When Brighton-based business TCMM Shutter Group had ambitions to grow its £10m a year turnover, leaders knew it had to leave its spreadsheet-based business model behind. The bespoke blinds company kept all customer quotes, client details and feedback on multiple sheets which was messy, time-consuming and led to duplications. Sam Tamlyn, operations director at TCMM says: “We had to keep hiring people just to keep on top of the data.”

However, making the wrong choice in a customer relationship management platform (CRM) – especially for a business which already has an existing customer base – can be disastrous. Twenty years ago, British Airways onboarded a CRM called Ocean Wave. Its complex data structure made it difficult for staff to understand and – even then – the data quality it provided was not useful enough for the analysis team. This created more work while negatively affecting sales.

For TCMM, adopting Workbooks allowed the company to double in size without doubling its workforce. Tamlyn says: “We can see how many appointments we are getting in, how long they will take to fulfil, how many quotes we have waiting for responses. CRM has helped us a lot in terms of errors.”

“A CRM purchase should be done holistically”

Amanda AI is a platform that can create, budget, and run whole advertising campaigns for SMEs using artificial intelligence. When it wanted to invest in its own CRM system it knew its online-only, customer-oriented business would be affected by any missteps. Choosing a CRM that suited every sector of the business was like choosing a restaurant for a large group of friends, says chief technical officer Torkel Ohman.

“Some of your friends will say location is the most important aspect, some will say food, some will say the price – and they all have valid points. The same goes for a CRM, there is a lot of different functionality and which tool you use depends on what functionality you are mainly looking for. When choosing CRM consider how much customer data you want to use and what other systems you want to integrate with and also things like lead management, marketing automation and pipeline.”

A holistic approach that unites the CRM needs of all areas of your business from factory floor to sales to distribution is essential. It may be tempting to think that CRM is the solution to all of your business growth problems but that is rarely the case without top-to-bottom input, says Helen Ashton, CEO of Shape Beyond and former CFO of Asos, when the online giant went through various technical evolutions.

“Business leaders need to make sure that all people impacted by change are involved at the earliest appropriate stage in the discussion. Technology can’t solve the problems that inefficient processes create alone; businesses should review their processes, or any software can only help to do the wrong thing faster," says John Cheney, CEO of Workbooks.

Companies shouldn’t just use a CRM to inspect staff and sales, but to expose logjams and improve flow. According to a 2018 report by Harvard Business Review, the principle reason for CRM failure is they are used for monitoring rather than improving processes. The study said: “CRM systems are too often used for inspection – to report on progress, improve the accuracy of forecasts, provide visibility, predict project delivery dates, and provide a range of other business intelligence – rather than creating improvement in the sales process.”

“CRM can accelerate growth in your business, but can do the exact opposite if used incorrectly”

In 1999, Hershey, one of the largest chocolate manufacturers in the world, invested over $110m in a new CRM system. However, it got its timing spectacularly wrong. Launched during Halloween, its busiest sales period, the CRM caused a logjam in Hershey’s existing systems and immediately stalled orders worth $100m to its customers, causing an almost 20% drop in quarterly profits.

“It’s important to remember that the business’ objective isn’t to buy software, but to achieve a business outcome that the software should enable,” says Cheney. “Focusing on outcomes should also lower the cost and risk of its CRM project.” When a business doesn’t know what outcomes it wants to achieve with CRM technology, it should discuss this with the vendor, says Cheney. This is a key indicator of the vendor’s ability to help with the business’ objectives, rather than simply to supply software.

Choosing a CRM that suited every sector of the business was like choosing a restaurant for a large group of friends

Understanding how a business will be changed by the arrival of the new technology should be factored into the decision-making process. Factors like customer lifetime value, churn rate, upselling and customer acquisition cost might also apply to your decision, says Ohman: “A way of measuring how happy your customers are with your product or service is also something you should measure. Since it’s a soft value that can’t be converted to revenue you might view it as a soft impact on your company, but it’s still a very important metric to track over time.”

“Invest and plan with CRM in your future”

In Ashton’s experience at Asos and JD Sports, the cost of a new CRM system is not often offset in the short- to medium-term by increased revenue alone. Often it is the underlying process that requires a review and refresh rather than the technology itself before rewards are seen, she says.

“I’ve seen most benefits where SMEs shift from a basic, often home-grown CRM facility, to one of the mainstream providers. That is, provided the new technology isn't over specced or implemented poorly.”

Business leaders need to make sure that all people impacted by change are involved at the earliest appropriate stage in the discussion. Technology can’t solve the problems that ineffective processes create

As businesses migrate to the cloud, implementation becomes easier, but CRM technology is continually evolving and – like upgrading warehouse machinery – it requires a long-term investment. A successful investment will not only implement the CRM that works for their business today, but also consider how it will work with their team of tomorrow, says Ohman.

“Scaling and cost are always things to consider. Would you buy the same tool if your team was double the size? A tool that might be perfect for a smaller team might not be viable when you grow. It might be better to go with the tool adapted for the bigger teams straight away than to spend money on a tool, implementation and integration only to switch it out in one or two years.”

Successful implementation requires holistic involvement from across the business to get right, but if achieved, it can have a lasting impact on a company’s success.

A well-crafted and well-run customer relationship management (CRM) system can give a business powerful insight into its sales pipeline, helping it to boost conversions and improve the customer experience. But designing and implementing a platform is no easy task, with success heavily dependent on staff engagement at all levels of the business.

At its core, a CRM gathers all a company’s customer data in one place, from names and addresses to correspondence and spending history, allowing it to be managed more effectively and made accessible to everyone on the team. Using machine learning capabilities, the CRM then analyses this data to glean insights on client behaviour and forecast demand – all of which is key to helping a firm grow its sales pipeline.

Anita Dougall is chief executive of Sagacity, which works with brands such as Virgin O2, Thames Water and Sky to help them get better use of their data across the entire customer pipeline. She says an effective CRM acts as a company’s “single source of truth” when looking at its customer base, answering key questions such as who the customers are, how much they’ve spent and what they can be expected to buy in the future.

“While it is also possible to get this information broadly from a salesperson, team leader or manager, a technology-enabled CRM provides the ability to show trends in people, products, industries and buying patterns,” she adds. “This depth of analysis helps leaders to better manage the sales pipeline and invest in areas that are showing the most positive results.”

Efficiency gains

Efficiency gains are another big benefit of well-executed CRM, helping teams to cut the time spent with poorer quality leads and focus more on deals likely to close. Not only does this pay financial dividends, says Kevin Taylor, director & co‑founder of Gravytrain, a digital marketing agency, but it also builds positivity, optimism and inspiration in a sales team.

“Nobody likes having to spend time on a poor-quality lead, but a well-crafted CRM will allow the prospect to be satisfied, receive the information that they need and the sales rep the time to close the deals that matter right now,” he says. “All salespeople want good leads to work with, good leads that can help them make their quota and get their bonus.” 

A decent CRM also helps to enhance the customer experience, which feeds back into the overall pipeline. Platforms use automation to tighten up their communications with clients and better manage campaigns, all of which improves client relationships. 

“People buy from people,” says Dougall. “Customers get annoyed by poor follow-ups; deadlines being missed and sloppy communications.”

Implementation challenges

Implementing an effective CRM is not always easy, however, requiring both technical know-how and significant change to company culture. Businesses need to properly invest in planning and understanding their business processes before they begin the hard work of designing the architecture of a platform.

Moreover, a CRM will also only generate useful insights if it’s fed with the right customer data, so companies need a strategy around what data is gathered and how.

According to Paul Owen, the managing director of skills training agency Sales Talent, many salespeople remain wary of CRMs, partly because they’ve been burnt by poorly implemented platforms, but also because CRMs need to be continually updated.

“There can hardly be a sales team anywhere that is not pestered by management into keeping the CRM updated,” he says. “But the danger when CRMs are seen as a useless inconvenience is that it becomes self-fulfilling. A lack of belief in their effectiveness means sales teams don’t update them properly, making the data useless and prompting management to harangue the sales team about the lack of updates, turning the sales team off even more and so it goes on.” 

Maintaining the system

As such, business leaders must secure buy-in from their sales teams, amplifying the benefits while empowering and incentivising them to get behind the new system. Firms should offer the right training but also automate as many processes as possible to make data gathering as hassle-free as possible. Dougall suggests API linkages to email systems, in and out APIs connected to any marketing software, and manual update controls can all help. “Without this, you are simply loading new customer data but not maintaining existing data – a crime against your current customers.” There also needs to be a system for regularly cleaning and updating contact data, she says.

“Set up correctly, a business should be able to keep a close eye on metrics around acquisition, conversion and retention,” says Taylor. “If you can’t measure something, how do you know if it’s improving?”

Despite the challenges, the benefits of introducing an effective CRM can be invaluable. Finally, firms get proper oversight of customer pipelines and a 360-degree view of their customers. A good CRM also helps the wider business by giving it a proper sense of what is working and what isn’t.

When a company is looking to undertake any kind of digital transformation, it can be easy to get swept up with the promise of what the technology can deliver. However, it is important to remember that the technology itself is secondary to strategy when it comes to transformation.

This means before attempting any new CRM implementation, a business must first recognise why it is attempting change in the first place. What outcomes are expected? What is the company looking to achieve? How is it expecting to change the way that it engages with clients?

Workbooks CEO John Cheney says there are four main drivers for customers seeking a new CRM implementation. “First, customers are looking to grow their revenues. Second, they want to streamline their business processes. The third ‘why’ is around improving the customer journey. Last, it’s having the management information to make the right decisions in your business,” he says.

Then, once the ‘why’ is understood, the next question is: how do you go about achieving it?

“It’s getting under the skin of all that and putting technology aside for a second. It’s understanding how you are going to grow your revenues or streamline your business process,” says Cheney.

For example, if a company wants to acquire more customers, it might want to improve its email marketing or sales execution or rethink its digital advertising. Only then does the tech slot into place; answering the question of ‘what?’ in the process. Businesses need to consider what features and functions they might require from their CRM technology in order to make a decision about the platform they choose.

You can buy the tech, but if it doesn’t help you improve your business processes or help your people be more efficient, then on its own it delivers very little

Of course, there’s no harm in being inspired by technology and what it can achieve. But tech alone won’t change your business, says Cheney. “In the same way that you can buy a car, but if you don’t know how to drive, the car doesn’t serve any function. And that’s the same in the CRM landscape. You can buy the tech, but if it doesn’t help you improve your business processes or help your people be more efficient, then on its own it delivers very little.”

It’s also essential to focus on the cultural aspects of any transformation as much as the technological.

This is because people will lead any change within an organisation, but it’s also people who can stand in the way of that change. This is key because a new CRM might require people to work in a different way, often using different technology to get their jobs done. If they don’t understand why that change is happening, they can be resistant to it.

“We talk quite a bit about managing the change curve,” says Cheney. “People are initially quite excited there is going to be something new at the other end. Then they realise the change affects them. All of a sudden, they’ve got to learn a new system and their job’s harder than it was two days ago, because this stuff is new, and they haven’t quite got to grips with it. Then over time, their performance improves, and they come out the other end of that journey.”

He adds that recognising that it’s individuals who are undertaking that journey is important. “We spend time talking to customers about how to manage that digital transformation internally,” he says. “You’ve got to give people the time and space to learn the new technology, and that needs to be factored into your change management process. The technology works, but it’s really the people that make a difference.”

A CRM platform can support the growth and development of a business by operationalising sales, marketing and customer services. It can provide the metrics upon which better business decisions can be made because you can’t improve what you don’t measure.

But it’s important not to underestimate the change process. This is where Workbooks can support businesses. “We’re focused on delivering that transformational change,” says Cheney. “We handhold customers, through these conversations and really get to understand their business. It isn’t about the technology; it’s about how well it is implemented. It’s the way you deliver those outcomes that’s key.”

Workbooks’ ability to help its customers navigate this journey, providing enablement, support and change management around the CRM process is key to its implementation strategy.

As the economic outlook darkens, now may be the ideal time for firms to invest in improvements to their sales infrastructure. Here are five key benefits that a successful, business-strategy aligned CRM can bring during a downturn.

1. Growing your sales pipeline

A well-executed CRM allows a company to better manage its sales pipeline, in turn helping it to generate more sales and shorten the time it takes to close deals.

It does this by first making sure all the sales team’s correspondence with customers are kept in one place so they can be easily managed. The platform then analyses the data using machine-learning capabilities to glean vital insights pm customer behaviour.

“A well-crafted CRM with the correct data, quite simply, makes both salespeople’s and sales management’s lives easier,” says Paul Owen, managing director of sales training agency Sales Talent. “It’s one place for all contacts and, critically, [tells you] the stage in the process of those contacts from cold data to long-term client.”

It is this ability to see across the pipeline and measure the strength of leads that will ultimately “make a pipeline stronger,” he adds.

2. Sorting good leads from bad

It can be hard to tell good quality leads from bad ones, but an effective CRM allow companies to cut through the noise and identify the clients most likely to convert.

This will save time and boost productivity, says Kevin Taylor, the boss of digital marketing agency Gravytrain which helps companies design CRMs. It’ll also raise morale.

“Helping the business focus on the better leads and cutting out the time spent with poorer quality leads will only pay dividends,” he says. “A good CRM will minimise the number of enquiries that fall through the cracks.”

3. Improved customer experience and efficiency gains

Busy sales teams have an array of responsibilities and it’s easy to let things slip. But customers get irritated if you miss deadlines, forget to follow up or communicate in a sloppy way. CRMs tackle this by using automation to streamline quotidian administrative tasks, enabling sales teams to manage campaigns more effectively and improve client relationships.

CRMs also help teams cut waste and boost productivity, which is vital during an economic downturn, says Sadagopan Singam, EVP, digital business services at HCLTech, an IT consulting company.

“Customers are the goal of any well-designed CRM. During the economic downturn, a CRM will be heavily utilised as it keeps the cost of operations low while providing the best customer experience. This fosters loyalty, keeps customer retention costs to a minimum, and perhaps keeps new customer acquisition costs manageable as well,” he says.

4. Better cross-departmental coordination

A good CRM can also facilitate better coordination between sales teams and other parts of the business. Singam says the 360-degree view of customers that CRMs provide helps firms to “better understand pre-sales, in-process sales, and post-sales and service opportunities.”

He adds: “It gets various enterprise functions aligned to better serve customer needs, increasing pipeline and customer satisfaction levels.”

He also believes CRMs can help foster the seamless digital interaction that customers increasingly expect from businesses. “There has been a clear, dynamic shift in customers’ expectations and everyone in the connected world wants to feel closer to the companies they engage with,” he says.

5. Inspiring sales teams

Sales teams can lose morale if productivity drops, but CRMs make it easier to get results which is self-reinforcing.

Owen says that a good CRM, stacked with the right data, makes it easier to assess the time it takes to close deals; the efficacy of different sales approaches, from cold calls to website leads; what activities within the sales process create momentum; and a company’s conversion rates at different stages of the sales process.

“Key to good CRM usage is visibility on the sales process itself,” he adds. “Once you know conversion rates across the various stages of the sale, it gives inspiration to salespeople as they can see the deals that could close and have some insight into the likelihood of the deal getting over the line.”