Thursday, February 12, 2009

How To Retain Customers For Life With CRM

While you are working hard to attract new customers in order to maintain growth, your existing customers expect the same personal communication they had when you first attracted them.

If you want to retain your existing customers for life, you will have to develop a means of utilising time efficiently so that communication with your original loyal customers can be maintained, while your sales force is concentrating on attracting new ones. The answer is Customer Relationship Management (CRM). It is not a coincidence that CRM can also stand for Customer Retention Marketing!

Using modern CRM software you can hold all of your information on each customer in a central location so that it is easily and quickly accessed by all relevant authorized employees. All of the information required to maintain the good and effective communication that makes your customer feel valuable is available immediately in a single location to whoever in your company needs it.

A rapid response with instant answers to an enquiry shows the customer that he is important to you, a vital factor in retaining loyalty. Studies have proved that product satisfaction, while important in initially attracting customers, is not so important in retaining them. Customers like personal contact, which shows them that they are important to you.

Microsoft Dynamics CRM 3.0 is able to send personalised e-mails to customers to achieve this personal contact. The Small Business edition (SBE) is a powerful tool that allows small to medium businesses keep in touch with existing customers, while managing marketing campaigns designed to attract fresh ones and expand the business.

It is well known that many customers are more loyal to their contacts within your organization than to the company itself, and prefer contact only with their regular sales representative or account manager. Microsoft Dynamics CRM 3.0 enables these individuals to have all customer data at their fingertips through mobile or portable communications devices. Retention of customers for life is promoted through CRM enabling personal communication with their contacts who have all the information immediately to hand required to deal with their query, irrespective of its nature.

In cases where smaller businesses do not have the resource to allow this degree of service, Microsoft CRM provides data and reports which enable the company to use Pareto principles to identify the more profitable customers. The 80/20 rule states that 80% of profits come from 20% of the customers. Microsoft Dynamics CRM 3.0 SBE allows small businesses to identify these 20% and work to preferentially retain these customers for life. Although the other 80% of customers are important, and should also be made to feel important, it makes sense to focus restricted resources to ensuring loyalty from the most profitable customers rather than spreading them thinly and satisfying none.

Microsoft Dynamics CRM 3.0 is a powerful set of tools which integrates seamlessly with other Microsoft Office software and is therefore not only easy for employees to use, but can be customized to fit in with their existing working practices. This allows thin resources to be spread more widely by increasing their effectiveness by automating many repetitive tasks.

The loyalty of customers to their personal contacts can be so strong that it is not unusual for customers to move with their contacts. It is important to develop loyalty of your own employees to your company to avoid customers moving to your competitors when your sales personnel do. Microsoft Dynamic CRM 3.0 helps build this loyalty through the provision of powerful tools enabling your employees to provide customer satisfaction quickly and easily without having to learn too many new skills. This promotes job satisfaction, and hence loyalty.

Customer Relationship Management systems, therefore, enable you to retain customers for life by promotion of loyalty, not only of the customer to your company, but of your employees, allowing long-term bonding to cement relationships between customers and their contacts within your company.


Syed Ali, is the lead CRM Analyst for a Toronto based company. His company, offers Microsoft CRM software Solutions www.crmsoftwareprovider.com Syed can be reached at Tel : (905) 815- 1995 ext 22, email :asyed@cqsolutions.com

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Wednesday, March 19, 2008

Major players in the On-demand CRM field

On-demand CRM can be likened to a disruptive technology that proves its usefulness over a period of time and finally is there to stay. On-demand solutions offer good value to the customers, which is why companies such as Microsoft and Oracle are now joining the established players such as Salesforce.com.

On-demand CRM provides enterprises with the opportunity to concentrate on their core-competencies and let the hosted provider take care of the maintenance and technical aspects. According to research firm IDC, the on-demand CRM was of $ 4.2 billion in 2004 and will rise to $ 10.7 billion by 2009.

As against on-premise solutions, on-demand solutions are easier and quicker to install. The process of installing and deploying a traditional CRM can be a long-drawn process that may take anywhere between nine to twenty-four months. It begins with the purchasing of the required hardware, enlisting the help of professionals for configuring the hardware, setting up a data center, configuring routers, and making arrangements for backups.

mySAP does not provide functionalities such as quotation management, generation of product forecasts, customization capabilities for adding new fields and menu items. On the positive side, mySAP offers a fairly lenient contract that requires commitment for only 18 to 24 months from the customer. Clients can cancel their contracts and gain a complete refund without any penalty, the on-demand mySAP will have an upgrade cycle of 90 days, which is more frequent as compared to the on-premise version. The on-demand version of mySAP is available at $ 75 per month for a minimum of a 100 users.

Salesforce.com is one of the foremost proponents of on-demand CRM technology. Salesforce.com registered a growth of 83.7 percent in its sales for 2005 as compared to 2004. Salesforce.com has also launched AppExchange, which is an application-sharing directory and service intended to improve on-demand CRM. AppExchange will enable companies to develop CRM suites and business application functionalities without having to install software. AppExchange comes with connectors for SAP, PeopleSoft, Siebel Systems, and Oracle.

Salesforce.com does not charge a listing fee from individuals and companies that wish to provide their software through AppExchange. The company has just announced a new service plan called Unlimited Edition that will offer support for programs created by customers or other programmers and used through AppExchange. According to Salesforce, this will enable companies to access all their software on-demand. The basic Salesforce.com CRM package starts at $ 65 per user per month, the Unlimited Edition is available for $ 195 per user per month and it offers access to the complete range of Salesforce.com CRM applications and AppExchange as well.

RightNow Technologies too has grown steadily and revenues in 2005 were 40.9 percent higher than revenues from the previous year. Customers of RightNow Technologies include British Airways and John Deere. RightNow has a client roster that covers industries such as telecom, retail, education, and pharmaceuticals. Services cover the enterprise, mid-market, and small business segment and service elements include sales and marketing. The marketing-automation software provided by the company allows users to initiate campaigns across various channels and manage them easily. It makes real-time data available that enables quantification of the effectiveness of a campaign.

NetSuite CRM positions itself as the only web-based software vendor that combines e-commerce, accounting, and CRM in one offering. It targets SMBs with its product that it claims is on par with what the major vendors offered. Dashboards offered by NetSuite allow companies to access critical business information through more than seventy key performance indicators. The dashboards can be customized according to the roles to be executed by the various employees; trends are visible on the dashboard and meters track actual sales against forecasts. Tools offered by NetSuite include marketing, opportunity tracking, order management, lead conversion, forecasting, and case management. Businesses that are in collaboration can share customer and sales data through the NetSuite CRM+, which is a partner-relationship management application. The NetFlex platform introduced by NetSuite is positioned as an answer to AppExchange developed by Salesforce.com. NetFlex is web-based and it enables the development of applications such as database tables and forms.

Microsoft Dynamics CRM 3.0, which was released in December 05, has Avaya, Axonom, and Cisco Systems among its partners. Siemens Communications will be integrating Microsoft's Dynamics CRM software with its contact center systems. The Microsoft CRM offering is a single-tenant model, which means that Microsoft partners can host vertical solutions; however, for an upgrade, the patch has to be made available separately to each customer. Microsoft Dynamics supports a great deal of customization so that the CRM package fits in with the company's business model. The product which enables ad hoc querying is well-knit with Microsoft Office and Outlook. A marketing-automation module allows companies to develop targeted marketing campaigns, monitor the campaigns, send bulk e-mails, and build lead lists. Various aspects of service-scheduling can be managed by the service-scheduling module. Microsoft Dynamics 3.0 is available in a Professional Edition that costs in the range of $ 622 to $ 880 per user and $ 1244 and $ 1761 per server. The prices vary as per the features that one opts for. For SMBs, the hosted solution is priced at $ 440 to $ 499 per user and the per server price is between $ 528 and $ 599.

According to some experts, Oracle has the best hosted offering in the form of Siebel CRM OnDemand. Last year, Oracle acquired Siebel in a deal worth $ 5.8 billion and in the process also obtained around 3.7 million CRM users. CRM OnDemand offers capabilities such as hosted sales-force automation, customer service capabilities, an integrated call-center that allows for the management of communication in-house and via remote channels. OnDemand Release 9 can be integrated with Lotus Notes, Microsoft Outlook, and IVR systems. The sales-force automation tool enables the development of various accounts within a main account; this facilitates managing interaction with large clients. The call center feature enables VoIP integration and routing of calls to cell phones and other off-premises numbers. OnDemand allows for the apportioning of calls based on the skill sets of the call center agents. Call center managers can track agent performance and guide them accordingly with the help of features such as monitoring-and-recording, offline-coaching, and conference-calls. The Oracle offering consists of CRM OnDemand and Contact OnDemand and costs $ 150 per month for a user.

www.crmchump.org

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Wednesday, March 5, 2008

ERP Manufacturing Software Encompix Replaces MRP and CRM Systems

Sly, Inc., headquartered in Cleveland, Ohio, has licensed Encompix ERP software to replace a series of non-integrated systems including Caelus MRP and Goldmine CRM. Sly was looking for an integrated system that fit their business processes. One of the biggest factors in selecting Encompix was its ability to handling Sly's estimating requirements. The implementation will commence in 2006 at Sly's corporate office in Cleveland and their manufacturing plant in Mississippi. The firm was founded in 1874 as a manufacturer of foundry equipment. The company's experiences with dusty environments lead to its development of dust collection equipment. Today, the company designs and manufacturers custom-engineered dust collectors and scrubbers.

Encompix (www.encompix.com) has filled the manufacturing software requirements of Engineer-to-Order companies since 1992. The company name reflects the commitment to developing business application solutions that encompass the complex areas of project-based and job-based manufacturing. Encompix provides ETO manufacturers with a competitive advantage by improving bottom line results.

According to Thomas R. Cutler, spokesperson for the ETO Institute (www.etoinstitute.org), "Encompix continues to capture significant marketshare in the ETO environment because few other ERP vendors truly understand the nuances and significant distinctions of the ETO process versus the repetitive manufacturing process. Encompix now has more than 200 of the leading ETO manufacturing firms in North America using their ERP Software solution."

Encompix www.encompix.com Roger Meloy rmeloy@encompix.com 513-733-0066

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Monday, December 17, 2007

Is CRM Technology Living Up To the Hype?

Over the last few years the buzz about CRM (Customer Relationship Management) has grown extensively. It seems that every Sales & Marketing executive is talking about it. A study conducted by Jupiter Media Metrix found that U.S. businesses spent more than $5.2 billion in CRM technology software in 2001, a number that is expected to rise to $8.7 billion by 2006. CRM spending has been growing considerably, especially in financial services, retail, and telecommunications.

Many companies have invested in CRM systems to retain customers who demand more and better services by the day, but why? Due to recent trends, consumer behavior has changed dramatically in the last couple of years, and even more with current market conditions. According to a study made by The Center for Customer Strategy, consumers are less concerned with minor price differences, but choose companies based on their value-added services. They want to be able to get what they need, quickly. With tools like the Internet, its now a lot easier for both consumers and businesses to compare offers, and switch over if their needs arent met. This is especially true of high-value customers that produce the most profit for the business.

Businesses are scrambling for ways to retain these customers, and attract new ones in the process. So how is CRM an answer to keeping up with these trends? CRM is a strategy (no, not software) to transform your business to be customer, not product, focused. The CRM software is just a tool that helps the company carry out this strategy. Depending on its implementation, it can help your business identify who your customers are, what they need and anticipate what could want. It allows businesses to tailor offers to their current customers, building closer relationships that make them feel valuable. It can help eliminate contact and data overlap between departments and improve consumer service. For example, Leah Holzman, Marketing Manager of TradeCard Inc, explained how the marketing and sales departments in her company had problems tacking each others progress and customer data. They spent hundreds of hours managing disparate data across multiple systems. That is, until they implemented a CRM initiative with the help of Salesforce.com. Overall, CRM can make your company more efficient and customer-friendly to capture greater market share, increase customer loyalty, and attract more customers.

So far, CRM sounds like a dream come true. Yet studies show that more than half of CRM initiatives fail. Despite rising spending in CRM, a survey of 1,200 businesses executives conducted by the Data Warehousing Institute showed that 41% considered their CRM project a potential flop. Only 16% were satisfied with their CRM software implementation. As one senior marketing executive claimed, We turned a manual mess into an automated mess, and as a result we just made the same mistakes faster and more efficiently.

The problem with these companies is not that CRM automation fails to meet expectations. There are several reasons why these systems dont always generate the desired results. And most times, it has nothing to do with the software. The biggest mistake that a manager can make is think that once the software is installed, all problems will be solved. To be successful, a CRM initiative must be a company-wide strategic culture change and process design. It entails getting all your employees (not only customer service) to change the way they perform their every day tasks so that the appropriate information is collected and used in a productive way. The software is just a tool that keeps things organized so that a successful CRM is easier to accomplish. As any change in a corporate culture, this project requires complete support from senior management.

One of the most common problems is that data collected isnt used. Great sums of money are invested in collecting all different kinds of information on clients, yet many times this information is never analyzed, never used to understand the customer or provide all the benefits that CRM can deliver.

For better results, a company investing in CRM must first evaluate their current situation. They should determine what problems need to be solved, and what type of data are needed. Since implementation is often a complicated process (especially in large companies), it is vital to get input from all departments. It is also a good idea to include your customer in the process to get a better idea of what changes will be embraced. Often when a CRM initiative is left up to the IT department, it is harder for other areas of the company to accept any changes in processes (which are usually substantial). To be successful, the initiative must take place throughout the entire company. Employees must be trained to function with the new technology and processes.

When considering a vendor and/or product, its imperative that any software, system or processes implemented are flexible. They can then adapt, along with a company, to changing times and trends. This is especially useful in growing businesses, where needs might change as client bases grow and business expands.

No matter what precautions you may take when planning and implementing a CRM initiative, the only thing that can assure its success for the company are your people. After all, the whole concept of CRM is based on relationships. And those cant be completely automated. There is no technological substitute for a friendly voice or face that understands a customers troubles and is willing to go above and beyond to provide the best service. CRM can only help a company manage these relationships to provide a more personalized service to loyal customers.

Mark Levit is managing partner of Partners & Levit Advertising and a professor of marketing at New York University. For more information visit http://www.partnerslevit.com or call 212.696.1200. SEO Copywriting Makeover: Good Rankings but No Sales Part 2 of 2Karon Thackston

In Part 1 of this article series, we looked at a local home security site that had fairly good rankings but whose conversion rate was lacking. (You can see the original copy here: http://www.copywritingcourse.com/topsecurity-original.pdf.) Here in the conclusion, you'll see how several changes helped maintain this company's good rankings while improving their site's lead generation abilities.

The Rewrite

My first thought with the rewrite was to stop making "trust and urgency" the undertones and instead make them the obvious focal points of the copy. As usual, I started with the headline. The previous headline was:

When every second counts, turn to Top Security, Inc. who has been securing Orlando / Central Florida homes and businesses for 689,453,910 seconds.

I wanted something more direct so I changed the headline to:

Top Security, Inc. of Orlando
Security Systems From a Trusted Neighbor

This included one of their keyphrases and also made it perfectly clear this company was local and trustworthy.

For the introductory paragraph, I wanted to get the visitor's attention and hold it long enough to make a point: That security is something you need to think about now, not later. I opened with the following:

"If only Id called you sooner." "I never thought this could happen to me." These are just a few of the many comments we have heard from our customers in Orlando. Security systems suddenly became a top priority for them, but not until after theyd experienced a frightening break-in or a devastating fire. After these disasters, our Orlando neighbors were convinced that burglar alarm and security issues should be a forethought, not an afterthought.

The copy does not beat the visitors over the head with the fact that they could be hurt, face losses, or experience some other frightening situation. It simply plants a seed of "what if" and moves on.

This section of the copy also lends support to the keyphrases Top Security wanted to rank highly for. Because "Orlando Security Systems" can be an awkward phrase to repeat, I split it up in several instances to help the flow of the copy stay natural.

The remainder of the page speaks to the facts that Top Security is local, has longevity in the community, is right around the corner, and offers several other benefits national security companies simply can't (or won't). Benefit after benefit is listed and explained in order to drive home the fact that a local company can and will provide exceptional service. You can see the current version here: http://www.copywritingcourse.com/topsecurity-current.pdf.

All throughout these sections of the copy, keyphrases are reinforced in the copy. When applicable, keyphrases are used in bold phrases or others that include special formatting. However, I never forced keyphrases someplace they didn't fit just for the sake of doing it. Keyphrase placement has to meld with the copy, not overpower it.

The call-to-action for the home page was simple. It asked three questions dealing with the biggest complaints about home security that users or potential users have regarding dependability, false alarms, and price.

The Results

The high rankings Top Security had prior to the SEO copywriting makeover were retained for most terms and even increased for a few others. While that's great, what's more important is that lead generations from the site increased, which gave Top Security, Inc. a broader customer base and the potential to make more sales they previously would not have been able to make.

It just goes to show that, even if your site has high positioning, copywriting can play an incredibly important role in bringing growth to your business. After all, what's the point of having good rankings if you have no sales?

by Karon Thackston © 2004-2005
http://www.copywritingcourse.com

Karon Thackston is a veteran copywriting pro who specializes in SEO copy. If your copy isn't getting results, let Karon teach you how to write SEO copy that impresses the engines and your visitors at http://www.copywritingcourse.com. Be sure to check out Karons latest ebook How To Increase Keyword Saturation (Without Destroying the Flow of Your Copy) at http://www.copywritingcourse.com/keyword.#BREAK#

Karon Thackston is a veteran copywriting pro who specializes in SEO copy. If your copy isn't getting results, let Karon teach you how to write SEO copy that impresses the engines and your visitors at http://www.copywritingcourse.com. Be sure to check out Karons latest ebook How To Increase Keyword Saturation (Without Destroying the Flow of Your Copy) at http://www.copywritingcourse.com/keyword.SEO Copywriting Makeover: Good Rankings but No Sales Part 1 of 2Karon Thackston

It's been a myth for as long as the Internet has been in existence. Get good rankings and your site will be successful. I hate to be the bearer of bad news, but that has never been the case. What you get when you achieve good search engine rankings is a lot of traffic. That *can* be a wonderful thing, but it by no means guarantees even one sale.

You see, search engine rankings are not responsible for making sales. They are responsible for getting visitors to click to your site. If you (or your search engine optimizer) have done your job, you'll have descriptions in your search returns (or PPC ads) that bring in qualified visitors. But still even with qualified visitors, the engines are not in a position to make sales at your site. That's the job your copy and usability elements handle.

Top Security, Inc. faced this problem. They had good search engine rankings. They were listed on the first page of most of the major engines. They had the traffic. Sales, however, were not where they wanted them to be. What was the cause? One look told me the copy was the culprit. (Take a look at the original copy here: http://www.copywritingcourse.com/topsecurity-original.pdf.)

The Problems

Top Security had a tough sale by anybody's standards. They sold home security systems and maintenance services. (Something hardly anybody likes to talk about until after something happens, and it's virtually too late.) In order to get someone to move on products/services like home security, insurance, and the like, you really must develop a sense of trust and urgency.

When I first viewed the Top Security, Inc. home page, it was obvious that they knew what they needed to do. They had made a few attempts on the page in the form of graphics and MP3 files to accomplish those two goals. For example, they posted a current Threat Advisory graphic from the Department of Homeland Security (establishing urgency). There was also an MP3 that played kindergarten children singing "God Bless America" (plays toward patriotism and trust). Lastly, the headline was designed to try to build a sense of longevity. However, none of these was reflected in the copy. The most important part of the page was overlooked.

In order to turn the home page around, the salesman of the site (a.k.a. the words) needed to speak to the visitors in their own language. It needed to show them what can happen to those who have no security system and then offer a way to prevent those tragedies. The copy had to give assurances and build trust while at the same time helping visitors to stop procrastinating and make a move now.

While current rankings were good, there was still room for improvement. For search engine purposes, the copy needed to offer better support for the chosen keyphrases. There were virtually no keyphrases in the original body copy and that had to be changed.

The Solutions

The biggest part of the solution for Top Security was to develop copy for the home page period. The copy on the original site was minimal, was company-focused instead of customer-focused, and needed to do a better job of addressing the needs of the site visitors and search engines.

The new copy had to set a tone of trust and community since Top Security dealt only with local Florida residents. In fact, I pulled out all the benefits small, local companies can offer their customers in order to play up Top Security in the new copy.

At the same time, I wanted to weave the client's keyphrases into the text without making them stand out. The goal was to have a home page that read as naturally as possible to humans while giving the spiders and bots what they needed in order to boost Top Security's rankings.

In Part 2 of this article, I'll show you how I implemented the changes in order to improve conversions and what the results were.

by Karon Thackston © 2004-2005
http://www.copywritingcourse.com

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