CRM buyers and vendors tend to overlook the current performance of a business before implementing a new CRM system and therefore have no baseline data in which to calculate ROI.

In this blog we will show and monitor ways to identify sales performance.

Sales Performance

In this example, baseline data is taken at the start of the project and is calculated from historical data.  This information will be used and compared throughout the life of a new CRM so that the company can monitor the overall benefits of implementing a new CRM system.

In the following example we are gauging what percentage of sales enquiries actually turn into paying customers. We can see that out of a total of 137 leads provided to a salesperson, 61 became paying customers.

The aim here, over time, is to take snapshots of this gauge to see how the performance improves.

Of course, there will be many factors that affect this gauge (e.g. reducing the number of poor quality leads provided to the sales team in the first place may reduce the number of overall opportunities but will free up the sales team to focus on the better quality opportunities).

Pipeline Management

What you are not able to determine from the gauge above is the health of your sales and marketing pipeline.  For example, the indicator gauge may be all the way into the green section because there are, say, 10 deals that have been won from all 10 sales leads.  A 100% conversion rate!  This is not much use to a business if they need 1000 deals to break even.

This is where sales opportunities need to be qualified and categorised into “sales stages”.  In the following example we are able to check the relative health of the pipeline in order to determine where our efforts are best focussed.

This funnel chart shows a reasonably balanced sales pipeline however the initial segment “Prospecting Stage” is thin relative to the other sections which might mean we need to increase our lead generating activities in order to keep the funnel topped up.

A funnel chart has many other benefits to help the sales team and management focus on increasing sales to closure rates, ensuring deals do not stagnate at any one point in the cycle and ultimately to keep the control of the business.

In our next blog we will look at how to spend a marketing budget wisely using advanced lead source analysis techniques.

With over 30 years’ experience, IRIS Accountancy Solutions is the UK’s leading provider of fully integrated accountancy software and services so it made sense for SouthwestCRM to link SugarCRM, a globally supported CRM solution to IRIS.

Businesses and people stored within IRIS are seamlessly transferred to SugarCRM when new or updated information is added to IRIS.  Once in SugarCRM staff members are able to use the information to build closer client relationships, upsell new services and use social networks to gain more insight into buying habits and new markets.

Some of the main advantages of using SugarCRM are:

• Newsletter management
• Email marketing
• LinkedIn customer profiling
• Communication tracking
• Capture and track new business opportunities

The key to integration is to streamline the day to day management of information.  Without the link, entering data would need to be carried out twice.  For busy staff and partners, SugarCRM offers a straightforward and easy to use system for storing, retrieving and categorising  clients, prospects and networking activities.

One way to determine if you are focusing on profitable customers is to use a simple matrix where by you categorise each of your customers based on value and effort.  I have attempted to demonstrate how this might look for a business but it can be adapted to suit your own particular business.

In the following chart we have two axis.  The vertical axis showing the amount of EFFORT from low to high.  The horizontal axis showing VALUE low to high.  By plotting your customers in one of the resulting quadrants you can determine which customers are the right kind of target for your business.

In the above example you would want to focus on the bottom right quadrant and seek to attract the type of client that sits here.

You can take this a step further by working out where the customers have orginated from and thereby establish where to focus your marketing effort.  In the following example we can see that 70% of the low value high effort sales (the worst!) came from networking and email marketing whereas only 15% of the high value low effort sales (the best!) were through these routes.  We could conclude that our time and effort is better spent advertising (45% of high value low effort business) and not waste time networking and email marketing (or at least consider the quality and approach of these activities).

You can use this system for many aspects of business including by products and services you sell.  The final chart is by product widget where, in this example, Widget A only accounts for 3% of high value sales and Widget C is a low effort sale.

Finally, if you cannot easily produce the kind of information shown here then maybe you need to review your CRM systems and processes and contact us to help you attract and acquire the right kind of customers!

Go on... I Dare you... Click on the Contact Us button at the top of this page :)

Naturally, the last thing on your mind when you're buying a new CRM system is how the data and associated information can be extracted when you want to move to another CRM system.

Ok, so by and large your decision today is based on a long term implementation that should stay with you for the forseeable future.  Right?  Maybe, but new technologies come along all the time that can steer a business away from its current system.  Notwithstanding change of course.  A change of process, expansion, a merger or acquisition etc.

When we talk about data it is not only about contact names and addresses which, moreorless, can be transfered from CRM system to CRM system as a press of the export/import buttons.  No, the real dilemmas start when transfering the associated information such as all the documents attached to contacts, the history of meetings and actions, attached support incidents, past and present sales opportunities, projects and so on.

A while back we migrated a customers CRM system from their existing Salesforce implementation over to a SugarCRM Professional implementation.  It transpired that all the Microsoft Word documents that were attached to contacts, past meetings and activity records in Salesforce were stored inside the database and were not held as file attachments outside of the database.  More to the point Salesforce provides no automatic extraction process and this meant the customer had to access each document within Salesforce (before their contract expired) and download them individually.  Needless to say the customer was not happy since all these documents were no longer associated to their corresponding CRM record.  Painful.

ETL tools like Jitterbit and Talend help overcome many of these issues but a migration should not be undertaken without considering the full implications upfront.  Including the cost.

Another factor that needs to be considered is the time taken to carry out the data transfer.  For example, will the transfer take place over night so that users can carry on in the new system without interruption.  Or will the data migration take longer and be "phased in"?  If so, how are you going to manage two different systems, with two duplicate data sets, each being updated in parallel? 

Thankfully, there are good CRM providers out there that can take this headache away from you and carry out the data migration on your behalf. It will come at a price but will ensure your most valuable asset, your customer insights, is preserved.  Make sure you include a provision for this in your CRM budget.

The wise move is to ensure the CRM system you choose allows full access to the database tables and data structure not just from within the CRM system but also from external tools such as ETL and Reporting systems.

Whether you are looking to improve your customer service or simply find new customers, SouthwestCRM offers IT-based sales and marketing support to all Devon-based businesses.  We are a CRM company in the Southwest delivering software solutions.  We specialise in CRM and Social Media marketing, email marketing campaigns and customer relationship marketing activity.

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What is CRM and "Social CRM"?

CRM is an approach to doing business (It is not a technology).  "CRM technology" is there to support your own particular approach to doing business.  Everyone has some form of CRM methodology in place even if it is not IT-based.

Typically, software can be used to help a CRM approach and SouthwestCRM is the leading CRM software provider to SME's in Devon and Cornwall.

Some of the many benefits of CRM

• Customers keep coming back to You
• Easier to find (and attract) new business
• Greater sales reach
• Consistent branding and messages adds professionalism

Social CRM

Social CRM conbines the practice of 'doing' CRM with the latest Social Media and Social Networking tools such as Twitter, LinkedIn and FaceBook.  Ultimately this means that all your traditional forms of marketing can now co-exist with Social Networking and thereby deliver a consistent message and create new opportunities.

For example:

As a salesperson, when answering the phone to a prospect I am trying to sell to, I want to see the last 5 tweets my prospect has tweeted on screen inside my CRM database without me having to go off and try and find out this information.  This information should be displayed BEFORE I pick up the call.

As a salesperson, I want as much insight into the LinkedIn employees at the prospect company and which ones are in my LinkedIn network.

Call to Action

If you are a Devon-based business and wish to talk to someone about your specific requirements SouthwestCRM is the leading CRM provider in the South West.  Our approach is friendly and professional.  We aim to address your needs before considering which technologies are right for you.

We know the software market inside out so If we can't help you, we're not shy to recommendation others.  But the chances are we can help you. 

We specialise in a range of technologies including SugarCRM, info@hand, KnowledgeTree and Joomla!

We thought we'd share some tips with anyone who is about to embark on a new CRM project (or any type of project for that matter).

Tip 1: Like a good Carpenter - measure twice, cut once

We cannot emphasise enough about the need for good planning and design BEFORE you start implementation.  Have all your processes mapped out beforehand and ensure that you know the reason for doing the process and its benefit to the business and individual who will be using the process.

When we go into companies that are looking to replace their existing CRM, very often they are unhappy with their existing CRM because it was never configured properly in the first instance.  Sometimes their existing CRM can be made to work but all too often disenchantment has set in and a fresh start is sought.

If you're not sure what your processes are yet or what the likely impact will be from implementing a new process then be prepared to spend additional time, effort and money implementing, fine tuning and re-implementing a process.  We often see situations where the budget has been spent on the initial purchase and new processes are poorly implemented by the customer [supplier now in reactive support mode] leading, again, to disenchantment with the software.

Tip 2: Budget well

Who decides how much to spend on your new CRM system?  How was the budget amount derived?  All too often an unrealistic budget figure is set before engaging with the CRM suppliers.  This is a recipe for project failure.  Suppliers vie for the business and estimate down the likely overall cost in order to sweeten their offering in the eyes of the client and to remain price competitive.

One area which commonly causes the budget to increase is in data migration.  Skimp in this area, or get this wrong, and your new CRM system will never function as intended.  Poor quality in, poor quality out.  Decide, what data to bring in, what each field of information is going to be used for and when.  How many different data silos do you operate? are all silos being replaced with the new system? Do any need to co-exist and keep in sync with each other?  How much data is there?  What indexes need to be applied to the database to speed up keyword/field searching?  Very often a customer will budget one to two days to import their data into the new system.  Be realistic and budget accordingly.

Tip 3: What is the value to the business

In this example, we'll paint a picture of a small business owner.  For simplicity the business owner is a he :)  So the business owner has set a budget of 20K on a new CRM system.  The CRM system will effectively help keep control of the entire sales, marketing and customer service parts of the operation.  Time will be saved and his end customers will see a marked improvement in customer care.....  how much is that worth to the business? What if the actual investment cost was more like 40k? You need to identify the value of the system to the business otherwise the budget and system is just seen as a cost to the business and not an investment.  In the example above, the business owner might not think twice about spending 40K on a new executive car and baulk at the thought of spending the same on a system that will help run his entire operation more efficiently.  We've lost count of the number of small businesses with around 10-20 staff who only budget 5K on a CRM system.

Be clear about the value of the system to the business from the outset.

Tip 4: Be prepared for a culture change

The best planning and configuration will just fall flat if the end users are ill-informed or not prepared for change.  If we were given the keys to a thoroughbred racing car and told to drive around a race track, we're pretty sure that if we gave Michael Schumacher the keys to our Volkswagen, he'd still beat us.  We wouldn't be at ease with the car and we'd probably crash in any case :( With a little tuition, tips and incentives, we're sure our lap times would come right down.

But seriously, you're going to find all sorts of personalities involved in the project.  Some people hate change, others have hidden agendas, some embrace new systems and apply their own styles etc..  The bottom line is education, training and benefits realisation.

Understand the benefits each user is going to get from the new system.  Identify areas which may result in a slowdown in some tasks for one user but which are necessary to the overall speed up of the process across the business.

Conclusion:

Get CRM right and your business will grow, will be more efficient and will empower your workforce.

Ok so it may not be a national paper but the local newspaper (Falmouth Packet) picked up on our ShelterBox story and published it recently.  Here's a scan of the article...

A pretty hectic photo session due to the Venezuela Disaster.  The team in the background are packing vital supplies for Venezuela.  We're proud to be part of such a great cause.   Well done ShelterBox

We’ve pulled together some of the key functional differences between the Professional and Community Editions of SugarCRM.  Certainly for small organisations with less than 20 users it makes a lot of sense to go Pro.  Not only will it cost less in the early years it will be a lot simpler to implement and maintain and your users will be a lot happier.

Download PDF

Caveat: SugarCRM Community Edition is a free product so I will say now that for what you get out of the box, it is simply a great product.  Your investment cost is not in the software but in making it work for your business and it is here that you need to weigh up the pros and cons over SugarCRM Professional Edition.

Overall, if you are a company of less than 20 users, and you plan on adding some of CE’s missing features, your initial investment cost may be significantly lower if you opt for the Professional Edition.  However, since there is an on going recurring license fee for Pro, longer term, the cost of Pro may be higher but you need to consider other factors too.

1.       Upgrades are less straightforward and more costly with CE.  For example, if you install a custom report writer this separate application (module) may have its own upgrade process so you have to factor in multiple product upgrades not just the one product.

2.       With each upgrade, you may find that custom components are not compatible with the new version of SugarCRM so you have to wait for the third party component supplier to keep up.

3.       It’s the little features that make users happy.  Being able to complete a task without thinking about it from a technical perspective has a lot of kudos.  Professional Edition is much easier to get on with and enjoy using.

That said CE has its place if you are thinking of purchasing a bespoke system.  For example, SouthwestCRM has supplied SugarCRM CE to businesses that require large scale development of additional custom modules over and above SugarCRM CE’s standard modules.  In these scenario’s CE can make more commercial sense than Pro.

The bottom line is to consider what you want and what the benefits will be to your business before deciding on which technology piece is right for you.  Either way, SugarCRM as a product is a smart choice.

Ok so this is a little tongue in cheek but these words when strung together can take on a completely different - and sometimes unintended - meaning.  This simple example of what is said by one person to another can often be misinterpreted. In business situations, it is the single biggest reason for project failure and fall outs.

Over the 20+ years I have been consulting around the use of Customer Relationship Management (CRM) systems the gap between what the buyer asks for and what the seller delivers is the single biggest reason for project failure.  Having been in this situation myself (but I've learnt some good lessons!) I thought I'd share some tips with anyone who is about to embark on a new CRM project (or any type of project for that matter).

Tip 1: Like a good Carpenter - measure twice, cut once

I cannot emphasise enough about the need for good planning and design BEFORE you start implementation.  Have all your processes mapped out beforehand and ensure that you know the reason for doing the process and its benefit to the business and individual who will be using the process.

When I go into companies that are looking to replace their existing CRM, very often they are unhappy with their existing CRM because it was never configured properly in the first instance.  Sometimes their existing CRM can be made to work but all too often disenchantment has set in and a fresh start is sought.

If you're not sure what your processes are yet or what the likely impact will be from implementing a new process then be prepared to spend additional time, effort and money implementing, fine tuning and re-implementing a process.  I often see situations where the budget has been spent on the initial purchase and new processes are poorly implemented by the customer [supplier now in reactive support mode] leading, again, to disenchantment with the software.

Tip 2: Budget well

Who decides how much to spend on your new CRM system?  How was the budget amount derived?  All too often an unrealistic budget figure is set before engaging with the CRM suppliers.  This is a recipe for project failure.  Suppliers vie for the business and estimate down the likely overall cost in order to sweeten their offering in the eyes of the client and to remain price competitive.

One area which commonly causes the budget to increase is in data migration.  Skimp in this area, or get this wrong, and your new CRM system will never function as intended.  Poor quality in, poor quality out.  Decide, what data to bring in, what each field of information is going to be used for and when.  How many different data silos do you operate? are all silos being replaced with the new system? Do any need to co-exist and keep in sync with each other?  How much data is there?  What indexes need to be applied to the database to speed up keyword/field searching?  Very often a customer will budget one to two days to import their data into the new system.  Be realistic and budget accordingly.

Tip 3: What is the value to the business

In this example, I'll paint a picture of a small business owner.  For simplicity the business owner is a he :)  So the business owner has set a budget of 20K on a new CRM system.  The CRM system will effectively help keep control of the entire sales, marketing and customer service parts of the operation.  Time will be saved and his end customers will see a marked improvement in customer care.....  how much is that worth to the business? What if the actual investment cost was more like 40k? You need to identify the value of the system to the business otherwise the budget and system is just seen as a cost to the business and not an investment.  In the example above, the business owner might not think twice about spending 40K on a new BMW car and baulk at the thought of spending the same on a system that will help run his entire operation more efficiently.  I've lost count of the number of small businesses with around 10-20 staff who only budget 5K on a CRM system.

Be clear about the value of the system to the business from the outset.

Tip 4: Be prepared for a culture change

The best planning and configuration will just fall flat if the end users are ill-informed or not prepared for change.  If I was given the keys to a thoroughbred racing car and told to drive around a race track, I'm pretty sure that if I gave Michael Schumacher the keys to my Volkswagen, he'd still beat me.  I wouldn't be at ease with the car and I'd probably crash in any case :( With a little tuition, tips and incentives, I'm sure my lap times would come right down.

But seriously, you're going to find all sorts of personalities involved in the project.  Some people hate change, others have hidden agendas, some embrace new systems and apply their own styles etc..  The bottom line is education, training and benefits realisation.

Understand the benefits each user is going to get from the new system.  Identify areas which may result in a slowdown in some tasks for one user but which are necessary to the overall speed up of the process across the business.

Conclusion:

Get CRM right and your business will grow, will be more efficient and will empower your workforce.  Get it wrong and you may whale beef hooked.

So these days it seems that SugarCRM is stepping on the toes of Salesforce.com. The small to medium sized market (SMEs) is becoming Sugar’s territory.

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You just have to see a SugarCRM demo to realise that the feature set is more or less the same but with one big difference…License Price.

With Sugar the money you save on licensing costs can be put to better use getting your sales, marketing and customer service software bedded into your business infrastructure.

A well implemented CRM solution will serve the user base quickly and effortlessly creating an empowered workforce that actually likes to use the software.  They see it as a business-critical tool.  Go figure.  Implement CRM poorly and it becomes a conflict between Man and software and there are no winners.

The fundamental flaw when buying CRM is the age old battle between the competitors to fit a solution into your budget.  Let’s suppose your budget is £2.40 and the software costs £2.00.  That leaves you £0.40 to spend on making the software work.  Alternatively spend £0.40 on the software and £2.00 making it work for you.  Myth – just because a product costs less doesn’t mean it does less.  Usually it costs more because of the brand or global name it has earnt.  Salesforce.com is a great product but so too is Sugar.  Any of the thousand or so SugarCRM partners around the world will concur.

A lot of rhetoric is given to software stability when it comes to using Open Source software and Sugar is one such project that falls into this camp.  The reality though is this:

•    The user community keeps coming back for more, with over 5 million downloads of the Sugar appliance
•    99 times out of 100 an issue is caused through an incorrect configuration or hardware fault.  Not the software.
•    Since SugarCRM is Open Source, a lot of end-user organisations download and install it themselves - badly
•    SugarCRM is a multi-national software company dedicated to enriching and future-proofing its product suite
•    There is a vibrant community of developers building added value components which enhance SugarCRM (some good some bad)

In tough economic times, buying SugarCRM is the pragmatic choice.  When implemented correctly (and carefully) it gives your business a big competitive advantage.