CRM IT Systems (Part 2)

I introduced CRM IT systems by explaining they are just like every other computer system - you enter data, transform it somehow, and get data out.  Most companies know what they want to achieve from a CRM system, but not exactly how to do it.  That is why you need a systems integrator with a business view, and it's always a moving target, so plan for change.

One key point on system design is to make sure that every field - every single field in your application - pays for itself.  It needs to improve customer service, increase sales, or be required for technical or compliance reasons - otherwise it has no place in your system.  Be ruthless in removing fields that you "might need someday, maybe".  They will get in your way, slow down data entry and annoy both the system users and the people they are collecting the data from.  [If you load data from an external source (like account numbers or sales figures), feel free to show extra data to your uses, but don't add them as data entry fields.]

So what should your system look like? 


I.) Inputs

1. User-entered data fields.  (This is where most people start, and some get no farther.)
2. System-entered data fields (timestamps, etc)
3. Ongoing data uploads (customers, products, sales data)
4. One-time data uploads (perhaps business card info from a trade show)

II.) Outputs

1. Listing reports
2. Summary reports
3. Letters/emails/campaign mailings
   
4. Samples (for pick-and-pack operation)
5. Ongoing data downloads (customer data updates; and export to enterprise reporting systems, database marketing systems, etc.)

III.) Transformation - turn the inputs into outputs (sounds simple, right?)

1. This is where “running the business” comes in; there are few guidelines and even fewer hard-and-fast rules to help you.
2. A successful CRM manager will need to know their CRM system very well, and know the entire business organization almost as well.
3. CRM Managers need to work closely with the rest of the organization. The CRM system, properly implemented, will capture the true voice of the customer, and every group - manufacturing, sales/marketing, supply chain, compliance, etc. will all be able to use insight gathered there.  (But these groups need to be prepared to not like everything they hear. I could tell you stories...)
   
4. If you know your Inputs and Outputs well, some transformations will be immediately obvious, and others will suggest themselves in time. And talking to other groups in your organization will produce ideas that come only from open collaboration.
5. Be flexible! Change your system as needed; there is no sense in answering questions that no one is asking anymore.

So you go through a design process and now you have a CRM system, and it is perfect the first day... then the second day comes. You need to always keep on top of things, so we need to add to the list:

IV.) Feedback

1. How do you tell if the Inputs made good Outputs? (error and exception reporting)
2. Listen to the customers! This is one of the great values of a CRM system.
3. Listen to the sales reps, and especially the call center reps, regarding the company and the products. 

[Many executives making important decisions at mid-size and large companies have not talked to an actual product user in years. Yes, years, and it’s not from indifference, it’s due to priorities, usually quite valid ones. So they should listen to their best available proxy, the people who currently talk directly to the customers. Don't let the executives rely on their experience as a sales rep ten years ago.]

V.) Process & Process Improvement

1. What do people have to do to use the CRM system? Is it as easy as it could be?
2. Does everyone need the same level of detail, or can some have a “CRM Lite” system to give them just what they need?
3. What workflows are needed in the system? (What data must be entered first, etc.)
4. How do you make the process of using the CRM system better?

Whew, enough for now.  This should give you a roadmap, enough to start thinking about what the design phase of a useful system that produces actionable data should look like.