For the past decade, banks have made money by offering bundles of credit and savings solutions, often tied to sophisticated web banking tools. However, even at many banks and credit unions that offer powerful online banking, many customers still can't get their questions answered unless they take the time to visit a branch. Banking industry experts hope that sophisticated, new CRM applications can help banks deliver the kind of world class customer service that keeps accounts from moving.
I had my own experience recently with a bank that does online service very well. Having just moved from one corner of the country to another, I was wondering if my current bank was still a good fit for my business account. I enjoyed four branches convenient to my old home. Now, I need to drive about fifteen minutes out of my way just to get to one of their branded ATM's. Because 99% of my banking is handled electronically, I can do just fine without those touchpoints. However, I felt like I should at least be able to leverage my dilemma into reduced account fees.
By wandering through my own bank's website, I found a bewildering number of options. I could sign up for a new account and enjoy no monthly fees for a year, or I could even create an account at one of my current bank's recent acquisitions and lock in a no-fee account for life. Both of these options would require me to spend time setting up new direct deposit and withdrawal plans -- not worth the hassle. I may as well move to another bank, if that's the case.
So, I opened up a chat window to see if I might persuade a customer service rep to give me a break. And that's when the disconnect between customer service and banking CRM applications hit me like a steam train. The helpful rep regretted that she had no access to my bank's CRM software, so she could not verify my account history or even make any recommendations about how to reorganize my account. I can understand her concerns about identity theft and personal privacy. After all, I could be anybody in my person to person chat.
However, isn't this the same bank that has developed a battery of passcodes, picture locks, and SMS-enabled transaction keys to keep impostors from getting into my online banking account? If I can initiate a $5,000 payment to a vendor from a secure website, why can't I get a chat agent to look up my account records?
That's the dilemma that many banks face, according to industry analysts. Many banks are not equipped with policies and procedures to cover interactions over e-mail and chat. Furthermore, privacy policies are already so overloaded, that they might not even permit banks to include the transcripts of chat sessions and e-mail in company CRM systems. Therefore, at most banks, chat and e-mail remain in the province of the marketing department. Reps are happy to talk about the principles of products and services, but they cannot delve deeper into the specifics of an account, the same way that branch representatives can.
If my chat representative had been able to connect to my account, she could have locked me in as a customer for life. Now, I'm still tempted to go to the shiny new bank down the street. And in this new era when deposits are once again paramount to the health of a financial institution, a consolidated CRM system that includes account-focused chat can make the difference for customers like me.
Friday, October 31, 2008
Wednesday, October 29, 2008
Will Social CRM Systems Let You Be More Than Facebook Friends With Your Customers?
Executives at Oracle recently made waves by unveiling a roadmap for that company's CRM software which focused heavily on social networking. While some companies are trying to find ways to let their CRM applications connect directly to Facebook and Twitter, others simply want their CRM systems mimic the look and feel of social networks to make work more engaging for customer service representatives.
Customer Experience
Already, banks and merchandisers have discovered the value of being accessible in the places where customers want to be. The same process that companies use to scout new brick-and-mortar locations is playing out again online. This time, companies leverage CRM applications to make presence on social sites like MySpace and Facebook meaningful, instead of leaving behind just another branding campaign.
Brand Control
Brand managers, marketing managers, and customer service managers have found themselves in conflict over companies' social CRM strategies. Brand managers have especially voiced concerns about the demands that social networking websites place on customer service personnel. Instead of having a single, consistent message, companies that adopt social CRM applications create individual experiences that flow from a common vision or credo. That may require taking a different approach to customer service elements like communication templates or e-mail policies.
User Adoption
Social CRM applications offer another major incentive to companies. Employees who use sophisticated websites like Flickr and Facebook often become frustrated when dealing with aging, text-based CRM systems at the office. By integrating some of the best practices of popular online applications, sponsors of CRM systems hope that they can speed up training and increase adoption across the enterprise. Even if CRM applications don't directly connect users to customers on Facebook, a growing hope is that a generation of socially-networked web surfers will be more likely to embrace highly attractive, functional, fun CRM applications.
Customer Experience
Already, banks and merchandisers have discovered the value of being accessible in the places where customers want to be. The same process that companies use to scout new brick-and-mortar locations is playing out again online. This time, companies leverage CRM applications to make presence on social sites like MySpace and Facebook meaningful, instead of leaving behind just another branding campaign.
Brand Control
Brand managers, marketing managers, and customer service managers have found themselves in conflict over companies' social CRM strategies. Brand managers have especially voiced concerns about the demands that social networking websites place on customer service personnel. Instead of having a single, consistent message, companies that adopt social CRM applications create individual experiences that flow from a common vision or credo. That may require taking a different approach to customer service elements like communication templates or e-mail policies.
User Adoption
Social CRM applications offer another major incentive to companies. Employees who use sophisticated websites like Flickr and Facebook often become frustrated when dealing with aging, text-based CRM systems at the office. By integrating some of the best practices of popular online applications, sponsors of CRM systems hope that they can speed up training and increase adoption across the enterprise. Even if CRM applications don't directly connect users to customers on Facebook, a growing hope is that a generation of socially-networked web surfers will be more likely to embrace highly attractive, functional, fun CRM applications.
Monday, October 27, 2008
Hosted CRM Systems Still Require Training, Implementation
Hosted CRM systems take a lot of the hassle out of deploying new sales and customer service solutions. In many cases, companies can use their existing hardware and operating systems by connecting to hosted CRM via web browsers. In fact, many companies are counting on "software as a service" to reduce their dependence on hardware upgrades over the next few years.
However, the speed of setting up hosted CRM inside a company doesn't always translate into faster implementation. According to a number of recent reports, hosted CRM implementations are starting to fail because company leaders neglect to invest in a comprehensive implementation plan.
In many organizations, team members take action based on the perception of risk and ROI. Most hosted CRM systems charge companies based on simplified seat license agreements instead of the complex, up-front costs that used to come with large system installations. This new pricing arrangement may, in some cases, encourage team members to take hosted CRM less seriously. After all, if the implementation fails, the company hasn't lost very much. Public price wars and free license promotions are becoming more transparent to end users, who may feel that they can sit out a CRM implementation in favor of an alternative solution that may be coming down the road.
Instead of letting hosted CRM systems fail, business experts advise company leaders to treat a new hosted CRM system launch with the same pomp and circumstance as if the company were investing in its own on-site hardware solution. Leaders should talk about the opportunity cost of remaining with older systems, and about the specific benefits to sales professionals who learn how to use new tools effectively. Helping team members understand the impact of hosted CRM on their personal bottom lines can help adoption rates soar.
However, the speed of setting up hosted CRM inside a company doesn't always translate into faster implementation. According to a number of recent reports, hosted CRM implementations are starting to fail because company leaders neglect to invest in a comprehensive implementation plan.
In many organizations, team members take action based on the perception of risk and ROI. Most hosted CRM systems charge companies based on simplified seat license agreements instead of the complex, up-front costs that used to come with large system installations. This new pricing arrangement may, in some cases, encourage team members to take hosted CRM less seriously. After all, if the implementation fails, the company hasn't lost very much. Public price wars and free license promotions are becoming more transparent to end users, who may feel that they can sit out a CRM implementation in favor of an alternative solution that may be coming down the road.
Instead of letting hosted CRM systems fail, business experts advise company leaders to treat a new hosted CRM system launch with the same pomp and circumstance as if the company were investing in its own on-site hardware solution. Leaders should talk about the opportunity cost of remaining with older systems, and about the specific benefits to sales professionals who learn how to use new tools effectively. Helping team members understand the impact of hosted CRM on their personal bottom lines can help adoption rates soar.
Friday, October 24, 2008
Wanted: Profitable CRM Software Companies
With more fallout from the collapse of Entellium, the business IT community has started to worry about the fiscal health of other vendors in the CRM software space. After all, migrating from one CRM application to another isn't fun when you want to do it, let alone when you start to wonder if someone's coming along to shut the servers down.
How, exactly, can you determine whether a CRM software vendor is going be around for a while? After all, executives from Entellium managed to fool some pretty smart people for a few years, if the most recent press reports are to be believed.
According to industry experts and leading CRM software consultants, the very best CRM vendors actually walk their talk. They use their own tools as the backbone for policies and procedures that engage customers and develop relationships.
Here's one tweet I found that exhibits the problem:
If your clients don't actually want to speak to you when times are good, what does that say about how your relationship will weather the storm when times are bad?
A CRM software vendor should exemplify the best practices of modern sales. If you don't feel right about them in your gut, they probably won't be the right fit for your company.
How, exactly, can you determine whether a CRM software vendor is going be around for a while? After all, executives from Entellium managed to fool some pretty smart people for a few years, if the most recent press reports are to be believed.
According to industry experts and leading CRM software consultants, the very best CRM vendors actually walk their talk. They use their own tools as the backbone for policies and procedures that engage customers and develop relationships.
Here's one tweet I found that exhibits the problem:
If your clients don't actually want to speak to you when times are good, what does that say about how your relationship will weather the storm when times are bad?
A CRM software vendor should exemplify the best practices of modern sales. If you don't feel right about them in your gut, they probably won't be the right fit for your company.
Thursday, October 23, 2008
Will SaaS Price War Color CRM Comparisons?
In my last post, I wrote about some potential CRM software buyers looking for bargains. According to the technology press, the economic changes over the past few months might make it even cheaper for new clients of hosted CRM platforms.
For instance, one report suggests that NetSuite is making a play for Salesforce customers by extending discounts of up to 50% for new customers of its hosted CRM system. It seems like Microsoft is taking the same tactic. Even some open source CRM software vendors are getting in on this action.
Meanwhile, the folks at Salesforce are eager to mention that customers should be nervous about companies that are willing to slash their prices so drastically. One writer notes that they're "not about to run a closeout sale," but that they're responding to the threats with some aggressive pricing of their own.
If there's a price war on CRM applications, that's a good thing for companies, right?
Maybe not.
For prospective buyers of CRM software, this is a great quarter to lock in a deal on an upgrade or a new implementation that you've already been planning. If, however, you're thinking about jumping ship from one provider to another just based on a special pricing deal, remember to factor in the opportunity costs of making the switch:
- Training staff on the new system.
- Transferring customer records between CRM applications.
- Updating web lead forms and other intake procedures.
If pricing incentives for hosted CRM tools can still save your company money over the next 2-3 years, then making the switch can be worth it. Otherwise, it might be a good time to talk to your account representative about new features or incentives that can make your decision to stay even easier.
Wednesday, October 22, 2008
Best CRM Applications for Non-Profits
A common question: if CRM applications can do so much for sales organizations, what can they do for non-profits?
It's interesting to see this question wrapped up in the distinction between small businesses and not-for-profit. That leads me to think this questioner is really after one thing: CHEAP.
What's great about today's batch of CRM applications? They actually are affordable for most types of organizations, even small businesses and not-for profits that don't have a lot of money. Having worked in the not-for-profit world as both a fundraiser and as a consultant, I have run across two types of folks who would be likely to set up their offices on CRM applications.
The first group believes strongly in Mission Based Marketing, and understands how to leverage their investments to bring in more donations. They're not afraid to spend $25,000 on a high-end CRM application if it means that they'll get a $250,000 return on that outlay. Like major corporations, they rely on solid marketing tactics, especially direct mail and online appeals. However, it's becoming harder to justify large overhead expenses to major donors. Nobody wants to see their big donation cover the cost of a very un-sexy software tool, even if that tool is pulling back nine or ten times its price tag in revenue.
The second group are the bootstrappers. These harried office organizers might not even be getting a paycheck for doing something they love to do. But they want to leverage software to help their causes. "Free" and "cheap" might be appealing to them -- it's easy to suck up a $12/month seat license on one's own dime. But lower cost CRM applications might not always have the right mix of features and support for charities.
Here are some of the low-cost CRM applications that are making great inroads into the non-profit sector:
GivenGain: Via the always-helpful eHub, I just learned about this new entrant in the race for "best CRM application designed for non-profits." This European team offers a donor management solution with two tiers: a fully-featured solution that includes e-mail outreach for $60 per month and a lite version with basic tools for $10 per month. Integrated payment processing is available for 3% plus transaction fees. Those fees are a little higher than PayPal's, but with all of the hassles of getting a non-profit set up with a merchant account, this structure is great for non-profits that are just getting started with online giving.
Zoho CRM: This little upstart has made a name for itself by cloning some of users' favorite elements from Google Docs and Salesforce, and blending them into its own CRM suite. Zoho lets teams of up to three users work the CRM application for free, making it ideal for budget-minded organizations. While Zoho offers web forms and other tools to import donor information, users must bring their own payment processing. This is good for groups with an existing web presence or a donor pool that loves writing checks.
Convio: The suite of tools offered by this specialist CRM software company might not appeal to folks looking for cheap solutions. However, Convio was one of the first programming companies that specifically addresses the needs of non-profits. They specialize in event-based donor management solutions, especially team fundraising activities. Best of all, they're not afraid to look outside themselves for inspiration -- some of their latest tools are actually built on the Salesforce.com application platform, bringing the best of both worlds to non-profits.
It's interesting to see this question wrapped up in the distinction between small businesses and not-for-profit. That leads me to think this questioner is really after one thing: CHEAP.
What's great about today's batch of CRM applications? They actually are affordable for most types of organizations, even small businesses and not-for profits that don't have a lot of money. Having worked in the not-for-profit world as both a fundraiser and as a consultant, I have run across two types of folks who would be likely to set up their offices on CRM applications.
The first group believes strongly in Mission Based Marketing, and understands how to leverage their investments to bring in more donations. They're not afraid to spend $25,000 on a high-end CRM application if it means that they'll get a $250,000 return on that outlay. Like major corporations, they rely on solid marketing tactics, especially direct mail and online appeals. However, it's becoming harder to justify large overhead expenses to major donors. Nobody wants to see their big donation cover the cost of a very un-sexy software tool, even if that tool is pulling back nine or ten times its price tag in revenue.
The second group are the bootstrappers. These harried office organizers might not even be getting a paycheck for doing something they love to do. But they want to leverage software to help their causes. "Free" and "cheap" might be appealing to them -- it's easy to suck up a $12/month seat license on one's own dime. But lower cost CRM applications might not always have the right mix of features and support for charities.
Here are some of the low-cost CRM applications that are making great inroads into the non-profit sector:
GivenGain: Via the always-helpful eHub, I just learned about this new entrant in the race for "best CRM application designed for non-profits." This European team offers a donor management solution with two tiers: a fully-featured solution that includes e-mail outreach for $60 per month and a lite version with basic tools for $10 per month. Integrated payment processing is available for 3% plus transaction fees. Those fees are a little higher than PayPal's, but with all of the hassles of getting a non-profit set up with a merchant account, this structure is great for non-profits that are just getting started with online giving.
Zoho CRM: This little upstart has made a name for itself by cloning some of users' favorite elements from Google Docs and Salesforce, and blending them into its own CRM suite. Zoho lets teams of up to three users work the CRM application for free, making it ideal for budget-minded organizations. While Zoho offers web forms and other tools to import donor information, users must bring their own payment processing. This is good for groups with an existing web presence or a donor pool that loves writing checks.
Convio: The suite of tools offered by this specialist CRM software company might not appeal to folks looking for cheap solutions. However, Convio was one of the first programming companies that specifically addresses the needs of non-profits. They specialize in event-based donor management solutions, especially team fundraising activities. Best of all, they're not afraid to look outside themselves for inspiration -- some of their latest tools are actually built on the Salesforce.com application platform, bringing the best of both worlds to non-profits.
Saturday, October 18, 2008
What happens when your team hates your company's CRM software?
Look at sites like Facebook or Twitter for more than a few minutes, and you're bound to find entries like this one:
That's the sound of passionate sales professionals frustrated by the inability to use CRM software to accomplish their goals. Reactions like this are one of the reasons that many CRM implementations fail. Successful, strong-willed sales professionals like to have a say in the way they conduct their business. And, in a market economy, they may head off to another job before letting their frustration be known.
When I wrote about six things managers can do to help CRM implementation go smoothly, I focused on using software to underscore the needs of the business. However, when I see comments like the one above, I know that someone has flipped the equation around -- the CRM software is driving the bus, not the sales professional.
It's important for anyone tasked with a CRM implementation to make sure there's a safe space to speak out about limitations of the software, and that it's not particularly disloyal or unhelpful to vent about what you want a CRM application to do. In some cases, additional training may help. Sometimes, the situation may require a workaround. And, especially when dealing with custom CRM applications, it might even be possible to engage the developers for insight or for a solution.
That's the sound of passionate sales professionals frustrated by the inability to use CRM software to accomplish their goals. Reactions like this are one of the reasons that many CRM implementations fail. Successful, strong-willed sales professionals like to have a say in the way they conduct their business. And, in a market economy, they may head off to another job before letting their frustration be known.
When I wrote about six things managers can do to help CRM implementation go smoothly, I focused on using software to underscore the needs of the business. However, when I see comments like the one above, I know that someone has flipped the equation around -- the CRM software is driving the bus, not the sales professional.
It's important for anyone tasked with a CRM implementation to make sure there's a safe space to speak out about limitations of the software, and that it's not particularly disloyal or unhelpful to vent about what you want a CRM application to do. In some cases, additional training may help. Sometimes, the situation may require a workaround. And, especially when dealing with custom CRM applications, it might even be possible to engage the developers for insight or for a solution.
Friday, October 17, 2008
Facebook CRM Applications Track User Communications, Preferences
I’ve already written about how companies have started to integrate Twitter into the customer service environment. Now, I’ve got a press release on my desk about a company that is launching a Facebook CRM application for contact centers.
It turns out that they’re not the only ones trying to catch the trend of communicating with friends through Facebook instead of via e-mail. Programmers and CRM software developers have been tinkering with the ability to bring customer relationship management tools to the service’s open programming platform for at least a year.
Some of the Facebook CRM applications on the market work like middleware. They actually handle inbound Facebook messages the same way as incoming e-mail. Service agents can import customer requests from Facebook mail, open tickets, and even collect personal data provided by site members.
Newer Facebook CRM applications take advantage of API connections between Facebook and a company’s CRM software. By saving a user’s profile page as a field within a contact, agents can help automate the process of following up on transactions or scanning user status updates for alerts.
Privacy advocates have raised concerns about what happens when companies start logging the personal information shared through social networking sites like Facebook, MySpace, and LinkedIn. CRM software programmers note that Facebook’s API prevents them from violating the site’s privacy policy. Facebook users set their own privacy profiles through their personal preference settings. They also control the amount of information that “friends” can access. Therefore, companies can only review information that site users allow them to see. However, logging a customer’s live feed of data might inadvertently store information that might later be deleted from a site’s servers, creating potential copyright issues.
For companies that want to learn more about customers while responding to questions and concerns in a familiar context, tracking Facebook through CRM software appears to be a promising, new frontier.
It turns out that they’re not the only ones trying to catch the trend of communicating with friends through Facebook instead of via e-mail. Programmers and CRM software developers have been tinkering with the ability to bring customer relationship management tools to the service’s open programming platform for at least a year.
Some of the Facebook CRM applications on the market work like middleware. They actually handle inbound Facebook messages the same way as incoming e-mail. Service agents can import customer requests from Facebook mail, open tickets, and even collect personal data provided by site members.
Newer Facebook CRM applications take advantage of API connections between Facebook and a company’s CRM software. By saving a user’s profile page as a field within a contact, agents can help automate the process of following up on transactions or scanning user status updates for alerts.
Privacy advocates have raised concerns about what happens when companies start logging the personal information shared through social networking sites like Facebook, MySpace, and LinkedIn. CRM software programmers note that Facebook’s API prevents them from violating the site’s privacy policy. Facebook users set their own privacy profiles through their personal preference settings. They also control the amount of information that “friends” can access. Therefore, companies can only review information that site users allow them to see. However, logging a customer’s live feed of data might inadvertently store information that might later be deleted from a site’s servers, creating potential copyright issues.
For companies that want to learn more about customers while responding to questions and concerns in a familiar context, tracking Facebook through CRM software appears to be a promising, new frontier.
Sunday, October 12, 2008
Mobile CRM Systems Coming to a Hotel Near You
Product managers at CRM application vendors love to talk about web integration. After all, when customer make their own selections of products and services online, web servers capture the details and nuances of their requests in place of human agents or sales professionals. What might have once landed in the heads of clever field agents now resides in a master database of likes and dislikes.
Some organizations experience resistance over installing CRM applications because staff members fear they’ll eventually be replaced. In fact, companies that use CRM software and web-based tools effectively tend to expand their business far beyond the capacities of their current staff. And the evidence of this trend is popping up in some unexpected places, like your local hotel.
For years, major brand hotel chains have urged guests to shift their appointments from the phone to their company websites. Not only does self-service web booking offer guests a comprehensive view of the prices and options available, it allows key customer data to be fed directly into a chain’s CRM system. Savvy hotel managers can use CRM data to predict the needs of incoming guests, especially repeat visitors. Anticipating these needs can impact everything from hotel decor to the kind of food and beverage on hand.
Now, imagine the power of a CRM application that can track a hotel guest’s wants and needs throughout the duration of their stay. That’s exactly what Runtriz has created with a custom hotel CRM application that runs on an iPhone or an iPod touch mobile device. By putting the entire range of hotel services -- from room service to special requests -- at the fingertips of guests, hotel managers encourage more sales through increased interaction.
Over time, managers use the CRM software not just to streamline special requests, but to build profiles of travelers and the kinds of services they request the most. This kind of CRM application can influence everything from the kind of food offered on the menu to the types of amenities offered throughout a property.
Some organizations experience resistance over installing CRM applications because staff members fear they’ll eventually be replaced. In fact, companies that use CRM software and web-based tools effectively tend to expand their business far beyond the capacities of their current staff. And the evidence of this trend is popping up in some unexpected places, like your local hotel.
For years, major brand hotel chains have urged guests to shift their appointments from the phone to their company websites. Not only does self-service web booking offer guests a comprehensive view of the prices and options available, it allows key customer data to be fed directly into a chain’s CRM system. Savvy hotel managers can use CRM data to predict the needs of incoming guests, especially repeat visitors. Anticipating these needs can impact everything from hotel decor to the kind of food and beverage on hand.
Now, imagine the power of a CRM application that can track a hotel guest’s wants and needs throughout the duration of their stay. That’s exactly what Runtriz has created with a custom hotel CRM application that runs on an iPhone or an iPod touch mobile device. By putting the entire range of hotel services -- from room service to special requests -- at the fingertips of guests, hotel managers encourage more sales through increased interaction.
Over time, managers use the CRM software not just to streamline special requests, but to build profiles of travelers and the kinds of services they request the most. This kind of CRM application can influence everything from the kind of food offered on the menu to the types of amenities offered throughout a property.
How Easily Can You Export Data from Your CRM Software?
The recent implosion of Entellium has CIOs and sales managers talking. Despite all the benefits of hosted CRM applications, there’s always an outside possibility that a CRM software vendor might shut down entirely. Fear of losing customer data may prevent managers from pursuing a customer relationship management strategy at all, according to some industry experts.
When shopping for CRM software, purchasers must ask prospective vendors about their procedures for data access, recovery, and migration. In fact, Entellium’s own marketing material encouraged their prospects to ask tough questions about data migration. Unfortunately, this solid advice couldn’t save the jobs of the sales and marketing professionals who were laid off when the company suddenly ran out of money.
CRM software champions within a company must make sure that they have a data export strategy in mind, regardless of the stability of their vendor. This tip applies equally to clients of hosted CRM systems and to owners of site-specific CRM software. Just as a vendor on shaky financial territory could vanish overnight, a custom installed CRM solution might become worthless if a legacy hardware or software module cannot be serviced or replaced.
Fortunately, in this case, investors and other board members of the company have been able to keep the servers running. Over the coming weeks, the eSalesForce and Rave platforms -- each supporting groups of otherwise satisfied client companies -- might be sold off to new owners at bargain basement prices. Whether the existing CRM applications will remain as-is or will be integrated into competitors’ suites remains to be seen. Either way, this episode illustrates the importance of accessing and backing up data locally, regardless of how stable a vendor looks.
When shopping for CRM software, purchasers must ask prospective vendors about their procedures for data access, recovery, and migration. In fact, Entellium’s own marketing material encouraged their prospects to ask tough questions about data migration. Unfortunately, this solid advice couldn’t save the jobs of the sales and marketing professionals who were laid off when the company suddenly ran out of money.
CRM software champions within a company must make sure that they have a data export strategy in mind, regardless of the stability of their vendor. This tip applies equally to clients of hosted CRM systems and to owners of site-specific CRM software. Just as a vendor on shaky financial territory could vanish overnight, a custom installed CRM solution might become worthless if a legacy hardware or software module cannot be serviced or replaced.
Fortunately, in this case, investors and other board members of the company have been able to keep the servers running. Over the coming weeks, the eSalesForce and Rave platforms -- each supporting groups of otherwise satisfied client companies -- might be sold off to new owners at bargain basement prices. Whether the existing CRM applications will remain as-is or will be integrated into competitors’ suites remains to be seen. Either way, this episode illustrates the importance of accessing and backing up data locally, regardless of how stable a vendor looks.
Thursday, October 9, 2008
CRM Software Tracks New Prospects with Google Alerts
In an earlier post, I wrote about some companies who have found value in using Twitter to discover disgruntled customers. Of course, Twitter represents just a fraction of your company’s customers online. To help reveal other customer issues, many companies now rely on Google Alerts. These daily, automatic searches for key words and phrases can help customer service professionals get in front of a breaking situation before it gets out of control.
Like Twitter, Google Alerts can play a role in a company’s customer relationship management strategy. A team member tasked with tracking down customers with online complaints can use CRM software to triangulate their identities and locations based on data collected in-house.
Google Alerts are simple to use, but it may take some tweaking to get results that properly target real customer issues without catching irrelevant details. John Jantsch from Duct Tape Marketing has posted a list of ten Google Alerts shortcuts that can help your customer relationship management team find and resolve problems.
However, Google Alerts aren’t just for companies trying to solve problems. A handful of businesses have discovered that Google Alerts can actually be a pretty good prospecting tool. For instance, a gutter repair company in Chicago might run a Google Alert for blogs and Twitter messages that use keywords like, “gutter fixed.” Likewise, a Ford dealer in Tampa might register a Google Alert for blogs that include phrases such as, “want to buy a new Mustang.”
While not exactly warm leads, these hits on relevant blog and journal searches can turn up some prospective customers. A polite note via e-mail or Twitter can actually lead to an introduction and even a sale. Most CRM software will allow sales professionals to log the sources of these new leads using custom notes. However, Oracle and other CRM software developers are already testing new prospect search features that can automate the process of turning Google Alerts-style notifications into potential new buyers. With these new customer relationship management tools on the horizon, blogs can help generate sales in addition to serving existing customers.
Like Twitter, Google Alerts can play a role in a company’s customer relationship management strategy. A team member tasked with tracking down customers with online complaints can use CRM software to triangulate their identities and locations based on data collected in-house.
Google Alerts are simple to use, but it may take some tweaking to get results that properly target real customer issues without catching irrelevant details. John Jantsch from Duct Tape Marketing has posted a list of ten Google Alerts shortcuts that can help your customer relationship management team find and resolve problems.
However, Google Alerts aren’t just for companies trying to solve problems. A handful of businesses have discovered that Google Alerts can actually be a pretty good prospecting tool. For instance, a gutter repair company in Chicago might run a Google Alert for blogs and Twitter messages that use keywords like, “gutter fixed.” Likewise, a Ford dealer in Tampa might register a Google Alert for blogs that include phrases such as, “want to buy a new Mustang.”
While not exactly warm leads, these hits on relevant blog and journal searches can turn up some prospective customers. A polite note via e-mail or Twitter can actually lead to an introduction and even a sale. Most CRM software will allow sales professionals to log the sources of these new leads using custom notes. However, Oracle and other CRM software developers are already testing new prospect search features that can automate the process of turning Google Alerts-style notifications into potential new buyers. With these new customer relationship management tools on the horizon, blogs can help generate sales in addition to serving existing customers.
Wednesday, October 8, 2008
Companies Test Twitter Inside CRM Applications
Twitter blends the casual communication of instant messaging with the permanence of blogging. Although it started off as a fairly simple website, this powerful tool connects to a variety of desktop and mobile clients. More importantly, your customers are starting to use it to document the quality of your products and services. Marketing experts believe that integrating Twitter into your company’s customer relationship management strategy acts as a distant early warning against product defects and underperforming service representatives.
In a society where frustrated customers tend to share their experiences online instead of contacting companies directly, top companies extend customer relationship management beyond inbound communication. Looking to Twitter for problems to solve can improve individual relationships with customers, while offering public evidence of a company’s commitment to quality. Companies already building strong, interactive presences on Twitter include:
* JetBlue
* Dell
* Southwest Airlines
* Kodak
* H&R Block
* Whole Foods
While it makes sense for technology companies like Dell to track customer comments on a niche publishing service, what draws the attention of businesses like General Motors and H&R Block? Twitter users include thought leaders from all walks of life. They represent the most vocal and connected customers for their companies, often helping to uncover entire pockets of discontent from an entire customer base.
Right now, many companies approach Twitter as a challenge for customer relations departments, responding to complaint tweets the same way that they would respond to angry letters or blog postings. However, a growing number of businesses have opened up to the idea of offering traditional customer support on Twitter by blending online tools with their CRM applications.
It’s no surprise that CRM application vendors are at the forefront of this trend, especially since many of their customers are well-connected CIOs and network administrators. SAP recently opened an early test of their new Twitter module to clients and to the press, while developers have launched numerous in-house projects to connect customers’ accounts to their Twitter streams. Heavy Twitter users may be more likely to request help via a “direct message” to a customer service center than by calling or visiting a company web site. Even passive compliments and complaints from customers can be logged into CRM applications by “following” a user’s account or searching for company references using Twitter’s search tools.
Along the same lines, some companies have discovered the benefits of using Twitter in their own enterprise. Other businesses are building their own private versions of Twitter tools, to enjoy the benefits of timely, but trackable, conversations. For company leaders who wonder whether Twitter has the traction to stay around for the long haul, experts point at AOL’s IM platform. Ten years ago, it was something that maybe the office intern had running in a background window. Today, IM and live chat are integral to numerous customer relationship management strategies.
In a society where frustrated customers tend to share their experiences online instead of contacting companies directly, top companies extend customer relationship management beyond inbound communication. Looking to Twitter for problems to solve can improve individual relationships with customers, while offering public evidence of a company’s commitment to quality. Companies already building strong, interactive presences on Twitter include:
* JetBlue
* Dell
* Southwest Airlines
* Kodak
* H&R Block
* Whole Foods
While it makes sense for technology companies like Dell to track customer comments on a niche publishing service, what draws the attention of businesses like General Motors and H&R Block? Twitter users include thought leaders from all walks of life. They represent the most vocal and connected customers for their companies, often helping to uncover entire pockets of discontent from an entire customer base.
Right now, many companies approach Twitter as a challenge for customer relations departments, responding to complaint tweets the same way that they would respond to angry letters or blog postings. However, a growing number of businesses have opened up to the idea of offering traditional customer support on Twitter by blending online tools with their CRM applications.
It’s no surprise that CRM application vendors are at the forefront of this trend, especially since many of their customers are well-connected CIOs and network administrators. SAP recently opened an early test of their new Twitter module to clients and to the press, while developers have launched numerous in-house projects to connect customers’ accounts to their Twitter streams. Heavy Twitter users may be more likely to request help via a “direct message” to a customer service center than by calling or visiting a company web site. Even passive compliments and complaints from customers can be logged into CRM applications by “following” a user’s account or searching for company references using Twitter’s search tools.
Along the same lines, some companies have discovered the benefits of using Twitter in their own enterprise. Other businesses are building their own private versions of Twitter tools, to enjoy the benefits of timely, but trackable, conversations. For company leaders who wonder whether Twitter has the traction to stay around for the long haul, experts point at AOL’s IM platform. Ten years ago, it was something that maybe the office intern had running in a background window. Today, IM and live chat are integral to numerous customer relationship management strategies.
Friday, October 3, 2008
Startup Depression Spawns Spike in Demand for Hosted CRM
Times like these can be especially tough for small and medium-sized businesses. To help SMBs weather the storm, business blogger Jason Calacanis has put together a list of ten things smaller companies can do to get through the credit crunch. At the top of his list is a challenge to “execute better.”
To me, that means making more of every opportunity, taking care of your existing customers, and looking harder for new sources of revenue. At the same time, there’s no easy business credit or venture capital floating around to cover the cost of expensive marketing campaigns or custom databases.
Hosted CRM systems offer tremendous ROI potential when they’re used effectively. Here are three of my favorite tips for business owners who want to save money by firing up a hosted CRM system:
Don’t try to reinvent the wheel. Instead of spending tons of money to customize your CRM application with exactly the data fields you want right now, do what the folks at 37signals recommend: use simple workarounds and catch-all text fields to keep things moving. Capturing and using the data is crucial right now. Getting it to look exactly the way you want is something that can wait until you’ve got positive cash flow and angel investors banging down your door.
Price your CRM application for today’s team and for tomorrow’s expansion. I love hosted CRM apps because many vendors will let you purchase licenses either by the employee or in small blocks. You don’t have to spend a huge amount of money up front to get the powerful tools your team needs right now.
Make it work anywhere. If you’re looking at holding on to some of your team’s hardware for another year (or more), choose a hosted CRM system that runs on nearly any platform. That way, as you gradually replace desktop and laptop computers over the next few years, your entire team will still be on the same page.
Whatever industry you're in, an inexpensive, hosted CRM application can help bring more money in the door without tying up your credit lines or your cash flow.
Home Builders Unearth More Sales Using CRM Software
With all the recent news coverage of the subprime mortgage crisis and the Wall Street bailout package, home builders haven’t received the kind of attention they’re used to from the press. They’re not getting as much attention from speculators or from home buyers, either.
That’s a big problem.
With consumer banks tightening up on mortgages and commercial lenders reluctant to approve any new loans, home builders have to rely on tried-and-true sales tactics to keep construction crews busy. The past few months have seen an uptick in the number of CRM applications specifically designed for the home construction industry. By coaching home builders to convert more of their prospects into purchasers during this slow period, sales coaches and CRM application developers hope to help their customers weather the financial storm.
Until recently, many sales agents at home builders simply relied on “for sale” signs and newspaper announcements to attract new customers. In today’s tougher marketplace, agents have to work harder to capture sales. CRM software helps agents:
- provide personalized responses to queries
- track follow-up calls
- pass customer details to lending partners
- offer customized production schedules for buyers
- prompt consistent feedback and follow-up
Home builders that want to learn how CRM applications can improve conversion rates can download a free white paper from Pivotal:
The free report offers ten steps that home builders can take right now to implement CRM systems that boost sales. Even with the recent passage of the government’s financial rescue plan, it could take months or even years for home builders to return to the kind of steady business they enjoyed in the first half of the decade. When that happens, tight CRM systems will help smart home builders close even more sales.
Hosted CRM Can Protect Your Customers from Identity Theft
As someone who spends a great deal of time on the road, I always get nervous when I hear about a stolen laptop or a missing hard drive containing thousands of customer records. Where I grew up, anything stolen from a car just ended up at a pawn shop. You could safely assume that any data on a hard drive would either get wiped out, or just ignored by some future user.
Not anymore. Clever thieves now realize that they can extract more value from a hard drive's CRM data than from the equipment itself. Up until a few years ago, that could easily have been my laptop, with my customer data on it. I would hate to have to call up my clients and give them that kind of bad news.
That's one of the reasons I switched to hosted CRM for my own business, and why I often recommend it to my consulting clients. If someone breaks into my car while I'm running a roadside errand, the worst thing I have to deal with is borrowing or buying another laptop for the rest of the trip. All of my hard drive data is backed up at the office, and all of my customer data lives on the cloud. In the ultimate worst case scenario, I can stop by a Kinko's and rent a machine to get my work done.
If you're working at a company that doesn't use hosted CRM (and there are plenty of performance-related reasons why you might want to do that), you can still protect your customer data using encryption, hardware locks, or even by connecting remotely to your desktop computer using VNC, GoToMyPC, or LogMeIn. Still, with VPN, Wi-Fi, and 3G laptop connections, it's easier than ever to let your data live on a hosted CRM solution.
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