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The Anatomy of Growth: How a well-implemented CRM system is essential to sustained corporate growth


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Part of The Leading Edge executive signature series, this presentation, “The Anatomy of Growth: How a well-implemented CRM system is essential to sustained corporate growth” was delivered by Walter Fawcett, Founder of Fawcett Technology Advisors, at SoCal BMA’s 3rd Annual Regional Conference, “Process to Profits: Customer-Centric Strategies for Accelerating Growth”. The conference was held November 17, 2016, in Irvine, CA.

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The Anatomy of Growth: How a well-implemented CRM system is essential to sustained corporate growth

  1. 1. THE ANATOMY OF GROWTH How a well-implemented CRM system is essential to sustained corporate growth @socalbma  Walter Fawcett, Founder Fawcett Technology Advisors @WalterFawcett
  2. 2. WALTER FAWCETT ➤25 years of application design and technology consulting ➤Founded Fawcett Technology Advisors in 2009 ➤Today… sole focus is in CRM Fawcett Technology Advisors @socalbma 
  3. 3. UNDERSTAND THE POTENTIAL VALUE “In analyzing ROI case studies on CRM, Nucleus Research found the average returns from CRM have increased since 2011, from $5.60 to $8.71 for every dollar.” Nucleus Research Fawcett Technology Advisors @socalbma 
  4. 4. ✓ The Technology Landscape ✓ A Blueprint for Success ✓ 6 Common Mistakes ✓ Where to Begin THE ANATOMY OF GROWTH Fawcett Technology Advisors @socalbma 
  5. 5. Standard Definition… Customer Relationship Management ➤ Sales Automation ➤ Contact Management ➤ Marketing Automation Fawcett Definition… Process & Data Management in addition to Automation in the “front end” of the business ➤ All of the above tied into one system What is CRM? Fawcett Technology Advisors @socalbma 
  6. 6. Why CRM is important… For the Company ➤ Sustained growth requires control over process and data For Marketers ➤ Success requires metrics that show how marketing activities contribute to overall corporate performance Fawcett Technology Advisors @socalbma 
  7. 7. Contact Management CRM Marketing Management Technology Landscape Fawcett Technology Advisors @socalbma 
  8. 8. ➤ Salesforce revenue has grown over 8x. ($1b to $8b+) ➤ Marketo grew from $10m in revenue in 2011 to selling for over $1.5b earlier this year. ➤ HubSpot had revenue of $16m in 2011. 2016 revenue may top $200m. Changes in the Landscape Since 2011 Fawcett Technology Advisors @socalbma 
  9. 9. Changes in the Landscape Since 2011 ➤ Pardot had revenue of $7m in 2011…acquired by ExactTarget for $95m. ET was purchased in 2013 by Salesforce for $2.5b ➤ In 2011, Microsoft did not have an online CRM offering. Fawcett Technology Advisors @socalbma 
  10. 10. “As many as 85% of companies that buy CRM software to automate sales efforts don’t pick the right tools because they fail to define business objectives.” Distinguished Analyst, Robert DeSisto, former VP, Gartner* *Mr. DeSisto is now Vice President of Global Customer Transformation at Salesforce. Why So Many Companies Struggle with CRM… Fawcett Technology Advisors @socalbma 
  11. 11. …for a well-implemented CRM is to stay focused on the business requirements…not the technology. The Key to Success… Fawcett Technology Advisors @socalbma 
  12. 12. … Start the Conversation. The Initiative Needs A Leader… Fawcett Technology Advisors @socalbma 
  13. 13. ➤ Continually demonstrate value ➤ Senior management buy-in ➤ Alignment of the organization with marketing strategies ➤ Building bridges between Marketing Technology and the “IT Department” ➤ Technology is changing at incredible speed The Marketer’s Challenge… Fawcett Technology Advisors @socalbma 
  14. 14. ➤ Uncovers how your marketing strategy can optimally align with other departments ➤ Enables end-to-end measurement of objectives across multiple departments ➤ Gives Marketers more influence over the ultimate results of the company initiatives Leading the Conversation Opens Doors… Fawcett Technology Advisors @socalbma 
  15. 15. Do You Need A Technology Background? No. Fawcett Technology Advisors @socalbma 
  16. 16. ➤ Leadership, Empathy, Collaboration, and Teamwork ➤ Stay focused on the business What is Needed… “It is amazing how much can be accomplished if no one cares who gets the credit.” John Wooden Fawcett Technology Advisors @socalbma 
  17. 17. It is essential to remain focused on the business objectives before talking tech. CRM is a Business Discussion… Fawcett Technology Advisors @socalbma 
  18. 18. Jumping into the technical, before you have your business objectives properly documented, increases risk and makes you vulnerable to many perils of a CRM implementation. Danger of Talking Tech Too Soon… Fawcett Technology Advisors @socalbma 
  19. 19. It is likely that many of you already have a CRM at your company. If it is working well… congratulate yourself. If it is not driving value, all of the principles in this presentation will still apply. But I Already Have A CRM? Fawcett Technology Advisors @socalbma 
  20. 20. ➤ Define the Problem ➤ Identify User Groups ➤ Understand Your Data ➤ Map the Business Process ➤ Write down your findings Empathy and cross-department collaboration are the two most essential skills to lead the CRM initiative. 5 Main Elements of the Blueprint… Fawcett Technology Advisors @socalbma 
  21. 21. ➤ What are the big challenges that you are trying to solve? ➤ What is the impact of each issue? ➤ Can you determine a value for solving each one? Define the Issues Fawcett Technology Advisors @socalbma 
  22. 22. The People that will need to interact with the “system” Identify Potential User Groups External  Customers  Vendors  Partners Internal  Outside Sales  Inside Sales  Marketers  Customer Service  Managers Fawcett Technology Advisors @socalbma 
  23. 23. ➤ Characteristics of the User ➤ Technology Context ➤ Priority and Timing ➤ Security Issues / Requirements Understand the User Persona Fawcett Technology Advisors @socalbma 
  24. 24. ➤ Data that naturally occurs in the course of business ➤ People ➤ Companies ➤ Transactions ➤ Activities ➤ Breadth is more important the depth ➤ Make Lists … Not Technical Catalog Your Data Fawcett Technology Advisors @socalbma 
  25. 25. Analyze Each Data Set ➤ List the “attributes” for each data set ➤ Think about how the data set can be categorized ➤ List the related data sets ➤ List places where the data set exists today Fawcett Technology Advisors @socalbma 
  26. 26. Understand Your Data Very frequently CRM projects fail because the company does not adequately understand its data before implementation. Fawcett Technology Advisors @socalbma 
  27. 27. Catalog Departmental Business Processes List Out High-Level Departmental Processes ➤ Marketing ➤ Inside Sales ➤ Outside Sales ➤ Service Fawcett Technology Advisors @socalbma 
  28. 28. Link Business Processes Across Departments ➤ Tie together end to end ➤ Map the process from beginning to end ➤ Crossing department boundaries is essential Fawcett Technology Advisors @socalbma 
  29. 29. Process Analysis ➤ Identify the Variants ➤ Social Media Leads vs. Trade Show Lead vs. Web Site Lead ➤ New Sale vs. Maintenance Renewal ➤ Customer Forecast vs. Individual Order ➤ Describe the rules and requirements for each ➤ Find the outliers Fawcett Technology Advisors @socalbma 
  30. 30. Catalog the data and calculations that are used to measure your business. ➤ Primary Data Set: leads, sales, impressions, etc. ➤ Dimensions: by customer, sales rep, campaign, channel ➤ Time Frame: per week, month, quarter, year, et al. Your existing reports are a great source for identifying key metrics. Metrics Fawcett Technology Advisors @socalbma 
  31. 31. ➤ Identify the process that is the data source for each metric ➤ Prioritize which metrics are most important ➤ Describe the meaning of each important metric Map Metrics Back to Process Fawcett Technology Advisors @socalbma 
  32. 32. Automation Opportunities ➤ Areas where the technology can automate tasks to increase efficiency and/or reduce errors “Non-Functional” Business Requirements ➤ Security ➤ Performance ➤ Hours of Operation ➤ Scalability ➤ Uptime Requirements ➤ Support and Maintenance Final Touches Fawcett Technology Advisors @socalbma 
  33. 33. You are now able to describe the following… ➤ Challenges you are trying to solve ➤ Who will be using the system ➤ How the data flows through the business ➤ How key metrics are mapped from the end-to-end business process Checkpoint 1 Fawcett Technology Advisors @socalbma 
  34. 34. DOCUMENTATION IS ARMOR The next step in the process… the Technology Discussion But first... your documentation is your armor. Don’t go into battle without it. Fawcett Technology Advisors @socalbma 
  35. 35. ➤ The discipline of documenting your findings is essential for a successful CRM implementation or remediation ➤ The documentation review process enables other departments to ensure that their voices were properly heard ➤ Gaps are always found when documenting ➤ Accountability is impossible without documentation … both internal and external Documentation Fawcett Technology Advisors @socalbma 
  36. 36. The Technology Discussion Now that the business requirements are understood and documented, the technology discussion can start. In this section we will review the following… ➤ How to select the technology ➤ How to select an implementation strategy ➤ How to get the right deal Fawcett Technology Advisors @socalbma 
  37. 37. Self Implement Staff 100% with internal resources No external staff A Quick Note About Implementation Options Fawcett Technology Advisors @socalbma 
  38. 38. Self Implement Staff 100% with internal resources No external staff Outsource Staff with 100% external resources Possibly use internal staff for training and other ancillary tasks A Quick Note About Implementation Options Fawcett Technology Advisors @socalbma 
  39. 39. A Quick Note About Implementation Options Self Implement Staff 100% with internal resources No external staff Outsource Staff with 100% external resources Possibly use internal staff for training and other ancillary tasks Hybrid A mix of internal & external resources Usually external resources focus on design and architecture. Internal staff can be programmers, support, training, et al. Fawcett Technology Advisors @socalbma 
  40. 40. ➤ Go on some dates… play the field… be safe ➤ Have some serious dates… share some personal info ➤ Engagement ➤ Marriage The Selection Process is Like Getting Married Fawcett Technology Advisors @socalbma 
  41. 41. ➤ Invite your IT Team into the discussion ➤ Give IT “a seat at the table” for technology or support decisions ➤ Avoid surprises, encourage collaboration and accountability Involve Your IT Team Fawcett Technology Advisors @socalbma 
  42. 42. ➤ Talk to business and marketing leaders you that you respect about their experiences… and catalog their input (for your own reference). ➤ Research product and service offerings ➤ Identify top choices ➤ Don’t fall in love with any solution…yet ➤ You are looking for options and information, not solutions Start the Research Fawcett Technology Advisors @socalbma 
  43. 43. ➤ To better educate yourself, contact at least 2 CRM software vendors ➤ Get a demo ➤ Ask for pricing information … be wary if the pricing info is not clear ➤ Ask for referrals to their best integrators that have experience in your industry and size of company ➤ Again you are looking to educate yourself … do not start “solutioning” Contact CRM Vendors Fawcett Technology Advisors @socalbma 
  44. 44. Selecting who drives your Implementation is more important than selecting the right technology. Start the Selection Process Fawcett Technology Advisors @socalbma 
  45. 45. ➤ Analysis and Design ➤ Development ➤ Deployment ➤ User Training ➤ Support ADDUS – The Implementation Process Fawcett Technology Advisors @socalbma 
  46. 46. ➤ Internal ➤ Outsourced ➤ Hybrid Which Implementation Options Will You Consider? Fawcett Technology Advisors @socalbma 
  47. 47. Meet with at least three candidates ➤ Explain your very high level goals ➤ Ask about the methodology, relevant experience and pricing ➤ Ideally at least one of the candidates should have expertise in a different CRM platform Evaluate their response ➤ Did they have a clear and credible explanation ➤ Did they ask questions ➤ How well did they listen and understand your needs and situation This is like your first couple of “dates”. Listen… have fun… and be safe. Create a List of Potential Implementers Fawcett Technology Advisors @socalbma 
  48. 48. ➤ If the first date went well, then you can get more serious ➤ Consider asking 3rd Party to sign a Non-Disclosure Agreement ➤ Share the CRM business documentation that you created earlier This is where you get comfortable enough to start sharing your story. The Short List Fawcett Technology Advisors @socalbma 
  49. 49. ➤ Do they actually read and understand the requirements ➤ Do they ask good questions ➤ Did they provide a well- written proposal that aligns with the Business requirements document ➤ The response should be consistent with the claims in the initial meetings (process, pricing, experience, etc.) Carefully Evaluate Potential Implementers Fawcett Technology Advisors @socalbma 
  50. 50.  Invest time crafting the relationship that you want. The implementer will be a person or company that you may work with for years to come.  Think of this as a potential marriage contract. Negotiate the Right Terms Fawcett Technology Advisors @socalbma 
  51. 51. ➤ Is the proposal clear on how you will be able to manage the implementer? ➤ Who will be working on your project? ➤ What is the escalation process and who is involved? ➤ How will support and maintenance be handled? The Management Controls Fawcett Technology Advisors @socalbma 
  52. 52. ➤ Insist on a cost estimate for the full scope ➤ Internal: cost of labor and resources ➤ Outsource: fixed price or hourly ➤ Hybrid: a combination of both ➤ Require a risk analysis ➤ Limit the initial phase to a scope that is as narrow as possible The Appropriate Scope Fawcett Technology Advisors @socalbma 
  53. 53. ➤ Negotiate pricing for the licenses and/or subscriptions up front, but only buy when needed ➤ Leverage favorable cancellation terms ➤ Determine who owns the work product ➤ Decide what happens if you separate The Terms Fawcett Technology Advisors @socalbma 
  54. 54. Additional or Unforeseen ➤ Support & Training ➤ Upgrades and New Features ➤ Integrating with other business applications Infrastructure ➤ Network capacity ➤ Redundancy ➤ Security considerations Plan for the cost to be 2x the quoted price. The Hidden Costs Fawcett Technology Advisors @socalbma 
  55. 55. At this point you will have done the following… ➤ Educated yourself on technology and implementation options ➤ Completed the selection process for who will be your implementer ➤ Negotiated an agreement that includes management controls, an appropriate scope, and proper terms ➤ Considered hidden costs Checkpoint 2 Fawcett Technology Advisors @socalbma 
  56. 56. 6 Common Mistakes Fawcett Technology Advisors @socalbma 
  57. 57. Inability to address the gravitational pull of old habits will undermine the success of the CRM initiative. Adoption takes constant energy to change old habits. #6 – Underestimating Difficulty of User Adoption & Training Fawcett Technology Advisors @socalbma 
  58. 58. ➤ The consequence, will be that users will enter bad data or just not use the system ➤ The system must be flexible ➤ Data should only be required when relevant ➤ Stage of process ➤ Type of process #5 – The Death Star Fawcett Technology Advisors @socalbma 
  59. 59. ➤ In every CRM initiative there are risks that could undermine the overall success ➤ Companies frequently will jump into the implementation phase without fully understanding, vetting and containing major risks ➤ The result is that when not addressed early, a company can be deep into implementation before uncovering a showstopper #4 – Insufficient Risk Analysis Fawcett Technology Advisors @socalbma 
  60. 60. Companies don’t invest the time to properly clean and prepare their data before the implementation of their CRM initiative. Impact - Reduces benefits of the CRM initiative ➤ Users will become frustrated ➤ Metrics and reporting will be inaccurate ➤ End up spending more time and money later fixing the problem “Garbage In … Garbage Out!” #3 – Dirty Data Fawcett Technology Advisors @socalbma 
  61. 61. Some companies will take on an initial project with a very broad scope, creating unnecessary risk. ➤ Budget overruns ➤ Schedule delays ➤ Complicates mid-project changes, if needed ➤ Wasted labor and resources #2 – The Initial Implementation Project Is Too Big Fawcett Technology Advisors @socalbma 
  62. 62. “The Fish Stinks from the Head …” ➤ Lack of commitment from Top Management ➤ Lack of consistent usage by Marketing and Sales leaders ➤ Leads to an unengaged user base #1 – Lack of Commitment and Participation Fawcett Technology Advisors @socalbma 
  63. 63. CRM AND GROWTH According to Gartner… “…a well-implemented CRM system can increase revenue by a whopping 41% per sales person.” Fawcett Technology Advisors @socalbma 
  64. 64. ➤ Focus on the Business Requirements ➤ Lead with empathy and collaboration ➤ Document the information ➤ Be well-armed before you start the technology discussion CRM Takeaways…Starting the Discussion Fawcett Technology Advisors @socalbma 
  65. 65. ➤ Who will be implementing the system is more important than the software ➤ Involve your IT Team ➤ Avoid common mistakes ➤ Ensure that the executives and managers are committed to use the system CRM Takeaways… The Technical Side Fawcett Technology Advisors @socalbma 
  66. 66. QUESTIONS? Walter Fawcett | Founder @WalterFawcett /socalbma /company/socalbma /socalbma /socalbma  The Anatomy of Growth How a well-implemented CRM system is essential to sustained corporate growth
  67. 67. 