Customer Centric Business Strategies Blog

I have been asked recently on which circumstances a full business process review should be conducted? Here is my answer:

A full business process review is typically used in the following circumstances:

• The findings of the CRM business process assessment previously described warrant a more in-depth evaluation or redesign of business processes.
• Current business processes are dysfunctional enough to warrant obtaining a detailed process review and recommendations report before beginning a CRM system design and implementation process. This approach may be needed if you plan a significant process redesign in conjunction with the implementation of CRM.

Regardless of the depth of assessment chosen, it’s imperative to do the following:

• Create a visual model of key processes
• Develop an understanding of business process needs from the perspective of customer-interfacing personnel and customers
• Identify “gaps” in process functions
• Determine the necessary actions to position your business processes for effective CRM implementation

Posted by - Barton Goldenberg @ 7:15 pm

Here is an example of a Global Manufacturing Company, which underscores the impact of implementing new CRM processes on an organization’s operations.

A global manufacturing company proposed to streamline its sales process using CRM automation software and mapped the existing sales process via a Visio flow-chart.  By mapping the sales process, this manufacturing company determined that the process currently had seven steps and took an average of six months to close.  The vice president of sales suggested that using CRM could cut the sales close process by two months (from six to four months). During the process, however, the company also learned that delays in the sales process were not necessarily the result of delays in the sales department. Instead, they were often a result of inefficiencies in other departmental processes that impacted the sales process. For example, to complete the fourth step of the sales process (the work scope and definition step), sales personnel depended on receiving timely drawing (takeoffs) and preliminary pricing, which were almost always arrived late. To complete the fifth step of the sales process (the proposal submittal step), sales personnel depended on the corporate and legal departments to approve the bid, which were also routinely late. In other words, decreasing the sales process from six to four months depended as much on streamlining how other departments conducted their processes and interfaced with the sales process as it did on helping sales personnel to sell more efficiently. 

In this case, it’s clear CRM software can only do so much: It won’t create or replace a business process, fix an ineffective or broken process, create or maintain customer relationships, make decisions, or produce products and services. So, take time to review customer-facing processes in detail and make the necessary corrections before implementing your CRM initiative.

To all my Blog readers, please feel free to post any comments on any of my posts on my Blog.  I welcome and encourage discussion/debate on my Blog postings.

Posted by - Barton Goldenberg @ 8:03 pm

Here is an example of a Global Life Sciences Company, which underscores the impact of implementing new CRM processes on an organization’s operations.

In 2009,  one of our global life sciences customers  decided to revamp its lead management business process before implementing an overarching CRM initiative. Why? Prior to the new process, sales leads would come in from a variety of sources including the company’s Web site, trade shows, magazine ads, and word-of-mouth. All leads were quickly screened by the marketing department before they were assigned to field sales personnel based on ZIP code and/or area of specialization. However, two kinks emerged in this approach: First, the marketing department did not have sufficient time to qualify leads during busy periods, and the department was hesitant to send out unqualified leads to field sales personnel. Result: Leads often remained in the marketing department until they could be qualified, which translated into delays of days or even weeks when the lead was often cold; second, the field sales personnel were often overwhelmed by the number of leads from marketing and had trouble knowing which ones to pursue first.

To correct the situation, the company gathered the sales, marketing, and top management together to create an ideal customer leads process. Leads were designated as “A” (ultra-hot), “B” (hot), “C” (warm), and “D” (cold). Designations were made based on a number of agreed-upon weighted criteria (e.g., contact method, product interest, and type of application). The new lead-management process was accepted and promoted effectively throughout the company. Next, all marketing and sales personnel received training on the new process. Lastly, the new process was automated using CRM software workflow tools. Today, lead screening is automated, and sales reps are sent prioritized leads immediately after the company receives the lead.

As a result, the company changed its lead close from 10 percent to 15 percent, which translated into millions of dollars of new and ongoing business.

To all my Blog readers, please feel free to post any comments on any of my posts on my Blog.  I welcome and encourage discussion/debate on my Blog postings.

Posted by - Barton Goldenberg @ 11:29 pm

On August 2, 2010, ISM announced the winners of the First Annual Social CRM Software Awards at the CRM Evolution Conference in New York City.  Social CRM can be defined as “the tools and processes that encourage better, more effective customer interaction and leverage the collective intelligence of the customer community with the result of increasing intimacy between an organization and its customers/prospects.”  The Social CRM Award winners were chosen after intensive testing in the ISM Software Lab.  To read the full press release, please click on this Weblink: http://tinyurl.com/275dol2

Posted by - Barton Goldenberg @ 2:30 pm