What is CRM

The precise CRM definition is Customer Relationship Management

Most people regard CRM as a customer-centric database system that provides a 360-degree view of all your interactions with a customer and that data can be shared with other CRM users who have access to the CRM database.

So CRM Software is ideal in situations where companies have either lots of customers or lots of products or services (moving parts); so the CRM Software is the central source for this data and it can be shared among people in the company through one system.

The more useful way to think about CRM software is its one system that brings together information/data that can be held in multiple places and or systems.  This data can be any activity relating to customers, suppliers, and staff regarding sales, marketing efforts, stock, projects, tasks, communications and much more.

The power of CRM isn’t just that the data is centrally stored but that data can be queried, shared and used to initiate Actions (especially if your CRM software has a Workflow engine…more on that later).

If it’s a CRM like Tall Emu then it runs the whole business including the Build, Pick, Pack, and Ship Process as well.

Try Tall Emu CRM for Free or Attend a Webinar

Below we attempt to give the answers to the following questions;

See our CRM Product Line Up and Pricing – Go Here

As a software development company, we were pulled into the CRM software world due to the lack of CRM software systems that our clients loved. The main issue was that the CRM systems were built for a mass market, which is why they have a lot of users and reviews and seemingly universal appeal. However, most mass-market CRM software is not very customisable and can have quite rigid and stifling structures.

The other issue was very few CRM Software products were actually integrated with Australian accounting systems (especially directly or deeply). The same went for the other business software that Australian businesses were actually using every day.

In addition, very few CRM Software companies have local support, and those that do, are usually through a reseller, who has no real power or control of the CRM software you are buying. Most Resellers rely on you paying for their time to implement the CRM software, so by definition, you’ll pay more.

Benefits of CRM Software – Top 6

  • One system to unite us all – Sharing Data
  • Who doing what and with whom – Accountability
  • Better Teamwork and Collaboration.
  • Better Customers Service and insightful Data
  • Do More with Less (Efficiency and Productivity)
  • Automation of Tasks that before were done manually or just got forgotten

Are there different types of CRM Software?

Well there is more than one type of CRM Software

Desktop CRM Software (also known as On-Premise CRM Software)

Desktop CRM software installs in your office on a server. It is centrally managed and administered, and because it’s on-premise, it will be fast to access data and more secure.

It may also be able to connect with other programs that you run, so your CRM Software could connect for example with your phone system to give you call pop-ups.   If your business operates in an area where there is limited internet connectivity, Desktop CRM Software is often the only sensible choice.

It’s also possible to run desktop software on a cloud-based server, making it accessible from everywhere.

Online CRM Software / Cloud CRM Software / Web Based CRM Software

Online CRM software (or Cloud CRM software) runs in your web browser and is hosted and managed by the CRM company. A significant advantage of Web-Based CRM software is that it can be accessed from any location on a variety of devices.

When considering what type of software to purchase, you need to consider if Web Based CRM Software will work for your business – Australian internet is often not very fast outside of major cities,  and doesn’t yet have high-quality reliable internet then Web Based CRM Software may not be suitable and desktop CRM software could be more appropriate.   This is all the more important in cases where you are asking the CRM software to run large parts of the business – in the event of an internet outage your operations could be crippled.

However, for companies that have mobile staff;  businesses with offices in different states or Cloudreps on the road Web Based CRM software is often a smart choice.  Cloud CRM software is often simpler than Desktop software offering fewer features or fewer possibilities for customisation.

Stock Aware CRM

So many of the CRM software vendors you’ll find lack the ability to give the sales team or the e-commerce website an up-to-date status of sock availability. Which causes a delay in making the sale. Because they may not know if it’s in stock, where it is located or how much it will cost to ship it. So the poor customer or lead on the end of the phone hears the sales guy say…“I’ll get back to you with a Quote” So what does the person on the end of the phone do now? They call around to your competitors.

So if a CRM doesn’t do inventory, it means you’ve got to buy another system to manage stock, and then you’ve got the cost of integrating Inventory Management to a CRM system, let alone your accounting system.

Just so you know 🙂 Tall Emu CRM is one of the few “stock-aware” CRMs that manages inventory and currently doesn’t charge extra for it.

Hybrid CRM Software (Desktop and Web CRM together)

Hybrid CRM software is when you have a desktop CRM software that is connected to a web CRM or has a web CRM component as part of it.   This arrangement can give you the best of both worlds – a mobile CRM solution for your on-the-road team or remote office, and a desktop CRM with all of the performance characteristics of a locally installed piece of software.

Custom / Bespoke CRM databases

Another option for CRM is custom CRM software, which is often written as a simple web page or as an access database.   A good advantage of such a solution is that you have complete control over what gets done, and it can be intimately tailored to suit your business needs.

However, unless you are a very large (or unique) organisation this can be a risky strategy. The downside of custom database software development is that everything you want – you pay for.  Features that would be included off the shelf in CRM Software all have to be written especially for you.    Things that you may take for granted in CRM software such as accounting integration, working with Outlook or Office 365 or your phone systems are potentially very costly pieces of work.     This road can be fraught with danger if you pick a single person to write it for you, or an offshore development company.

CRM Software within Accounting Software

Various accounting companies offer CRM add-ons to their software.  They’re usually an afterthought and not very good because they’re developed by accountants for accountants.   Nobody doubts that accounting is an important part of the business – but CRM is more of an operations-based software than accounting-based software.    A good CRM will allow you to properly manage all interactions with the customer in a realistic way.

CRM Software within ERP Products

Just ask anyone who has used an ERP system that has CRM function and they will probably cry because no one does it well. A lot of ERP customers we know have given up trying to use EPR’s inbuilt CRM and either junked the ERP altogether or added a best-of-breed CRM like Tall Emu to do that part for them.

CRM Software in Outlook

Before we get started Outlook is not a CRM but some people do think it is and more correctly a CRM is like Outlook. Obviously, you can tell from my tone that neither is true. There are add-ons to Outlook that professes to be the inbuilt CRM for Outlook. It’s a poor cousin to what CRM is and I wouldn’t suggest it to anyone with the ambition to build their business to scale. It isn’t really much of an improvement to where you started out. Avoid is my recommendation here.

 What is an ERP system and do I need it?

ERP stands for Enterprise Resource Planning, although I do think this name is ill-fitting but you can’t argue with using Enterprise in the name because it’s a whole of the enterprise system. We agree that a business needs a master system where all data can be used and viewed and actioned.

Do you need an ERP System?

It depends. ERP is a lot more expensive the ERP market is not as dynamic as the CRM side. It is also the fact that some CRM Software is practically a mini ERP anyway without the cost. Tall Emu CRM is a case in point.

Most companies select ERP when they either want a system that has an embedded Accounting system and/or HR function. However, traditionally ERP was the choice for multinationals or large businesses with manufacturing and distribution requirements.

We actually think that ERP struggles in its CRM capabilities and more and more CRM systems are doing more of the functions that ERP do.

Starting your CRM Software buying journey

Buying CRM Software is getting harder because there is just so much CRM software to choose from. Plus it’s not a small deal if you are looking to CRM to get the business fighting fit, which basically means well organised and what process can be automated or removed. Even if you go for the cheaper options, implementing CRM software will for a time impact your business while you do and that requires resources in your business which costs you money.

We like to give you an idea of the journey you and your business are about to go on and how you make the best CRM software choice and how you can help to ensure the best chance of it succeeding.

Here are the main steps that you will need to take if you buy CRM Software:

Understand what CRM Software is and can do

CRM is much more than a contact manager or for simply sharing calendars. CRM software can run your business. It can be and should be the single point of truth inside your business. Its the central platform that everything else speaks to. Not all CRM software providers have workflow or automation abilities or can capture your phone activities. So first not prejudge what CRM is by what you think it is because you’ll be surprised what the breath of CRM might be.

Secondly, because not all CRM are the same, you should start with your blue sky list of requirements and business issues etc and rather than looking at CRM features and then building your case that way.

That is another reason why you should have a conversation with the CRM vendors because they might be able to highlight a feature or capabilities that are not listed on their website because a lot of very good CRM vendors would have built customisation for customers that might fit your requirements.

Understand what the business case is for buying CRM Software

As we mentioned above you need to get your business requirements together and we’d suggest you start with the blue sky list and then against each set a priority.

A technique that you could use to work out what the priority is is to add another two columns; one for “impact” on your business and two for the “effort” to get the outcome. It may be the case that a business requirement that the CRM is to address is something that you are not able to access the effort involved in getting. Especially, if the business requirement doesn’t line up with “out of the box” features.

Understand what implementing CRM Software involves

Write down what is Your Selection Criteria for buying CRM software

This is really key to making your decision. Some things matter more than others so you may want to categorize your list in order of “can’t live without” to “nice to have”

Checklist for choosing a CRM System:

  • Is the CRM software to be installed on your Server (On-Premise CRM) or purely in the cloud
  • Do you want or need your Data in Australia or Overseas
  • Are you after a Basic CRM or do you want business transformation
  • Which departments/teams are going to use the CRM software; Sales. Marketing,  Operations or company-wide adoption.
  • Do you want Local Support?
  • Are you happy to buy through a CRM reseller or would you prefer to deal directly with the CRM software vendor?
  • What is the number of seats needed (now or in the future)
  • Are your staff on the road or always in the office
  • Do you want to do quoting and invoicing out of CRM
  • Do you sell products? Of so you need a CRM that manages Inventory.
  • Do you want to Link your CRM Software to your Accounting system
  • If so does the CRM Software integrate with the Australian accounting system or the one you work with?
  • Is the CRM software customisable
  • Do you want to link your telephones to your CRM to capture this activity automatically?

What is CRM Webinar

CRM Reviews

CRM Software that has a big user base, will have the most amount of reviews. CRM Software that is big in overseas markets usually the USA will nearly always have a lead over others because even before they ever got here to Australia they have been operating elsewhere.

Don’t just be impressed by the number of reviews. All the review websites are pushing vendors to get reviews because for them review directory that has the most reviews for the most number of Software categories WINS!! They make their systems reward CRM software vendors for soliciting reviews.

The average rating matter when the volume is high and less so when the volume is low.

Here is a list of the CRM Software compare and review websites that have popped up in Australia.

Best Reviews are from current customers

I’d be very skeptical of the review directories as the only source of “social proof” that the CRM Software you’re contemplating is any good. The best way to get a review is by a current user of the system and we recommend getting more than one. If you are working in a particular industry say “wholesale and distribution” it makes sense to talk to a business like yours about their experience with the CRM software you’re interested in.

Always Get a Live Demo of the CRM Software before you buy or Try.

You wouldn’t buy a car without seeing it unless you are from Nigeria and it’s a scam. So why would you buy a critical piece of software for your business without a proper demo? Get the CRM system shown to you, even before your trial it, because you can use this as an opportunity to a) get training on how to use the CRM software b) you’ll get a level of appreciation of the people behind the software.

If you can’t get a live demo in your time zone then what do you think we happen if you got a critical support issue? If they can’t show up when they are making a sale then don’t expect them to show up when you really need help.

Play before you pay for CRM Software

Most cloud / online / Web-based CRM software provides a way to trail the software. You need to do this but if you are struggling to make sense of it or your time poor then a live demonstration is a must.  You need to dedicate proper time to this CRM trial. Get data into it as that will make more of the CRM light up.

With installed CRM software (desktop / on-premise CRM) you may not be able to get a trail at all or you’ll need to do a paid trail as the Software needs to be installed.

This is worth it if your CRM requirements are beyond the basic CRM / contact manager level.

All software takes time to feel comfortable so be patient and ask questions. However, do not select a CRM because it looks pretty. Revert back to your CRM criteria from before and see if this CRM satisfies those.

Which Type of Businesses Need CRM Software

We would say all businesses should use CRM software just so that the data is centralised and shared. Having individuals working purely out of their email inbox, calendar, and the dredged black box…the Excel spreadsheet will hamper your business. It results in poor communication among yourselves and customers. Things falling between the cracks, key person dependency, lack of accountability, and so on.

However, the type of companies that get the MOST out of CRM software is those that have some of the following baseline characteristics.

  • More than 3 people
  • More than 10 customers
  • Send or receive 10 or more quotes or invoices in a month.
  • Receives or makes phone calls
  • Growing or wanting to
  • Using excel spreadsheets to workout price, commissions, profit, conversion rates etc
  • Has a website that generates leads
  • A shopping cart that takes orders or Sales
  • Has one-off or ongoing projects
  • Has more than 10 meetings a month
  • Has a membership to look after
  • Does outbound marketing like Email or Telemarketing

We could go on… but the use case to have CRM software installed in your business is far greater and more frequent than the idea you don’t need CRM software.

Traditional CRM Software Features

Total Contact Management

Every business has people or entities they deal with; they could be suppliers, customers or staff. The CRM provides a single place for managing this relationship and the key data that is needed to do that.

Group Calendars and Information Sharing

CRM can be an information silo buster between staff and departments.

Targeted marketing to your customers

CRM is collecting data on your customers all the time and a great CRM can help you add to that automatically and from sources, you’ve never considered. CRM enables you to make better sense of your customers so that servicing and selling to them.

Australian Accounting software integration

Not many CRM actually do this but it is a key integration for CRM because it does two things. Ist it fills up your empty CRM with data; this makes your CRM useful on day one.

Secondly, it joins the financials data with the pre-sales activity.

Security Roles / Data Security

Comprehensive security settings control which users can modify records and how they can modify them, including per user, per group, or per team options. Also where your data is stored is critical.

Linking to Websites and Shopping Cart

If you have a website that you use to acquire leads or an eCommerce shopping cart like WooCommerce then you need this data going straight into your CRM Software.

CRM Software Implementation

What are the Needs of your Staff/business Units around CRM

There are lots of stakeholders in any CRM implementation. You need to decide who within the organisation that’s going to be most affected by the CRM or who could benefit the most. To ensure that the needs are met or at least understood it is best to find that out upfront.

The needs of the Sales team/person:

  • View assigned accounts/contacts
  • Track Leads and opportunities
  • Customers’ Historical & interactions
  • View of their pipeline
  • Shared Calendar & Collaboration
  • Potentially Data on Mobility when out and about
  • Reporting & KPI

CRM by Marketing needs:

  • Lead tracking
  • Segmentation of Leads and Customers
  • Omni Channel Marketing Management
  • Reporting & KPI
  • Marketing automation
  • Channel Attribution

CRM by Operational Needs:

  • Building (BOM) or ordering the Products
  • Inventory Management
  • Backorders
  • Managing Suppliers
  • Importing and Landed Cost Calculations
  • Pick, Pack, Ship Process
  • Freight Quotes and Dispatch

CRM Accounts needs:

  • Day to Day Accounts management & Records
  • Manage Invoice Sending
  • Account payment history
  • Accounts Payable & Debt Collection
  • Payment Reconciliation (so that goods can be released or services provided)
  • Reporting
  • Credit Control
  • Insights to manage cash flow
  • Monitor

CRM Support needs:

  • A complete view of the customer and history of interactions
  • Individual/personal notes to track enquiries.
  • Access to workflows to solve issues/distribute escalate/allocation of resources

CRM Management needs:

  • A top-level view of all areas of the business
  • In-depth reporting tools
  • Track cash flows
  • Metrics/KPI of individual/departmental team performance
  • Permissions/data security

That’s not even to mention Project Managers, Call Centre Staff, Technical departments and anyone else within your business who might need access to customer information.

The point is that to make sure that a CRM is used and that it’s efficient to do so, there needs to be an interface that enables that person to easily store and use the information that they need, simply. Any resistance and people will look for shortcuts around it, losing data and insights that could be used by other areas of the organisation to provide an amazing customer experience.

Prospects’/Customers’ Needs from CRM

The most fundamental benefit and reason for being for CRM Software is to provide a better platform for supporting your customer’s experience of your business. CRM software after all is a Customer-centric system above all else.

CRM Software helps you provide a consistent customer experience however they interact with the business. .

So in the real world, the example would be that a lead or customer that had previously interacted with the business, say the customer services team, would not have to educate you on who they were beyond their name and perhaps the organisation they work for. So no matter how they reach out to your business again, they shouldn’t have to go through the same questions and procedures more than once.

CRM Centric considerations are as follows

  • What is the pathways a customer or lead journeys through your businesses
  • Understand who are your customers these are called customer personas
  • Understand the key messaging / marketing content that you deliver throughout your sales process
  • Create follow-up strategies so nothing falls through unattended
  • Survey your customers and front-line sales staff to see what issues or FAQs are coming up.

Providing your customers with a tailored response will make them feel valued.

This is the first step towards customising your CRM to suit your customers and your business processes; every organisation is unique. You need to step back and ask yourself if you’re serving your prospects’ and customers’ needs effectively.

Why CRM Software implementations can fail

Here are the top reasons why CRM software implementation fails.

  • Lack of commitment from the executive and owners. Either because they were never the sponsor so don’t have a proper understanding of why the CRM software is being implemented. Or worse they buckle under pushback from staff.
  • Staff resistance – Usually this is when the decision has been put upon staff that were never brought along at the planning stage and the benefits to them have not been communicated.  Sabotage from staff who fear change is very common.
  • Poor understanding of outcomes either by the business who bought the CRM software or by the implementor / CRM Reseller.
  • Didn’t provide the right budget – doing it right can be expensive, cutting corners like not paying for adequate training means in reality that you’re putting the CRM adoption at risk and therefore your investment.
  • Need to have a plan and stick with its broad aims. There is always disruption, change hurts – not always correct the first time. If it helps do the project in phases. Get small wins first and that will help the business and the long-term project.
  • Unskilled or inexperienced implementation team (you think you’re getting MICROSOFT when you buy Microsoft Dynamics? In reality, you’re getting a CRM software reseller of varied quality. Some good some awful.

To make your CRM software work for you, take a look at our CRM success tips.

CRM Software Stats from around the Internet to support the benefits of CRM

Keep track of your leads with CRM software

You can increase and retain your leads with CRM; here are some statistics that we found:

  • 80% of marketing automation users saw an increase in the number of leads, and 77% had an increase in conversions. (VentureBeat)
  • 59% of businesses with marketing automation are able to target their prospects with triggered content. (Lenskold and Pedowitz Groups 2013 Lead-Generation Marketing Effectiveness Study).
  • CRM is known to improve customer retention, by as much as 27% (Trackvia)
  • Social CRM improves retention by 26% (Nucleus Research)
  • Nurtured leads spend approximately 47% more on their purchases when compared to non-nurtured leads. (Kapost)

Impact of CRM Software on business productivity

With CRM software, there is a notable increase in workplace productivity, efficiency and sales. The streamlined service allows you to complete your tasks in a fraction of the time, and share your progress with the team.

  • 5% increase in sales productivity, and a 12.2% reduction in marketing overhead. (Nucleus Research)
  • CRM gives businesses a 65% boost in sales quotas (Innopple Technologies)
  • Labor costs overall decreased by 20% (Forrester Study)
  • A recruitment service had an 87% increase in new hires after switching from an excel spreadsheet and a diary to a dedicated CRM. (Employability Galway)
  • 50% of teams improved productivity (Forrester Study)
  • Sales productivity and uplift was 5% (Forrester Study)
  • Consultation time is reduced by 10% (Forrester Study)
  • Customer service labour cost was reduced by 40% (Forrester Study)

Customer satisfaction Stats with CRM Software

The benefit of streamlining your business with CRM Software means that you can concentrate on the customer. It is easy to cultivate a good customer relationship with CRM.

  • 74% of CRM users said their CRM system offered improved access to customer data (RingLead)
  • Customer service can improve by 47% with CRM (Capterra)
  • Overall, 74% of businesses using CRM report better customer relationships (Software Advice)

The ROI (return on investment) stats with CRM Software

Using a CRM system can increase your conversions drastically. Moreover, a study has shown that a well-integrated CRM system can increase ROI by 245%.

  • The ROI on CRM is approximately $5 to every $1 invested (Baseline)
  • Without CRM, 79% of leads fail to convert (Pardot)
  • A 41% revenue increase is realized with CRM (Trackvia)
  • Conversion rates can improve by 300% with CRM in place (Cloudswave)
  • Average purchase value can improve by 40% with CRM (Cloudswave)
  • Lead cost is reduced by 23% with CRM (Cloudswave)

You might not realise it yet, but running a business without a CRM is like having a shower and not using soap. You just wouldn’t do it.

Even the Australian Government recommends businesses buy a CRM to run a business in its Guide to Small Business – https://business.gov.au/people/customers/manage-customer-relationships/