Workbooks CRM whitepaper


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Workbooks CRM whitepaper

  1. 1. 5 reasons why CRM projects failin small and mid-size businessesImplementing a CRM system for any sort of business is not without itschallenges, but for small and mid-size companies without dedicated ITteams or budgets it can be even more difficult.John Cheney, CEO of, a SaaS CRM provider whichspecialise in the SME market looks at five common mistakes SME’smake and offers advice on how these can be avoided.1 No clarity on the project objectivesIn order for any CRM project to be a success, there needs to be clarityon what success actually looks like. We speak to many organisationswho ‘feel’ they need a CRM system, but are not entirely sure what itcould deliver and how it will benefit the business.We encourage these organisations to really consider what theyare trying to achieve by investing in a CRM project and how theirbusiness might be different in 6–12 months with a successfully AJ ThoMpsoNdeployed solution. SalES DIRECTOR, NORTHDOORIt is also important to recognise that different teams inside yourbusiness will have different and often competing priorities. The “Switching from Salesforce.comsales team’s number one priority might be more leads, whilst the to Workbooks was pretty straight-customer services team might feel that a new support system is more forward as the Workbooks teamimportant. helped us with the data migration. Workbooks has all the sameIn order to clarify all of this we recommend you ask three questions of functionality we used in Salesforce.the business: com, but in addition our sales team can now track the progress of • What are the high level objectives? orders, and can see a customer’s • How would a system help me achieve these? order history. Having all the transaction data in one place has • How important are these objectives, relative to each other? had real benefits for our business.”
  2. 2. a simple table like the one below can add real value by allowing everyone to understand the issues and help prioritise accordingly. high Level objective how a system could help Business priority We need to accurately • We need a system which can report forecast our sales on sales opportunities by sales stage, sales rep and sales team, as well Medium as allow us to easily view this data monthly and quarterly. We want to improve the • It would be great to track which of our effectiveness of our sales sales people is under/over performing team so we can provide extra coaching or learn from best practise. • We want to track why we lose deals and whether specific competitors High consistently beat us, so that we can raise our game. • We want tools to help sales people adopt best practise and streamline the running of deal reviews. Improved Marketing ROI: • We would like the ability to track We spend £100k per marketing expenditure and identify which annum on marketing leads, opportunities and orders can be but have no idea if it is attributed to the marketing activity. High effective • We want a system to help us track what happens to the leads we pass to sales. Improving Customer • We need a system to track which Support customers are calling in and to categorise why they called. • We need to be able to identify common problems so we can provide proactive solutions. low • We want to identify any customers who might benefit from additional training. • It would be great to understand the average cost of handing a support call and how many calls a support team member can handle.2
  3. 3. 2 Lack of Executive sponsorshipCRM projects cost time and money and may demand a changein working practices. This means, that for any CRM project to besuccessful there must be the support from business leadership. Bysupport we don’t just mean a willingness to sign the cheque (althoughclearly that helps!).Business leaders must: • Manage competing requirements and set clear business priorities. • Clearly define the management information requirements. If the CRM system is really going to improve the business, it will need to deliver good quality KPIs, so the right people can make the right decisions. If the leadership doesn’t clearly define their requirements early in the project, the CRM project is unlikely to deliver its promise. • Motivate others: in SME companies the company leadership tends to be intimately involved with the working of the company and the staff. If they don’t see the CRM project as important, nobody else will.3 Lack of user involvement during planningSometimes CRM initiatives are driven ‘top down’ with the businessleadership keen to realise the value a good deployment can deliver(which is great – see above). However, in the enthusiasm to get asystem implemented, sometimes the people who actually use thesystem day to day don’t get properly consulted.Common pitfalls here include: • Management decide that ‘knowing this piece of information would be useful’, however the overhead of inputting the data means it takes people twice as long to do their job! • Users resent the ’new system’ which is not what they are used to, and don’t see the value it adds. • Users don’t feel like stakeholders and can be resistant to change.Unlike larger organisations which may have business analysts andbusiness process experts, in small organisations it is often only thepeople who really understand an existing business process are theusers who actually do the work. Therefore its key to get users involvedearly in the project.We would recommend establishing a project team right fromthe outset which includes managers and users. We would alsorecommend you empower the users representatives to be ‘projectchampions’, tasked with explaining to their colleagues why the CRMproject is being started, what value it delivers to the business andensuring they get feedback on issues or concerns from their peers. 3
  4. 4. 4 Recreating existing processes in a new systemCRM projects are started because the existing systems andprocesses don’t deliver the desired result. So implementing a newsystem (or software) which simply duplicates the existing processes isunlikely to improve things. Implementing a new CRM system providesa great opportunity to review and improve underlying businessprocesses. again user engagement here can be key. We often findthat when asked, people running a particular process or function canidentify ways to improve it; given the opportunity and the right support.One of the challenges for SMEs is that most of the key processes suchas order processing run across the organisation; starting in sales andmarketing, progressing into an administration function, may involve afulfilment team before finishing in finance.Therefore it helps to identify which processes run within a department(such as sales forecasting) and which go across teams. Whena process runs across a business, it makes sense to get thestakeholders together to discuss how the process can be improved.This doesn’t need to be complex and a good CRM vendor will help youwith this process.The key piece of advice here is: Be open-minded to changing yourprocess to fit the solution, rather than spending a lot of money oncustomising the solution to fit your existing process.5 Choosing the wrong partnerThe CRM software market is relatively mature, so whether youare considering using Workbooks or one of our competitors suchas or Microsoft Dynamics, you will find that mostapplications provide a rich set of features.We would recommend you look beyond product functionality to seewhat else you might need to ensure your project delivers a return onyour investment. • Is price the most important factor? • Do you need help with the design and implementation? • Do you need user training? • Do you need to migrate your data from a legacy system? • Once it’s in place will you need on-going support?One of the most important factors for an SME should be tounderstand how much focus and support you are likely to get fromyour CRM provider. Will your business be important to them and willthey go the extra mile to ensure you are successful? Workbooks Online limited 400 Thames Valley Park Drive Reading RG6 1PT UK T: +44 (0)118 3030 100 F: +44 (0)118 919 7805 E: W: VaT Number: GB 925 5677 91 Company Registration: 6393851 Code: WP0511_5CRM_0.1 Copyright © Workbooks Online limited