Issue link: https://read.dmtmag.com/i/441836
JANUARY 2015 22 THE JOURNAL The 'CRM Myth' (but why you still need one!) BY SCOTT STROUD MARKETING CONSULTANT Customer Relationship Management systems (CRM) are nothing new; they predate the In- ternet and computers, going all the way back to hand written ledgers. I'll bet most of you re- member the Rolodex rotary file - and some are likely still using one! Tickler files, ledgers, manifests, and even the 'little black book' are relationship management tools that date back for centuries. But today CRM systems are being touted as the end-all to increasing sales. The fact is, they aren't. Don't get me wrong, you absolutely must have a CRM system to compete in today's mar- ket. Prospects need timely, rele- vant follow up today more than ever. The prob- lem is that with more leads coming from online sources, the rela- tionship simply isn't there, so there's nothing to manage. And even when you do get prospects to engage with you, the CRM program can tell you what to do and when to do it, but it won't do it for you– salespeople still struggle with 'call reluctance' and follow up failure. So, whereas the CRM being the 'super- salesmaker' is a myth, unless you do business on a very low scale (or work for only one or two clients) you are wasting precious time and miss- ing sales opportunities if you're not putting a CRM system to work for you. Here are 10 rea- sons why you need an effective CRM in your business: Speed If your customers find you online – and 97% of them do – they expect you to do business at the speed of the web, i.e., instantaneously. An effective CRM system should capture leads from online sources, send an automated re- sponse to new inquiries instantly and automat- ically, and alert you or your sales team that there's a new lead that needs to be contacted NOW! You can't rely on your Memory "The weakest ink is better than the strongest memory", the saying goes. And it's true. Today's sales professional is just too busy - and the workplace too hectic - to rely on memory to follow up with potential buyers. Without a single, organ- ized place to record all client data, you will end up forgetting appoint- ments, misplacing prospect information - and losing sales. If you've ever grabbed whatever piece of paper is handy to record notes from an incoming phone call – and then lost or thrown away that paper as trash, then you know why you need a better system. Nurture Interest Once you've attracted and recorded a new lead, you need a means to nurture their inter- est and remain front of mind with them. While older CRM systems are simply file boxes keep track of prospect and client information, the new generation of Marketing Automation CRMs will allow you to automate much of this process, including emails, phone calls, letters or post cards, and appointments. The goal: compel prospects to get off their computers and come into your sales center. Fast Follow Up & Relevant Response Nothing says "your not important; I don't care" like failing to respond to a prospect's question or failure to follow up with them in a personal way. An effective CRM system keeps all that information where it is instantly acces- sible by computer, tablet or smart phone, and alerts you when you to appointments, incoming emails, or when it's time to follow up with a phone call. And really good CRM systems allow you to store all relevant files - letters, plans, photos, etc., in the same place, so you always have every piece of information you need at your fingertips. Sales Management So far, we've given valid reasons why every salesperson should use a CRM system. But it doesn't stop there. If you manage a sales team, you need to know what opportunities are in the pipeline, which prospects are the most likely to close quickly, and what you can do to help move those urgent sales forward. You also need to see that every prospect is being properly fol- lowed up with by the sales consultant, and to give additional training and help where it's needed. An effective CRM gives you the vital numbers you need to manage your sales and coach your team. Reports and Projections What are your most effective lead sources and ROI from advertising? What are your pro- jected sales (units and/or dollar volume) for the next month, quarter, and year? What is the average closing rate for your sales team? For individual salespeople? What is your average closing time, from initial contact to close? An effective CRM answers those questions and al- So, whereas the CRM being the 'super-sales- maker' is a myth, unless you do business on a very low scale (or work for only one or two clients) you are wasting precious time and missing sales opportunities if you're not putting a CRM system to work for you.