Strategies/23/dp1st/mark2nd Alf Nucifora One of the continuing puzzles of marketing life is the disproportionate amount of energy and resources allocated to generating leads. The real effort should be placed in managing those leads in a way that produces contented, revenue-generating, lifetime customers. But that’s tough to do because most small- to medium-sized companies lack the internal discipline, infrastructure and tracking systems that will guarantee a lead is managed on a second-by-second basis. The situation can be helped by automated lead management tools that are proven, freely available and exceptionally affordable. Customer relationship management systems, also known as CRMs, can help integrate marketing, sales and customer service functions so all forms of client communication telephone, fax, e-mail, letters and face-to-face meetings can be monitored and managed through one centralized application. This, in turn, provides the marketer with the ability to maintain an up-to-date client/prospect profile, deliver on promised actions, send information and materials quickly and efficiently, and follow-up in a timely and disciplined fashion. The marketplace is now flooded with contact management software, but the stalwarts are Goldmine, TeleMagic, ACT and Microsoft’s Access. Goldmine, with more than 700,000 current users, appeals to small- or-medium-sized companies or individual departments within a larger organization. It’s ideal for an operation with five to 100 sites and, like all CRM software, works well in organizations with a high volume of customer and prospect interaction, including banking, insurance, retail and brokerage firms, particularly stock brokers. At a cost of $200-$500 per user/seat, Goldmine provides an out-of-the-box solution that can be set up independently by the user or with the help of a third party consultant or solutions provider. Says Executive Vice President, Jon Ferrara: “After 10 years in the business, Goldmine has developed a system that allows the marketer to speak with one voice to the customer.” Goldmine’s current 4.0 Standard Edition tracks and itemizes the specifics of every contact interaction, including what, when and who touches each contact. Its real benefit is that it bridges the gap between complex and expensive sales force automation software and the lower-end contact management programs. “For small-to-medium companies, with revenues in the $2 million to $500 million range, and as few as 10 CRM users, Goldmine can gather, store and analyze customer information in order to win and, more importantly, retain customers,” Ferrara says. Another major competitor in the CRM category is TeleMagic. According to Jeff Multz, principal of Atlanta-based Emerging Market Technologies and a TeleMagic reseller, the program provides more “touch” with customers and prospects, delivered cost-efficiently. Multz described a recent installation in the local office of a national stock brokerage firm involving 10 brokers, each with 1,500 to 2,000 prospects, as well as 200 to 400 existing clients. “The problem we encountered,” says Multz, “was finding the balance between maintaining contact with prospects and clients and dealing with an environment where all client records were manual except actual trades and transactions.” Over a two-week period, EMT conducted a group audit and analysis and provided a customized solution at a price point slightly under $25,000. The brokerage client received a system that provides the ability to notify a client or prospect based on a particular area of interest, or when something unusual happens, as it frequently does in today’s volatile financial marketplace. It also contains an automated tickler system for time-sensitive events such as expiration dates on bonds. “We had our problems,” says Multz. “It was a battle to get the brokers to convert to a paperless system and make it a part of their culture and religion.” With consistent training, 85 percent of the brokers are now using the system on a daily basis and revenue gains that are attributable to the system now exceed 20 percent per broker. Multz offers these caveats: First, management must endorse and enforce the system. Although most of the CRM packages are available “out-of-the-box,” some customization is usually required in order to provide maximum utility and benefit. And, despite management’s best efforts, never expect 100 percent employee buy-in. There will always be the handful that resist anything new or more efficient. These are the same people who, in previous centuries, believed the planet was flat. If you’re considering any type of CRM, you should realize that most of the smart marketers have awakened to the fact that CRM is no longer a luxury. It’s a necessity as well as a competitive advantage. It’s also not enough to buy a box of software. The smart marketer will seek the help of a consultant, reseller, or integrator to help make it work. The benefit of the outsider is in the customization and training support. CRM is technology for an aggressive, high-performing, sales-driven organization with a high volume of sales, contacts, leads or prospects. Most importantly, it can help stop the bleeding. We lose too many of our existing clients because of poor follow-up and tracking. CRM reminds the clients that we love them and want to keep doing business with them for a lifetime. Alf Nucifora is an Atlanta-based marketing consultant. He can be contacted via e-mail at [email protected] or by fax at (770) 952-7834.
