctly and used to communicate ideas and information that are not always pushing a sale - direct mail is an integral piece of your communication strategy. What, besides the latest new product or "discount offer", can you communicate via a direct mail piece? Letters from the President, Testimonials by other customers, etc. are just a few ideas.
Email: The method everyone loves - rejection doesn't sting quite as much and most feel it's the fastest, easiest way to communicate. It has also become so overwhelming that many recipients delete or ignore emails they perceive are "selling" something. Again, a company must leverage this medium to do the most good possible, which means... at minimum, alternate the type of message communicated through email. Impersonal emails, form emails and other "short-cuts" can be spotted a mile away... Be sure to always add an element of something personal to each form-email you send.
Website: If your website is not interactive, then it can not do much in the way of building a relationship with your customer. However, if you can create a community where you capture their thoughts and feedback, allow them to recommend products/services, engage them in discussions on how to get more out of your products and services - you will win!
Social Networking Tools: LinkedIn, Facebook, MySpace, Twitter... they all have their place, strengths and weaknesses. LinkedIn is an excellent tool for business professionals to expand their sphere of influence, while Facebook and MySpace are excellent entertainment-business tools. At first brush, Twitter appeared to be a tool for the younger generation and entertainment industries, although recently professional service industries have found professional applications for it. These spaces are an excellent forum in which to re-connect with your customers and demonstrate that there is more to your business than just selling!
Blog & Article Posts: Blogging about your business - your whole business - gives your customer an opportunity to learn in bite-sized chunks. And, it's an opportunity for their feedback and, when the content is invaluable, an opportunity for your customer to evangelize about you! Take advantage of the blogging sites and article repositories.
The best CRM strategy utilizes all of these mediums and pushes communication through the channel(s) most preferred by each customer. However, just because your customer says that he/she prefers to receive email, doesn't mean that you cease communicating through other mediums (unless specifically requested) - you just minimize the information disseminated through alternative mediums.
I'd like to hear from you... What tools are in your CRM Toolbox? How are you leveraging today's communication methods to build relationships with your customers?
Sunday, April 12, 2009
Creating a Community
How do some businesses make it look so easy? You know what I mean… that sense of community that keeps customers coming back, over and over and over. It’s not hard, you just have to build it and they will come.
But, how do you create a sense of community when your company sells plastic molding to distributors? Or, when you sell website development services to other businesses? Or, when your business sells clothing to women, men or children?
It’s easier than you think… but it requires stepping outside the box. You have to get out of your business and look into it from the customer’s perspective. Think of it as a “team” from your past – whether the high school or college football team, cheerleading squad or marching band. Consider carefully the following questions and you’ll figure it out.
1. Consider the team mascot… Do we have a brand that our customers identify with?
2. Consider why people came out to watch… What draws our customers back?
3. Consider how the spectators connected to the team… How can we connect our customers to each other, not just our business?
4. Consider how the team gives back… What place does our business hold in the community (local or nationally)?
5. There is no “I” in team… How can you demonstrate cohesiveness?
6. High-fives… What can you do to communicate to your employees that you value them?
7. Hats off to our fans… How do you show those customers who support your business that you value them?
The answers may vary some from business to business – and will change based on whether or not your end customer is another businesses or consumers at large. But, the process is exactly the same. If you need help developing your community, please call on me! If you've already developed a community... please tell us about it!
But, how do you create a sense of community when your company sells plastic molding to distributors? Or, when you sell website development services to other businesses? Or, when your business sells clothing to women, men or children?
It’s easier than you think… but it requires stepping outside the box. You have to get out of your business and look into it from the customer’s perspective. Think of it as a “team” from your past – whether the high school or college football team, cheerleading squad or marching band. Consider carefully the following questions and you’ll figure it out.
1. Consider the team mascot… Do we have a brand that our customers identify with?
2. Consider why people came out to watch… What draws our customers back?
3. Consider how the spectators connected to the team… How can we connect our customers to each other, not just our business?
4. Consider how the team gives back… What place does our business hold in the community (local or nationally)?
5. There is no “I” in team… How can you demonstrate cohesiveness?
6. High-fives… What can you do to communicate to your employees that you value them?
7. Hats off to our fans… How do you show those customers who support your business that you value them?
The answers may vary some from business to business – and will change based on whether or not your end customer is another businesses or consumers at large. But, the process is exactly the same. If you need help developing your community, please call on me! If you've already developed a community... please tell us about it!
Sunday, April 5, 2009
Can Your Customers Be As Loyal As A Big Brown Dog?
First, I must start by defining the word "customer". A customer is that person or business who has already purchased from you or your business at least one time. Money has exchanged hands. Now, I know in many industries, your Sales Manager is likely to tell you to consider everyone you meet "a customer"... but reality is, if they haven't bought from you or your business, ever, then they are NOT a customer. The blogs that I write discuss ways to retain those customers you've already won and should not be confused with strategies to acquire new customers.
Why is it important to delineate between a Prospect and a Customer? Because the model you will follow to win business the first time has different tasks associated than the model you will use to retain the business you've already won. Just as you follow a Sales Cycle Model, you should create and follow a Customer Retention Model. A model is a series of steps executed the same way every time to arrive at the same result.
One statement that I hear over and over that I know is not true... "Customers are not loyal anymore". The truth is this... businesses have gotten lazy. Business owners, both large and small, often EXPECT their customer to be loyal, "just because". "If we sell them right, they will stay forever." There is value in this statement and it certainly helps if your salesforce is selling the customer correctly, but even if they don't, a customer can develop loyalty through effort on the part of the business. Creating loyalty takes effort on the part of the one expecting loyalty - take for instance, the loyalty of a big brown dog...
When I brought my chocolate lab home (he was already 4.5 years old), he was quite the independent mug. I did everything I could think of to make him like me and want to stay. The most critical period I was told by the Rescue Group was the first 30 days. If he didn't run away in the first 30 days, he would bond and become my best friend, and most loyal friend.
So... for the first week, I hugged on him, kissed his nose, took him for walks, fed him, gave him treats, bought him toys, played with him, I made funny faces, we played fetch, we danced, we snuggled, and I talked to him, constantly, like he could understand what I was saying... are you starting to see a pattern here? It took effort on my part to foster loyalty from him. But, once I got it - it was mine for life. He lived with me for nearly 6 years before he passed away... and, at the end, his eyes told me "I want to be with you even if it means living in pain". That's some pretty amazing loyalty! Cute story you say, but really Carol, how does this relate to my customers?
It's easy. Research shows that if you can build a bond and create a connection with your customer within the first 30 days, they are 78% more likely to stay your customer for life. But, it takes effort on your part... You have to "hug" them, "kiss" them, take them for walks, feed them, reward them with toys, treats and playtime and you have to talk to them! If you don't, they will find someone else who does...
Enter the Customer Relationship Management Strategy, often referred to as simply, Customer Retention. It is more than smiling pretty and calling your customers "darlin". Customer Retention is a strategy, an over-arching philosophy, that can be executed through individual contact as well as through automated means (technology).
Just like fostering the loyalty of your dog, you must foster loyalty with your customers. One thing is for certain, when it comes to whether or not your customers are loyal - YOU are in control. If you are reaching out to each and every one, and letting them know that they are important to your business and that you appreciate the money they spend with you - they will respond with loyalty, and quite possibly... a big slobbery puppy kiss! 8-)
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