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Rukmini Priyadarshini

Customer relationship management isn't just about evaluating vendor claims, says Trivium Systems. Do you, in the first place, know why you need a CRM solution?

Mathews Manaloor

CUSTOMER Relationship Management initiatives can offer huge rewards, but the challenges of implementation are usually underestimated by companies. Not until CRM is treated as a strategic initiative can the process yield returns on investment.

Often, a CRM implementation is largely taken up with evaluating vendor claims — each with an end-to-end, customisable, 360 degree e-business solution. If that is true for your business, you have certainly got hold of the wrong end of the stick. The logical first step is evaluate the need for a CRM programme, define its elements and then determine the scope of the solution being offered by rival vendors.

eWorld spoke to Mathews Manaloor, Chief Executive Officer and President, Trivium Systems Inc, which offers CRM solutions for small and medium businesses, on the pitfalls in CRM initiatives, the advance measures companies need to take and on the ROI parameters for a successful implementation. Excerpts from the chat:

What are the risks inherent in a CRM implementation programme?

The two Ps — Planning and Processes — are critical to zero in on a CRM solution. Successful CRM implementation needs to have top management buy-in, only then can the culture permeate down to the entire organisation.

Companies must look at their processes, identify pain points and chalk out what they would like their CRM initiative to achieve. An organisation must not try to solve all problems at one shot. It is better to focus on certain issues and tackle pain points one at a time.

Pitfalls occur when corporates do not have top management buy-in and when their CRM programme does not meet their needs. They may find the programme and their processes are not reconcilable.

There are a number of CRM solutions in the marketplace loaded with all kinds of features and functions. When it comes to cost, companies must evaluate what features and functions they really need. Why pay for something you do not need and will not use?

Such a recognition of needs is a major hurdle and one needs to do much internal analysis before implementing a programme.

The business processes for each work group have to be addressed effectively. For instance, the customer support and sales force automation teams need the product to track different customer interactions at different priority levels.

What infrastructural measures must companies implement before starting their CRM initiatives?

Certainly, companies need to do a lot of groundwork before a CRM programme. The organisation has to become customer-oriented. The attitude "CRM for the sake of CRM" will not work. The initial hurdles will be lack of IT infrastructure, long decision-making cycles, lack of involvement from people who will ultimately use the solution, fears on ROI and so on.

As a vendor, we have seen huge delays in implementation as the IT and support teams are not prepared for the CRM implementation. The hardware required has to be in place, otherwise CRM implementation can be a long drawn-out process.

Which modules in a CRM programme are generally most successful? Which are the least?

Customer Support and Sales Force Automation (SFA) modules generate early successes and can achieve returns on investment in time-frames as low as six months. There are many modules in addition to these but I would say that Marketing Automation is the least talked about. This is mainly because the paybacks are not directly measurable.

What are the ROI parameters for a CRM implementation?

The Return on Investment and the success of a CRM implementation can be visibly seen in increased revenues, win rates, customer satisfaction and profit margins. There is also a significant reduction in costs. In fact, through a suitable solution an organisation can even achieve double the results with the same people.

We had a recent situation with one of our clients, Ace Engineering, in Bangalore. Their ISO 2002 certification audit — a process that typically takes a week — was complete in less than 7 minutes. Since the customer had implemented SimpleRM (Trivium's 360-degree solution) they were able to show how their business processes worked and how they tracked their orders and what happens once the order came, in a matter of minutes!

priya@thehindu.co.in

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