Small businesses face many challenges. After all, larger firms are likely
to have stronger brands, steadier finances, and more internal resources. To
combat this, small businesses must find ways to use their smaller size to their
advantage. One example is with small business CRM systems. CRM applications
turn knowledge into an asset, and small businesses have some advantages when
it comes to implementing a CRM program.
Small businesses often aim to leverage two things: a base of contacts and
an idea about the process of selling to these contacts. These can be advantages,
but only if the business systematically capitalizes on them. CRM software helps
a business do that, and thus turns this background knowledge into a true business
asset.
Small as an Advantage with CRM Applications
All of the following are beneficial ways to use CRM applications, and each
of them is easier for a small firm to execute than a large one. At start-up,
CRM software can be made the standard operating procedure, and data can be
accumulated at a natural pace. In contrast, larger firms develop routines
that are difficult to alter, and large stores of information make a transition
to a CRM system more time-consuming and expensive.
- Quantify the Knowledge Base. An entrepreneur may have
a list of contacts, but until he or she can quantify what this represents
in potential sales, it
is difficult to formulate reliable sales plans and budgets.
- Refine Proprietary Data. Publicly available data is generally
rife with errors and outdated information. By refining the data from
the start, a business
can quickly develop a proprietary database which is more reliable than
commercially-available information.
- Get Training Done at the Start. This is much easier
than stopping everything for CRM training once the business has hit
full stride.
- Test Key Assumptions. CRM applications can help test
different marketing techniques and value propositions, so the organization
can hone
in on a successful
formula more quickly.
- Monitor Sales Activity. Sales is a numbers game,
so tracking activity is the first step in identifying whether the
sales
effort is on
track.
- Eliminate Duplicate Processes. Businesses without
comprehensive relationship management systems are full of duplicate
processes, from
recording client and
prospect data to reporting.
- Avoid Cumbersome Transitions Down the Road. If
all goes well and the business is a success, it is going to
need a CRM
application
eventually. Building CRM
processes into the business from the start is much less cumbersome
than a transition later on.
Tips for Making CRM Software Affordable at Start-Up
Of course, start-ups are often trying to run as lean as possible, and they
may view investment in CRM as something they will tackle in the future. As
described above, though, there are distinct advantages to implementing a
CRM program from the beginning. The following tips can help make doing so
more cost-effective:
- Use SaaS. CRM applications can be accessed on a software-as-a-service
(SaaS) basis. This can reduce the upfront costs of software and data storage.
- Look for versatile providers. Look for small business
CRM providers that have scalable products that can grow with the enterprise.
Also, vendors
who can
start CRM applications on a SaaS basis but also have the capability to
transition it in-house can make future changes more seamless.
Sources
Destination CRM Magazine
Forbes.com
