The question may seem simple:
"Can you clearly, here and now, explain the purpose of switching or purchasing the CRM and tell us about the relevant metrics and why you chose them?"
If you're stumped... or can't answer, it's time to take a step back.
We are not saying this to provoke. We're saying this because we've seen enough companies fail in their procurement and use of CRM - and we know because we've seen it - over and over again!
But don't take our word for it. According to a decade of reports, between 30-60% of CRM projects fail.
In this article, we'll show you how to avoid becoming a number in this dismal statistic.
We share how you can think about the (vital) question "why are you making this change" and how you can communicate this process with your team and other decision makers. That said, the goal after reading this article is for you to know whether you are ready to buy or change your CRM.
Buckle up!
Not to make things too complicated, the 'why' is the actual reason why you are thinking of changing or acquiring a CRM.
It can be anything. Everything from not finding the design modern to integration with other systems being resource-intensive.
Common reasons that companies give are to:
Streamline the sales process
Generate more new customers and make additional sales to current customers
Make data about customers and leads more accessible to their sales organization
Improve customer service
Improve customer satisfaction
But already things are getting a bit more complicated. As per the first couple of examples, there is a difference between disliking the design of the system and finding the integration with other important systems too resource-intensive.
This is because it is...
Good 'whys' are clear, born out of overall business objectives and lead to setting small and realistic goals with clear metrics.
Bad 'whys' are obviously the opposite. They are unclear, big and broad with diffuse or no metrics at all.
So why is this so important? Isn't it splitting hairs at the end of the day and the most important thing is just to get started?
If you're interested in CRM, you've probably heard or read reports like "Companies using a CRM increase their turnover by 300% compared to others".
But don't think it's just a matter of paying and getting started. What the reports don't tell you is the hard work it takes to achieve results like these.
It's not something CRM providers tell you at first, but it's the truth. A truth we want you to be well aware of.
Knowing this and setting realistic goals and timeframes (that grow from a good 'why' in the first place) will not only lead to better results and less frustration.
You will also avoid the risk of being embarrassed in front of your colleagues when you fail to meet initially unreasonable targets.
Couldn't answer why? Then you're not ready to switch or buy a new CRM.
You've heard of this exciting word:'Needs Analysis', right?
Thought so!
The needs analysis is your tool to find and argue the need for this change you are in or about to start.
So far, it seems straightforward.
But wait!
That's right!
You should start it but not lead it. Why should you do that? Because it is very easy to get stuck in your own worldview, your usual old ways of seeing and formulating challenges - and thus risk missing the real 'why'.
The best results are achieved by bringing in fresh perspectives from outside.
By bringing in external help in this phase, you can get the opportunity to see your own processes in a new light, and be challenged where you have been satisfied.
It is no wonder that we as consultants recommend this. After all, at the end of the day, it's usually our role - and for a reason.
But a fresh perspective does not by definition equal a consultant.
What matters is the fresh perspective itself!
Regardless of who leads the process of changing or buying into CRM, it is important to invite other key people and share 'ownership'.
An effective CRM system will affect many parts of the organization and then it is important to have breadth and to work to anchor it together.
And whatever you do, don't forget to involve the users of the system! A theoretically perfect system is not worth much if no one wants to work in it.
We recommend starting with what you know works best for your situation. That said, workshops are a common way of working.
But what we definitely advocate are interviews with other decision makers and key people (e.g. sales, customer service, marketing) in different parts of the company.
The aim is to find out their needs, which we can then use to clarify our 'why' or anchor it.
It often happens that people themselves cannot put into words their needs or what they personally find difficult about the problems they face. And that is exactly why structured interviews can play such an important role in a process like this.
If you get permission, it is best to record the interviews. This will allow you to focus more on the conversation and ask sharp follow-up questions instead of struggling with a pad and pen.
Set aside time afterwards for transcribing. Then you can easily go back and find answers, or even new interesting questions that you might have missed 'in the heat of the moment'.
So it's an iterative process (how many times have I used that word?) - but it gets results!
But don't forget that your company's overall business objectives inform your 'why'. It shouldn't be forgotten when the conversation turns to more mundane needs.
So make sure to create a needs analysis to get ready to switch or buy a new CRM.
"You don't have to see the whole staircase, just take the first step."
MARTIN LUTHER KING JR
Working in and setting up a CRM is a process that is built step by step.
We at Leadfront usually talk in terms of 3 phases in these types of projects. 1st phase (learning to crawl), 2nd phase (learning to walk) and 3rd phase (learning to run).
During each phase you break down milestones and if possible KPIs.
Again - step by step.
Therefore, we recommend starting with small goals in small numbers. The idea is to achieve them and master the relevant parts of the new system before moving on to bigger and better goals.
You will find many possible goals. Avoid the tendency to do too much, too quickly!
Start by selecting milestones that are small, realistic and clear.
These will also help you in future procurement of systems - when your immediate needs will be clear. If you have also based these on your company's long-term goals, you will also know what features you will need and can keep that in mind too.
Without a way of knowing if you have achieved a goal, it is not worth much. Saying you want to be happy and then happily stating that you feel happy might be fine for you and me in private - but it obviously doesn't work in business.
Instead, we recommend that you use metrics and data that speak for themselves!
So, for practical reasons, these (small and few) targets need clear metrics associated with them.
If they are not obvious, sit down with the people closest to your chosen targets and brainstorm.
Finally, ....
Remember that the real challenge is to defend the project tooth and nail as time runs out and the costs become clear.
The biggest threat is the "status quo" and the fact that it takes a certain amount of courage for decision makers to start a project with as many moving parts as a CRM project.
Then the needs analysis and its arguments, the objectives they led to and your allies who are also engaged in this work will be invaluable!
To make it clear, here is a diagram showing the link between all these parts. The former step leads to the latter.
Feel free to refer to our more comprehensive article on how to succeed in CRM implementation for an overview.
As always, people are the biggest resource and the biggest challenge. That's why we want to share some good advice that comes from decades of solving these very challenges.
Make sure you explain your new 'why' to everyone in a way they understand and that is relevant to them. Don't forget to passionately argue the value of the process itself.
Be clear about the benefits they will see, while being realistic. Don't paint with too broad a brush.
Our senior consultant Mattias Bjurel put it elegantly:
"If people don't understand why you're doing something, it's harder to get them to do what you want"
There are also two truths that are extremely (!) important to clearly communicate to everyone who can influence the project and who is affected by it.
That it will take time. But we are not talking about a week or a month. Plan realistically and do it properly from the start, rather than rushing through and spending many hours frustratedly trying to untie all the knots.
And you will never be done either. Just because the new system is in place doesn't mean the project is over. Now is when the real change and development work happens!
And this realization is important so that everyone is on the same page that this isn't something you can put aside once and for all. Work processes etc. change and then the CRM system must keep up.
It may seem easy to just choose a system and get started. And all these steps and processes can feel like unnecessary things we as consultants recommend just to sell hours.
But then you've missed the point.
What is important is not that you learned a new system, but that the knowledge and insights you gained by properly going through this process, equipped the entire company to work in new and more efficient ways.
The knowledge you build is the important thing! Because without knowledge, we are left destitute with only our good luck to lean on. And as we all know, it doesn't last forever.
So are you and your company ready to change or buy a new CRM? If the answer is yes, good luck!
P.S. If you have any questions, you can always ask them directly to us at Leadfront.