Is your company not ready to change or buy a CRM?

Are you and your company ready to switch or buy a new CRM? Answer this question to find out!

The question may seem simple:

"Can you clearly explain, here and now, the purpose of replacing or purchasing CRM and tell us about the relevant KPIs and why you have chosen them?"

If you're hesitating... or can't answer, it's time to take a step back.

We are not saying this to provoke. We're saying this because we've had enough of seeing companies fail in their procurement and use of CRM - and we know because we've seen it - over and over again!

But don't take our word for it. According to a decade of reports, between 30-60% of CRM projects fail.

In this article, we present how to avoid becoming a number in this dismal statistic.

We share how you can think about the (vital) question "why are you making this change?" and how you can communicate this process with your team and other decision-makers. That said, the goal after reading the article is for you to know if you're ready to buy or switch CRMs.

Buckle up!

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What do we really mean by 'why'?

Not to be too complicated, the 'why' is the real reason why you are switching or acquiring a CRM.

It could be anything. From not feeling the design is modern to integration with other systems being resource intensive.

Common reasons given by companies include:

1. Streamline the sales process
2. Generate more new customers and additional sales to existing customers
3. Make data about customers and leads more accessible to their sales organization
4. Improve customer service
5. Improve customer satisfaction

But things are already getting a bit more complicated. In line with the first pair of examples, there is a difference between disliking the design of the system and finding the integration with other important systems too resource-intensive.

That's because it's...

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Difference between good and bad 'why'

Good 'whys' are clear, born out of overall business objectives and lead to setting small and realistic goals with clear metrics.

Bad 'why' is of course the opposite. They are unclear, large and wide-ranging with diffuse or no metrics at all.

So why is this so important? Isn't it hair splitting at the end of the day and the most important thing is to just get going?

As a CRM enthusiast, you've probably heard of or read reports like "Companies that use a CRM increase their turnover by 300% compared to others".

But don't think it's just pay and go. What the reports don't tell you is the hard work that is REQUIRED to achieve results like these.

It's not something CRM vendors tell you at first, but it's the truth. A truth we want you to be well aware of.

Knowing this and setting realistic goals and timeframes (that grow from a good 'why' in the first place) will not only lead to better results and less frustration.

You will also avoid the risk of standing in shame in front of your employees when you fail to meet initially unreasonable targets.

You couldn't answer why? Then you're not ready to switch or buy a new CRM.

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How to create a guiding 'why'

You've heard of this exciting word:'Needs Analysis'?

Thought so!

The needs analysis is your tool to find and argue the need for this change you are in or at the beginning of.

So far, it seems straightforward.

But wait!

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An extremely important detail that many people forget is that you, as the owner of the process, should not lead the needs analysis!

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What?!

You should start it but not lead it. Why? Well, because it's very easy to get stuck in your own worldview, your usual old ways of seeing and formulating challenges - and thus risk missing the real 'why'.

The best results come from bringing in fresh perspectives from outside.

Bringing in external help at this stage can allow you to see your own processes in a new light, and be challenged where you have become complacent.

It is no wonder that we as consultants recommend this. After all, at the end of the day, it's usually our role - and for a reason.

But a fresh perspective does not by definition equal a consultant.

The important thing is the new perspective itself!

Regardless of who is leading the process of changing or buying CRM, it is important to invite other key people and share 'ownership'.

An effective CRM system will affect many parts of the organisation, so it's important to have breadth and to work on embedding it together.

And whatever you do, don't forget to involve the users of the system! A theoretically perfect system is not worth much if nobody wants to work in it.

We recommend starting with what you know is best for your situation. Having said that, workshops are a common way of working.

But what we certainly advocate are interviews with other decision-makers and key people (such as sales, customer service, marketing) in different parts of the company.

The aim is to find their needs, which we can then use to clarify our 'why' or anchor the same.

It often happens that people themselves cannot put into words their needs or what they personally find difficult about the problems they face. And that's exactly why structured interviews can play such an important role in a process like this.

If you get permission, the best way is to record the interviews. That way you can focus more on the conversation and ask sharp follow-up questions instead of struggling with a pad and pen.

Allow time after for transcription. Then you can easily go back and find answers, or even new interesting questions that you might have missed 'in the heat of the moment'.

So it's an iterative process (how many times have I used that word?) - but it does produce results!

But certainly don't forget that your company's overall business objectives inform your 'why'. This must not be forgotten when the conversation turns to more mundane needs.

So be sure to create a needs analysis to get ready to switch or buy a new CRM.

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Set Subgoals.

"You don't have to see the whole staircase, just take the first step."

MARTIN LUTHER KING JR

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Working in and setting up a CRM is a step-by-step process.

We at Leadfront usually talk in terms of 3 phases in these types of projects. 1st phase (learning to crawl), 2nd phase (learning to walk) and 3rd phase (learning to run).

During each phase, you break down sub-goals and, where possible, KPIs.

Again - step by step.

Therefore, we recommend starting with small targets in small numbers. The idea is to achieve them and master the relevant parts of the new system before moving on to bigger and better goals.

You will find many possible targets. Avoid the tendency to do too much, too fast!

Start by choosing sub-goals that are small, realistic and clear.

These will also help you in future procurement of systems - when your immediate needs will be clear. If you have also based these on your company's long-term goals, you will also know what features you will need and can keep that in mind as well.

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Work out metrics.

Without a way to know if you've achieved a goal, it's not worth much. Saying you want to be happy and then happily stating that you feel happy may be fine for you and me in private - but it obviously doesn't work in the business world.

Instead, we recommend that you use metrics and data that speak for themselves!

So for practical reasons, these (small and few) objectives need clear metrics associated with them.

If they are not obvious, sit down with the people closest to the goals you have chosen and brainstorm.

Until....

Remember that the real challenge is to defend the project tooth and nail as time runs out and costs become apparent.

The biggest threat is the "status quo" and that it takes a certain amount of courage for decision makers to start a project with so many moving parts as a CRM project.

Then the needs analysis and its arguments, the goals it has led to and your allies who are also engaged in this work will be invaluable!

To make it clear, here is a diagram showing the connection between all these elements. The former step leads to the latter.

Please refer to our more comprehensive article on how to successfully implement CRM for an overview.

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How do you communicate this to your employees?

As always, people are the greatest resource and the greatest challenge. That's why we want to share some good advice that comes from decades of solving these very challenges.

Make sure you explain your new 'why' to everyone in a way that they understand and that is relevant to them. Don't forget to argue passionately for the value of the process itself.

Be clear about the benefits they will see and at the same time be realistic. Don't paint with too broad a brushstroke.

Our senior consultant Mattias Bjurel said it elegantly:

"If people don't understand why you do something, it's harder to get them to do what you want"

There are also two truths that are extremely(!) important to clearly communicate to all those who can influence the project and who are affected by it.

That it will take time. But we're not talking about a week or a month. Plan realistically and do it properly from the start instead of rushing through and spending multiple hours frustratedly trying to untie all the knots.

And you'll never be finished either. Just because the new system is in place doesn't mean the project is over. Now is when the real change and development work happens!

And this realization is important so that everyone is on the same page with this is something you can put away once and for all. Work processes etc. change and the CRM system has to keep up.

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Summary

It may seem easy to just choose a system and get started. And all these steps and processes can feel like unnecessary things we as consultants recommend just to sell hours.

But then you have missed the point.

What is important is not that you learned a new system, but that the knowledge and insights gained by going through this process properly, equipped the whole company to work in new and more efficient ways.

The knowledge you build is what matters! Because without knowledge we are left destitute with only our good luck to lean on. And as we all know, that won't last forever.

So are you and your business ready to switch or buy a new CRM? If the answer is yes, good luck!

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P.S . If you have any questions, you can always ask us directly at Leadfront.