CRM has the potential to transform businesses, deepen existing customer relationships and attract new customers. The implementation often fails due to choosing the wrong software or due to management resistance in sales or marketing driven by misunderstandings.
Sales reps worry about being monitored and don’t want to deal with databases, even though they were hired to sell. In marketing, some see marketing automation as a simple robot for sending spam, and management sees CRM as an overpriced contact management toy.
These myths and others like them often distort opinions of decision makers in the company. In this article, we’ll look at commonly heard misconceptions from management. Read also our articles on CRM myths in marketing and sales departments to learn more.
Even in management, the potential of CRM tools is not yet apparent to everyone. Often, the company’s decision-makers decide against CRM solutions for the wrong reasons. Here are 4 CRM myths that managers should beware of:
This is a fallacy. For a long time, companies were strictly divided by function and into different departments. Many companies still believe that each department needs its own “suite” of software, such as a CRM tool. However, if marketing, service and sales each work with their own suite, this increases complexity as well as costs and unnecessarily prolongs processes. Often, this promotes errors, for example, due to duplications or omissions. Even if the solutions used come from the same provider, the integration and coordination of the various departments often causes problems and costs in the end.
In addition to the obvious functions such as the maintenance of existing customer relationships and the acquisition of new ones, CRM databases also facilitate, for example, the early detection of churn tendencies or the uncovering of fraud.
For a long time, companies were strictly divided by function and into different departments. Many companies still believe that each department needs its own “suite” in the CRM tool. However, if marketing, service and sales each work with their own suite, this increases complexity, costs and unnecessarily prolongs processes. This often encourages errors, for example due to duplications or omissions. Even if the solutions used come from the same provider, the integration and coordination of the various departments often causes problems and costs in the end.
There are two approaches that make sense here: Suite vs. Best of Breed.
Taking this approach doesn’t go far enough and wouldn’t do justice to any customer. Simply buying the most popular or top rated CRM tool is not the ideal solution for most companies. The choice is wide and different solutions bring different content, not all of which makes sense for every company and its target group.
Major corporations have very different requirements for their customer relationships than startups, and B2B varies from B2C as well, even though it’s always about human-to-human interaction. First of all, deal with the actual customer relationship, the target group, and only then with the respective tool. This will prevent you from paying a lot of money for features you don’t need.
By selecting the most common offerings, you also give up the chance to stand out from the competition with more innovative solutions. The same old familiar vendors lead to offering the same common CRM. That might not be enough for some companies that want to excel at exceptional customer relationships.
This is only half the story. Shifting CRM to the cloud brings hurdles and advantages at the same time. Many companies have always been primarily concerned about data protection when it comes to this topic. Not every provider is suitable and can meet security requirements associated with particularly sensitive customer data. Furthermore, if the data was previously held decentrally, there can be high costs and complications when switching to the cloud.
The advantages of CRM from the cloud include enabling “mobile CRM,” automatic updates, and more centralized and synchronized data management, which can be especially important for large companies with multiple locations. Businesses that ultimately opt for the cloud should then choose either public, private or hybrid offerings, depending on the sensitivity of the data.
You in management, but also the departments involved in direct or indirect customer contact benefit from a successful CRM. All surveys and studies confirm the positive effects of CRM implementations and also assure that the tools improve relationships between management and employees. Used correctly, the right CRM solution will provide the marketer with more leads and help the sales staff to close more deals.
The whole thing does not work automatically and on its own, however. CRM is more than just a tool. Data and processes must be applied correctly, constantly optimized, adapted and results continuously monitored.
Finding the right CRM solution for the company and then implementing it across departments is the challenge for decision-makers.
If management does not fall prey to too many half-truths on the subject, the rest of the departments in the company can follow suit and customer relationships can be strengthened in the long term.
Interested in CRM for fan-customer relationships? Contact us and find out how we can support you and your company.
Being a founder and entrepreneur, I experience the importance of customer centricity for companies on a daily basis.
Incorporate the essential perspective of the customer into your product genesis and marketing processes. That puts horsepower on the road and keeps your business running.
100% free of charge | 25 min. individual consultation
This service is not only available because of the current corona situation.
But right now it is more important than ever, together and for each other.