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Ten Stupid Reasons Companies Give for Not Buying CRM

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					Ten Stupid Reasons Companies Give for Not Buying CRM
Poll 100 managers of IT, Sales, Marketing and Customer Service and you will get 99 reasons
why they can’t, won’t, or shouldn’t invest in a CRM solution for their company. The 100th
individual will say… “This is a no-brainer!” and buy the CRM software.

Why? Because they don’t understand!

This white paper reveals the 10 most common reasons that companies give for not considering a
Customer Relationship Management (CRM) solution. I understand the variety of well-
intentioned reasons for not listening to a CRM sales call or for tossing a CRM direct mail piece
into your circular file. But, so often companies don’t know what’s good for them!

Consider a personal example: If a financial consultant calls your home to present his services,
should you listen? I am very glad I did! I was trying to manage my own retirement planning with
my limited knowledge and no time to develop expertise on the financial markets where I should
invest. The service I signed up with got me into more secure real estate investments, better
mutual funds and reduced my investment expenses. I am much more confident that I’m headed
down the right path to retirement, and it’s not costing me a dime out of my pocket! The firm
works off investment commissions and has done a great job!

Is there a CRM solution out there that will allow you to cut costs and grow your portfolio? I bet
there is! If you aren’t willing to listen because you don’t have the money to buy new software or
the people to install it, etc., etc., etc… Then you may be making a very shortsighted decision. It
could be compared to a car that is nickel and dime- ing you to death, but you haven’t stopped to
add up the costs. Maybe a new (or later model used) car would actually perform better and save
you money! With a little bit of research, you can determine if the timing is right for CRM, or if
you’re better off doing it the way you do now.

Let’s look at the 10 Stupid Reasons companies frequently use:

1) We don’t have a budget for CRM.
   a) While budgeting is an important part of planning for a company’s future needs and
      allocating resources to the right priorities, who knows on the day the budgets are
      approved, that the chosen expenditures have the greatest impact on the bottom line.
      Things change! In 2, or 6 months, solutions become available to solve problems you
      never dreamed of!
   b) If a CRM solution could pay for itself in 3 months, who needs a budget? I hope your
      management can find away to fund this, even if they need to finance it. If they can’t, why
      not? I think the controller need to get involved here to educate the management team on
      the future payoff of a solution that can pay for itself in 3 months.
   c) Is someone in charge of looking for technology solutions the can grow your business?
      Empower someone and let him or her find solutions and put them in the budget! What do
      you have to lose?


                                                1
 Touchtone Corporation · (714) 755-2810 · (800) 786-8663 (USA & Canada) · TouchtoneCorp.com
           3151 Airway Avenue, Bldg. I-3 · Costa Mesa, CA · 92626 · Wintouch.com
2) Our IT staff is too busy with other projects to work on a CRM project.
   a) Who is setting priorities here? Are these decisions based on the impact on revenue or
      how much time and money the project will save? Do you know how much time or money
      it will save? How will a CRM project contribute to the sales growth that your company
      desperately needs? Priorities are key to the growth of your business!
   b) Some CRM solutions can be installed with very little help from your in-house IT staff. If
      little IT staff time is needed, this is a bad excuse. Sometimes it takes a little more money
      to have more of the installation and integration done by outsiders or the CRM vendor, but
      this may actually save you time, money, and frustration in the long run. Weigh all the
      options before using this excuse.

3) We have no need for a CRM.
   a) This has got to be the stupidest response! OK, I understand that you don’t like
      salespeople calling you and asking questions, but how does your own company sell its
      products? If they sell by phone, then cut these poor CRM salespeople some slack! If
      you’re the right contact, listen to the caller for 30 seconds before writing him or her off, if
      not, refer them to the correct co-worker or the one you owe the next practical joke to.
   b) If you truly think your company has no need for CRM, then you must understand all of
      the facts around the following:
      i) Software applications currently used by sales personnel
      ii) Sales activities, documentation, communication and coordination with other
           departments
      iii) Understand all of the interactions between sales and other departments: Accounting,
           Customer Service, Production, Inventory Control, Management, HR, Legal,
           Contracts, Strategic Alliances, etc.
      iv) Understand the sales process and sales cycle intimately, so you can judge which
           processes waste customer time, salesperson time and the time spent by all other
           departments in support of the sales effort.
      v) Salesperson turnover rates, what companies they ultimately leave your company to
           work for, and security procedures and policies in place at your company for current
           and departing employees to keep your customer records out of competitors’ hands.
      vi) Ordering procedures of inside and outside sales people, when and how salespeople
           place orders for products for their customers, as well as the ability for the salesperson
           to advise the customer on status, delivery, back orders, etc. to keep and grow
           customer loyalty.
      vii) Understand the functional areas and contacts within each prospect and client
           company as well as interrelationships between companies and their parent companies,
           subsidiaries and branches.
   c) I think you get the idea…. If you don’t fully understand the selling process and the
      people, processes, systems, and information involved, how can you be in a position to
      judge whether a solution is needed or not?

4) We’re waiting for economy to turn around.
   a) What? Don’t let the President hear you say this! Any employee that is waiting for the
      economy to turn around better tune up their resume! If you’re waiting versus trying to
      find new ways to increase market share and earn more business from existing customers,
      you may want to rethink your strategy. I would venture that you are not considering
                                                2
 Touchtone Corporation · (714) 755-2810 · (800) 786-8663 (USA & Canada) · TouchtoneCorp.com
           3151 Airway Avenue, Bldg. I-3 · Costa Mesa, CA · 92626 · Wintouch.com
      technology solutions, such as CRM that can steer salespeople to new prospects and
      educate all sales personnel about opportunities for cross-selling and up-selling that your
      company is missing right now! And the payback could be very short, from a few weeks
      to a few months. But how do you know, if you’re not looking?
   b) Someone is still getting the business in your industry…. Why shouldn’t it be you? Do
      you want to let your competitor keep his share of the business and you keep yours? Why
      can’t you try to earn a bigger share of the customer’s purchasing dollar by providing
      better service, being more aggressive or cross-selling other products? Could it be because
      you or your salespeople don’t have the right information to understand these
      opportunities? If you don’t have the right CRM solution in place, it is VERY likely you
      are missing many opportunities!
   c) How do you know that some of your customers aren’t buying more, from your
      competitors? Are your salespeople aware of their customer’s “share of wallet” with each
      of their accounts? How do they communicate this to the inside sales people or customer
      service reps? How? Is it on a computer screen in front of them? Could it be? What value
      would this have to all employees who deal with customers? Could they help address
      opportunities and win incremental business?

5) We don't have traditional customers.
   a) So, does this mean that they will like you no matter what you do? Or… that if their
      salesperson for 10 years moves to your competition, that they will still buy from you? I
      doubt it!
   b) CRM helps you keep control of your customer information, and track opportunities and
      activities with customers to better service them from all fronts, sales, marketing,
      customer service, etc. It doesn’t matter whether they buy once a year, over the internet, or
      with orders written on paper towels, it pays to store all customer activity records in one
      place and where all employees can better service customers with knowledge of who they
      are, what they want, and when, where, and how they want to get it.
   c) Show me an untraditional customer who does not want to be serviced well, and I’ll show
      you a company that is losing market share to his competitors and doesn’t even know it!
      We hear from companies like this every week.

6) We’re looking for an NT solution not an AS/400 one.
   a) Now this is an interesting posture…. Some companies like to have software running on a
      bunch of PC’s running on the most insecure, virus-ridden platform in existence. They
      have IT staffs that spend much of their time upgrading, troubleshooting and servicing
      software to keep the company functioning. All CRM packages don’t work this way.
   b) There is an alternative. You can have CRM software that runs on the most secure, stable,
      and virus-free platform in existence, available over a browser, to eliminate time,
      maintenance and updating issues! In addition, it can web-enable your green-screen
      applications and back-end legacy or ERP applications.

7) ERP is the top priority at the moment.
   a) ERP systems are important. They can help you organize your business from operations to
      accounting, save you money and help you be more efficient. But you need to ask
      yourself, given all the IT projects you could undertake, which one is going to have the

                                                3
 Touchtone Corporation · (714) 755-2810 · (800) 786-8663 (USA & Canada) · TouchtoneCorp.com
           3151 Airway Avenue, Bldg. I-3 · Costa Mesa, CA · 92626 · Wintouch.com
quickest impact on the bottom line. If this economy is causing your sales to be a little slow, what
would boost your revenues now? For about the cost of an admin for a year, you can install a
CRM package that will help you locate sales opportunities, cut marketing expenses and earn the
loyalty of customers on the verge of finding your competition.
    b) What is most important to your firm right now? Ask the President. Ask the controller.
        The decisions you make now are key to the culture you create in the future. Do you want
        your company to be accounting oriented? Operations oriented? These are ERP drivers! If
        you want the firm to be customer-oriented, you had better start to organize your processes
        and culture around customer needs! This, my friend, is the culture of CRM! I read
        recently in CIO magazine where CRM technologies account for about 20 percent of the
        benefit of a CRM program. The eighty- percent benefit comes from the new business
        processes that result from the cultural change, the article states. The moral? What tool
        should drive your business processes? An analogy: If you can overhaul a car, should you
        replace all the wiring (ERP) or tune up the engine that controls whether the car goes or
        not (sales/CRM)?

8) We’re happy with our current system.
   a) What does “happy” have to do with anything? If I’m the President or a major shareholder
      of your employer, sure I want you to be happy! But… if you’re happy just because your
      job is so familiar to you, and you don’t want to try new methods of servicing customers
      and finding revenue, then it’s resume time again!
   b) Why are you happy with it? What results are you getting from your current customer
      management or contact system? Is it displaying data from your ERP system or
      accounting package, pointing the way to new sales opportunities? Does it allow all
      customer-facing employees to know what’s going on with each account? Or …are your
      salespeople closing orders with accounts that are on credit hold? Do 2 salespeople from
      your company call the same customer on the same day? Do you even know what is going
      on? Maybe it’s time to find out!
   c) What is your current system? Is it integrated with important financial data? Does it
      provide access to remote users? Is it updated in real-time? Is it easily customizable? Does
      it fit your industry? Is it flexible? Is it economical?

9) We only have a few "select" customers that are easy to track.
   a) This implies that your customers, while few, aren’t worth tracking your interactions with.
      I would think these few, large and vital relationships would be far more important than
      they would for the company who has thousands of customers, where the loss of
      dissatisfaction of one, will not affect the big picture that much. Correct?
   b) I would want to very carefully manage how we interact with a few, important customers,
      who in our company calls them, what is offered and discussed, how they are being
      serviced and what our response times are. If I’m the CEO of a company and right off a
      tool like CRM, because I think my VP of sales knows each account so well, then what
      happens if he quits or gets hit by a car? Heaven forbid, he dies of Cancer. What do you
      know about these key accounts now? What happened to that relationship the VP had for
      10 years? You better know what has transpired, who likes who, and how they want to do
      business with you! I few slip ups with these few key accounts could cost you, big-time!


                                                4
 Touchtone Corporation · (714) 755-2810 · (800) 786-8663 (USA & Canada) · TouchtoneCorp.com
           3151 Airway Avenue, Bldg. I-3 · Costa Mesa, CA · 92626 · Wintouch.com
10) We want to build our own CRM system in-house.
    a) OK. Where will you start? If you wanted a customized car, wouldn’t it be easier to buy
       the chassis and frame with engine, transmission, electrical, etc, and everything running
       well, and just customize the parts that don’t fit you now? Isn’t that your issue …that you
       think parts of a CRM software need to be customized to fit your particular business?
    b) Some CRM packages are highly customizable and are easy to fit into your business
       model and business processes. This makes it easy to get the functionality that
       programmers have spent years developing, without you doing the same. Can you really
       wait years for this? Will it be worth it? For the price of the licenses you need, you would
       probably spend many times that in the salaries of the developers alone, and they would
       never have the experience creating the functionality you need. Suggestion: find other
       things for the idle programmers to do (i.e. improve the order tracking system or
       production control).
    c) Do you build your own dishwasher? Toaster? Make your own bicycle? Then don’t try to
       make your own CRM solution either. If need be, buy one already made, and customize it
       yourself!

Conclusion:

We all want to feel that we are in control of our department’s destiny and helping to shape our
company’s future through our contributions. However, we often make shortsighted decisions
because we don’t take time to understand our options. One of Steven Covey’s Seven Habits of
Highly Effective People is: “Seek first to understand, then to be understood.” The mistake most
of us make is to listen with the intent to reply. The first thing we want to do is to state what we
want to do or what our position is, rather than listening for the benefit to us. I’m glad I listened to
the financial planner who called me several years ago. Will you be glad you listened to the next
CRM rep who calls you?

There are many excellent CRM solutions available to fit many different needs and industries.
Wintouch eCRM is an enterprise-wide customer service, sales force automation, marketing
automation and partner relationship management suite for the IBM iSeries AS/400 Platform.
Wintouch eCRM software has a Java-powered, Web-browser front-end. Server software is native
AS/400 RPG code, which protects your investment in IBM iSeries hardware, while web-enabling
your existing green screen applications! Call 1-800-786-8663 today for information, or a free
online demonstration customized for your company or organization. Wintouch eCRM is robust,
economical, and especially effective for AS/400 users.

About the Author…
Rich Hall is Vice President of Sales and Marketing for Touchtone Corporation, developers of
Wintouch® eCRM, an enterprise AS/400 browser-based CRM solution; ThinView® , a web-to-
host and PC-to-AS/400 reporting solution and GUI emulation tool; and QuestView® , an AS/400
database utility and programming tool. He brings over 20 years of sales, marketing and business
experience to the CRM arena, with experience at firms such as TRW, Parker Hannifin, Cooper
Industries, Experian, Pitney Bowes, and several other firms, where he has been able to observe
effective and ineffective business methods. He has an MBA from the University of Southern
California. He is a frequent speaker about CRM and change management at industry events.

                                                5
 Touchtone Corporation · (714) 755-2810 · (800) 786-8663 (USA & Canada) · TouchtoneCorp.com
           3151 Airway Avenue, Bldg. I-3 · Costa Mesa, CA · 92626 · Wintouch.com

				
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