The Crucial Difference Between Contact&#3

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The Crucial Difference Between Contact Management and CRM

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Create a learning, knowledge-based, sales culture. The culture of an organization is not something that is easily altered. Changing the culture of an organization requires the commitment of senior management and willingness of employees. Further complicating the issue is the fact that, traditionally, sales representatives are reluctant to change. One of the benefits of a CRM solution is the opportunity to integrate information from various third-party information sources. By integrating key account or industry news directly into the daily workflow of sales representatives, companies begin to change the "selling mindset" of an organization and create a knowledge-based sales culture. Currently, 68 percent of CRM users have a sales training and employee education program in place, compared to 54 percent of CM users. Companies must be sure to provide an outlet for sales representatives to document best practices or frequently asked questions and then leverage this information in training exercises. In addition to their usefulness in on-boarding and training, these forums become a repository for sales representatives hoping to improve their personal performance by heeding the advice of their peers.

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Create a common language for internal customer-related communications. The purpose of formalized sales processes, for example, is to ensure that all sales representatives follow the same process during a sales cycle. To ensure that these processes are not interrupted or delayed, companies must create a common language for internal customer-related communications. Typically, sales and marketing professionals use the same phrases in different contexts. For example, a "qualified lead" may mean one thing to a rep and something entirely different to a marketing professional. By standardizing the internal language used to describe customer-related communications, companies can present a unified front to their customers. Thirty-eight percent of CRM users also leverage internal wikis to create a dynamic glossary of company-specific terms. The benefit of collected information extends beyond its intended purpose; 51 percent of CRM users also use such wikis to on-board new sales hires.

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Create a system of record for sales interactions. A key feature of a CM solution is the ability to keep detailed notes on conversations with prospects. This functionality is also included in CRM solutions, thereby allowing sales representatives to keep an accurate system of record for all sales interactions. By keeping these records, sales representatives can access information regarding a prospect's wants and needs months after the initial call and use this information in subsequent follow-up conversations. Fifty percent of CRM users indicated that improving sales representatives' knowledge of products and customer needs is a top strategic action. A system of record for sales interactions allows representatives to log first-hand information regarding a prospect's or customer's needs as they articulate them.

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Create a system of record for sales interactions. A key feature of a CM solution is the ability to keep detailed notes on conversations with prospects. This functionality is also included in CRM solutions, thereby allowing sales representatives to keep an accurate system of record for all sales interactions. By keeping these records, sales representatives can access information regarding a prospect's wants and needs months after the initial call and use this information in subsequent follow-up conversations. Fifty percent of CRM users indicated that improving sales representatives' knowledge of products and customer needs is a top strategic action. A system of record for sales interactions allows representatives to log first-hand information regarding a prospect's or customer's needs as they articulate them.

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Customer Relationship Management Users:

• Customize CRM to match unique business processes. Successful CRM adoption is ultimately about two things: obtaining a 360-degree view of the customer and allowing for increased visibility into internal processes. Companies must customize CRM solutions to match unique business processes and ensure that the organization has a solution that is best suited to its daily operations.

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Evaluate solutions that meet both the current and future needs of the business. A problem that CM users often encounter, particularly those users who opt for a "freeware" solution, is the ability to grow the business and solution concordantly. As a business generates more and more sales opportunities and contacts, it is important for companies to keep an eye to the future and avoid the usage or contact caps synonymous with free CM solutions. Several solution providers, such as Sage Software with their ACT and SalesLogix products, provide different offerings that suit an organization's current and future needs. While 62 percent of CM users surveyed indicated that their solution will grow with the business, an additional 38 percent indicated that they have already outgrown the solution. Whether it be a CM or CRM solution, businesses must ensure that the solution they implement not only fits the current needs of the organization, but also has the scalability to grow with the company.

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Model individual best practices and replicate through training. There is a wealth of valuable information that exists in the minds of an organization's top sellers. Rather than letting this knowledge walk out the door toward retirement or another job opportunity, savvy organizations are capturing these best practices for the purposes of knowledge management and training. Only 5 percent of CM users and 14 percent of CRM users currently use enterprise social networking tools to allow sales representatives to quickly find the thought leader or information they seek. Finally, 54 percent of CM users, compared to 68 percent of CRM users, have a sales training and employee education program in place. In order to effectively get new hires on board and utilize the collected best practices, organizations must have a program that educates sales representatives on internal processes and best practices, thereby allowing new reps to achieve quota at a quicker rate.

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Model individual best practices and replicate through training. There is a wealth of valuable information that exists in the minds of an organization's top sellers. Rather than letting this knowledge walk out the door toward retirement or another job opportunity, savvy organizations are capturing these best practices for the purposes of knowledge management and training. Only 5 percent of CM users and 14 percent of CRM users currently use enterprise social networking tools to allow sales representatives to quickly find the thought leader or information they seek. Finally, 54 percent of CM users, compared to 68 percent of CRM users, have a sales training and employee education program in place. In order to effectively get new hires on board and utilize the collected best practices, organizations must have a program that educates sales representatives on internal processes and best practices, thereby allowing new reps to achieve quota at a quicker rate.

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Formalize and document sales KPIs (key performance indicators). In order to determine the effect technology enablers have on performance, organizations must formalize and document sales KPIs to be used in ROI (return on investment) analysis and performance measurements. By identifying the metrics that an organization hopes to improve through technology implementation, organizations can understand what, if any, changes have occurred in performance and where to dedicate additional resources in the future. Currently, 28 percent of CM users, compared to 64 percent of CRM users, have key performance indicators and metrics that measure sales effectiveness. Furthermore, companies must measure sales performance regularly. Thirty-five percent of CM users measure sales effectiveness on a monthly or quarterly basis. Sales performance should be assessed on a real-time or daily basis to effectively manage forecasts.