If your company develops open source CRM software, what's the incentive for users to pay for it? That's the question most business owners new to CRM systems ask when they first encounter SugarCRM. Developers like to bundle SugarCRM as "free software" for their clients, but companies without server-savvy professionals on staff soon fall victim to the chores of maintaining the right hardware to keep their CRM systems secure and stable.
In the case of SugarCRM, "open source" may mean that you can download and install the software for free, but that you will almost certainly invest resources into equipment and IT staff. That's one reason why the SugarCRM team launched Sugar Express, a hosted CRM platform using SugarCRM at its core.
Pricing for SugarCRM, which includes an initial base of five users and scales to a maximum of ten users, reminds many industry analysts more of Zoho's low-cost hosted CRM offering than many of the service's premium competitors.
For small shops struggling with their current SugarCRM implementation, the hosted CRM option also features paid data migration services. End users experience the same CRM applications they already know, just hosted on SugarCRM's servers instead of their own.
For prospective SMBs and enterprise customers, Sugar Express represents a gateway from hosted CRM to a full-blown internal implementation. By getting users to start with a ten-seat license of Sugar Express, the company hopes to grow the kinds of clients that will more easily migrate to the professional server editions of SugarCRM.
Thursday, April 30, 2009
Sunday, April 26, 2009
A Fresh Look at CRM Software Failure Rates
Rick Cook notes that failure rates for new CRM software implementations remain at about 50-70%, even though companies and leaders have grown more savvy about training and developing new generations of customer service professionals. He outlines three important reasons why CRM applications often fail to deliver results:
Failing to put the customer first. Deep down, in your heart of hearts, does your company really put your customer first? Are you implementing new CRM software so you can speed up the ordering process for your customer, or are you hoping to shave a few cents off the cost of maintaining your call center. It doesn't mean that you can't do both, but if your motives for a new CRM system are solely based on the cost benefit, you'll find yourself in the pleasant company of business owners who have tried and failed to install new CRM applications.
Failing to secure buy-in. Cook cites a Gartner Group report that illustrates how a lack of motivation among team members can result in a failed or an incomplete CRM software implementation. If your organization doesn't track the results of your new initiative, team members may not be motivated to comply. In fact, a few of them may use the cover of ignorance to openly attack your project. Selling new CRM software to your internal customers is equally as important as selling it to your company's clients.
Assuming that technology will solve all of your company's problems. CRM applications can do remarkable things, but they can't drive new leads to your door or automatically turn around lost sales. Understanding the role of CRM software in your overall sales strategy will prevent you from overspending or under-training in critical areas.
As customer relationship management professionals, it seems like we have to revisit these themes frequently. The statistics speak for themselves, however. Until we can drive overall success of CRM software implementation above 50%, we'll continue to have these kinds of conversations with our teams.
Failing to put the customer first. Deep down, in your heart of hearts, does your company really put your customer first? Are you implementing new CRM software so you can speed up the ordering process for your customer, or are you hoping to shave a few cents off the cost of maintaining your call center. It doesn't mean that you can't do both, but if your motives for a new CRM system are solely based on the cost benefit, you'll find yourself in the pleasant company of business owners who have tried and failed to install new CRM applications.
Failing to secure buy-in. Cook cites a Gartner Group report that illustrates how a lack of motivation among team members can result in a failed or an incomplete CRM software implementation. If your organization doesn't track the results of your new initiative, team members may not be motivated to comply. In fact, a few of them may use the cover of ignorance to openly attack your project. Selling new CRM software to your internal customers is equally as important as selling it to your company's clients.
Assuming that technology will solve all of your company's problems. CRM applications can do remarkable things, but they can't drive new leads to your door or automatically turn around lost sales. Understanding the role of CRM software in your overall sales strategy will prevent you from overspending or under-training in critical areas.
As customer relationship management professionals, it seems like we have to revisit these themes frequently. The statistics speak for themselves, however. Until we can drive overall success of CRM software implementation above 50%, we'll continue to have these kinds of conversations with our teams.
Tuesday, April 14, 2009
Lessons of Open Source CRM Applications from the Nonprofit World
Few industry segments have embraced CRM applications in the way that charities have. Nonprofit organizations were among the first to automate customer relationship management (often called DRM, or donor relationship management systems).
With a head start on integrating advanced technology into their operations, nonprofits can actually teach for-profit corporations a few things about using CRM software to build loyalty. Cynthia Edwards posted a few of her own top tips from charities using CRM applications:
- Keep donors (customers) supplied with rich content that adds meaning to their lives. Strong storytelling reinforces your position in a customer's life. From a practical perspective, it also makes sure that they will open your e-mail.
- Use e-mail as a personalized orientation to kick start new relationships. The few moments after a new customer has completed a form or made a purchase represent the biggest chance to make a lasting impact.
- Offer strong incentives to share personal information. A relationship can't start until a prospect takes the step of signing up for a newsletter, creating a comment profile, or making a donation (or purchase).
Likewise, non-profits have had more time to deal with the relative explosion of CRM application vendors vying for their business. Common suggestions include:
- Learn the difference between "free CRM software" and "open source CRM software." Budget-conscious charities gravitate toward free or cheap solutions. However, many "free" CRM applications require setup and ongoing maintenance from expensive consultants or vendors.
- Emphasize the need to track referrals and personal relationships when selecting CRM software. Donors often recommend each other, as do customers. Rewarding those introductions plays a pivotal role in developing trust.
Finally, long-time advocates of CRM software in the nonprofit sector often like to remind their for-profit cousins that being not-for-profit doesn't always mean that they don't know how to grow revenue. They simply reinvest it more quickly, directly into mission-based activities, instead of distributing profit to shareholders. Smart marketers can learn a lot from experienced non-profit relationship experts.
Friday, April 10, 2009
CRM Software Developers Note: Twitter Boosted by 25-54 Year-Olds
Posts about so-called social CRM applications have popped up here and elsewhere over the past few months, especially as the instant-status service has experienced hockey-stick growth.
If you still don't know what Twitter is, take a look at this brief explanation from the folks at SuperNews:
All kidding aside, Twitter has tapped in to our delight in sharing ideas with each other -- even when those ideas are a little mundane. Marketers love Twitter because it can allow honest opinions about their products and services spread like wildfire.
Spammers have tried to game the system, but the built-in whitelisting process makes it hard to see unsolicited tweets from parties you don't already know.
CRM software developers like Twitter for two more reasons:
- Developers like to crow about their achievements on the service.
- The prime demographic targets for most American products and services have adopted Twitter far more quickly than they have other types of "social media."
Americans aged 25-54 make up the fastest growing group of Twitter users, according to ComScore. Teens and young adults are using the service, too, though they tend to accomplish the same thing by text messaging their friends directly. Older Americans still prefer to use e-mail and instant messaging services, leaving Twitter to some of the most desirable market segments in the country.
CRM software that integrates Twitter, along with other social media tools, will continue to give marketers a leg up when it comes to building relationships with a growing market segment that prefers to use the phone less and less.
Previous posts about Twitter-focused CRM Software:
Friday, April 3, 2009
CRM Software Is Just One Step Toward Powerful Customer Experiences
Colin Beasty at CRM Outsiders picked up on a story about how Dubai tourism officials hope that customer service training for taxi drivers can improve consistency for passengers while enhancing the city's reputation.
Researchers have studied how London's famous "Black Cab" drivers manage to blend high levels of technical skills with the degree of social interaction required to provide passengers with powerful, positive experiences. Brain scans indicate that a skilled London cabbie can use multiple parts of the brain at once, operating a car while navigating complex roads and still engaging in conversation.
Some customer service supervisors believe that purchasing CRM software can automate at least a part of that equation. In reality, customer service agents--especially in call center environments--find themselves operating the office equivalent of a Black Cab. They've got to accurately navigate a CRM application, often while attempting to resolve a concern for a caller.
For instance, your representative can use that time to provide "call narration" to describe how the system works. Instead of denigrating your CRM application, he or she can explain exactly what is happening to a customer in positive terms. If the agent has to enter detailed information into the system, polite questions can reinforce the relationship element of the exchange. For instance:
"Before I can look up your order, I'll want to collect some information. May I ask you a few questions to find your account details?"
That phrase sounds better than: "my system won't let me tell you anything until I put in your name."
Likewise, if there's a lag time while processing complex searches, call center agents can explain a little about how their CRM application works:
"Right now, the system's searching through our database of all the flights available to find the best options for you."
Having a positive conversation about something instead of leaving dead air can keep a customer relationship warm. Over time, more highly skilled call center agents can learn how to engage customers on other topics, building rapport. Even the best CRM application can't generate a great customer relationship without help from a skilled agent's brain.
Researchers have studied how London's famous "Black Cab" drivers manage to blend high levels of technical skills with the degree of social interaction required to provide passengers with powerful, positive experiences. Brain scans indicate that a skilled London cabbie can use multiple parts of the brain at once, operating a car while navigating complex roads and still engaging in conversation.
Some customer service supervisors believe that purchasing CRM software can automate at least a part of that equation. In reality, customer service agents--especially in call center environments--find themselves operating the office equivalent of a Black Cab. They've got to accurately navigate a CRM application, often while attempting to resolve a concern for a caller.
For instance, your representative can use that time to provide "call narration" to describe how the system works. Instead of denigrating your CRM application, he or she can explain exactly what is happening to a customer in positive terms. If the agent has to enter detailed information into the system, polite questions can reinforce the relationship element of the exchange. For instance:
"Before I can look up your order, I'll want to collect some information. May I ask you a few questions to find your account details?"
That phrase sounds better than: "my system won't let me tell you anything until I put in your name."
Likewise, if there's a lag time while processing complex searches, call center agents can explain a little about how their CRM application works:
"Right now, the system's searching through our database of all the flights available to find the best options for you."
Having a positive conversation about something instead of leaving dead air can keep a customer relationship warm. Over time, more highly skilled call center agents can learn how to engage customers on other topics, building rapport. Even the best CRM application can't generate a great customer relationship without help from a skilled agent's brain.
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