Customer relationship management (CRM) software can deliver significant value to both the organization and the customer as it can be used to ensure that the company manages the records of the company more efficiently, while it also fosters a better customer/company relationship.
Chances are good that most organizations understand the benefits that CRM software can provide. What they may not be able to fully understand is how to select a vendor and what to expect in terms of platforms, implementation times and overall cost. Without fully understanding each of these elements, the organization is unable to properly forecast for the CRM implementation and that can cause bigger problems down the road.
A survey completed by The Data Warehousing Institute of more than 1,600 business and IT professionals found that close to 50 percent of respondents had CRM project budgets of less than $500,000. Yet the same survey showed many respondents with CRM project budgets of over $10 million. Implementation of systems done in participants’ companies ranged from a few months to a few years.
Given these wide ranges in cost and time, how can a company effectively and accurately measure cost or anticipated time for implementation? The first step for the organization is to understand their internal infrastructure. What do they currently have? What has to tie into the CRM software system? Are there third parties that also must be able to integrate into the system?
Understanding their requirements will go a long way in helping the company to forecast cost and implementation time. It can also reduce unnecessary purchases, which can be common with CRM implementations. A Gartner (News - Alert) survey completed found that 42 percent of purchased CRM software went unused in 2003.
The Professional Services piece of the equation can also add money and time. It is important that the organization not look at Professionals Services as something to skip, no matter how skilled their internal IT department. Professional Services that are generally offered include customization, integration, data conversion and training.
While some vendors do offer out-of-the-box CRM software solutions, customization can often create an alignment of business processes in CRM for that particular company. What’s more, integration with other legacy systems and data conversion may depend solely on the customization of the solution. All three are reliant on the expertise of the Professional Services team and will deliver needed value to the organization.
Training with a CRM software implementation is essential. Unless the company’s employees understand and embrace the new technology, they won’t use it and the new CRM software package is useless. While training may require a lot of time and resources, in the end, the company will be able to enjoy all the benefits that the CRM software package has to offer, instead of stumbling their way through and ultimately failing.
Knowing exactly what to expect with a CRM software implementation begins with an internal evaluation. Prices and times will vary greatly depending on the demands of the organization seeking the system. Most CRM software vendors can help in determining what is needed and how much to anticipate. And, while asking other companies about their experience can be helpful, organizations avoid basing forecasts on their experience as their needs are different and their numbers won’t be the same.
Susan J. Campbell is a contributing editor for TMC (News - Alert) and has also written for eastbiz.com. To see more of her articles, please visit Susan J. Campbell’s columnist page.