Section 1: Understanding CRM Systems
Common reasons you might use a CRM system
As companies grow and evolve, they will generally at some point, look at how they can streamline their business operations - prospect and client interactions being one of them. Within prospect and client interactions, there are a multitude of tasks CRM tools may be used to carry out, here we will look at five of the most common.
General Contact Management
- Storing and organising client and/or prospect contact information.
- Tracking and documenting customer interactions and tasks associated with a particular customer and/or prospect.
Sales Management
- Managing sales pipelines and track leads from initial enquiry through to deal closure.
- To automate certain tasks within the sales process reducing the need for manual sales efforts.
Marketing
- Can be used to manage email marketing, social media marketing and other digital marketing activities as well as providing analytics and metrics for specific marketing campaigns.
- To create targeted and personalised campaigns that have more chance of resonating with the receiever.
Customer Service Activities
- Tracking and managing customer service requests and support tickets from existing customers.
- Some CRM systems offer the ability to allow their clients to submit requests directly through a ‘portal’ reducing the need for phone calls. They may also offer AI functionality to help clients find relevant knowledge articles that enable them to resolve their issues without speaking to customer support.
Analytics and Reporting
- Most CRM systems will offer tools that allow customer data to be analysed in order to generate insights and reports, some in real time.
- The data can be used for tracking key performance indicators (KPIs) and metrics and allowing for informed decisions to be made based on them.
- Bespoke CRM systems may offer custom reporting and analytics that are specific to your company that are defined pre-implementation.
Types of CRM systems
It is generally agreed upon that CRM systems fall into one of three categories although particularly for Bespoke CRM Systems, determining which category a CRM falls into is very much open to interpretation.
Operational CRM
Purpose -
Streamlines and automates business processes.
Common Features -
Sales automation, marketing automation, service automation.
Examples -
Salesforce, Hubspot, Zoho
Analytical CRM
Purpose -
Analyses customer data to improve decision-making.
Common Features -
Data mining, pattern recognition, customer segmentation, predictive analytics.
Examples -
SAP CRM, Microsoft Dynamics 365
Collaborative CRM
Purpose -
Enhances communication and collaboration between different departments and with customers.
Common Features -
Interaction management, channel management, document management, integrated communication tools.
Examples -
Copper, Bitrix24
How do CRM systems work?
All CRM systems are different, moreso, bespoke CRM systems due to fact they have been built to specific and unique requirements. However, the following will give you a general overview as to how most CRMs work and their key features.
Essentially, they function by centralising and organising customer data in one central location that allows businesses to track and manage all interactions with current and potential customers. At it’s core, a CRM system collects data from a number of different touchpoints including emails, phone calls, social media interactions and website visits. This data is then stored in a centralised database which is accessible to all or specific user groups within the company, depending on what they use said data for.
Sales teams use CRM systems to manage leads and opportunities, track sales progress and automate repetitive tasks within the sales process. Marketing teams leverage CRM data to segment customers, create personalised campaigns and measure marketing effectiveness. Customer service teams use CRM systems to manage support tickets and track issues through to resolution.
In it’s simplest form, a CRM system is a central repository of client related information that a company uses as a single source of data for their respective duties.
Section 2: Business Need for Bespoke CRM Systems
Deciding whether or not your business requires or more importantly, would benefit from a Bespoke CRM system should first involve evaluating your current processes, challenges and growth objectives. Here are some key indicators to help determine if a Bespoke CRM system is something you should consider.
Unique Workflows
- If your business has unique or specific processes that typical CRM offerings can't accommodate, a bespoke CRM system is an option you should potentially explore. This ensures that the CRM can be built to encompass your specific workflows and requirements with the custom workflows unique to your business.
Integration With Other Systems
- If your business is reliant on multiple systems, tools and other software that need to work together and share data, a bespoke CRM can be designed to ensure it integrates seamlessly with your existing infrastructure, providing a centralised platform for all your business operations.
Data Analytics and Reporting
- If your company has complex data management requirements or you need customised reporting and analytics that off-the-shelf CRMs cannot deliver, a bespoke solution can be developed to address these specific needs.
Scalability and Flexibility
- If you anticipate growth or frequent changes to your business operations and processes, a bespoke CRM system can offer the flexibility to scale up or down quickly without the reliance on a third party. It can also be designed to adapt to new requirements without the limitations of off-the-shelf solutions.
User Experience and Adoption
- If user adoption and ease of use are critical, a bespoke CRM can be tailored to match the preferences and workflows of your team, ensuring higher user adoption rates and more effective use of the system
Cost Implications
- Whilst bespoke CRM systems can be more expensive initially, they usually offer better long-term value through the increase in productivity, efficiency and customer/employee satisfaction they provide.
Section 3: Customer Data and Relationship Management
Importance of Customer Data in CRM systems
It may be stating the obvious but without customer data, a CRM system wouldn't function. Customer data is after all, the foundation upon with a CRM system is built. The quality of the data is also critical and allows companies to effectively leverage their CRM for a wide range of things including -
Efficient Sales and Marketing
- Targeted Marketing - Being able to segment customers and/or prospects via the data held helps in being able to create targeted marketing campaigns.
- Intelligent Prospect Targeting - By using data collected on previous customer interactions and preferences, it can be easier for sales teams to identify and pursue leads that have a higher chance of converting.
Improved Customer Experience
- Better Engagement - When communications are tailored to an individual, they are generally likely to be more engaged and to feel more valued when compared with receiving generic content they have no interest in. Having quality customer data allows businesses to understand and better manage these individual customer preferences and behaviors.
- Higher Retention Rates - Following on from the above point, when clients feel valued and that the company they are dealing with understands them as an individual, this can increase customer loyalty and ultimately, improved retention rates. This also applies to situations where issues may be raised and the company has easy access to past customer interactions to provide context and better understanding.
Improved Operational Efficiency
- Centralised Data - Because the data with a CRM acts as a central repository and a 'single source of truth', teams are not duplicating work, trying to navigate multiple systems to get the data they need and are essentially
- Automation - Most CRM systems have the ability to automate tasks including follow-up emails and reminders which saves additional time and effort.
Section 4: CRM Software and Development
CRM software or Customer Relationship Management software, is a technology system that has been designed to manage a company's interactions and relationships with existing and prospective customers. It acts as a central data repository that allows for the streamlining of different business functions including sales, marketing and customer service providing a comprehensive view of customer data and interactions.
CRM software can be off-the-shelf or bespoke. Off-the-shelf CRM software is a ready-made solution designed to cater to the general needs of a wide range of businesses and offers standard features and functionalities that can be quickly deployed and easily used with little to no customisation. In contrast, bespoke or custom CRM software is a custom-built solution tailored specifically to the unique requirements and processes of an individual business. It is purpose built to address all of the requirements of a single business as opposed to appealing to the masses.
When choosing a CRM system whether it be bespoke or off-the-shelf, there are a number of steps you can take to ensure you make an informed decision and deciding on whether you choose an off-the-shelf solution or a bespoke solution should not be the first thing you decide. This list is by no means comprehensive but some loose pointers as to some of the steps to consider when choosing your CRM system.
Identify Your Business Requirements
First and foremost you should define your objectives and clearly map out what you want to achieve with a CRM system. From this,
define what functionality and features a CRM must have in order to achieve said objectives.
Assess Your Current Environment
Once you know what you want to achieve, you should then clearly map out what you currently have in place to cover these processes whether that be excel spreadsheets, manual research of prospects etc so you have a clear view of what you have to work with.
Understand Your Users' Requirements
It is then important to gather input from employees who will use the CRM to understand their needs, pain points and challenges they would like the CRM system to solve.
Consider Integration Capabilities
From here, you should check what sort of integration capabilities the CRM should have in relation to any current tools and software i.e. you may need a solution that integrates with your accounting software.
Research Your Options
Now, you should have the information you need to go away and do some research on the products on offer. At this stage, you will understand whether there are off-the-shelf options that can meet all of your requirements, partial requirements or none of your requirements and whether you can compromise on some of these features and capabilities. If the answer is No, you should at this stage look for companies that develop bespoke CRM systems.
Get Quotes
Obtain quotes from multiple suppliers, for bespoke quotes, it is a good idea to ensure you have a clear specification on what you want and what your current environment looks like to allow them to give you an accurate quote.
Analyse Budget v Cost
Now you have a better idea as to what type of CRM system best suits your requirements (bespoke or off-the-shelf), it is a good time to evaluate the costs v your budget. Generally, off-the-shelf solutions are cheaper upfront and the fees you can expect to see are for licensing and implementation with on-going monthly costs. Bespoke solutions require increased upfront expenditure because the system is being built from scratch however, once done, there are typically no on-going licensing costs which can provide better value for money in the long term.
Benefits of a Bespoke CRM System
Whilst off-the-shelf CRM systems are suitable and more cost effective for a lot of businesses, that is not the case for all. Here, we take a look at some of the benefits of choosing a Bespoke CRM System over an off-the-shelf CRM.
Customisation - The core, fundamental benefit of a bespoke CRM is the ability to customise the system that aligns with the unique processes and workflows of a business and offer client defined outcomes. Bespoke CRM systems are built to match a clients requirements exactly.
Integration - Bespoke CRMs can be integrated with existing software or systems within the organisation so they are able to effectively communicate and work as a single solution. They can encompass systems such as ERP (Enterprise Resource Planning), E-commerce platforms, marketing automation tools and data and reporting tools. This integration allows for improvements to overall efficiency and data consistency and also means that organisations do not need to forego any prior investments into systems, instead, the solution will encompass them.
Cost Efficiency over time - Whilst bespoke CRM development may have higher upfront costs, it can absolutely be cost effective in the long run as businesses won't be paying for unnecessary features or licensing cost that come with off the shelf solutions. Essentially, Bespoke CRM systems can encompass everything an organisation DOES want and nothing that they DON'T want. There are also no contracts involved and organisations are free to use the system as they see fit. Support contracts may be agreed.
Scale with ease - As a business grows (or shrinks), a bespoke CRM system can generally be easily scaled to accommodate changes in data, users, features and functionalities. This ability to scale with ease ensures that the CRM system can evolve to capture the growing demands of the organisation.
Flexibility - Bespoke CRM systems are generally developed to be largely flexible and thus, can adapt to changes in business processes, sizing or ever changing customer requirements. This flexibility allows for easy modifications & updates as the business evolves and does not rely on a third party to decide if and when they will make any changes to their software.
Better User Experience - By having the ability to tailor the CRM to the specific needs and requirements of users (whether they internal or external) generally offers a more user friendly interface and a better overall user experience because it has been developed with these specific needs and requirements in mind. This can lead to less time to onboard, increased user adoption and better productivity.
Market Positioning - A bespoke CRM can provide organisations with a competitive advantage through the use of unique features and functionalities that may not be available in off the shelf solutions. This advantage can contribute to improved customer engagement and satisfaction.
Improved Reporting and Analytics - Organisations can choose to create customised reporting and analytics tools that provide specific insights into metrics and key performance indicators relevant only to their specific organisation. This empowers decision makers with insightful and actionable data and can be more user friendly than off the shelf solutions, even to those who are non-technical.
Data Security and Compliance - A bespoke CRM systems allows businesses to implement specific security measures and compliance features to meet industry standards and regulatory requirements. This is particularly crucial for businesses handling sensitive customer data or those who have a competitive advantage by staying certified to certain standards.
Choosing a Development Partner
For bespoke CRM solutions in particular, it is crucial that you partner with a software development company who can deliver your requirements within the parameters you set. These parameters could relate to cost, time and even communication style.
Once you have a fully defined specification of what you want to achieve, you should research as many companies as possible to give you a solid list of options. Looking for development companies that have expertise in your specific industry can be a good place to start as well as looking at the technologies they use to ensure they are modern and reliable. If you have a requirement for a specific piece of technology to be used for your CRM system, you should obviously make sure this is something they have experience in as well.
Another consideration should be the companies case studies and reviews from previous clients. This can give you an unbiased perspective of how they perform as a development partner and satisfy you that they have experience in implementing CRM software. You could also request references or even to speak with their previous clients about their experiences.
On the logistics, it is a good idea to have a discussion with the company in question to get a better understanding of how they anticipate the project working. This should cover aspects such as the discovery phase, implementation, testing and the wider communication plan throughout the duration of the project and beyond if they are providing support following the implementation of the CRM system.
Finally, understanding the billing cycle and how you will be billed is important to ensure it aligns with your companies invoicing schedule and budget.
Identified your ideal development partner? Great, let's move on to the implementation!
Section 5: Implementing CRM systems
So, you have identified what sort of CRM system you need and have chosen a development partner who you're comfortable can deliver on your requirements. Here is what you can expect with the implementation phase. Again, the steps here are not comprehensive and will vary from project to project and CRM to CRM.
Plan the CRM Implementation
Putting together a detailed and achievable implementation plan for your CRM system is of the utmost importance. Some things to consider at this stage are - who is going to be involved and at what points, set realistic timescales and determine how you intend to migrate your existing data to the new CRM system ensuring data quality and integrity. It is advisable to have a contingency plan in place i.e. a 'roll-back' plan should anything go wrong during the migration. It is also often advisable to ensure you're able to continue with your current processes unabated whilst the roll-out happens.
Customise and/or Implement the CRM
If you have chosen an off-the-shelf CRM solution, you will want to customise is as much as possible during the implementation. This will involve configuring the settings and integrating any other systems that need to feed into the CRM.
If you have chosen a custom CRM solution, the customisation will be done as part of the project by your development partner.
Testing the CRM
Once the CRM is implemented, there should be a rigorous testing phase. This could involve small pilot user groups such as marketing and sales who can test the system and provide feedback as well as full testing involving checking for bugs and performance issues.
Train the Users
At some stage users of the CRM system will need to be trained on how to use the system. This can be done at any point during the process but it generally makes sense to do this once the system is in and working as it should be.
Launch the CRM
Once the system is in and functioning and the users understand how to use it, you are then ready to launch the system. This will involve rolling it out to all users either simultaneously or using a staggered approach i.e. sales team, then marketing then operations. There should be intense monitoring of the system and it's performance as well as user adoption. Requesting continuous feedback from the users at this early stage is a good idea so any tweaks can be made.
Optimisation and Improvement
Now your new CRM system is implemented and functioning, you can start gathering performance data to determine whether the processes in place could be further improved and refined such as identifying new areas where a slightly altered process may save time. You should try and adopt a continuous improvement approach as opposed to viewing the CRM as a finished product.
By following these steps, you can implement a CRM system whether that be bespoke or off-the-shelf that effectively supports your business goals and enhances your customer relationships.
Section 6: Customer Journey
As we have covered above, CRM systems help businesses of all sizes to better manage their customer accounts, understand customer behavior and ultimately increase customer satisfaction. By providing a better customer experience, organisations are more likely to retain existing customers and attract new customers. Here we look at some of the ways CRM systems can help improve the customer journey, attract new prospects and improve customer relationships. The capabilities below may or may not be available in off-the-shelf systems whereas with custom CRM software, you can have as many of these features as you like.
Prospect Awareness
Marketing Automation CRM systems can often be used to run targeted marketing campaigns across various channels (email, social media, PPC).
Lead Capture CRM systems can sometimes integrate with your website to capture leads through forms and landing pages.
Data Collection They can also be used to track how prospects interact with your marketing content to better understand their interests and behaviors.
Prospect Consideration
Lead Scoring Many CRM systems, especially custom CRM systems can be used to score leads based on their past interactions and demographic data, prioritising those most likely to convert.
Personalised Communication CRM systems may allow you to send personalised emails and content tailored to the prospect’s interests.
Engagement Tracking They can also be used to monitor engagement with your content and follow up appropriately.
Decision
Sales Automation Some CRM systems enable you to automate follow-up emails, calls and reminders for your sales team.
Proposal and Quotation Management They may also allow you to generate and send quotes and proposals directly from the CRM.
Pipeline Management Tracking deals through various stages in the sales pipeline and forecasting revenue is another feature of many CRM systems.
Purchase
Order Processing Some CRM systems allow you to manage and track orders and their subsequent fulfilment status
Payment Integration It is a common requirement for CRM systems to Integrate with payment platforms such as Xero in order to streamline the transaction process.
Contract Management They can also be built to store and manage customer contracts and agreements within the CRM.
Retention
Customer Support A common feature of many well known off-the-shelf CRMs such as Salesforce and Zoho have a ticketing system for customer management and support.
Advocacy
Referral Programs CRMs may offer the ability to track and manage customer referrals if this is relevant to your business.
Community Building Another increasingly important feature today is the ability to engage with customers through social media with the interactions tracked within the CRM. Again, many off-the-shelf solutions offer this.
As we can concur from the above, there are many ways in which a CRM can help streamline and improve the customer journey. You may be able to find the features you require in an off-the-shelf system however, if you have specific ways in which you carry out the above tasks and you cannot compromise on this, the custom CRM route may be the better option.
To finish
CRM systems, whether bespoke or off-the-shelf, are pivotal tools for managing customer relationships and streamlining business processes. They enhance sales, marketing and customer service efforts by centralising customer data and automating various tasks. Bespoke CRMs offer the advantage of customisation to fit unique business needs, ensuring seamless integration and scalability. Whilst they may require higher initial investment, their long-term benefits in terms of efficiency and tailored functionality often outweigh the costs. Ultimately, the right CRM system can significantly improve customer satisfaction, drive business growth and provide a competitive edge in today's digital landscape.
Further Reading
Bespoke CRM systems
Difference Between Bespoke and Off The Shelf CRM Systems
How Much Does a Bespoke CRM Cost?
