Which CRM Solution Is Right for My SMB?

Assume that an SMB has made a decision to consider the deployment of a CRM solution. The next step is to determine which solution or aspect thereof is the right one for the SMB. If a CRM solution is to be further integrated with the Cisco ICM or IPCC product families, all of the design considerations that apply to the deployment of those product families or even their individual components apply here as well.

When determining which solution to deploy, begin by creating a CRM solutions shortlist and follow with a systematic approach to reviewing CRM features:

• CRM shortlist— There are plenty of CRM vendors, most of whom are not even mentioned in this chapter. At some point, you need to come up with a shortlist of the potential candidates. Zero in on two or three vendors and review the CRM offering of each for your particular industry. In the process, consider the following:

  - A company such as SAP services more than 20 industries, which is a reflection of a high degree of expertise across many types of businesses.

  - Some companies service only one vertical market, which might happen to be yours.

  - A comparison of offerings from a smaller and more vertically focused software maker with those of vendors that possess vast capabilities across numerous industries might reveal software features and even bring to the surface aspects of business operations requiring attention that the SMB might not have considered before.

  - A vertically focused vendor might have a wider range of features for a particular industry that might alter an SMB's perception as to how to conduct business.

• CRM's scalability— Get answers to the following questions:

  - How does the CRM solution scale as a function of the number of users?

  - What is the relationship between the number of users and the required hardware platforms for the solution?

• CRM's contact channels— Get answers to the following questions:

  - Does the solution cover the typical contact channels (marketing, sales, service)?

  - Does the SMB require all of these contact channels initially?

  - Is the software sufficiently modular to provide only the desired channels at a reduced cost?

  - Is the addition of modules possible over time without a major integration project?

• Analytics— Get answers to the following questions:

  - What are the analytics capabilities of the software?

  - Does the solution possess business intelligence capabilities or mostly static historical reporting?

  - Is the solution capable of simulations?

• Effectiveness measurement— Get answers to the following questions:

  - Does the solution have a mechanism to measure its effectiveness (following implementation) as a function of the initially established goals for CRM deployment?

  - Does the measurement mechanism match with how the SMB envisions effectiveness measurement?

• Customer contact platform— Get answers to the following questions:

  - Is one of the Cisco contact platforms (ICM with traditional ACDs or IPCC) applicable to support the selected CRM solution?

  - Is there an integration interface or an adapter between the CRM solution and one of the Cisco platforms?

  - Could the SMB still benefit from a Cisco contact platform without a direct integration with the CRM solution? Consider that calls can still be routed based on the customer input and the caller ID without a direct integration with the CRM database.

Now, put yourself in the position of different categories of SMBs and consider the uniqueness and similarities of the CRM design process. Doing so might, in some cases, lead you to conclude that a formal CRM solution is not necessary. Given the diversity of the SMB market, there is no one-size-fits-all formula for a successful CRM deployment, even within the same industry.

I Am a Retail Outlet

What kind of retail outlet am I? Am I a mom-and-pop shop, a small geographically localized grocery chain, or a regional furniture store?

Generic Mom-and-Pop Shop

Consider a mom-and-pop shop with a single outlet in a small town. Inventory levels are checked visually, and product bar coding is still on the drawing board. Chances are that no extensive CRM solution or customer contact platforms are necessary here because the store operators probably know most of their customers on a first-name basis.

But what happens if some of the products sold at this mom-and-pop shop are so culturally or otherwise unique that they could attract worldwide demand, given the proper marketing and the ability to service a wider market? Would a CRM solution and even a robust IP-based contact platform have their place in such a scenario? Apply the criteria outlined in the earlier section “CRM Deployment Considerations” to determine the need for a CRM solution for this mom-and-pop shop suddenly being thrust into the global marketplace.

Small Grocery Chain

Consider a well-established local grocery chain with several outlets in a small geographical area. The biggest challenge the chain faces is warding off competition from larger supermarkets. A CRM solution would certainly be desired to allow this still successful chain to service its customer base more and more effectively to keep them away from the competition. A key element to consider in this kind of CRM software is the integration with the back office application that relates to inventory control and supply chain management (SCM).

Assume that this SMB implements some sort of a very important person (VIP) frequent shopper program, which collects at sign-up time the typical minimum information from the customers, including name, address, and phone number. This information is then linked to a customer ID that is put on a bar code on a plastic keychain card and issued to a customer. This simple system allows that customers' collective buying habits—including types of goods, volume, monetary value, and date of purchase—be captured and subjected to analysis.

If the SMB wants to try a more creative approach to get a leg up on the competition, consider the capture of other customer-related information that often gets lost in the grocery business. For example, suppose that this SMB allows customers to specify items that they would have purchased but which were out of stock at the time of visit to their store. Not too many retail grocers are concerned about back orders, at least not in a concerted fashion. If a customer is issued a handheld scanner that allows the capture of unavailable items, it can readily assist the SMB with SCM.

For this process to be successful, the store must implement certain procedures. A bar-code label must be readily accessible on the shelf for the unavailable item(s). And ways to ensure quality control must also be in place. For instance, if a customer scanned an item that was in the inventory, the software would recognize it as an invalid event. If the customer entered unreasonable quantities for certain items, the software would also have to recognize these as invalid events. But an element of business intelligence would begin to emerge over time from the capture of that information. Wouldn't a typical grocery shopper be surprised to receive a personalized note in the mail acknowledging the request for the unavailable item and letting the customer know that the item was expected to be back in stock on a certain date? Wouldn't that increase customer loyalty? And isn't customer loyalty what CRM is all about?

Consider for a moment the underlying networking technologies at work here. Naturally, a customer is not going to walk around the store with a cable snaking hundreds of feet, so the scanners have to be wireless. If the data about unavailable items is captured and processed in real time, it's possible that a small back-order printout could be waiting for the customer upon checkout, which would be a good reminder for the next shopping trip. An IP-based contact platform might not be necessary in this scenario, but certainly a LAN/WAN networking infrastructure (there are multiple branches) is a must, along with the ability to integrate customer input with the marketing effort in terms of mailings to frequent shoppers, advertisements in local papers about popularity of certain items, price comparisons with competitors, and more.

Regional Furniture Store

Besides the goods that they sell, the fundamental differences between grocery and furniture stores are the frequency of visit by the same customer and the value of an average item. Buying furniture is a drastically different process than going grocery shopping. A furniture salesperson spends a lot more time with a prospective buyer than a clerk does with a grocery store customer. What unique CRM features would an SMB operating a furniture store look for?

As a general rule, in the furniture business, customers do not buy major items on their first visit to the store. They are also accustomed to waiting for furniture that they want if it is out of stock. The customers are also likely to do some comparison shopping if there are multiple furniture stores in the area, and Internet-savvy shoppers might decide to try online auction sites or outlets. Because of all these factors, the marketing aspect of CRM that is deployed by a furniture store should be strong. Elements of the overall success of such an SMB will include capturing customers' demographic information without intruding upon their privacy, understanding the current trends and styles in different geographical areas, and being able to launch multichannel advertising campaigns.

A call center platform might not be necessary for a furniture store. However, an SMB could beat its competition by such strategies as having a network with Internet access so that customers can compare the SMB's items to those of competitors, having digitized catalogs that lend themselves to viewing of unavailable items in full color and via simulations, and providing customers with color printouts or even CDs of the items that they are considering. If product and catalog management application can fit under the CRM umbrella, it's likely to prove itself useful in the furniture store environment.

I Am a Bank

What kind of bank am I? Am I a single-site community bank, a multisite bank or credit union, or a branch of a national or even an international bank?

Single-Site Community Bank

For a local community bank where customers conduct most of their business in person, a financial CRM solution is a must, but an IP or even a traditional ACD-based contact center is likely overkill. Instead of having customers who call the bank navigate a series of voice prompts before being directed to the best available financial specialist, an attendant answering the phone with a smile and manually transferring the call to an appropriate extension might be more in line with the image that a community bank wants to project.

A traditional rather than an IP-based IVR system that allows customers to check their account status or perform funds transfers should be sufficient to meet the needs of such an institution. However, because of competitive pressures, a small bank might not be able to continue in this mode into the distant future.

PBX-based phone systems, if not upgraded, eventually become dated, and their maintenance costs begin to soar. Internal users, more than customers, might find the system less and less responsive to changing business demands or internal communications requirements. Under these conditions, even if an IP-contact platform like IPCC is viewed as overkill, an IP Telephony solution by itself might well bring such an institution to a new and higher level of customer service and internal efficiency. The alternative might be a buyout by a larger financial institution, in which case an IP-based telephony solution will probably be implemented anyway.

Multisite Bank or Credit Union

For a multisite financial institution to function with any degree of efficiency, it needs to possess an IP-based WAN that interconnects all of its branches. Assuming the institution is geographically localized but nonetheless offers services to nonlocal customers who might want to call in via a toll-free number, the institution can easily benefit from an IP Telephony solution that supports a customer contact platform and that possibly integrates with the CRM applications.

Considering the level of competition in the financial services industry, customer acquisition and retention are critical. In the event that the IPCC contact platform is deemed unnecessary (at least initially), an IP Telephony solution that incorporates the CallManager and IP IVR is a logical choice for that type of institution.

Branch of a Major National or International Bank

An SMB networking solution for a major bank stretches thin the definition of an SMB because major banks are likely to have thousands of employees. However, the idea of modularity means that a branch of a major bank can be treated as an SMB, with interfaces and connectivity to the headquarters and other branches.

The concept of modularity also applies to a major bank's call center as a discrete component of the financial mammoth. A major bank probably has a call center operation, which means that an effective customer contact platform is desirable. In fact, if the call center is going to be distributed between multiple locations, given the IPCC's scalability and potential for integration with CRMs, IPCC becomes a serious contender for a customer contact platform for any major financial institution.

I Am a Manufacturer

Consider that a manufacturer is going to need an outlet for its products. From the CRM perspective, the size of the manufacturing operation is going to be less critical in making the decision to deploy CRM than the nature of the goods and the manner in which they are being distributed. Are the goods of such a nature that customer service might be required following their sale? Software products, computers, and all kinds of appliances and technical gadgetry fall into that category. Screws, nails, and all other plumbing supplies likely do not. If customer service is a requirement following the sale, then a CRM solution should be considered. But where exactly the CRM solution is required in the chain of distribution depends on how the goods are distributed.

How is the manufacturer distributing its products? Is the manufacturer acting as its own retail outlet or relying on distributors? If it relies on distributors, how many are involved? If a manufacturer is working with one or two major distributors, the distributors rather than the manufacturer are most likely going to require an effective CRM solution and a customer contact platform. If the manufacturer is working with a much larger number of distributors but still not retailing to the end users, then a CRM solution for managing the distributors as clients might be desirable. If the manufacturer does its own retail distribution, apply the procedures and CRM selection criteria, as outlined earlier in this section.

From the overall business perspective, any manufacturing SMB should consider an effective ERP application that satisfies the manufacturing operations, quality control, human resources, and supply chain management (SCM). In addition, if the SMB meets the criteria for deploying a CRM solution, it might be desirable for the ERP to be integrated with the CRM in one package. The issues related to CRM and ERP integration are considered in Chapter 10.

I Am a Hospital or a Health Clinic

Unlike some of the manufacturing SMBs that work through distributors and never interface or interact with the retail end users of their products, hospitals and health clinics of any size do much interfacing and interacting, either with individuals or their family members.

Such interfaces and interactions are complex, and deep emotions are frequently involved as a result of difficult health issues with which individuals must cope. Add the financial pressures that individuals face due to high health care costs. And, at a time when individuals are already finding themselves in life-altering crisis situations, sprinkle into the equation last-minute discoveries of the meaning of what is in the fine print in health insurance policies and the subsequent haggling with insurance companies that do not want to cover certain conditions. Any credible CRM solution should seek to alleviate as much as possible all these stress factors in the SMB health care environment.

For SMBs engaged in health care, the case for a CRM solution is clear and compelling. But what are the critical specifics of a health care CRM solution? A hospital or a clinic might not engage in a lot of sales or marketing of its products and services, but the capabilities of the service aspect of the solution it deploys need to be able to compensate for the possible absence of the other two customer contact channels.

SMBs in the health care industry need to collect a great deal of personal and health history information for each patient. The complexity of financial arrangements for treatment requires a CRM application that can accommodate a variety of personal financial information. Financial arrangements can be complex, given the number of health care plans and government programs that are available. At a clinic that is subsidized by government grants, the same service is priced differently depending on patients' income levels and ability to pay. Aside from the vertical medical software related to patients' care, any CRM solution in the health care industry should have a solid integration with the billing and collection processes.