Is CRM for SMEs? (page 1 of 2)

As a result, they face the same challenge: to create a single view of the customer across the organisation, so that they can offer consistent and profitable service.

Business growth brings the small and medium-sized enterprise (SME) to the realisation that it can no longer sustain the informal, regular personal interaction with its customers - often a differentiator that allowed it to compete successfully with larger rivals.

Close customer understanding allows SMEs to tailor their offerings in response to customer needs and new competitors. Under these circumstances, a CRM system can be a strategic tool for retaining customers and acquiring new ones as the business grows.

Disparate information systems are a characteristic of the information technology infrastructure of most businesses, small and large. Companies traditionally buy software to fulfil a particular business need - financials, e-mail, inventory, manufacturing, distribution. They have bought the product best suited to the business at the time.

Over the years the number of systems has increased, along with complexity and the lack of integration. This means the company faces difficulties basing decisions on different versions of the "truth" emanating from information that could be duplicated, conflicting and incomplete, resulting in several versions of the "truth".

What benefit, therefore, would be yet another software package with yet another data source "bolted on" to the others - similar in its isolation and inability to draw from the information generated from others?

Complex organisations

CRM applications aimed specifically at small businesses often fail to measure up to the organisation's complexity. The lack of close integration with the rest of the business' IT infrastructure can rob the SME of CRM's full potential. The lack of customisation and configuration options can make the applications inflexible.

At this stage the small business owner needs to consider the most effective way for a CRM system to be incorporated into its IT infrastructure. CRM is best thought of as a strategy - not a technology - and correctly implemented it can significantly reduce errors and costs of sale in addition to increasing sales revenue.

An effective CRM strategy involves, in the main, the closer integration of existing systems. Valuable customer information already resides within existing information systems and the creation of a completely new application that requires a complete new set of information is a duplication of effort, which resource-strapped SMEs can do without.

Information integration entails looking at the business from two points of view - processes enabled by applications, and data stored in databases. Installing a database from which all applications can be run is a low-risk first step towards achieving a greater level of integration.

Large companies battle with the problem of having individual databases for each application - one for financials, one for HR, one for inventory, and so on. 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.