Strategic CRM can support business growth (page 2 of 2)

A smaller business moving to the next step of expansion could implement a single database and achieve a level of efficiency to which many larger companies still aspire.

The next step - deciding on applications - should be taken with integration in mind. Disparate systems cost money to integrate and manage, and could prevent the company from delivering the necessary business strategy.

IT industry watcher Aberdeen Group pegs the cost of integration systems at between 40% and 60% of an IT budget. This is a quite staggering amount to be spent, not on enhancement, but merely on keeping existing systems running effectively. It's a cost trap smaller businesses can avoid with some planning.

Right questions

Large software vendors such as Oracle make their software available for smaller companies, and before the buying decision is made, the small business must ask the question "will this application talk to the others, and what will it cost to integrate?"

SMEs do not usually have staff spare to work full-time on a CRM implementation project, so the best approach is for SMEs to work with an implementation partner, who can bring the resources and expertise needed. The partner can help with selecting and implementing technology, introducing best-practice CRM processes, and managing change and deploying training throughout the organisation.

Too many SMEs in the past have focused solely on the cost of the licenses and not taken into account the time, effort, and expertise required to make a CRM strategy successful. Many Oracle partners are SMEs as well and will have as much at stake in the successful implementation as their customer does.

A phased implementation might begin by improving the process efficiency in a call centre, delivering quick returns in cost reduction. The greater the number of processes and applications that are integrated into the CRM system, though, the more effective it becomes. Customers will often phone a call centre with questions relating to products, a pending order or billing.

If the call centre is able to access all the relevant information directly, it can improve customer satisfaction while cutting the cost of handling callbacks. The CRM strategy is about driving information down to staff so that they can offer informed services, and up to management so they have the data they need to make well-informed decisions.