Posts tagged Contact Management

From CRM Buyer (With Alex Jefferies)
01/29/09 4:00 AM PT

Organizations considering contact management or customer relationship management solutions must evaluate the sales model of their organization and implement the solution that aligns best with their business needs. It all depends on who talks to whom, write Aberdeen’s Andrew Boyd and Alex Jefferies.

The budget cuts and spending freezes resulting from the current economic downturn have reduced the number of legitimate opportunities for sales representatives; therefore, organizations are placing a renewed emphasis on cutting costs and customer retention to combat certain economic realities.

In an ongoing attempt to meet the expectations of prospects and improve the lifetime value of current customers, businesses are examining ways of unifying fragmented customer data and making this customer and account information available to the organization at large. Contact management (CM) solutions and customer relationship management (CRM) solutions are two primary technology enablers allowing organizations to gain better control of their information assets and processes.

CM solutions are productivity and sales automation tools designed to allow individuals or teams to manage contacts, opportunities, or account information more efficiently. CRM solutions, on the other hand, are process-centric, multi-module solutions that serve as a system of record for all customer interactions. Varying definitions and the lack of a standard definition between CM and CRM solutions have some organizations pondering which is a better fit for their business and why.

What You Need to Know

Over the past year, Aberdeen has surveyed thousands of end-users to better understand how sales interaction models influence technology purchasing decisions. The research reveals the choice between a CM and a CRM solution often boils down to the sales interaction model of the organization, as well as the business challenges the company faces.

For instance, an organization with a one-to-many interaction model, in which one sales representative targets multiple job roles within a company, may consider a CM solution in order to better organize account information and conversation details. On the other hand, a company with many sales representatives or marketing professionals targeting a single job role would prefer a CRM solution to log call activity and leave detailed relationship notes for one another.
Sales Models Influence Technology Adoption

Aberdeen has identified four common sales interaction models that require certain functionality from technology solutions.

• One-to-One Model: In a one-to-one model, there is typically a single representative that is tasked with selling into a single job role. Insurance agents and stock brokers, for example, typically practice one-to-one selling.

Take, for example, the following scenario: Bob, a sales manager at a small marketing services firm, believes that Jane, the founder of her own business, could benefit from his offerings. Understanding that Jane is the owner of the company and therefore the head of a small employee staff, Bob targets Jane as the job role with decision-making authority. A CM solution becomes Bob’s preferred solution because it allows him to keep accurate contact and company information on Jane’s business, as well as detailed notes surrounding their conversations.

• One-to-Many Model: In a one-to-many model, one individual targets multiple job roles within a company.

For example, say that a number of years have passed in our scenario, and Jane’s business has grown into a large national brand. No longer is Jane the one and only contact with purchasing power at the company; she now has a staff of decision-makers with buying power. Bob, firmly believing that his services can continue to help Jane’s business increase its exposure, targets the new CMO, COO, and EVP as he articulates his value proposition.

With so many conversations taking place with different people within Jane’s company, Bob relies on his CM solution to keep accurate records of job roles, phone numbers, e-mails, and notes. An added bonus of Bob’s CM solution is that it allows him to discern the relationship between contacts based on his notes or, in the case of more advanced CM solution, through contact grouping or networking.

• Many-to-One Model: In a many-to-one model, there are multiple individuals, such as sales, marketing and service professionals, interacting with a single job role at a company.

For example, the growth of Bob’s business has resulted in the development of new products and services. In this example, Jane has placed a call into a service representative with a related question to a previous project. The service representative sees alignment between Jane’s question and the latest product release; therefore, Jane is invited to a webinar that showcases the new product.

By using a multi-module CRM solution, Bob’s service professional can log the activity around Jane’s account and leave detailed notes so other employees, such as marketing professionals or accountants, know how and when to follow-up with Jane.

• Many-to-Many Model: In a many-to-many model, there are multiple individuals interacting with multiple job roles at a company.

For example, marketing individuals or service individuals at an organization target their counterparts at other companies to sell into. Bob, whose work with Jane’s boutique has catapulted his business into the spotlight, has filled out his own marketing staff and professional services offerings. These individuals on the marketing side target similar job roles at Jane’s company. This coordinated effort requires a heightened sense of internal visibility; therefore, Bob has replaced his CM solution with an integrated CRM tool. Bob is now able to access customer service information, accounting and billing details, and marketing data through his CRM system.

Recommended Actions

Organizations considering CM or CRM solutions must evaluate the sales model of their organization and implement the solution that aligns best with their business needs. If a company is primarily focused on taming information overload at the lowest cost and providing the greatest selling autonomy for their sales team, then a CM solution may be an ideal fit. On the other hand, if a company’s only hope at providing a 360-degree view of the customer to all parties within the organization is to integrate the data that exists in disparate silos, such as a contact center, marketing databases, or accounting profile, a CRM solution may fit their business needs. As is the case with any technology implementation, the organizational processes and performance metrics in place often provide a foundation for success.

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