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Once an organization makes the decision between a CM solution or a multi-module CRM, the following recommendations will allow organizations to maximize technology spending:

• Contact Management Users:
  • Formalize and document sales processes. According to Aberdeen data, only 39 percent of CM users, compared to 57 percent of CRM users, have formalized and documented sales processes in place. There is no doubt that technology enablers can help a company automate key sales tasks; however, the proper organizational foundation is necessary to ensure that companies maximize the effectiveness of technology. Companies must ensure that sales processes are well-aligned with the organization's sales goals.

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Recommended Actions

Organizations considering CM or CRM solutions must evaluate the sales model of their organization and implement the solution that aligns best with their business needs. If a company is primarily focused on taming information overload at the lowest cost and providing the greatest selling autonomy for their sales team, then a CM solution may be an ideal fit. On the other hand, if a company's only hope at providing a 360-degree view of the customer to all parties within the organization is to integrate the data that exists in disparate silos, such as a contact center, marketing database, or accounting profile, a CRM solution may fit their business needs. As is the case with any technology implementation, the organizational processes and performance metrics in place often provide a foundation for success.

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Many-to-Many Model: In a many-to-many model, there are multiple individuals interacting with multiple job roles at a company.

For example, marketing individuals or service individuals at an organization target their counterparts at other companies to sell into. Bob, whose work with Jane's boutique has catapulted his business into the spotlight, has filled out his own marketing staff and professional services offerings. These individuals on the marketing side target similar job roles at Jane's company. This coordinated effort requires a heightened sense of internal visibility; therefore, Bob has replaced his CM solution with an integrated CRM tool. Bob is now able to access customer service information, accounting and billing details, and marketing data through his CRM system.

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Many-to-One Model: In a many-to-one model, there are multiple individuals, such as sales, marketing and service professionals, interacting with a single job role at a company.

For example, the growth of Bob's business has resulted in the development of new products and services. In this example, Jane has placed a call into a service representative with a related question to a previous project. The service representative sees alignment between Jane's question and the latest product release; therefore, Jane is invited to a webinar that showcases the new product.

By using a multi-module CRM solution, Bob's service professional can log the activity around Jane's account and leave detailed notes so other employees, such as marketing professionals or accountants, know how and when to follow-up with Jane.

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With so many conversations taking place with different people within Jane's company, Bob relies on his CM solution to keep accurate records of job roles, phone numbers, e-mails, and notes. An added bonus of Bob's CM solution is that it allows him to discern the relationship between contacts based on his notes or, in the case of more advanced CM solution, through contact grouping or networking.

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One-to-Many Model: In a one-to-many model, one individual targets multiple job roles within a company.

For example, say that a number of years have passed in our scenario, and Jane's business has grown into a large national brand. No longer is Jane the one and only contact with purchasing power at the company; she now has a staff of decision-makers with buying power. Bob, firmly believing that his services can continue to help Jane's business increase its exposure, targets the new CMO, COO, and EVP as he articulates his value proposition.

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Take, for example, the following scenario: Bob, a sales manager at a small marketing services firm, believes that Jane, the founder of her own business, could benefit from his offerings. Understanding that Jane is the owner of the company and therefore the head of a small employee staff, Bob targets Jane as the job role with decision-making authority. A CM solution becomes Bob's preferred solution because it allows him to keep accurate contact and company information on Jane's business, as well as detailed notes surrounding their conversations.

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Sales Models Influence Technology Adoption

Aberdeen has identified four common sales interaction models that require certain functionality from technology solutions.

• One-to-One Model: In a one-to-one model, there is typically a single representative that is tasked with selling into a single job role. Insurance agents and stock brokers, for example, typically practice one-to-one selling.

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For instance, an organization with a one-to-many interaction model, in which one sales representative targets multiple job roles within a company, may consider a CM solution in order to better organize account information and conversation details. On the other hand, a company with many sales representatives or marketing professionals targeting a single job role would prefer a CRM solution to log call activity and leave detailed relationship notes for one another.

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What You Need to Know

Over the past year, Aberdeen has surveyed thousands of end-users to better understand how sales interaction models influence technology purchasing decisions. The research reveals the choice between a CM and a CRM solution often boils down to the sales interaction model of the organization, as well as the business challenges the company faces.