Business mentor: Keeping effective, centralised tabs on your customers

Customer relationship management is pretty topical at the moment, but I'm not too sure what it is. As a small business owner what do I need to know about this - and will it help my business?

Small business sector specialist Sarah Trotman replies:

Customer relationship management (CRM) is about putting your customers' world - their needs and desires, the context in which they operate and how and what they like to hear from you - at the centre of your world. It is good to start with a sound sales or customer support strategy and then look at which tools best support that strategy.

You may feel you and your team know your customers well, and you probably do, but it can be dangerous to have all that knowledge held by individual people.

What if they leave? What if they don't communicate important customer news to the rest of the team and customers receive information they have specifically asked not to receive? If you're a small business running something like Microsoft Office Small Business Edition 2003 you can easily incorporate a CRM solution into your everyday business operations using Outlook 2003 with Business Contact Manager.

A local example of this software in action is Lodge Real Estate in Hamilton. Trent Finlay, sales manager of the Flagstaff branch, has changed the information management aspect of the branch from a paper-based model to a centralised information database. He now has the functionality of a larger CRM system without the complexity (and costs) that can sometimes be involved.

Before using a CRM system, Finlay the branch "databases" ranged from large hard-covered books, to paper notes stuck on spikes spread across any number of agents' desks.

The information was there, but the company did not have a system that could capture it or allow timely access.

There was little cohesion within the business's existing technology infrastructure and what systems they did have were time-intensive and involved unnecessary data duplication. They knew a centrally controlled database was essential if the company wanted to improve customer service and stay ahead of competitors.

Using CRM software, Lodge Real Estate has now centralised its information database and enhanced the personal element of its business interactions with customers.

The approach of Lodge Real Estates to client management now has many more dimensions. When staff write a contract they can capture all the relevant details of the purchase, the solicitor, and the clients' personal details for future reference in one place. This history is now permanently attached to the client and will appear each time they contact them.

The branch has also spotted interesting sales trends, helping them to refocus their business. They believe their technology return matches the investment - in just a short space of time the company noticed increased efficiency and productivity, enhanced insight into customers' transactions and a more empowered team.

* CRM facts

What can CRM mean for your customers?

* Faster response times.
* Enhanced customer experience.
* Consistent interactions and follow-up.

How can CRM improve the workplace for employees?

* Increased control and access to shared information.
* Reduced frustration due to inadequate knowledge.
* A better understanding of the big picture.


What is the value of CRM for management?

* Increased customer satisfaction.
* More accurate sales pipeline and service reporting.
* Increased employee productivity.
* Increased communication between departments.
* Improved account management and employee accountability.

Anne Taylor, a CRM expert, is speaking on the topic today at the Small Business Expo at the Auckland Showgrounds. Entry $20 at the gate or pre-register at the Business Expo website.