What Are the CRM Challenges for SMEs and CRM Software Vendors?

Bob Thompson
Founder, CRMGuru.com
Member

Posted 03-Feb-2004 12:47 PM
What do you see the challenges to be for CRM vendors vis-à-vis SMEs?

Posted 03-Feb-2004 12:50 PM
Jay Curry
Customer Experience Factory

The big challenge for CRM vendors in the SME market today is how to make money selling CRM products and services to SMEs. The sales cycle for selling the CRM philosophy can take the same energy as selling to a large enterprise, but the sales revenue is smaller: Also SMEs do not like paying for technical or business process/change management consultants. And, SMEs do not have bright, young MBA graduates in house who push for CRM or can handle the implementation. SMEs also do not like to pay big bucks for things without an immediate payback (exception: their own personal automobiles).

Why don't SMEs conduct customer satisfaction research, which you advocate for all businesses?

Only 8% of SMEs conduct customer satisfaction research, a crazy situation when you consider most SMEs get 80-90% of their revenues from existing customers. I think the answer is that customer satisfaction research takes a lot of effort, and the payoff is not visible in the short term, if ever. But you can generate immediate revenue and profits if you position your Customer Satisfaction study as a Customer Interview which asks the customer to provide his satisfaction scores on your value propositions, those attributes of your products, your service and the quality of your relationship with the customer.

What can SMEs expect to get in return for dedicating so much face time with its customers?

You will discover the real needs and problems of each customer. You will find out what aspects of your business are not satisfying each customer you interview and what things you are doing right. You will be able to determine the current and future potential of each customer you interview. You will deepen your relationship with each customer you interview. You will generate additional sales revenues immediately—and in the longer term.

Bob Thompson
Founder, CRMGuru.com

Posted 05-Feb-2004 03:01 PM
I have had my own CRM consulting business for 10 years(it wasn't even called CRM then!) and have dealt mainly with SME's. One of the key "triggers" for SME's is gathering and sharing information about clients and prospects amongst users. It is not a matter of selling them "CRM" software—I mean, let's face it, most SME's don't understnd what CRM is all about! Even after 10 years, I find it hard to explain it simply!
It is about showing them how they can share this information and the best ways to collect it. As they get used to the benefits of sharing information, they can than progress to other systems if the need be.
CRM software vendors need to stop "selling software", and instead find out that the business needs are, and deliver solutions. In many instances, even a system such as Outlook can form the basis of their "CRM" programme.

I find SME's are surprisingly willing to part with good money if you can deliver them good solutions. It is very much a hands-on process however—you don't just sell them the software and then leave them to it—you need to understand how their business works and guide them through the process.

I believe the advent of Microsoft into the market, with a product designed specifically for SME's will change the face of the CRM market as we know it—for the better. "CRM" is now within reach of SME's. It is an interface with which they are comfortable, and it's intuitve for their people to use.

Whilst the cost of the licences is not going to break the bank—the real success for "CRM providers" (as aginst "CRM Vendors") will come come the consulting services that go with those licences—that is what the SME's need—they don't need software—they need solutions.

Cathy Allington
Client Relationship Marketing Pty Ltd

Jay Curry
Guru
Member

Posted 09-Feb-2004 01:41 PM
Cathy,

I agree with you 100%. . .you are on the right track. . . keep it up!

— Jay Curry
ww.crm4sme.com

Vishal Sarkar
Member Council
Member

Posted 17-Feb-2004 12:17 AM
All very valid points about SMEs.

I think the crux of the matter is that SMEs have limited resources and the best workable CRM for them remains only those solutions that donot burden their structure.

Having said this, though Microsoft CRM 'may' change the product mix available to the SMEs by adding a good product and a lower cost, yet I would still be wary of 'consulting' services that maybe required to implement this solution.

If a solution is easy to customise to a business need—that the end user company can do it internally, then it is the best option for an SMEs—companies that RATHER focus on their own business THAN maintain a 'IT' teams to manage their systems OR hire expensive consultants.

Vishal

Cathy Allington
Member

Posted 17-Feb-2004 02:50 PM
Hi Vishal:

When we are talking "consulting" services for SME's—we are not talking all the endless high-end work that goes with the traditional ERP CRM—we are talking more about the "hand-holding" process—that an SME can have someone to "watch over them" as they grow into CRM.

This is a role I play very much with my SME clients—they know what they should be doing, but get so busy with running the day to day aspects of their business, they don't devote the effort they know CRM needs to get started.

There is consulting required, but it's more about training and nurturing people to get them up and running. Done in that light, I have always had good success with my SME's—once they are up and running, I then check in on them every 3 months to see that the processes are still in place, and to kick-start them again if needed.

Cathy Allington

Vishal Sarkar
Member Council
Member

Posted 17-Feb-2004 09:51 PM
Cathy,

Thanks for clarifying what 'consulting' meant there. " Training and nurturing " really sound much better and I agree that they are really very important aspects in helping SMEs adapt to CRM changes/ system usage.

Best,

Vishal