Is CRM Useful for VERY Small Businesses?
Hi,
I'm doing a research on " CRM for SMBs", so my question is about that topic:
Actually during my research, i've worked with some CRM like : Oracle, Dynamics, Salesforce.com & ... but i'm not sure whether these CRMs can help a small business to automate it's Sales & marketing section,
I mean do they (SMBs) like to use a CRM (even if it's free) or not?
because maybe for a small business with 10 employees & some few customers, there is no attraction to use a CRM.
Thanks,
Mo
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Benjamin Fallar Paulmitan III
CRM for SMBs
Hi Mo,
Microsoft Dynamics designed a specific version of CRM for SMBs. It is Microsoft CRM Small Business Edition. I believe that whether the organization is small or big, we would like to make our sales, marketing, services and process running efficiently, optimized and automated. As such, Microsoft delivered a CRM suite targeted for small-to-medium businesses. If you are interested, you can contact me at benjamin.fallar@wizardsgroup.com for possible opportunities.
Anda
Check out Relenta and Highrise
The problem with traditional CRMs is that they are too "bloated" for an average small business, i.e. include too many irrelevant features, and are impossible to understand, let alone use most of the day.
There is a new trend towards simplicity in software. Simple web-based tools that "get things done, no more, no less" are becoming increasingly popular.
Here are two excellent examples that hit closest to CRM:
1. [url=http://www.highrisehq.com]Highrise by 37signals[/url]. This is more of a contact manager than a CRM. It's made by the pioneers in the "simple software" movement.
2. [url=http://www.relenta.com/tour/email.html]Relenta CRM[/url]. A very interesting tool that is [url=http://www.relenta.com/tour/email.html]email management software[/url], contact management, and calendar software all at the same time. Relenta is really neither email nor CRM, but rather a new, emerging form of software.
CRM big boys will be well advised to pay attention.
Hope this helps, Mohamad! Good luck in your research.
Josh
CRM for SMB
In my opinion all businesses (SMB and Large) can benefit from CRM. SMB can use CRM to manage/track/document all customers/propsects/contacts interactions.
i'd argue that the generic term for this type of software is Sales Automation software. Under that umbrella are CRM players, lead generation player, lead nurturing players, but in general they help you manage prospects and customers through the sales process.
Even if a SMB only has 5-10 customers, that business can track interactions and find opportunities to sell more products/services. Example - The CRM system alerts you that a customer has a trade show or birthday or other event happening. Your sales team can use that info to follow-up or to send an email campaign.
Thanks - Hope that helps a bit
Douglas MacGregor
CRM for SMBs
I own a company specialising in CRM and have only 1 employee (me) and 3 contractors. I have about 10 clients I do project work for (customer satisfacion surveys) and about 20 prospects at any one time.
I do everything on paper and Outlook, record all calls on my paper file for that customer and note anything of importance onto my Outlook calendar and it works fine. Because I am small and have a handful of customers, they say that I give the best service out relative to my much larger competitors.
Every so often I contemplate buying software but the thought of learning a new application and the costs (astronomical) deter me.
In a nutshell, I would say small companies do not need CRM software as the owner/manager is on top of everything. As soon as customer service is farmed out to another person then checks and balances via software would become necessary.
Graham Hill
Only Shoot What You Can Eat
I fully support Douglas' lean approach to the choice of CRM systems.
Far too many organisations decide that they need a CRM system without really understanding the customer-facing work processes the system is to enable and then proceed by trying to get the most functionality for their available budget. The result is too often an over-featured system that doesn't really support the core business. This applies across the board from small companies to multi national corporations.
Organisations should understand the future work processes that the system must enable before defining their future systems requirements. It helps greatly if the work processes are reengineered before defining future systems requirements, so that the system doesn't end up just automating broken processes.
Once the systems requirements are clear, the system should be chosen to deliver just these requirements and no more, at the lowest possible cost over the lifetime of the application. The lifetime over the application will most likely not exceed 3-5 years. There is no in point paying for bundled functionality that no-one will ever use. Just think of Microsoft Office if you want an example of paying through the nose for useless bundled functionality.
Graham Hill
Independent CRM Consultant
Interim CRM Manager
Rajeev Gambhir
So is it all about technology?
Your query takes us back to the technology vs business rules debate. Your comment about CRM suitability for SMBs and talking about technology offerings in the same breath leads one to believe that these technology offerings are the be all and end all of CRM.
For any scale of business, CRM, CEM or any other TLA is as useful as for any large corporation. The question moves to whether technology support is required to carry out their relationship strategy with the customers. We are a tiny company and have moved from paper based transaction recording to excel to a homegrown web based solution over a 5 year period. The technology support has been very helpful, but that is because we knew we could use the knowledge embedded in these transactions to better serve our customers in the next transaction.
Rajeev Gambhir
David McNab
Open source CRM
I am always amazed by how few people cite the availability of open source solutions for small/medium business requirements. In our business we use several open source solutions for everyday applications such as CRM, document repository, knowledge base, support ticket tracking and even project management.
Not for lack of commercial tools - they are great - but for a SMB to implement cost effectively in a web-based environment (critical for multiple home office teams) there is nothing like it.
CRM :: the main open source solutions are:
SugarCRM - which charges for some features that are pretty essential like Outlook integration but is very stable and easy
VTigerCRM - which is built on Sugar open source, is completely free but takes a bit more work to get going and is less fault-free.
I agree with all comments about requirements first etc. etc. as fundamental and important, but if you do want a cheap solution you really ought to look at these options.
PS I have no business affiliation with either of these products / comapanies.
David McNab
Retention & Sales metrics
Customer profitabilityDavid McNab
Retention & Sales metrics
Customer profitability
MB Deans
CRM for SMB
CRM processes and data are critical for any business. As a small business owner with employees on 2 continents and a global customer base of hundreds, I keep it simple. We have a handful of key CRM metrics, and use a basic spreadsheet and our email program's contact manager. I haven't got the time or patience for big, bloated, expensive programs. As we grow, we'll clearly have to evolve to a more sophisticated solution, but for now I'm keeping it simple.
MB Deans
Douglas Partners
career transition experts
SmallBizCRM
Sure, small businesses need
Sure, small businesses need a CRM, although, by definition, a CRM might often be beyond budget and too sophisticated a solution for their requirements. This actually might be one of their bigger issues - defining their needs, especially if they are set to grow as a business.
Right now a simple contact manager could suffice to manage their profiled database, follow-ups etc, but further down their needs evolve, demanding a more robust solution and additional features.
Can what is suitable now grow with them? If not, it would be prudent to have an exit plan to lessen the pain of potential double-dipping, by ensuring they can get their data out of their application comprehensively and into the next CRM they didn't foresee they needed now.
Perry Norgarb
SmallBizCRM.com
Small Business CRM Resource Center
Francis Buttle
Try answering these questions.
Hi Mo,
It depends. Try answering these questions
1. Does more than one person amongst your employees have contact with each customer? If so, you might need CRM.
2. Do you have multi-channel contact with customers by phone, email, fax, sms? If so, you might need CRM.
3. Do your customers require customized solutions? If so, you might need CRM.
4. Are some customers more valuable than others? If so, you might need CRM.
5. Do you plan to sell the business? If so, you might need CRM.
It's most likely that you'll need nothing more sophisticated than a boxed product off-the-shelf. You'll need contact management, lead managment and opportunity management.
Good luck. Francis Buttle
Softwarecat
CRM is B2B vs Inbound marketing
I've sold several different POS applications over the last 7 years and been around smaller independent retailers for over 14 years and the one question since 2000 I've had to answer is this one. There is certainly a disconnect between what this segment "thinks CRM" is and what CRM has really become - Josh, I completely agree with you.
CRM is B2B, it involves sales cycles, forecasts and very few tools to "Manage a customer". It makes complete sense to me that if I have a reward program or I am interested in sending a marketing piece then I should be able to do it from my "CRM Software", it's not going to really happen (Thinking as a retailer).
Many of today's systems were originally introduced by ERP developers. With that said, you can expect them to look at your business from a financial point of view - not necessarily from a marketing activity stand point. They'll record your sales activities, but they are going to assume that you are in a sales cycle transaction, not a register transaction. Interesting read here:
http://www.customerthink.com/print/327
So the question no one has asked yet, is what type of business and what are their expectations - if it's a service, manufacturing or distribution - CRM makes sense for an SMB. If they are retail focusing on driving transactions and visits by marketing to customers based on real-time sales information. CRM is not going to "easily" help them and I'd argue the only success would be a VERY proactive retailer and they don't have the time, energy or know how. There's always been an assumption that just because retailers are quick single transactions, that they don't have a relationship to manage. Specialty niche retailing, experience the brand vs. brand the experience this is the trend we're seeing in the small retail verticals. Retailers are getting hungry to manage those relationships.
Daryl Choy
What's Your Definition of CRM?
Every firm needs to manage customer relationship even if it has only one customer.
The first question asked should be, how does the firm manage? Through personal interactions? Through applications? Or both?
The next question is then, which method the customer values most?
The least interesting question should be, which method is the most effective from the firm's point of view?
Daryl Choy, the founder of Touchpoint eXperience Management, helps firms make a difference at every touchpoint. Choy can be reached at wisdomboom.blogspot.com.
Eamonn O'Connell
Small Businesses Should Adopt CRM, but slowly!
I've worked with a number of small businesses in helping them integrate CRM into their business processes. From my experience the number one lesson would be to take it slowly.
CRM systems are often weighed down with features. This makes them powerful, but also overwhelming. After getting yourself a CRM system, identify one aspect of your business to introduce the CRM to. For example, you could choose to use it to track inbound pricing requests from potential or existing customers. Overtime, expand out your use to other forms of lead generation, and then perhaps to commercial document generation, reporting, etc.
--
Eamonn O'Connell
Solutions Architect
http://www.eazybusiness.com
DanielK
Focus on SMB
There are several CRM solutions that have to be focused on the SMB. For example SprinxCRM. Moreover, his motto is: CRM has never been easier. This solution has all the advantages of large applications, while it is very easy and efficient.
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