Small Business CRM Advice Roundup

There's lots of great advice for small business CRM users this month:

• First, envision the end result of your small business CRM implementation. As Stephen Covey would say, begin with the end in mind. Are you buying CRM software just because you feel you need to, or are there specific customer challenges that you hope you can solve with technology.

• Second, choose expandable CRM systems. CRM applications designed for enterprise organizations might be too big or too expensive to justify in a small business. Many of today's most popular CRM applications offer modular options, like seat licenses for web-based apps or feature-based pricing that allows you to enable more functionality as needed.

• Third, select CRM applications that invite customers to engage with you on their terms. Lead generation tools that offer interaction on websites as well as through mobile phone applications can cultivate relationships effectively -- even when you're not directly involved.

• Fourth, focus on CRM comparisons that build on the strengths of your current team. Most failed small business CRM implementations involve techniques or technology that existing sales professionals find painful to integrate into their workflows. A fantastic automated funneling lead generator won't do much for your organization if your team has their own way of doing things. Either invest in successful teams -- or build new teams.

• Finally, don't let your small business CRM project hide you from your customer. Many small business owners get so lost in the bells and whistles of new CRM systems that they forget what attracted customers to the relationship in the first place. Small businesses that leverage personal service and prompt attention won't get far if CRM tools get in the way of human interaction.

With more companies rolling out small business CRM products every quarter, entrepreneurs can leverage their size and flexibility to attract clients -- as long as they don't let the wrong CRM software lock them in to an ineffective process.

With Hosted CRM All the Rage, Is There Still a Place for Desktop CRM Applications?

Although I've been writing a lot lately about hosted CRM applications, today's news that AT&T has acquired Wayport reminds me that not all sales professionals are tethered to a 3G network. In fact, some folks operate in places where you can't always get to Wi-Fi, nor would you expect to.

I am reminded of growing up in the 1980s, working for my Dad in his mobile service unit. Our CRM application was a few milk crates full of service records and invoices tucked, behind the passenger seat. Many of the inner-city neighborhoods we served back then still don't have Wi-Fi, nor do they have the most reliable cell phone service.

Desktop CRM applications, like ACT!, GoldMine, and Daylite, aren't ready to be put out to pasture. In fact, for some professionals, they probably offer a better solution than web-based CRM systems.

For instance, solo professionals without support teams or virtual assistants can enjoy the full power of CRM software without paying monthly hosting or service fees. If you don't have to worry about syncing your CRM database to other users, keeping all of your data on the cloud becomes a less appealing option.

Likewise, mobile professionals who require fast access to small business CRM information can also get a lot from desktop CRM applications. If you're the only person working an account, you can wait until you get back to the office to synchronize with the rest of your team. The ACT! suite does this very well, especially for real estate professionals.

Of course, we're only a few more years away from nearly total network penetration. At that point, most sales and service professionals will be able to choose between totally hosted CRM applications and hybrid systems that sync to the cloud in the background. Until then, the right choice is whatever tool gets you the information and the insight you need, when you need it, wherever you happen to be working.

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.

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.

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Use CRM Software to Find More Customers

CRM Software is highly celebrated for improving a business' relationship with current clients. In addition to this benefit, business CRM software also aids in finding new clients.

The findings show many characteristics about clientele. With this information, a company can make assumptions about similarities between existing and potential clients.

For instance, if a current client subscribes to a particular magazine, a business can deduce that other subscribers to the magazine may also be interested in their products or services.

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