CRM is an important tool for creating business success. The better your customer relationships, the easier it is to conduct business and generate revenue. Using available technology to improve customer relations management simply makes good business sense. If you need further information, or would like assistance in selecting a CRM provider, go to http://www.insideup.com/compare/customer_relationship_management

1. USING CRM SOLUTIONS TO INCREASE SALES AND RETAIN VALUABLE CUSTOMERS

2. Customer Relationship Management, or CRM, is increasingly used by businesses to acquire, retain and grow profitable customer relationships. CRM software can help your company by precisely identifying and connecting customer data across systems. There is a wide range of software products and solutions to support your company’s CRM practices. These include:
Sales force automation solutions
Call center products
Marketing automation applications
Automated support products
Other customer contact solutions
CRM systems utilize the internet to enable you to respond in real time to customer orders and inquiries, via email or your website. This “always on” connectivity with your customer base can lead to greater efficiency for your business.
The better you can manage relationships with your customers, the more successful your business will become. That is precisely why systems that help support daily interactions with customers are increasing in popularity.
CRM is more than simply the application of technology, however. It is a strategy that allows you to learn more about your customers' needs and behaviors in order to build stronger relationships with them. CRM might be considered a hybrid of business philosophy and technology designed to help businesses deal with customers effectively and efficiently.
This guide will help you weigh the business benefits and the possible drawbacks of implementing CRM. It will help you make an informed decision when selecting the right CRM solution, and also help you to compare providers.
Could Your Business Use a CRM Solution? Doing your utmost to retain existing customers and expand your business is vital to your business success. The cost of acquiring a single new customer makes the value of existing customers even more apparent. The more opportunities your customers have to conduct business with you the better. You can increase these opportunities by introducing channels such as direct sales, online sales, email communications and social media. This increase, however, will bring with it a need to manage interactions with your expanding customer base.
The better you understand your customers, the more responsive you can be to their needs. CRM can give you insight into the behavior of your customers, and will expose ways in which you can adjust your operations to ensure that customers are served in the best way possible.

3. Benefiting from CRM is not merely a question of purchasing the right software. You must also adapt your business to the needs of your customers. Insights gained from your CRM solution can help you implement changes to improve both customer service and marketing. CRM will give you information about your customers' purchasing habits, opinions and preferences. It can help to create individual and group profiles so you can plan your marketing strategy more effectively.
Benefits of CRM Deploying a CRM solution can entail considerable time and expense. However, there are many potential benefits. One chief benefit can be the development of improved relations with your current and established customers, which can in turn lead to:
Improved sales through the ability to predict customer needs based on past trends.
Recognizing customer needs through knowledge of their specific preferences.
Enhanced ability to cross‐sell and up‐sell based on customer profiles.
Ability to identify the most profitable segment of your customer base.
CRM can also lead to improved marketing of your products or services by helping you with:
Effective, targeted marketing communications aimed specifically at customer needs.
Adopting a more personal approach when communicating with your customers.
Development of new or improved products and services in order to win more business in the future.
Ultimately, your business will experience:
Better customer satisfaction and retention, which will ensure that your reputation continues to grow.
Greater ROI from your existing customer base through reduced costs associated with customer service and support; this will increase your overall efficiency and reduce the total cost of sales.
Improved profitability by focusing on the most profitable customers and dealing with less profitable ones in a more cost effective manner.
Once your company has begun to look after its existing customers effectively, you can concentrate your efforts on gaining new customers and expanding your market. The more knowledge you can acquire regarding your current customers, the easier it will be to identify new prospects and increase your customer base.

4. Potential drawbacks of CRM Under some circumstances, implementing a CRM solution may not achieve the results you hope for. Here are a few such situations you will want to be aware of.
A lack of commitment from people within your company can hinder the implementation of a CRM solution. In this case, adopting a customer‐focused approach may require a culture change in your organization. Relationships between employees and the customers they deal with could weaken if staff members don’t comprehend the value of viewing matters from the customer’s perspective. The inevitable result will be customer dissatisfaction and loss of revenue.
Poor communication can prevent effective use of the new CRM solution. In order to make CRM work, every person involved in its use must be fully informed and trained in how to use it.
Ineffectual leadership can create difficulties with any CRM implementation plan. The responsibility is on management to lead by example and advocate a customer focus on every project. If a proposed plan does not seem right for your customers, do not proceed with it. Rather, take the time to find a solution that will work.
Attempting to implement CRM as a complete solution at once can be tempting, but it is also risky. It is much preferable to divide your CRM project into easily managed segments. You can do this by initiating pilot programs and short‐term objectives. Consider beginning with a pilot project that includes all the essential departments and groups but is small and adaptable enough to allow for modifications along the way.
Underestimating the amount data you will need can be another mistake. Be certain that you’ll be able to expand your systems if needed. Scrutinize what data is collected and stored to ensure that only useful data is retained.
Creating rigid rules which cannot be changed is also to be avoided. Rules should be flexible enough to meet the needs of individual customers.
Types of CRM solution CRM solutions fall into the following four basic categories:
Outsourced solutions Application service vendors can supply web‐based CRM solutions for your company. This strategy is ideal if you need to have a solution in place quickly and your organization lacks the in‐house talent required to undertake the job from scratch. It is also an excellent solution if you are already set up for online e‐commerce.

5. Off‐the‐shelf solutions There are many software companies offering CRM applications that integrate with existing packages. Basic versions of such software are available for smaller companies. This can be a cost effective approach as you are investing in standard software components. The disadvantage is that the software may not always do precisely what you want and you may end up sacrificing functionality for convenience and price. It’s important to be flexible but you don’t want to compromise too much.
Custom software For the ultimate in tailored CRM solutions, consultants and software engineers will customize or create a CRM system that integrates with your existing software. This approach can be time consuming and costly, however. This will most likely be the most expensive option; your costs will vary depending on what your service provider charges. If you do choose this option, be sure to carefully detail precisely what you expect before signing the service agreement.
Managed solutions A midpoint between custom‐made and outsourced solutions, managed solutions entail renting a customized suite of CRM applications as a made to order package. This can be cost effective but it could also mean that you have to make concessions in terms of functionality.
Questions for CRM suppliers For many organizations, CRM solutions can be a major investment. Therefore it is essential to select your provider carefully. Making the wrong choice could prove costly, and have a negative impact on your business. Here are some questions to ask potential providers before making your final choice:
How long has the company been in business?
What are the exact costs related to the product; is there a one‐time purchase fee, an annual renewable license, a charge per user, etc.?
Does the provider offer some type of evaluation software so that you can try it out before purchasing?
What does the company charge for technical support?
Does the supplier provide consultancy and, if so, at what rates?
Is the solution scalable; if your customer base expands will the system be able to adapt?
Can the vendor suggest any third‐party developers that utilize their core CRM products?
Is there an independent user group in which ideas and experiences can be freely exchanged?
Does the provider have references of businesses in your industry that use their software?
Does the company offer training in their CRM solution and if so, what is the cost?

6. How to Implement CRM The implementation of a CRM strategy should be approached as a six‐stage process. You will begin by collecting and processing information about your customers and you will then use that information to advance your marketing strategy and enhance the customer experience.
Stage 1 ‐ Gathering information Your priority here will be to capture the information you need to identify your customers and classify their behavior. If you have a company website with an online customer service center, you have an immediate advantage as customers can enter and manage their own account details when making purchases.
Stage 2 ‐ Storing data The most effective way to store and manage customer data is in a relational database. This is a centralized customer database that enables you to manage all your systems from the same source. This ensures that all users have access to the most current information.
Stage 3 ‐ Accessing information After data has been collected and centrally stored, the next objective is to make this information available to relevant staff in the most useful format.
Stage 4 ‐ Analyzing customer behavior Using data mining tools within spreadsheet programs to analyze data and identify behavior patterns and relationships, you can develop detailed profiles of your customers. These insights will prove invaluable in creating effective sales strategies.
Stage 5 ‐ Marketing successfully Many companies find that the major share of their profits comes from a relatively small percentage of customers. Using CRM to gain a more thorough understanding of your customers' needs, desires and motivations, you can identify and reward your most valuable customers.
Stage 6 ‐ Enhancing the customer experience Just as a small group of your customers are the most profitable, a small number of unhappy customers can consume an inordinate amount of your employees’ time. If the concerns of such customers can be identified and resolved expediently, your staff will have more time to spend developing the more profitable relationships.
Important note: When implementing CRM solutions, always be sure that you are in full compliance with the Data Protection Act, which governs the processing of information on living, identifiable individuals.

7. In Conclusion CRM is an important tool for creating business success. The better your customer relationships, the easier it is to conduct business and generate revenue. Using available technology to improve customer relations management simply makes good business sense.
If you need further information, or would like assistance in selecting a CRM provider, go to www.insideup.com. We will be happy to provide you with free, no obligation quotes from up to five pre‐screened, highly qualified vendors.
Glossary
Add‐On Pricing
Pricing costs for additional features.
Analytics Features
CRM functions and options that help businesses analyze sales and other metrics:
Business Size
The size of the business that the CRM software is best suited for.
Channel Management Features
CRM options to segment your sales channels by common characteristics such as buying patterns, needs, and distribution.
Collaboration Features
Features that help bring your team together and allow them to smoothly collaborate on projects.
Company Description
A description of the Customer Relationship Management software plan by the developer from their website.
CRM Market Awards: Elite
Has the Customer Relationship Management software won the Elite level award by Destination CRM Magazine?
CRM Type or Function
The general focus or specific areas of customer relationship development that the CRM software is designed to assist.

8. Customer Service
The CRM software’s customer service features that manage relationships with your existing customers.
Default Data Storage
The amount of storage space that comes with the license of the CRM software.
Deployment Model
Whether the CRM software is hosted online (Software as a Service)/over a network by the vendor, or if it is licensed to you and then hosted on your servers.
File Storage
The amount of space that comes with the CRM software package per user.
General Phone
The phone number to reach a general representative at the company.
Implementation Language
The type of programming language that the programs are written in.
Industry Solution
The type of industry that the Customer Relationship Management software can create solutions for.
Initial Release Date
The year in which the CRM software was initial released to the public.
Integration
The features related to combining and coordinating the CRM software with other office tools and programs you may use, as well as integrating further features into the program.
Latest Release Date
The date when the most recent stable version was released.
Latest Version
The most recent version released.
License
The type of license format that the Customer Relationship Management Software is distributed under.

9. Market Automation Features
The Market Automation Features assist in marketing and creating new leads for you company.
Market Share
The percent of the market that use the CRM software of this company.
Maximum Number of Users
The maximum number of users that can be applied to the CRM license under this edition.
Office Integration
Can the software integrate with office used software?
PC Mag Rating
Rating given by PC Magazine.
Price
The price of the CRM software plan per user, per month that the software license is acquired.
Product
The name of the type of plan the company offers.
Product Link
Link to further details about the product.
Sales Automation Features
The capabilities and options that help sales representatives close deals and collaborate more closely, eliminating the administrative hurdles and giving them fluid control.
Sales Phone
The phone number to reach a sales representative at the company.
Security Features
The ways in which the CRM software keeps confidentiality and security of data.
Server OS
The operating system with which the CRM functions.