In recent times, there has been a surge in discussions about Customer Relationship Management (CRM) solutions in various forums and online publications. While it's encouraging to see people acknowledging the importance of CRM in determining the success or failure of a business, there are several misconceptions about the concept. These misunderstandings can lead to wasted time and energy as people search for solutions in the wrong places, rather than focusing on what truly matters.
The first misconception is the simplest yet least obvious: CRM is about the relationships between people, not technology. Businesses existed before computers, and so did relationships between business people. CRM wasn't invented with the advent of computers; only the term was. The best practices for relating to your customers didn't become obsolete with the introduction of computers, but the tools changed. Technology now allows us to enhance the customer experience with features like live chat and real-time site navigation tracking. However, CRM is not technology, so you won't find your CRM solution among software vendors.
The second misconception is that business people often look for CRM solutions among software developers and vendors. They assume that these tech experts will understand their needs and know how to implement them. However, CRM should already be functioning before starting IT implementation. CRM software is merely a tool for procedures already in place.
The third misconception is that you can simply purchase a CRM software solution and let the vendor handle everything. While it's true that a reputable software vendor will conduct an internal audit to understand your company's needs, they are essentially learning how your company functions. This learning process is often guided by employees who may not have a comprehensive understanding of the company's operations. Therefore, it's crucial to have someone within your company, who understands its workings, guide the implementation process.
The fourth misconception is that CRM is just sales automation or customer support. In reality, CRM encompasses all customer interactions, from the initial sales pitch to after-sales support. A good CRM software solution should provide data needed by sales, procurement, helpdesk, and support departments.
The fifth misconception is that once your CRM solution is in place and functioning smoothly, you're all set. However, your company's operations are not static, and neither should your CRM solution be. Your sales team should be able to make necessary changes without having to go through a lengthy process involving IT liaisons and software developers.
The final misconception is that businesses often start looking for a CRM software solution when they can no longer handle the traffic. By then, it's too late. The implementation process will be longer, costlier, and more disruptive. Ideally, you should start implementing a CRM system as soon as you start using a PC for promotion and sales.
In conclusion, the main difference between a CRM software system and traditional customer relations is documentation and analysis. With a CRM software system, you have historical data that you can analyze to improve your customer service and overall business operations.
