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With CRM Software, Consider Best Practices

VII. Consider Best Practices Utilization

Why Do We Use CRM Software Best Practices?

Best practices are techniques, tips, and tricks that have evolved over time through research, planning, and
historical deployments. The process of yielding best practices typically involves a series of trial-and-error stages implementing a technique or methodology and then evaluating its effectiveness. If the result is positive, the technique is kept, refined, and distributed to other members of the organization or other organizations. If the result is negative, the practice is thrown out and another technique is tested. This substitution repeats until a positive result is reached. In the end, the organization is left with a group of techniques and methodologies that when employed will increase the productivity and effectiveness of the implementation effort or production system as a whole. Best practices save organizations from spending valuable time figuring out what somebody else already knows. In other words, don’t reinvent the wheel.

Best Practices Best Used In Moderation

Our view that a minority of CRM software Best Practices can comprise the majority of the tangible and lasting value for a CRM implementation project has been substantiated by a few different comprehensive studies. One study, by Accenture, surveyed top executives among communication companies that comprise 72 percent of the industry revenues in North America. The study evaluated the effects of the strategy, process, technology and human performance components of CRM on marketing, sales and service.

This study is one of the few known to have quantified the measurable impact of CRM capabilities on financial performance. The results of the study revealed that a small but select number of marketing, sales and customer service capabilities could have a major impact, potentially hundreds of millions of dollars, on a company's bottom line. A difference of as much as 50 percent in return on sales between average and high performing companies was attributed to CRM performance.

Examining 54 CRM software specific capabilities, the study identified 11 specific areas that have the greatest impact on a company's financial performance. The study also claimed that each of these 11 capabilities had the potential to add $20 million or more to a typical $2 billion communications business unit's return on sales. These results contradict the traditional view that most CRM capabilities are equally important.

Customer Relationship Management
  1. Start with Business Strategy
  2. Assemble the Right Project Team
  3. Leverage an Implementation Methodology
  4. Insist Upon Structured Project Management
  5. Prepare For Change Management
  6. Plan Early For Dirty Data
  7. Consider Best Practices Utilization
  8. Don't Forget Risk Management