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|  |  Strategically Managing Information with CRM Technology December 18, 2008 Managing Information with Technology By: Neil Saviano Gathering, processing and using customer information with varied technologies is, and will continue to be, a dominant contributor in maintaining company profitability and growth. A company's benchmark in their overall effectiveness in managing and using technology-based customer information should come from the answers to the following questions: • How much do we know about what are customers are buying and not buying from us, and how they are buying? • How much do we know about our customer demographics that influence buying? • How do we use the information we have to implement effective and ongoing sales and marketing programs? • How do we gather and use information that helps us to monitor our activities, namely the information management and sales and marketing processes being driven by sales and customer service? The answers to these questions strongly relate to a company’s use of the technologies currently available. Many industry back-end legacy systems obviously compile customer buying history, but technology is needed to relate this history to areas such as the level of current customer penetration and retention. These metrics are critical, as penetration and retention directly determines profitability on a customer-by-customer basis – both short and long term. Sales and marketing analytical tools are available to help dealers and their salespeople look at each customer and the level of penetration and retention on a one-to-one basis. Technology is also needed to help companies develop benchmarks such as, customer profiles and how it relates to the level of penetration and retention needed to assure customer sales growth and profitability. CRM and Sales Force Automation software provides a place to put this information for easy access and retrieval for sales and marketing campaigns as well as usage by CSR’s in their every day customer-facing activities. In essence it answers the question: The information is there – now how do we act on it to drive business and profits? Some examples of information compnies work with includes: customer size (as it relates to overall potential), various office equipment, furniture styles and colors, special product and printing needs, competitors, levels of contact, etc. The Sales Force Automation components of popular CRM software technology provide the functionality to efficiently and effectively “act on” this information. Customer classifications that identify, as an example, levels of customer penetration can be grouped together to form a target segment for a campaign. The campaign can be efficiently and effectively automated and contain a series of strategic calls, visits, e-mails and other promotional efforts. Managing information that goes beyond buying history and business potential also plays a key role in customer development; this relates to business demographics and other customer - centric information. Beyond some of the information listed above, some other examples are: type of vertical industry, location and number of locations, customer personal issues and any other customer information that is worth remembering, and used for semi-automated and automated campaigns along with individual customer targeting. This is the kind of information that helps companies make a value-added difference with a customer in a volatile marketplace. Products and services that address specific customer needs within their vertical and make it easier for them to do business with a dealer, and do business overall, can go a long way in building and sustaining relationships The use of information and technology isn’t limited to working with just customers. Prospecting programs and their success are tied to the efficiencies and consistencies that technology provides. Prospect information, as an example, is used to create prospect classifications using some of the demographic customer-centric information related above. Some examples of classifications are: Type (hot-cold, etc), contact frequency, status (interested/not interested), etc. This is another example of the use of CRM and Sales Force Automation software and the capacity to target and touch as the situation dictates. There is a strong need for companies to also have systems in place to monitor the information-centric activities and campaigns to assure that the work is being done. Reporting and push reporting (automatic reports sent to management and reps) programs to identify that the activities are taking place according to plan are available. Coded reports can show types of activities such as follow ups, cold calls, interested and not-interested, appointment/presentations. CSR issues resolved, etc. As in any company program that involves people working within a strategy and with systems, accountability is a must to assure staying on course. CRM software provides a place for activities and all of the related notes for each activity that can be accessed quickly. Calendaring is also included to show future activities and the information tied to each one. Each kind of activity is automatically posted to a report. There is no doubt that the proliferation of competition places a strong need for companies to have the capacity to gather store and use customer and prospect information in a way that is going to give them a decided competitive advantage. This entails making sure that the correct technology is in place. It means looking at the technology environment holistically beyond the back-end legacy system. Making sure the synergies are there with sales and marketing analytical software and CRM and Sales Force Automation software. Most importantly, it’s mandatory that personnel use this information and processes in place to monitor this usage. Technology and information are assuredly the way for dealers to emulate the processes and strategies of their major and bigger competitors. It can be labeled “the great equalizer”! ABOUT THE AUTHOR: A sales and marketing veteran with more than 30 years’ experience, Neil Saviano is president of CRM International www.crminternational.com , a sales and marketing organization that focuses on helping clients combine proven sales and marketing techniques and strategies with state-of-the-art CRM and Sales Force Automation solutions. He can be reached by phone at 800-782-1534 or by e-mail at neil@crminternational.com.
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