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TIPS To Help You Choose The Right CRM Solution
The market is flooded with a gamut of CRM solutions so choosing the correct one for your organisation may prove to be a daunting task. In conversation with Vandana Sharma of BenefIT Bureau, Kunal Singhal, CEO, Singhal System Solutions, addresses this issue and lists the parameters that business heads should keep in mind while choosing a CRM solution, or any other software solution. He also shares a few best practices to help organisations make the most of their CRM solution, along with tips on quantifying the ROI from their CRM deployments.
Q: What are the kinds of CRM solutions available these days and how do they help businesses?
Today's CRM solutions are far more advanced than just a feedback form. They not only assist you in maintaining relations with your existing customers, but also provide the means to add new ones. Starting from a website with a feedback form to complex call centre management solutions -- all are CRM solutions in one way or the other.
Q: What business challenges can be best addressed through a CRM system?
Challenges or rather, business functions like sales force automation, contact management, lead management, customer service, partner relationship management, complaint management, and many other customer-facing tasks can be addressed through a CRM solution.
Q: What ought to be the considerations when zeroing in on a CRM solution?
Businesses should ideally assess their current requirements and anticipate their needs for at least the next two to three years. Any solution deployed should be scalable to accommodate and address the future needs of a business, as operational complexity invariably grows with time. But businesses need to be watchful about over indulging and buying the biggest or best solution in anticipation that they may grow big in the next five years. They need to understand one thing: the higher the investment today, the longer the features list; but on the other hand, the more complex the system becomes, the recurring costs till the company fully utilises the system, will also be higher.
Q: What is the difference between an offline and Web-based CRM solution and what ought to be the criteria for selection?
In simple words, an offline solution is installed on a computer system and can be accessed only by logging on to that particular computer system. On the other hand, an online solution is an Internet-based solution that can be accessed from anywhere, anytime. Choosing an offline or a Web based CRM system should ideally depend upon the geography and user base of the company.In order to reap the maximum benefits of a CRM solution, it is ideal to use it with an ERP system. If it has only one location, an online (Web-based) solution would be a waste. In fact, for about two to four locations also, an offline solution can serve the purpose. But if an organisation has more than four branch offices, it should only opt for an online solution.
Q: There is a lot of buzz around software solutions available on rent or as a service, commonly known as SaaS solutions. Should organisations opt for these or for on-premise, in-house solutions?
On-premise solutions are those that are completely owned by an organisation and deployed within its premises. On the other hand, SaaS or software-as-a-service solutions are managed and hosted online by a service provider or vendor, with zero hardware or software maintenance overheads for the company. SaaS solutions sound very cost effective as an organisation pays just a per-user monthly rental, which seems quite manageable on the face of it.
But there are a few very important points to consider here. Firstly, organisations shouldn't go by the monthly rental. They must always compare solutions by computing at least three years' total cost of ownership (TCO). It is interesting to note that some SaaS options that seem very low-cost, will suddenly start to appear expensive when the long-term TCO is taken into account. For less than half of this cost ('cost' here means the TCO of three years of a SaaS solution), an organization can buy a solution forever. But SaaS becomes relevant if the organization does not have the budget to make upfront investments.
Another important consideration or requirement for a SaaS solution relates to the availability of Internet bandwidth. The Internet is accessible at an affordable cost in metros and big cities. But it is still a luxury in most Tier-II and Tier-III towns. Any Internet downtime translates into work downtime, and this can eventually lead to loss of business. Last but not the least of the considerations is that since the custody of the data is with the service provider in the case of a SaaS solution, it is important to opt for a good, well-known and reliable solution provider. It is important to have the appropriate non-disclosure agreement and privacy policies documented and signed; otherwise things do get difficult at times.
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Here are a few solutions that Singhal System Solutions offers small businesses:
ERP systems for manufacturing firms: The system has all the required modules like purchase, sales, stores, production,fixed assets, HR, payroll, marketing and accounting.
CRM solutions: These solutions include modules like lead management, contacts, campaigns, issue or complaint management, and so on.
The price for both the ERP and CRM solutions starts from around Rs 3 lakhs. The solutions support unlimited number of users, shares Singhal. "ERP solutions for the service industry also will be available soon, " he adds. |
Q: Can a Web-based CRM solution be integrated with an on-premise ERP solution, or vice versa?
The answer is both a 'Yes' and a 'No'. Yes, as most current solutions allow integration with other solutions. And no, because if the ERP system runs on obsolete technology or is a very 'closed' solution, it may not integrate.Secondly, it is important to decide the level of integration that an organisation would need. The complete integration of the online CRM with an organisation's on premise ERP can expose its ERP server to the Internet.This may lead to security concerns. If a company like Google can be hacked to the extent that it had no other option but to close its operations in China, I am sure any organisation's on-premise security solutions can be no match for a seasoned hacker and may become vulnerable to security threats.
Q: Is it necessary to have an ERP solution along with a CRM solution?
Here, I would not use the word 'necessary'. But yes, these solutions definitely complement each other. Combining the two is more like adding glitter to gold. In order to reap the maximum benefits ts of a CRM solution, it is ideal to use it with an ERP system.For example, sales personnel using a CRM system will be able to quote better to a customer, if their ERP system informed them in real time about the availability of the product in stock, and in production.
Q: What are the best ways to quantify the ROI from a CRM deployment?
A firm can assess a few parameters to gauge the ROI on a CRM system. It can evaluate if there has been an increase in the number of customers, repeat orders and sales volume per sales person--month on month. If the response time to complaints has reduced; or if the MIS (management information system) reports for leads and sales generation give more accurate results, then these improvements help in designing better promotional campaigns.
-- Vandana Sharma
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