Today's posting is rather long -- it is in response to the "challenge" posed by Matt Handal of http://www.helpeverybodyevery.com.
In recent years, we have seen the development of a number of competing software packages that track, measure and facilitate a firm's client relationship management (CRM) activities. Frankly, it's nice to have an easy-to-access place online where anyone in the firm can see who has been visiting a specific client, where/when the visit took place, what was discussed, what was promised, if and when the item was delivered, and when someone needs to contact that client again. Some of these systems will even send you a first-of-the-month reminder of who needs to be contacted that month.
This is a great help for a firm and its marketers, right?
Unfortunately, we often get so focused on these software packages, how they work, what services they can provide the user, and which one we think is easier or better to use, that we forget about the need for a PERSON to actually DO the CRM activities that these software packages only track, measure and facilitate.
In other words, if a real person doesn't do anything to manage, maintain or strengthen the relationship with a client, there is nothing for the software to track, measure or facilitate!
You can buy any package you like, or every package on the market, and you still won't have great -- or even good -- CRM system, because tracking visits is not the same as making visits; recording the basics of a conversation is not the same has having a conversation.
The reason so many firms are frustrated with their CRM programs is that the programs are misnamed; they should have been called "CRM Tracking Programs." Because of this naming problem, we have let ourselves think that the computer program actually does the client relationship management activities. Just buy a program and your client relationships will automatically be managed.
Absolutely Incorrect!
The best CRM system requires three things:
First, staff members must have a mindset that makes them excited to go out and visit a client -- or as I often say, "to put their butt-print in a client's guest chair!" Nothing helps a client feel valued by its consultant like a personal visit from the project manager. And a visit from a Division Manager or the CEO is even better. If there are any problems, a high-ranking officer who is not on the project staff is more likely to find and fix them without getting defensive and, at the same time, demonstrate the firm's willingness to spend senior-level time on that client. In between visits, phone calls are great. However, email is only a way to exchange information; it does very little to extend the relationship.
Second, staff members must be willing to develop real relationships with their clients. This means paying attention when they say they like or dislike something, noting what magazines are on their side tables, attending some of the same organizational meetings they attend, knowing if their families or local politics command their off-time attention, finding out what teams they like, sending them articles or Internet links that might be of interest to them, and a host of other things. It might even include providing a home phone number and personal email address so that, if necessary, a client could get in touch with them outside the typical Monday-Friday, 8am-5pm work week.
Third, staff members must be willing to share information. One of the worst things you can hear your client ask is, "Don't you people ever talk to each other?" This generally happens when you take his or her time to discuss something that was already covered with another staff member in an earlier visit, but there was no record in your tracking system to tell you that before your time-wasting visit.
So a staff member must be willing to come back from the client visit, open the CRM tracking software and record the visit before he forgets any important details. At the very least, the record should include the meeting location; which person initiated it; what items were discussed in detail; what new subjects were touched upon; what, if anything, he or she promised to send the client and when; if there is any other action to be taken; and when the next contact should be. And the system should be able to alert others who are interested in that client regarding the new report.
Once these three items -- staff members who will make visits and phone calls, staff members who are willing to develop real relationships, and staff members willing to share information -- are in place, the best CRM tracking system is the one that allows you to track all the variables you think are important, that enables you to get all the reports you want to have, and that is easiest for your least "savvy" staff member to use in the way and to the degree you want it used.
Post Epilogue
The Perfect CRM is a series of essays by industry experts on the topic of client relationship management tools. Each expert draws upon years of experience to outline their vision of the perfect CRM system. This exercise provides you with new insights into what works, what doesn't work and what you should consider when implementing a CRM system.
The experts include:
- Ford Harding, Author of Rainmaking - 2nd Edition (http://www.hardingco.com/blog/)
- Tim Klabunde, Author of the CRM Chapter in the Marketing Handbook for the Design and Construction Professional (www.Cofebuz.com)
- Bernie Siben, Author of A Horse of a Different Color: Marketing in the Public Sector (http://builtenvironment.blogs.com/)
- Bobby Darnell, former Director of National Accounts at Reed Construction Data (http://buildingnewbusiness.com/)
- Mel Lester, Owner of the Business Edge (http://www.blog-bizedge.biz/)
- Matt Handal, Contributing Editor of SMPS Marketer (http://www.helpeverybodyeveryday.com)
Bernie,
Very good points. I agree that before you implement a CRM you must have
1. staff members who will make visits and phone calls
2. staff members who are willing to develop real relationships
3. staff members willing to share information
Posted by: Matt Handal | 21 September 2009 at 02:40 PM