The Anatomy of Growth: How a well-implemented CRM system is essential to sustained corporate growth

THE ANATOMY OF GROWTH
How a well-implemented CRM system is
essential to sustained corporate growth
@socalbma 
Walter Fawcett, Founder
Fawcett Technology Advisors
@WalterFawcett

WALTER FAWCETT
➤25 years of application design and technology consulting
➤Founded Fawcett Technology Advisors in 2009
➤Today… sole focus is in CRM
Fawcett Technology Advisors @socalbma 

UNDERSTAND THE POTENTIAL VALUE
“In analyzing ROI case studies on CRM, Nucleus Research
found the average returns from CRM have increased since
2011, from $5.60 to $8.71 for every dollar.” Nucleus Research

✓ The Technology Landscape
✓ A Blueprint for Success
✓ 6 Common Mistakes
✓ Where to Begin
THE ANATOMY OF GROWTH

Standard Definition…
Customer Relationship Management
➤ Sales Automation
➤ Contact Management
➤ Marketing Automation
Fawcett Definition…
Process & Data Management in addition to
Automation in the “front end” of the business
➤ All of the above tied into one system
What is CRM?

Why CRM is important…
For the Company
➤ Sustained growth requires control over
process and data
For Marketers
➤ Success requires metrics that show how
marketing activities contribute to overall
corporate performance

Contact
Management CRM
Marketing
Management
Technology Landscape

➤ Salesforce revenue has grown
over 8x. ($1b to $8b+)
➤ Marketo grew from $10m in
revenue in 2011 to selling for
over $1.5b earlier this year.
➤ HubSpot had revenue of $16m
in 2011. 2016 revenue may top
$200m.
Changes in the
Landscape Since 2011

Changes in the
Landscape Since 2011
➤ Pardot had revenue of $7m in
2011…acquired by ExactTarget
for $95m. ET was purchased in
2013 by Salesforce for $2.5b
➤ In 2011, Microsoft did not have
an online CRM offering.

“As many as 85% of companies that buy CRM software to
automate sales efforts don’t pick the right tools because they
fail to define business objectives.” Distinguished Analyst, Robert DeSisto, former VP, Gartner*
*Mr. DeSisto is now Vice President of Global Customer Transformation at Salesforce.
Why So Many Companies Struggle with CRM…

…for a well-implemented CRM is to stay focused on
the business requirements…not the technology.
The Key to Success…

… Start the Conversation.
The Initiative
Needs A Leader…

➤ Continually demonstrate
value
➤ Senior management buy-in
➤ Alignment of the
organization with marketing
strategies
➤ Building bridges between
Marketing Technology and
the “IT Department”
➤ Technology is changing at
incredible speed
The Marketer’s
Challenge…

➤ Uncovers how your marketing
strategy can optimally align with
other departments
➤ Enables end-to-end
measurement of objectives
across multiple departments
➤ Gives Marketers more influence
over the ultimate results of the
company initiatives
Leading the Conversation
Opens Doors…

Do You Need A Technology
Background?
No.

➤ Leadership, Empathy,
Collaboration, and Teamwork
➤ Stay focused on the business
What is Needed…
“It is amazing how much can be accomplished
if no one cares who gets the credit.” John Wooden

It is essential to remain focused on the
business objectives before talking tech.
CRM is a Business Discussion…

Jumping into the technical,
before you have your
business objectives properly
documented, increases risk
and makes you vulnerable
to many perils of a CRM
implementation.
Danger of Talking
Tech Too Soon…

It is likely that many of you already have a
CRM at your company. If it is working
well… congratulate yourself.
If it is not driving value, all of the principles
in this presentation will still apply.
But I Already Have A CRM?

➤ Define the Problem
➤ Identify User Groups
➤ Understand Your Data
➤ Map the Business Process
➤ Write down your findings
Empathy and cross-department
collaboration are the two most essential
skills to lead the CRM initiative.
5 Main Elements of the
Blueprint…

➤ What are the big
challenges that you
are trying to solve?
➤ What is the impact of
each issue?
➤ Can you determine a
value for solving each
one?
Define the Issues

The People that will need to interact with the “system”
Identify Potential User Groups
External
 Customers
 Vendors
 Partners
Internal
 Outside Sales
 Inside Sales
 Marketers
 Customer
Service
 Managers

➤ Characteristics of the User
➤ Technology Context
➤ Priority and Timing
➤ Security
Issues / Requirements
Understand
the User Persona

➤ Data that naturally occurs in the course of
business
➤ People
➤ Companies
➤ Transactions
➤ Activities
➤ Breadth is more important the depth
➤ Make Lists … Not Technical
Catalog Your Data

Analyze Each Data Set
➤ List the “attributes” for each data set
➤ Think about how the data set can be
categorized
➤ List the related data sets
➤ List places where the data set exists
today

Understand Your Data Very frequently CRM projects fail because the
company does not adequately understand its
data before implementation.

Catalog Departmental Business Processes
List Out High-Level
Departmental
Processes
➤ Marketing
➤ Inside Sales
➤ Outside Sales
➤ Service

Link Business Processes Across Departments
➤ Tie together end to end
➤ Map the process from
beginning to end
➤ Crossing department
boundaries is essential

Process Analysis
➤ Identify the Variants
➤ Social Media Leads vs. Trade
Show Lead vs. Web Site Lead
➤ New Sale vs. Maintenance
Renewal
➤ Customer Forecast vs.
Individual Order
➤ Describe the rules and
requirements for each
➤ Find the outliers

Catalog the data and calculations that
are used to measure your business.
➤ Primary Data Set: leads, sales,
impressions, etc.
➤ Dimensions: by customer, sales rep,
campaign, channel
➤ Time Frame: per week, month,
quarter, year, et al.
Your existing reports are a great source
for identifying key metrics.
Metrics

➤ Identify the process that is the data
source for each metric
➤ Prioritize which metrics are most
important
➤ Describe the meaning of each
important metric
Map Metrics Back to Process

Automation Opportunities
➤ Areas where the technology can
automate tasks to increase
efficiency and/or reduce errors
“Non-Functional” Business
Requirements
➤ Security
➤ Performance
➤ Hours of Operation
➤ Scalability
➤ Uptime Requirements
➤ Support and Maintenance
Final Touches

You are now able to describe the
following…
➤ Challenges you are trying to solve
➤ Who will be using the system
➤ How the data flows through the
business
➤ How key metrics are mapped from
the end-to-end business process
Checkpoint 1

DOCUMENTATION IS ARMOR
The next step in the process… the Technology Discussion
But first... your documentation is your armor. Don’t go into battle without it.

➤ The discipline of documenting your
findings is essential for a successful
CRM implementation or remediation
➤ The documentation review process
enables other departments to
ensure that their voices were
properly heard
➤ Gaps are always found when
documenting
➤ Accountability is impossible without
documentation … both internal and
external
Documentation

The Technology Discussion
Now that the business requirements are
understood and documented, the technology
discussion can start. In this section we will
review the following…
➤ How to select the technology
➤ How to select an implementation strategy
➤ How to get the right deal

Self Implement
Staff 100% with internal resources
No external staff
A Quick Note About Implementation Options

Self Implement
Staff 100% with
internal resources
No external staff
Outsource
Staff with 100%
external resources
Possibly use internal
staff for training and
other ancillary tasks

Self Implement
Staff 100% with
internal resources
No external staff
Outsource
Staff with 100%
external resources
Possibly use
internal staff for
training and other
ancillary tasks
Hybrid
A mix of internal &
external resources
Usually external resources
focus on design and
architecture. Internal staff
can be programmers,
support, training, et al.

➤ Go on some dates…
play the field… be safe
➤ Have some serious dates…
share some personal info
➤ Engagement
➤ Marriage
The Selection Process
is Like Getting Married

➤ Invite your IT Team
into the discussion
➤ Give IT “a seat at
the table” for
technology or
support decisions
➤ Avoid surprises,
encourage
collaboration and
accountability
Involve Your IT Team

➤ Talk to business and marketing
leaders you that you respect
about their experiences…
and catalog their input
(for your own reference).
➤ Research product and service
offerings
➤ Identify top choices
➤ Don’t fall in love with any
solution…yet
➤ You are looking for options and
information, not solutions
Start the Research

➤ To better educate yourself,
contact at least 2 CRM
software vendors
➤ Get a demo
➤ Ask for pricing information
… be wary if the pricing info
is not clear
➤ Ask for referrals to their
best integrators that have
experience in your industry
and size of company
➤ Again you are looking to
educate yourself … do not
start “solutioning”
Contact CRM Vendors

Selecting who drives your Implementation is
more important than selecting the right technology.
Start the Selection Process

➤ Analysis and Design
➤ Development
➤ Deployment
➤ User Training
➤ Support
ADDUS – The Implementation Process

➤ Internal
➤ Outsourced
➤ Hybrid
Which Implementation Options Will You Consider?

Meet with at least three candidates
➤ Explain your very high level goals
➤ Ask about the methodology, relevant
experience and pricing
➤ Ideally at least one of the candidates should
have expertise in a different CRM platform
Evaluate their response
➤ Did they have a clear and credible explanation
➤ Did they ask questions
➤ How well did they listen and understand your
needs and situation
This is like your first couple of “dates”.
Listen… have fun… and be safe.
Create a List of Potential Implementers

➤ If the first date went well, then
you can get more serious
➤ Consider asking 3rd Party to sign
a Non-Disclosure Agreement
➤ Share the CRM business
documentation that you created
earlier
This is where you get comfortable
enough to start sharing your story.
The Short List

➤ Do they actually read and
understand the requirements
➤ Do they ask good questions
➤ Did they provide a well-
written proposal that aligns
with the Business
requirements document
➤ The response should be
consistent with the claims in
the initial meetings (process,
pricing, experience, etc.)
Carefully Evaluate Potential Implementers

 Invest time crafting the
relationship that you want.
The implementer will be a
person or company that you
may work with for years to
come.
 Think of this as a potential
marriage contract.
Negotiate the Right Terms

➤ Is the proposal clear on
how you will be able to
manage the implementer?
➤ Who will be working on
your project?
➤ What is the escalation
process and who is
involved?
➤ How will support and
maintenance be handled?
The Management Controls

➤ Insist on a cost estimate for the
full scope
➤ Internal: cost of labor and
resources
➤ Outsource: fixed price or hourly
➤ Hybrid: a combination of both
➤ Require a risk analysis
➤ Limit the initial phase to a scope
that is as narrow as possible
The Appropriate Scope

➤ Negotiate pricing for the licenses
and/or subscriptions up front, but
only buy when needed
➤ Leverage favorable cancellation
terms
➤ Determine who owns the work
product
➤ Decide what happens if you separate
The Terms

Additional or Unforeseen
➤ Support & Training
➤ Upgrades and New Features
➤ Integrating with other business applications
Infrastructure
➤ Network capacity
➤ Redundancy
➤ Security considerations
Plan for the cost to be 2x the quoted price.
The Hidden Costs

At this point you will have done
the following…
➤ Educated yourself on
technology and
implementation options
➤ Completed the selection
process for who will be your
implementer
➤ Negotiated an agreement
that includes management
controls, an appropriate
scope, and proper terms
➤ Considered hidden costs
Checkpoint 2

6 Common Mistakes

Inability to address the gravitational
pull of old habits will undermine the
success of the CRM initiative.
Adoption takes constant energy to
change old habits.
#6 – Underestimating Difficulty
of User Adoption & Training

➤ The consequence, will be that
users will enter bad data or just
not use the system
➤ The system must be flexible
➤ Data should only be required
when relevant
➤ Stage of process
➤ Type of process
#5 – The Death Star

➤ In every CRM initiative there are
risks that could undermine the
overall success
➤ Companies frequently will jump
into the implementation phase
without fully understanding,
vetting and containing major
risks
➤ The result is that when not
addressed early, a company can
be deep into implementation
before uncovering a showstopper
#4 – Insufficient Risk Analysis

Companies don’t invest the time to
properly clean and prepare their
data before the implementation of
their CRM initiative.
Impact - Reduces benefits of the
CRM initiative
➤ Users will become frustrated
➤ Metrics and reporting will be
inaccurate
➤ End up spending more time and
money later fixing the problem
“Garbage In … Garbage Out!”
#3 – Dirty Data

Some companies will take on an
initial project with a very broad
scope, creating unnecessary risk.
➤ Budget overruns
➤ Schedule delays
➤ Complicates mid-project
changes, if needed
➤ Wasted labor and resources
#2 – The Initial
Implementation
Project Is Too Big

“The Fish Stinks from the Head …”
➤ Lack of commitment from Top
Management
➤ Lack of consistent usage by
Marketing and Sales leaders
➤ Leads to an unengaged user base
#1 – Lack of Commitment
and Participation

CRM AND GROWTH
According to Gartner…
“…a well-implemented CRM system can increase
revenue by a whopping 41% per sales person.”

➤ Focus on the Business Requirements
➤ Lead with empathy and collaboration
➤ Document the information
➤ Be well-armed before you start the technology
discussion
CRM Takeaways…Starting the Discussion

➤ Who will be implementing the system is more
important than the software
➤ Involve your IT Team
➤ Avoid common mistakes
➤ Ensure that the executives and managers are
committed to use the system
CRM Takeaways… The Technical Side

QUESTIONS?
Walter Fawcett | Founder
LinkedIn.com/in/walterfawcett
@WalterFawcett
/socalbma
/company/socalbma
/socalbma
/socalbma
SoCalBMA.org 
The Anatomy of Growth
How a well-implemented CRM system is
essential to sustained corporate growth

The Anatomy of Growth: How a well-implemented CRM system is essential to sustained corporate growth

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