Tuesday, May 26, 2009

Gartner: Adopt CRM Systems Now, Or Lose a 1-Year Head Start

Companies that use the economic downturn as an opportunity to invest in CRM systems and other business intelligence tools will enjoy the same long term benefits as getting a one year head start. That's according to a recent Gartner report on CRM applications, focused on the impact of reducing costs and preparing for the end of a financial slump.

The Gartner report highlights the impact of launching new CRM systems during periodic business declines. Learning how to use CRM systems effectively during slow times is a great way to prevent service bottlenecks when call centers get busy. Training on CRM applications during downtime can help team members feel productive, efficient, and ready to take on bigger challenges once customers start buying again.

Tightening up business processes always feels necessary during a recession, since boom times can often mask the effects of inefficient tools and systems. It's easy to write off a problematic software tool when the opportunity cost to fix or replace it is such a low percentage of a company's gross revenues. As revenues shrink, problems like outdated CRM software become more apparent.

However, the Gartner report reminds business owners not to expect sales to snap back to their former levels right away. In some companies, sales may never reach their previous volume for a number of reasons:

  • Customers have changed buying habits.
  • "Temporary" discounts or price cuts have become permanent, reducing revenues.
  • Competitors have leveraged their own strategies to steal market share.

Therefore, investing in CRM systems is just one of the important tactics that companies can use to ride out the recession. Strengthening training, development, and marketing programs are still necessary steps to make sure that customers return once the economy improves.

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