A small business competitive advantage has always been the ability to react and respond far faster to business conditions than a larger organization. Some consumers actually prefer to deal with a small business because they have a perception of a more personalized “better” service than from a larger company.
They are in some cases, prepared to pay a premium for that service. One reason for this is that in a smaller business, the decision makers are closer to the customers and have a more direct link to the trading pulse.
For short term decision making, this “intuitive” feel for what is actually happening gave managers and owners the ability to make decisions such as dropping a stock item, identifying a buying trend long before their counterparts in big business or simply physically being there to give a customer a refund if they have an issue. Many providers of customer relationship software, such as Microsoft Dynamics CRM, have recognized that there is a market for this solution across the spectrum of businesses.
As technology has taken hold and information is flying around faster and faster, larger businesses have been able to respond to market conditions much more rapidly and this small business “competitive advantage” has been eroded over time. Using technology, big business has been able to develop and deploy Customer Relationship Software solutions at a huge cost, way beyond the means of small to medium sized companies.
Traditional reporting methods always had a major fault – they were out of date by the time they got into the hands of whoever needed the information. They look back at what has happened but they do not give you “what is happening now” information.
Customers increasingly expect that their suppliers will know who they are and what their needs are, while those staff in customer facing roles will want to know what a customer is talking about when they call to say “We didn't get our delivery yesterday as promised!” At this moment it is not only the customer that is demanding a better service, it is the poor customer representative wishing they could deal with the customers issue and have the information to make a good decision.
Microsoft Dynamics CRM takes the view that a good decision in this context means one that the customer likes and brings them back again!
If a customer service representative who has never had contact with the customer before can say something like “We dispatched it to you as promised with FedEx but we'll chase them up and call you back right away.” Does that not go a long way to mollifying an otherwise irate customer? What does that do for your business relationship with that customer?
Consider which business you as a customer would be happier with; a company that resolves your issues with a “We'll get back to you when we know what's happened” after you call to find out why your delivery didn't turn up or one that contacts you beforehand to say “We did send this out to you yesterday but we are calling you to say it will be late because our delivery truck was struck in traffic, it is on the way though and we're sorry for the inconvenience.”
This is what a Microsoft Dynamics software solution can deliver – the ability to be forward thinking, to be proactive and not reactive to customer situations so your customers see and feel they are getting a good, if not exceptional service.
A customer perception of a business is largely based on how well they believe they are taken care of after they purchase your product or service. With a Microsoft CRM software solution there is an opportunity to enhance your business image and reputation in the minds of prospects and consumers by ensuring that everyone in your business is in a position to deal with customer issues promptly, effectively and knowledgeably whether they are initial enquiry, pre-sale, delivery, or post-sale issues.
As the market for Customer Relationship Software solutions has developed, scaled down versions of enterprise class CRM solutions have been developed specifically to meet small and mid-range business' needs and their check books. Implementing a Microsoft CRM solution in a small or medium sized business empowers them to recover the competitive advantage differential they have by natural reference to their size and proximity to their customer base. Out goes the rolodex and in comes the networked PC, and now a customer can be tracked from being a prospect, through to becoming a qualified sales opportunity to order and from there on as a valued business customer. At the same time everyone within that business can access the information when they need it (usually when the customer is on the phone), whatever they are doing, sales, dispatch, customer service or management, and wherever they are, at Head Office or on the road with a cell phone and laptop.
Customer Relations Management Software
Reviewing the developments, we see Siebel and Clarify (now Amdocs) offering solutions for the consolidation of function across the front office operation with SAP and Oracle taking care of finance, management of the supply chain and what we know today as e-business. This finally lead to the much awaited Oracle-Siebel deal that saw the front and back office operations functioning under one roof, one data base and a common set of end-user tools.
So we can see the original function of CRM was to streamline business functions and processes thereby increasing cost savings. CRM solutions were offered to companies running a call centre or sales organizations to reduce inefficiency, standardize processes and monitor the progress of the business. Specifically CRM systems could allow executives to track customers, route and assist in-coming communications and provide information on the on-going progress of marketing and sales activities. The focus of these solutions was essentially to automate all processes for dealing with the customer from the company point of view, but it could be argued the customer in a way did not figure explicitly in the equation. What these solutions failed to do was show businesses how to:-
-deal effectively with customer problems
-answer questions and provide information quickly and efficiently
-help customers solve some of their own problems themselves
In the light of the above, the primary shift in focus for CRM has become the customer. What is being advocated is the idea that in order to take care of the customer (who is after all the lifeblood of your business) systems should be provided to allow the customer maximum control of their business with the organization.
With this focus on the customer involvement, Allen Bonde, a leading industry analyst has suggested that the new-generation CMR will centre around three priority issues that he calls the three C's. Below is a summary of these points
-Customer experience ? this refers to the idea that there should be customer involvement at all contact points within the organization.
-Content ? This is concerned with utilising systems that will allow information content to be at the fingertips of reps and customers alike.
-Collaboration - Collaboration here is with social networks that have an ever-increasing influence on knowledge sharing among customers and customer loyalty.
He argues that adopting this focus on these issues has the potential to improve and streamline processes within the organization and simultaneously allow customers more control over their business and make better use of self-service applications thereby reducing calls. These priorities have emerged in response to the rising interest in Web 2.0 technologies, wikis, RSS and social networks, which have already begun to foster stream-lined communication between customers and the organization but also accelerate information sharing between internal staff.
With these priorities defined, we can see that the future focus for CRM will be customer-facing technology. The advice by analysts to ensure success is to build these priority issues into business planning way before new technology is deployed. Practically this means, talking to customers and finding out what they need to maximize the use of self-service applications and making better use of information about customer needs already gleaned from account records, marketing records, blog postings etc. In other words ?spring clean? your existing CRM systems before you introduce new ones.
Both Syed Ali & Michiel Van Kets are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.
Syed Ali has sinced written about articles on various topics from Customer Service, Computers and The Internet and Customer Service. Syed Ali, is the lead CRM consultant for a Toronto based company. His company offers, Microsoft CRM Syed can be reached at Tel : (905) 815- 1995 ext 22, email :as. Syed Ali's top article generates over 18100 views. Bookmark Syed Ali to your Favourites.
Michiel Van Kets has sinced written about articles on various topics from Recreation and Sports, Air Purifier Cleaners and Recreation and Sports. Michiel Van Kets provides articles for David Wong, who is the owner and founder of Bright Blue CRM Australia, specialist customer relationship management (CRM) consult. Michiel Van Kets's top article generates over 40500 views. Bookmark Michiel Van Kets to your Favourites.
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