In our years of working in the SaaS space, we can't tell you how many
meetings we've attended where an executive expressed those
frustrations. Even in organizations where CRM adoption is mandated,
teams and individuals will still riotously resist changes in systems,
processes, reporting, you name it.
As
you can imagine, this doesn't sit well with top management. After
sinking thousands of dollars and months of time into a CRM rollout,
companies want to see optimized sales performance. Not a long list of
grievances.
How can these organizations get a path forward?
Helping their people to connect the dots between the data that they put
into the CRM system and the value they can derive from it.
And now: an examination of key areas where CRM ROI either succeeds or fails - and what you can do about them.
Missed ROI - and common points of failure
1 - Maintain clean data.
This
least-glamorous part of the process is also the first reason for CRM
failure and end user dis satisfaction. Getting good data in and getting
bad (or old) data out should be a highly visible management priority.
Ownership must also be clearly identified for ongoing data validation
and maintenance to ensure that the data retains integrity.
Where do companies commonly struggle in the quest for clean data?
It's not a one-and-done project. Data
management extends from the initial upload of data to the system's date
of final retirement. Maintaining accountability for ongoing attention
to data maintenance is a challenge in many organizations.
Free-for-all data entry. When
fields in the CRM are free-form data entry, queries and reports have a
tough time displaying and performing calculations on that data. Risk of
user error and incomplete data also increases. The solution is to make
as many important fields into standardized lists and forcing the user to
choose from the menu. System validation and logic rules should be
thought through in a holistic way before transferring any data from
other systems, and the data entry screens designed in a way that
enforces this logic.
Initial data load. Users
are more likely to accept (and maintain data in) your system if they
see good data in there at the start. Whether the data is coming from a
legacy system or being compiled from multiple sources, invest the time
to scrub the data before importing it into the new application. After
data is imported, it is less likely to be cleansed. Time spent scrubbing
data before import guarantees that data will start off clean. Your
project team must also validate the data and relationships after the
load and make additional corrections/adjustments.
Bad data. A
company's processes can often contribute to the creation of bad data.
For example: different teams may not share the same definition of terms
like "revenue" or "completed" or "start date." With different users
interpreting a field differently, and all having access to update it,
the field data becomes impossible to interpret over time.
Duplicate data. Duplication
creates conflicts, such as who works the lead or services the account,
and creates waste and duplication in downstream processes, such as
sending marketing letters to the same person multiple times (or at old
addresses). End users also deal with the confusion of multiple records
by ignoring the system, distributing their updates across multiple
records, and even creating their own new duplicate records.
Weak / incomplete data. Records
with missing or incomplete data are often filtered out of reports,
communications, data mining searches, and many other system uses.
Optimize business intelligence, and improve marketing and segmentation,
with regular data maintenance. Key data can often be appended to
existing records with data enhancement services from such providers as
D&B and Hoovers.
Data Overload. Carefully evaluate
what information is truly essential and what is "nice to have" at each
point in your process. Minimize the must-have information at each step
in the process; especially for field personnel. This increases the
likelihood of user adoption and data integrity.
Handling turnover
gracefully. Some job roles can turn over at a high rate. When Tom
leaves, and Suzie replaces him, is the company reassigning Tom's records
and updating the record owner(s)? If not, over time those records are
not updated and lose their value. Companies need a standard process for
reassigning records to the appropriate person(s), instead of
case-by-case assignments.
2 - Drive process alignment.
Your
CRM fields, reports, and screen flow must match the way people actually
use the system and its outputs. This must be constantly tended, as
processes and people change.
Where do companies commonly struggle in the quest for process alignment?
The Kitchen Sink view of the business. Some
developers may prefer to provide one screen containing every field in
the system. However, simplifying screens for the user is a huge part of
aligning CRM systems with end user workflow. Decision tree wizards and
custom page layouts allow your users to retrieve the data they need, at
the point in their workflow when they need it. This customization takes
both initial effort and ongoing updates. The ongoing system ROI driven
by such updates is significant in many organizations.
Examine and document processes with a critical eye. Simply
automating the old process can not only create frustration, but also
cause you to forego benefits the software can provide. It is essential
to document the new process, taking into consideration how the
technology can help facilitate not only a more efficient/effective
process, but also collaboration (via the use of workflow).
3 - Automate repetitive processes.
When
your CRM system correctly aligns with your business processes, the
system can take over low value, repetitive work through automation. This
is a powerful source of CRM ROI.
Where do companies commonly struggle in the quest for automation?
Data consistency. When
the underlying data in a system isn't consistently maintained (see #1),
processes are tough to automate. Consistency in key areas must be
present for the system to perform automatic calculations, consistent
reports, workflow routing, and so on.
Keeping CRMin sync with changing people and processes. As
the organization changes, CRM must keep up for its automated components
to remain useful. When turnover is frequent, this becomes both more
challenging and more important. When Tom leaves, and Suzie replaces him,
does the process also change? Does she have exactly the same job
mandates and work style that Tom did? Does Suzie need a different
report, and does her boss still calculate key metrics the same way? Do
automated processes such as lead assignment now need updating?
4 - Align Stakeholders.
Does
your CRM system offer value to everyone who puts data into it, needs
data from it, or manages people who do one of those things? Giving end
users a voice in the process and value-added system outputs are natural
drivers of end user adoption and clean data.
Where do companies commonly struggle in the quest for stakeholder alignment?
Executive alignment. In
many companies, an executive sponsor signs the purchase order for the
system, and that is the end of their involvement with the system. To
align the tool to executive expectations, some face time with the
project team makes all the difference.
Executive visibility. Ongoing,
visible executive involvement sends an important message to the rank
and file: "We've spent a lot of money on this system, and we take it
seriously." Naturally, every company initiative would like to have this
kind of support. Plan for activities that are manageable over months and
years - such as public comments on the importance of CRM, hosting
roundtable meetings to discuss CRM feedback. Real impact can be made by
participating at least periodically in CRM steering committee meetings.
Having very senior executives dropping into these meetings for surprise
visits can help you manage a tight schedule while still communicating
executive interest in the program.
One-way thinking. Do
you depend on employees to maintain data who perceive no stake for
themselves in the outputs of your system? If value is moving only one
way - up the chain - the likelihood of that data being inaccurate
increases exponentially. Both the carrot and the stick are needed to
keep the information maintained in the system the way you need it.
(Lack of) end user input. CRM
programs can and should contain active vehicles for end user input
(pilots, workshops, "beta" users) and satisfaction measurement. Simply
asking end users how the system is meeting their needs and improvements
they'd like to see can be a revelation for productivity, data value,
process alignment, and much more. However, many companies simply move
too fast to design effective questions, analyze the results, or take
action based on the analysis.
Viewing training as "one and done". The
CRM solution provides significant capabilities. It is unrealistic to
expect that people who are new to the system or technology can fully
appreciate or leverage all of these at once. Training must be structured
to be delivered over time so that individuals have time to absorb the
new processes and system. This regular training will provide continued
enlightenment for system users as to how the solution can add
incremental value for them in their position. Sharing of best practices
and "tips and tricks" is one way to provide this ongoing knowledge
transfer.
5 - Integrate disparate/legacy systems.
No single
system or piece of software can contain all the functionality needed to
run a complex organization. But the closer you are to a 360 degree view
of your business information, the more valuable all of your systems are.
When data from all relevant systems is available in a single place,
every customer-facing and revenue-generating function becomes more
effective. And every executive view of the business becomes more
meaningful.
Where do companies commonly struggle in the quest for system integration?
Complexity of the initial integration project. Many
technologies exist to enable fast, easy system integration without
custom code. Wizard driven, in some cases. However, every project and
combination of systems requires professional evaluation to determine
the right mix of technologies and custom integration points.
Complexity of data exchange. Simply
migrating data from one system to another can be a significant feat.
Ongoing complex data exchange between disparate systems can entail a
significant troubleshooting effort. Creating this seamless integration
can be heavy lifting even for the pros.
Flexibility of future system updates. Upgrades,
new fields, new reports, and other changes in any participating system
must be recognized by all points of integration in all other systems.
Will this slow down future customization of your systems infrastructure?
It depends.
6 - Educate and empower All System Users.
Many
useful IT systems fail because their rollouts did not take into account
basic principles of adult learning and change management. The backbone
of a successful rollout? Users who understand how it benefits them to
use a system, are confident in their system know-how, and are in the
habit of using that system.
Where do companies commonly struggle in the quest for user empowerment?
Upfront thinking about each user's needs. It
may seem like a lot of work to get new users acquainted with an
unfamiliar system and the process changes that come with it. Just think
how much waste will result if those users are left to figure it out for
themselves. A little mentorship and hand holding goes a long way.
Forgetting the new hire learning curve. New
hires are often forgotten in this process, but they need as much
support in acclimating to your CRM world that your existing staff did
when the system was new. Once I've learned the system, it's easy to
forget how much time a new user needs to climb the learning curve.
System changes mean educational updates. Education
must be renewed for each end-user group as the system changes. Many
organizations roll out system changes with centralized speed but forget
to tell the end user what those changes are, what they mean to each user
group, and how to interact with the new functionality.
Forgetting the System Administrator(s). An
often over-looked resource, the system administrator needs continuing
education as well. Salesforce.com and other SaaS platforms evolve
constantly. Your administrator needs to stay current on release changes,
best practices, add-ons offered in the community, and other topics that
impact their effectiveness.
What's New? Opportunities to
improve SaaS ROI come with each release of new platform functionality.
Define a process for reviewing new functionality. Brainstorm ways to
use new enhancements to help address items on your company's CRM Wish
List.
7 - Provide direct access to data.
The right people
must be able to get the right information into and out of the system
when they need it. Sounds simple, right? Well, these requirements can
evolve over time. Teams tend to set them up once and then leave them
alone, but they deserve occasional review & re-evaluation.
Where do companies commonly struggle in the quest for data visibility?
Integration and Reporting automation. If
the data you need resides in multiple systems, then someone must export
data from those systems and massage the output in spreadsheets to do
the job. This time-consuming extra work consumes hours and headcount
weekly and even daily in many companies. Computing errors and
inconsistencies add to the costs of data access.
User access permissions. In
large organizations, simply figuring out who needs access to what data
can become a political challenge. Translating those needs for the
technology to enforce can also create complexity when end user roles are
highly customized across departments and job functions.
Editing
permissions. Record-level and field-level permissions also affect data
integrity. Are the right users able to edit the data, while those that
need "view only" permissions are prevented from editing?
8 - Drive Accountability.
Now
that you have good data, what are you and your team using that data to
accomplish? Are you holding teams (and the processes and tools which
enable them) accountable for the performance they deliver?
Where do companies commonly struggle in the quest for accountability?
Clear ownership. Typically,
a company with successful CRM has a core team of business stakeholders
who meet regularly. This team helps to drive user adoption, user
communication, process changes, implementation of new releases, and
much more.
Internal promotion. It's not enough to
have an internal champion alone. The company needs a strategy for
communicating the importance and value of the CRM system to the
organization.
One and done. The internal
promotion and communication program for launching your CRM must continue
to keep the message of its importance in front of users.
Culture conflicts. Some
old behaviors must be ousted. For example, if your team is rolling out
CRM to increase information sharing, but fiefdoms still hoard data,
these culture conflicts can cause CRM failure. This takes time, as well
as the carrot and the stick. Leadership vigilance, both at launch and
ongoing, is key.
KPI visibility as a way of life. Are
your KPIs visible on executive, manager, and user dashboards? Are your
managers reviewing their dashboards and discussing performance during
team meetings?.These steps are integral to driving a culture of
performance.
Define terms - and goals. Do users
know the rewards for success and consequences for sub-par performance?
If so, it is much easier to communicate (and understand) how the CRM
system in helping them achieve rewards and avoid consequences.
Clearly-defined metrics of success do not exist in every organization.
Even in companies where they exist, acceptable levels of performance
aren't always universally understood among the rank and file.
Take time to benchmark. It
is difficult to quantify improvement without a benchmark, Before you
roll out a new CRM system or any significant change, benchmark your
chosen metrics for system success. Then measure change in those metrics
regularly after system launch.
9 - Add incremental improvements over time.
CRM
is not a one-time implementation. To take action on analysis and user
feedback and add new/updated processes into CRM, new functionality may
be needed quarterly, half-yearly, or annually. In the Cloud, add-on
applications and CRM platform upgrades also support your efforts to
streamline workflow, automate processes, drive data quality, and much
more - if you take advantage of them.
Where do companies commonly struggle in the quest for incremental improvement?
Post-launch burn out. The
energy and focus required to implement a system simply cannot be
sustained over time. Make sure that each rollout, whether initial
implementation or ongoing release, is realistic for the business to
absorb and operationalize.
Having a Change Management plan. It's
easier to create momentum for incremental improvements when setting
expectations and managing to a plan. This must also be more than a
bulleted list on a Powerpoint slide. Include dates and activities
associated with project milestones in your change management plan. A
roadmap of CRM stakeholder needs and CRM development priorities can be
very helpful in keeping the system in step with the organization. This
roadmap requires executive interest and sponsorship for most
organizations to maintain and carry through with it.
Surprising the Users. Inform
your users early and often of your change management plan. Select a
group of users to serve on the project team during requirements
definition and acceptance testing. This helps drive accountability with
the project team. It also improves user acceptance of your system
changes. Keep everyone informed through emails, webinars, weekly
meetings, executive communications. If milestone dates slip, inform the
user community of the new timeframe.
Internal expertise. For
example, if the CRM system administrator leaves the business,
incremental improvement cannot be considered until the backlog of
maintenance work is handled. A backlog of 2 or 3 months' administrative
work can quickly drive system neglect requiring sustained effort to
reverse.
Resources. Many companies are staffed for data
maintenance, not application performance tuning. This can be a matter of
workload as well as skills and education.
10 - Calculate ROI on more than sales opportunities.
Success of CRM can be much more than just an increase of Closed or Won sales opportunities.
What KPIs do other companies include in CRM ROI calculations?
- Reduced time for a customer service rep to search for a solution
- Increase of referred business (business development, partner support)
- Reduced cost to serve a customer
- Faster customer response time
- Shorter time to close a deal
- Reduced time to research and work a customer case
- Growth in email capture (to reduce customer communication costs)
- Increased data capture of marketing / segmentation data (i.e., growth in CXO title capture)
- Increase in number of opportunities per customer
- Increase in number of contacts per account (or number of contacts in various job functions)
- Improved ability to track and measure Marketing Campaigns
- Reduced time calculate sales commissions
What common internal barriers do companies encounter when trying to fight CRM neglect?
