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What Kind of Idiot Runs a Business without a Customer Relationship Management (CRM) System?

Posted by Pete Caputa on Wed, Sep 03, 2008 @ 07:18 AM
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IF business owner = idiot WHERE business DOES NOT HAVE CRM
THEN 80% OF business owners MUST BE idiots.

Most small businesses do not employ a CRM. Many "have one" but don't use it. I'm not saying it's easy. But, it's necessary for any small business that wants to be bigger or more profitable someday.

Here's a great list of questions about CRM that you should ask yourself.

  • Do you know who your most profitable customers are, and what they purchase?
  • Are you aware of the current sales opportunities your sales team is working on?
  • Do you know which opportunities are at the beginning, middle, or end of your sales process?
  • Can you list the marketing campaigns that generated revenue and which ones failed?
  • Do you know the reason for the successes? How about the failures?
  • Employees only need to go to a single database for all business information, right?
  • Employees never have to enter the same information in more than one database or spreadsheet, eh?
  • Do you provide your sales people with current customer account status to avoid wasted time?
  • Can you easily control information access for each employee?
  • Do you have a trail of: Communications with your clients, problems reported, and solutions implemented?

Whether you use Sage CRM, Salesforce.com, Microsoft CRM, Landslide, Zoho, or Sugar CRM, it doesn't really matter. You need to start implementing.

COMMENTS

Make perfect sense Pete. But all of your examples point to multi-employee situations. Don't see how it applies to sole proprietorships.
I can more or less answer each of your questions to my satisfaction, I use my Outlook Contact Manager system to track most activity, and of course I have my Hubspot and LivePerson and Google Analytics to help with others.
So why am I an Idiot??
:-)

posted @ Wednesday, September 03, 2008 9:10 AM by Doug Sauerhaft


Hey Doug. I think I need to tone down my rhetoric a bit. I sound like a politician with all of these resolute ideologies.
Of course, there are always edge cases. If none of the questions above apply to you and you're killing your sales numbers, then I guess you don't have to worry about having a CRM.
However, I'd encourage even solopreneurs to consider whether they can truly predict their revenue and if not, why? I was a solopreneur and primary salesperson for 3 years in my own business. I tried to use SFDC, but didn't understand why I should, and therefore, didn't make the effort to really implement it. I too, used a spreadsheet. When I joined HS, I was forced to use it. 9 momnths in, I have no idea how I'd live without it. So, looking back, I now know that If I had better systems for follow up, keeping track of sales stages, making sure I had enough prospects in beginning, middle, end of the process, etc.... I would have closed more deals.
I haven't used Outlook in a year or so, so maybe you can do that in there. But, I think it's pretty easy to get caught up in reactive sales mode instead of proactive sales mode in an email client/calendar.

posted @ Wednesday, September 03, 2008 9:45 AM by Pete Caputa


In my experience, its not that they don't know they need it. Its that they know that it requires some standardization of processes, etc. and they either don't know where to start or aren't willing to invest the time to make a CRM or Contact Management system work for them.

posted @ Thursday, September 04, 2008 2:53 PM by Craig Klein


I think you're right, Craig. They don't know where to start or how to make it work for them. I also think they haven't thought through what the lack of having a CRM is costing them OR how a CRM could help them make more $ easier.
That's why I thought this list of questions was spot on.

posted @ Thursday, September 04, 2008 3:01 PM by peter caputa


There are a lot of CRM solutions out there and I am tearing my hair out trying to settle on something. Everything I have tried so far seemed to disappoint me in various ways. Anyone has suggestions on their preferred CRM?

posted @ Friday, September 05, 2008 11:54 AM by May Chu


Hi May. I am very partial to Salesforce. We use it very succesfully at HubSpot. It really grows with the organization. However, with your price point, I really am not sure it's worth it. I can't see you ever picking up the phone to sell someone on a $10/month service.
What is it that you're looking for that you're not finding?

posted @ Friday, September 05, 2008 2:03 PM by Pete Caputa


Well, we set up the lead generation form for hubspot to track the leads, but we have several different types of leads and conversions we would like to track for an online business.
Prospect Demos / General Prospects
User sign ups
Business Created for free trial
Businesses that will pay for the software
Currently hubspot does not allow us to track these separately.
It would also be nice to have some drip email thing that automatically sends emails to clients on a free trial 7, 15, 25, 29 days into the 30 day free trial. Like something that can do email marketing as well.
I really need something that will allow me to export my contacts at any time.
I think I might have to get Dobes to custom code something into our system to track the leads and conversions separately. Currently on hubspot, all the leads are aggregated into this one long list.

posted @ Friday, September 05, 2008 3:19 PM by May Chu


Hey May. This is another issue that you should post up in the success forums. I don't have experience doing this myself, but I'm almost 100% positive that there are ways to determine what kind of conversion is occurring and then download different ones. Please post that in the forum. For your drip email, I'd encourage you to check out Aweber. You can set up HubSpot to send new emails to aweber (or custom code it) and then assign to different buckets for different drip campaigns. It's a pretty simple solution that is also pretty inexpensive.

posted @ Friday, September 05, 2008 3:47 PM by Pete Caputa


Hi Pete,
I believe Dobes had already posted something about this in the Hubspot forum and currently there is no easy solution. Hopefully it will be a feature down the road.

posted @ Friday, September 05, 2008 4:59 PM by May


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