118.708 CRM: Session 8: Selecting CRM Technology

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118.708 CRM Session 8 Selecting CRM
Technology
Learning Coach Dr. Mohan Agrawal Principal
Strategy Consultant Marketing Aims
Inc. Canada www.marketingaims.com Email
magrawal_at_marketingaims.com
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Power point link

• www.marketingaims.com/files/um/

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Learning agenda for today

• Challenge in CRM Technology
• CRM spend globally
• Select Vendor and not CRM technology
• Survey on CRM vendors
• CRM selection Final thoughts

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CRM Technology A Finding

• 80 of the salesman of the CRM adopting
  companies consider the CRM technology that has
  been imposed on them in the previous 12 months to
  be a failure.
• 1to1 Magazine, May/June 2001

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1 CRM Technology Provokes all
CFO
Customers
CIO
COO
CEO
Project Manager
IT Staff
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1 CRM Technology a. The Evolving Issues

• Order Mgmt
• Configuration Mgmt
• Demand Planning

How will this process work?

• Engineering
• Manufacturing
• Finance
• I/T
• Sales

• Field sales offices
• Customers
• Mfg sites
• Suppliers

Who will enable this process?
Where will this process take place?
Business Process
Post 2002
Qualitative Issues
Difficult to Solve
Organization
Location
Data
Quantitative ISSUES
Easier to Solve
Application
Pre 2002
What systems will enable this process?
What information will enable this process?

• ERP
• Legacy apps
• Office Automation tools

Technology

• Orders
• Customers
• Payment

• Hardware
• Software
• O/S
• Networks (LAN/WAN)

What computers and equipment will enable
this process?
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1 CRM Technology b. Spending vs. plan, 2004
Compared to your 2004 budget, has your actual
spending on CRM been
N226
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1 CRM Technology c. Forecasted spending
N226
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1 CRM Technology d. Status
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1 CRM Technology d. Status
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of users
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Interactive reflection

• What lessons can be drawn from these figures of
  CRM spend?

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2 How to select a CRM technology

• With CRM moving to a process-driven model, most
  functionality is about the same from application
  to application.
• Execution of the applications are however
  significantly different.

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2 How to select a CRM technology a Select
Vendor, not Package

• Can you live with the vendor?
• You are using the application, day to day but its
  not ALIVE, people are!
• Even if it feels like an all-consuming carnival
• You are working with the vendor, day to day and
  its reps ARE alive!
• Naughty or nice is something you have to decide,
  not Santa and before you pick the package

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2 How to select a CRM technology a Select
Vendor, not Package

• Vendors claim 95 to 100 satisfaction rates,
  but
• How does that fit with 55-70 dissatisfaction
  rates that most surveys reveal?
• CRMGuru study in 2004 finds average vendor
  satisfaction level is about 57/100

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2 How to select a CRM technology a Select
Vendor, not Package

• Remember, the correct identification of the
  self-interest governs how well CRM succeeds
• You
• Your self-interest is satisfied by a successful
  set of relationships with your customers
• Vendors
• Their self-interest is served by selling you
  their software and their services e.g. a
  successful set of relationships with their
  customers
• Your culture the vendors culture need to be
  compatible, not identical.

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2 How to select a CRM technology b Vendor
Selection Criteria

• Besides the product and price
• References
• Finances
• Corporate Culture

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2 How to select a CRM technology b Vendor
Selection Criteria

• References
• Dont use the references that youre being spoon
  fed
• Take the time and research via various media
• Random references are better for your future
  health
• What do the references say about the behavior of
  the vendor sales, marketing, support staff?
• Talk to vendor partners but watch out for sales
  pitch

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2 How to select a CRM technology b Vendor
Selection Criteria

• Finances
• How much information about its financial
  condition will the vendor disclose?
• Are they candid with their employees partners
  about their finances?

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2 How to select a CRM technology b Vendor
Selection Criteria

• Corporate culture
• Politics
• Compensation plans
• Ordinary employee involvement in company life
• How involved were customers in the creation of
  the CRM products?
• No involvement brings culture product into
  question.

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2 How to select a CRM technology b Vendor
Selection Criteria

• Corporate culture
• What are the core values that drive the company?
• Look for written statement
• Do you and the vendor have a similar idea of what
  constitutes success, failure, timeliness, value,
  etc.?
• What kind of employee turnover rate does the
  vendor have? Why?
• Would the vendor sales team walk away from the
  sale if it were a wrong fit?
• How is sales, marketing support staff
  compensation tied to customer satisfaction?
• Metrics?

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Interactive reflection

• Other criteria for choosing a CRM vendor?

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3 Vendor Perception Findings

• We askedRate your perception of the these
  leading vendors in the following categories

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3 Leading Vendor Perception Survey
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How important are the following criteria in the
selection of CRM technology?
of respondents
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3 Leading Vendor Perception Survey Service
Support
Average perception ratings of major CRM
vendors (1worse than average, 5better than
average)
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of users
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3 Leading Vendor Perception Survey Product
features
Average perception ratings of major CRM
vendors (1worse than average, 5better than
average)
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of users
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3 Leading Vendor Perception Survey Price
Average perception ratings of major CRM
vendors (1worse than average, 5better than
average)
N226
of users
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3 Leading Vendor Perception Survey Sales hype
Provide your opinion of this statement In
general, CRM vendors oversell the benefits of
their products
Strongly disagree
Strongly agree
N226
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4 CRM Technology Selection The Final Word

• REMEMBER, self-interest governs how well CRM
  succeeds
• CRM is a whole-brained process so how well the
  vendor adheres to core values is crucial
• Take all the time you need to make your decision
  despite the pressures you feel
• While you must include the statistical/functional,
  dont make the common corporate mistake forget
  the human factors
• They are the make it or break it.

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THANK YOU