• Web access
• Team based management
• Extended user security controls
• Increased user security

In the penultimate tip in our series here's the 6th CRM project pitfall to avoid:

For CRM to be relevant to its users the database must be customised. Whatever the budget, an 'out-of-the-box' installation will deliver little more than basic address book functionality.

The degree of customisation will of course depend on your business processes and the capabilities of the software you are implementing. However, even the most basic of contact management packages should be adapted to reflect your unique data and terminology. With even simple field and layout customisations CRM databases can quickly be customised to reflect the way that you work and help you drive real value.

Sophisticated solutions like Sage CRM and Microsoft Dynamics CRM offer far greater capacity to wrap CRM around process through workflow automation and managing every entity beyond just people and businesses.

At the outset you should establish exactly what you want CRM to achieve and how you will evaluate its results.

Benefits can always be gained by automating existing processes but CRM provides an opportunity to achieve more by taking a more structured and process driven approach. As well as saving time this flushes out custom practices. By applying a more systematic approach rules are enforced and data quality is improved to achieve better business reporting.

Determining which processes and strategies you pursue can be a challenging part of a CRM project which is why many businesses seek assistance from a CRM expert to project plan their implementation.

Although you may have fully consulted individuals and teams don't expect them to immediately use the system effectively. The goodwill that you may have created through consultation will quickly evaporate if people don't understand how to use the software properly.

CRM systems are highly flexible but many functions can be widely open to interpretation. You may enjoy good initial user adoption but without agreed rules and consistent processes data can quickly become a mess.

User training should always built into any CRM project. As well as covering tuition on software functionality and its benefits, group training is the perfect forum to formulate processes and get collective user commitment.

8 January 2010
Warren Butler
Marketing Director
wbutler@preact.co.uk

Continuing our guide on the top CRM mistakes to avoid:

We've lost count of the number of CRM projects that reach an advanced stage only to see plans delayed or shelved because of an IT problem - in many cases because of incompatibility between the proposed CRM system and internal systems.

Almost as much as budget, IT circumstances have a large bearing on which CRM solution will be effective. Specifically, but by no means exclusively, the following should be considered:

• Do you have a powerful enough server and workstations?

• Are you prepared to let users carry a local copy of your customer database?

• Is it cost effective to pay monthly for a hosted CRM system if you have a perfectly effective server?

• What type of network will CRM be deployed across?

• Will mobile staff be able to access CRM on their mobile devices?

• Will the IT team support the CRM system including taking back-ups and managing user accounts?

• Are IT aware of the system requirements for the chosen CRM system?

As we've already covered in an earlier point, IT staff should never be solely responsible for driving a CRM project but their involvement is essential to make sure that the planned implementation proceeds smoothly.

Its always tempting to 'go with what you know' and implement a CRM system that you've previously worked with. However, what previously worked successfully may not be so effective in a different environment and with different demands. For example you may need to consider:

• How many teams can CRM be deployed to now & in the future?

• Do you need to track more than just contacts, businesses, activities & sales?

• Is there a requirement to automate your processes and enforce rules?

• How will remote and mobile users share CRM data?

• What systems does CRM need to integrate with?

• What are your reporting expectations?

With online test drives and demonstration videos available for most solutions the research process needn't swallow up a lot of time.

It's also worth mentioning that CRM systems shouldn't be necessarily be ruled out based on previous experiences. A system that may not have been effectively implemented or suited for an earlier requirement could still prove ideal for your current needs.

As independent CRM architects, at Preact we help businesses through this process to shortlist and identify packages that address immediate and long-term requirements. A free comparison of all our CRM packages is available at www.preact.co.uk.

As we'll cover in a later point IT teams should be fully involved during a CRM implementation. However, if the CRM project is being solely led and driven by IT it's very likely that responsibility hasn't been placed with the right people.

CRM is about managing customers, improving processes and driving business growth. However, rather than IT teams, it's actually service, sales and marketing leaders that should be accountable for these areas as they will gain the most from the improvements that can be achieved with CRM. As part of the pre-implementation process, CRM project leaders have responsibility for ensuring readiness of processes and users which will again typically fall outside the remit of IT teams.

Ownership and accountability for CRM projects should always be with its main beneficiaries. CRM is a business wide initiative to create a single view of each customer and improve organisation efficiency. To achieve this it's essential for individuals throughout the business to fully participate in the planning process. When individual groups don't get involved and leave it all to IT teams CRM will fail.

CRM shouldn't be the pet project of one individual. For success a CRM system needs to be adopted throughout the business so it's vital that key people from each team are involved and buy in to the project from the outset - that includes senior management.

As we've already highlighted the chosen CRM system might not be deployed to everyone at the outset but to effectively plan and ensure scalability the input of influential team members must be sought.

Marketing teams will often drive the demand for CRM but ultimate success will often depend on how well sales people adopt this so it's crucial that their requirements are taken on board from an early stage.

CRM user adoption will always hinge on the perception of value that end users have. When there is a top heavy imbalance between effort and benefits users will soon fall back on tried and tested systems and abandon CRM.

Almost as important as understanding what end users want is the need to secure senior management accountability.

Consulting a broad user base will frequently place some needs in conflict causing a streamlined implementation to develop into a bloated project with the result of delays and increased cost. Difficult decisions have to be made and must be taken with accountability from senior managers. Without losing sight of fundamental user needs some requirements will need to be prioritised, delayed or dropped.

Senior managers have the most to gain from CRM success through better reporting, process efficiencies, increased customer retention and business growth. As a result they should be visibly on-board and accountable from the outset.

Although customer relationship management software is well established as a vital component in a CRM strategy many businesses are still disappointed with the return they see. In many cases failure is caused by inadequate planning and poor implementation.

As independent CRM architects we have around 20 years experience of helping organisations achieve results from CRM. In a new guide we summarize the top 7 CRM mistakes to avoid beginning with:

Tip #1 - Don't be too ambitious

Large CRM projects can struggle to get off the ground. All embracing projects that strive to meet 100% of everyone's needs may take a long time to deploy and will limit the return on investment. CRM projects that aim to achieve a utopian result rarely leave the planning stage.

Often, it is better to start small by prioritising requirements. Sometime this may be an initial pilot within 1-2 departments before a wider rollout.

Businesses that don't currently have a CRM solution may find an entry level CRM solution like ACT! will prove more cost effective over 1-2 years rather than embarking on a costly deployment of a more advanced system.

Other requirements may dictate an immediate need for a more sophisticated solution like Sage CRM but even so there is usually more to gain by starting small.

Through careful prioritizing, savvy CRM project leaders focus on those teams where CRM can have the greatest impact - and where it will have the highest adoption. Often, the best candidates are service teams. Because their roles are process led they are constantly striving to improve operational efficiency and follow best practices. We consistently find that CRM is well received by service teams as they recognise the payback that can be achieved with CRM by way of slicker processes and increased customer satisfaction.

Even with a small scale initial phase, CRM projects can quickly gain traction as this payback extends to other teams through better data quality. As a result, marketing and sales staff can get a clearer insight into each customer relationship and see people as unique individuals to better understand their interests and send compelling communications that will resonate.

With a manageable initial phase, streamlined CRM projects can be more easily budgeted and get underway quickly to generate early results that give businesses a solid foundation on which to build on.

The sooner a CRM budget can be identified the better. Like most purchases, CRM results are heavily determined by the investment made so it's important to make sure that expectations for CRM are consistent with the available budget. To use the analogy of holiday planning, it is pointless making arrangements for a luxury world cruise when your budget will only stretch to a coach trip. There are many world class CRM software solutions available but to avoid wasted time you must determine if their price tag and functionality are consistent with your budget and requirements.

Receiving this award is a great honour and recognition at the investment that we've made to deliver an unrivalled service that has seen us become the overwhelming CRM business partner of choice.

Preact Managing Director, Selom Bulla & Technical Manager, Ian Mennie collect the award from Sage UK CEO, Paul Stobart

At Preact we believe in providing impartial pre-sales advice combined with proven implementation skills to help businesses gain rapid and long term benefits from their investment in CRM. We understand the competitive advantage that CRM can leverage by sharpening sales, service and marketing efficiency so our experienced consultants work closely with clients to design and deploy systems precisely in line with individual businesses needs.

We complete over 150 CRM projects each year for customers in numerous industries with varying sized deployments from 1 to 200+ users. Our Microsoft Gold Partner certification and our status as a top 10 Sage and FrontRange Solutions business partner reflect our ability to deliver complex and innovative solutions. Our recent CRM projects have included implementations for John Lewis Plc, ThomsonLocal.com, Scottish & Southern Energy, Cranfield University, DPAS Dental Plans, Europa Worldwide Logistics, Constructionline and Marie Curie Cancer Care.