How to successfully implement a CRM system in your business

What is CRM

If you think you don't have a CRM system, you are most likely wrong. The customer relationship management system, aka CRM, is, in fact, a lined notebook with customer data, and the mega-popular Rolodex circular file cabinet in the 50s, and, of course, our beloved Excel.

However, in the digital world, we used to mean specialized software by a CRM system. But which one?

Developers themselves often argue about whether their product is a CRM or an ERP (Enterprise Resource Planning System), BPA (Business Modeling System), or BRM (Business Rules Management System).

Sometimes I come across arguments in favor of companies calling any of these CRM products - it makes it easier to look the right customer. But by this they mislead the market, and it becomes more difficult for novice users to navigate in it.

However, the root of all evil is still not in the development companies and their marketers. The fact is that in Russia there is no document that enshrines the concept of a CRM system and its standards. At the same time, businesses have many evolving automation requests that translate into new product features. Therefore, CRM systems today are striking in their diversity.

Still, I will outline some boundaries.

CRM is an automated system that builds relationships with a customer throughout the life cycle of that relationship, from incoming contact to sales.

All this applies to transactions with the client and his status. The latter changes when moving along the sales funnel. The client transforms from potential to active, from active to permanent, from permanent to lost.

Throughout the entire process, it is necessary to interact with the client in all possible ways: email, chats, SMS, phone, application. And these functions are integrated into the CRM system: first, it helps to turn a client from a potential into an active one, and then - to sell services. CRM analyzes the customer's behavior and shows the manager what needs to be done: call back, tell about the promotion, congratulate him on his birthday.

The above is the core of CRM functionality. But products are developing, CRM systems are acquiring new opportunities, so when preparing for automation, you need to carefully study what exactly is offered to you.

We identify ourselves as an automation system for fitness clubs with built-in CRM, because the product automates the entire range of business processes (accounting for finance and marketing activity, monitoring the work of trainers, analytics of warehouse stocks for fitness bars and cafes), and not just communication with clients. But customers are more accustomed to calling us a CRM system. We do not correct them, but in this confusion with definitions, we adjust our ad to a common query.

Tip: When choosing an automation product, abstract from definitions and focus on the specific problems you intend to solve. And then check if these functions are included in the proposed tool.

How to Prepare for a CRM Implementation: 4 Steps

Step 1. Decide which system you need: general-purpose or industry-specific

This question is asked by many business owners at the CRM search stage. And what do the development companies answer to this? Those who promote industry solutions convince that business processes in a cafe and a transport company are too different, and this cannot be ignored in the automation process.

The developers of universal systems emphasize such advantages as simplicity, ease of use, and lower price. You can often hear from them that in most cases industry-specific CRMs were "born" by accident: "We have finalized a couple of functions for a specific customer, and now they are being replicated throughout the industry."

I must say right away that I belong to the first camp in this confrontation. But I partly agree with the last argument. Sometimes CRM for real estate agencies from CRM for a beauty salon may differ only in the name of cards and fields for reports - it certainly does not make sense to overpay for this.

The goal of a good industry program is not to use professional slang to make it easier for the user to read, but to deepen the interaction with customers in a particular market. The functions of a universal system, as a rule, are sufficient for working out the first block of business processes - transferring a lead into a customer and bringing it to sale. But in order to work to retain a client, you need to take into account the specifics of his behavior in a specific niche. This is especially valuable for a business with loyal customers who need to be motivated to make new purchases over and over again.

Let me give you an example from the fitness market. Marketing tools kicked in and the client bought an annual club membership. The business needs them to repeat the purchase in a year, because it costs ten times more to attract a new customer than to retain an old one. And here it is important to take into account how often a person goes to training, what activities he is interested in, and also monitor his balance by service packages.

To do this, it is necessary to correlate the client's behavior with the cycles of his life in the club: the adaptation period, the stage of active use of services. Given the stage of the life cycle, you need to involve a person in various activities of the company: invite to events, test trainings, seasonal promotions. Within the entire cycle, it is advisable to make 10-15 contacts - depending on the triggers that are triggered in relation to a particular person. And then you can analyze the statistics on renewals and understand which tools work best for this goal.

Tip: Compare more than just industry CRMs with each other. Test the general-purpose system, then the industry-specific system, compare features. Look at the lifetime of an industry solution: the business processes of a specific market cannot be worked out in one year.

Step 2. Build a team to implement CRM

Implementing a CRM system is a multi-step process that needs to be treated like a large project. All the basics of project management should be applied here too - to assemble a team, calculate the necessary resources, distribute functions.

Who should be on the team?

Business manager … Give an order - "find and implement!" is a utopian option. CRM solves the strategic tasks of the business, therefore the wishes and goals of its head are the starting point of work. What data, reports do you need, what numbers are missing to make key decisions - the request is formed by the owners.
Sales Managerand experienced managerwho knows the specifics of the process.

The list can go on further depending on the nature, goals of automation and the size of the company.

Leadersthose departmentsthat will be affected by automation.
IT specialistif there is such a structural unit.
Influencers in departments … These people work on the front line and know many nuances in practice, and are also able to become an example for other employees in the process of introducing new work mechanisms.

If you do not have sales algorithms worked out in practice yet, you can include in the team invited expertexperienced in CRM implementation in your niche.

Tip: Don't inflate the composition of the project team. Let only key users enter it. So you will make the necessary decisions more quickly, and the implementation process will go more smoothly.

Step 3. Determine the KPI

Let's see, what do managers initially want from a CRM system? Inflated or unformed expectations, in my opinion, are one of the main reasons why business automation projects fail.

CRM is often dreamed of as a unicorn that runs on a rainbow and fulfills all your business desires. A customer relationship management system really needs to improve those relationships and, as a result, increase profits. But this criterion is rather broad and vague.

Define more specifically what you want from CRM:

increasing customer loyalty (so that more leads go to deals);
increase in the average check of one customer;
expanding the client base;
optimizing the work of managers (so that less time is spent on the application than before).

Accordingly, in order to objectively measure the effectiveness of a CRM system, even before its implementation, you need to find out:

how many out of 100 leads lead to a deal;
what is the average check of your client;
by what percentage the client base is growing per month;
how much time a manager spends on average on processing an application.

You can continue this list yourself, it all depends on the specific tasks of the business.

One more point. The CRM system works when used. Managers work out reminders, correctly fill in the data in customer cards, and managers review reports, draw conclusions and adjust business processes. Therefore, even before implementing CRM, you need to set up your employees to actively work with the system as a tool that will improve their KPIs.

Tip: Formulate clear criteria for evaluating the effectiveness of CRM at the initial stage. Be mindful of the question. CRM is not able to improve the skill of the seller, but it can make him more disciplined and the workflow clearer.

Step 4. Calculate your budget

The final cost of an automation project consists of the cost of the program itself and the costs of its implementation and maintenance.

The first part is easily predictable and becomes clear after studying vendor sites, where all tariffs and their content are listed.

The second part of the costs is not so obvious, so I will dwell on it in more detail. What else will be included in the total cost of implementing a CRM system?

Customization … You have to modify the system for your specific tasks if you have chosen a universal product and realized that some functions are still missing. Refinement can take place by the efforts of your IT department, freelancers or CRM developers. Spending will vary accordingly.
System Setup … In complex products that automate a complex of processes, setting up a system requires certain competencies and is sold as a separate service from the developer.
Integration … Provide what additional services CRM should be integrated with (access control systems, IP telephony, cash register equipment, etc.), how and by whom it will be done.
Maintenance. Find out in advance from the vendor the conditions for technical support of the program, which functions are paid and which are not.
Number of users … Take the time and calculate the exact number of regular and occasional users of the system in your company, so as not to overpay for unclaimed jobs.

Depending on a large number of factors, the cost of implementing CRM, even in companies that are close in scale and type of activity, can be very different.

Conclusion

CRM implementation is a laborious and responsible business for any organization. But I am convinced that this is absolutely necessary for all companies whose list of clients has passed the column with the serial number 100 in the Excel table.

Business process automation is not a luxury for a long time, but a necessity for survival in a competitive struggle. According to Customer Relationship Management TAdviser, 70% of large Russian companies already use one or another CRM system in the global market. CRM is used by 95% of large corporations with revenues over $ 1 billion, among medium-sized companies such 60%, and among small ones - no more than 25%.

Join those who are on the path of development!