Gone are the days of marketing to your potential customer base and sitting back to reap the rewards of a great ad campaign. Gone are the days of grabbing the hottest leads and forgetting about the warmer less inclined to buy now clients. Gone are the days of using a simple notebook or excel spreadsheet to collect your lead list.
Customer Relationship Management: Share of Wallet.
The late father of management Peter Drucker, simply stated, “Shares in disposable income are the foundation of all economic information. Businesses keep figures on sales and know whether they go up or down. But practically none knows the truly important figure: the share of the disposable income of their customers that is being spent on the products or services that they produce and sell.”
The battle for customers is a zero sum game. No matter how wonderful your product or service, your potential customers have a limited disposable income. Their disposable income is in a state of change with rising and fall incomes and living expenses. How can you get your share of their wallet?
Companies poised to win their share of the wallet know customer relationship management is not a luxury but an essential to being in business. According to Forrester Research, businesses under 100 employees will account for more than 30% the CRM market reach in 2007. Is your small business CRM ready?
Overcoming the Hurdles to Successful CRM Implementation.
Customer relationship management or CRM is the methodology and tools of finding, communicating, and retaining your best customers. Software programs such as GoldMine or ACT! or subscription services like Salesforce.com help you build lead lists, merge mail, handle contacts, and assess the results of your marketing campaigns.
Many larger corporations have failed at successful implementation of CRM. While it’s easy to blame the software or incompetent staff, the real issue lies with employee motives, time, and training. Use these success tactics for overcoming the hurdles you will encounter with CRM.
Spot Check: My own experiences with customer relationship management tools found employees aren't only reluctant to adapt a new technology but outright resist the sales lead component of CRM software. For under performers, tracking leads reveals their true incompetence. I have witnessed sales personal enter in fake names and numbers to avoid the scrutiny of a sales manager. Successful implementation of CRM requires periodic spot checking of lead entries and even calling leads to see if they exist.
Make Time: Whether you are the only user of CRM software or have a staff, it’s critical to set aside time each week for using the technology. Like any new business application, regular use will reduce time and help you see the rewards of CRM.
Get Trained: A large part of setting aside time is learning the new tools of CRM. Learning typically follows a U-shaped curve with the initial phase being difficult till it peaks and learning accelerates. Be patient and in no time you will master the must have tools of CRM.
Winning the customer game with customer relationship management tools is a necessary for any small business today. The more you know your customers and build a strong relationship, the greater your odds at winning the minds and wallets of your customers in the competitive market.