In today’s ‘digital economy’, technology is driving success outcomes for almost every company in every industry. Therefore, embracing technology and software is no longer a nice-to-have luxury, but a need-to-have necessity. Even the government of India is encouraging SMEs to adopt technology if they hope to achieve global competitiveness!
One such digital technology that millions of organisations all over the world are adopting with gusto is Customer Relationship Management (CRM) software.
What is CRM and what is CRM software?
In simplest terms, CRM is everything an organisation does to manage and improve its relationships (and interactions) with customers – both current and potential.
CRM software is the digital tool that makes this possible. By helping with contact management, sales management, productivity, and other activities, a CRM system helps companies stay connected with customers, streamline their processes and improve their profitability.
That is why CRM is one of the fastest growing industries in the world (Gartner report, 2019)!
However, there are several mistakes that businesses often commit while investing in a CRM tool. These mistakes restrict their ability to take maximum advantage of the technology’s benefits, and can even cause financial losses in the medium and long term!
If you plan to purchase a CRM system for your firm, make sure you don’t make any of these 6 mistakes!
Mistake #1: Not defining the objectives that apply to your organisation’s CRM needs
You may be investing time and money in a new CRM system because everyone in your industry has done so. But do YOU really need it? And if so, WHY? What do you want to achieve with this software?
Define and consider your objectives first or you could end up buying a product that doesn’t serve your needs at all. You may even regret your purchase and realise that you just spent a good amount of money for nothing!
How to avoid this mistake:
- Talk to the people who will be using the tool. Understand their needs and define the objectives accordingly
- Share these objectives with the software provider and make sure the software is customised for your specifications
- Do a trial run (ask for a trial version) to gauge whether the system meets your expectations before you invest in the full version
Mistake #2: Asking for much more than you truly need
Almost everyone is lured by the ‘pay-less-get-more’ promise.
The problem with this inherent bias is that we end up with a lot more bells and whistles than we truly need. The temptation to spend just a little bit extra in return for a lot more can be pervasive. It’s even worse when you can potentially get something more at ‘no extra cost’.
These additional features or functionalities may be cost-effective (or appear to be). But on the flip side, they can also overwhelm the people who are being asked to use them. This is especially true if they are new to the CRM software (or to CRM, period). In such cases, it can be a nightmare to both adapt to and adopt the CRM.
How to avoid this mistake:
- Choose only those features that align with your CRM objectives and goals (see #1 above)
- Inform the software provider and ask them to add only those features that you truly need
- If they suggest adding more features, keep the larger picture in mind before you agree. Ask yourself: do we truly need these add-ons? If the answer is NO, say “No thanks” and move on
Mistake #3: Outsourcing the purchase decision to others
Don’t be the leader who outsources the CRM purchase process to executives!
Purchasing a CRM is an important business consideration that will affect your organisation in the long term. That’s why it’s critical for senior personnel/leaders/managers to be involved in the process – if not in the nitty-gritties then at least in the strategy and planning. Your subordinates may not be qualified or knowledgeable enough to make the right decisions at the right time. That’s why it’s okay to delegate some aspects of the project to them, but it’s not okay to outsource it completely.
How to avoid this mistake:
- Identify the best people to delegate the task to and hold them accountable
- Be clear on your expectations (of the CRM and of your people)
- Conduct your own due diligence before making the final decision
Mistake #4: Forgetting about post-implementation training and support
When you purchased the software from a vendor, did you ask them about their training/support services? Many CRM providers promise the best after-sales support, but don’t always deliver.
If your people don’t know how to navigate the system – especially if they’re new to it – you will struggle to get value out of your investment. Eventually you might be forced to abandon it entirely. Here’s where support is as critical as the CRM itself.
How to avoid this mistake:
- Speak to peers to identify the best vendors with top-notch after-sales training and service
- Do online research and check reviews on Google and Facebook
- Make sure your people get training immediately after implementation (not next year!)
Mistake #5: Wasting the trial period and expecting your people to embrace the CRM without your intervention
If you expect your people to use the CRM during its trial period without your intervention – you’re making a mistake! New technology often makes people nervous. Whether you call it resistance to change or old habits die hard, people who barely use the CRM during its trial period it’s are unlikely to use it after full purchase – unless you push them!
Customers whose usage is more than 50% during trial get tremendous rewards from the tool. And this push can only come from the leadership. Without this push, your entire implementation could fail.
How to avoid this mistake:
- Explain to your people why you’re purchasing the CRM and how it will benefit them
- Get their buy-in even before the trial period
- Use different means to encourage use during trial. Punishments and rewards can be equally effective; figure out what works best for your firm
Mistake #6: Not adjusting expectations to reality
Are you expecting (or hoping) that your new CRM tool will run your business? Do you think it will do everything your people were doing until now (and maybe even replace them)?
This is akin to buying a Tata Nano today and expecting it to run like a premium self-driven vehicle!
No software can run your company – no matter how much you wish it.
Yes, the CRM software can track whether your people are doing what’s expected from them. It can also share reports and insights on how things can improve. But improvement can only happen if the insights are backed by action. And the onus of taking action is on YOU, not on your CRM.
How to avoid this mistake:
- Clarify what you expect from the CRM and make sure your staff knows it too
- Create a detailed action plan to assign CRM roles to your people and yourself plus action items
- Make the CRM a part of your business strategy
A good CRM software can help you track and even improve business performance. But don’t forget the tool’s purpose – to enhance relationships. To this end, always keep your people and customers at the centre of your CRM adoption strategy.
