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How Do I Optimize My CRM System?

Speaker: Jonathan Schloo


Transform Your CRM :: Part 6


0:10 – Reduce Costs – How to Not Waste Your Money, #1

Reduce Costs - How to not waste your money

So, reduce costs: how not to waste your money.

Got to ask, who shops at Costco? Anybody? Me, too. And this strange thing happens. I go into Costco and I swear I have a list. It’s to get milk and salad and, you know, some Perrier and whatever, and I walk out with a new high-def TV or a robotic vacuum cleaner, or a power washer or some kind of garden accessory. We have 10 boxes of Christmas stuff now. I don’t know how that happens. So the point of why I say that is that without defining your CRM goals, which is point number 1, without defining your CRM goals, you start to bring in CRM vendors and they’re really good at wowing you, dazzling you with their presentation. Wow, look at those dashboards; you can have that. We actually call it management porn. I call it that because people see it and they say, “Wow, I want that. That’s great!” But they forget the hard work that’s required to actually get to that point. So these vendors come in and they show you all these great things and they say, “Look, it’s $40 a month per user.” Or it’s $5 a month. Some even say it’s free. But they forget the actual hard work you need to do to look at everything together. So, the reason I told the Costco story is because by defining your CRM goals ahead of time and planning it and figuring out what it is you need, you can make sure that you don’t overbuy. You get the right system.

1:43 – How to Not Waste Your Money, #2

Reduce Costs - How to not waste your money

The second reason is one of the most painful things I’ve seen and the most expensive things I’ve seen is people having to switch their CRM system. Or even worse, switch it yet again. So, if you sign up for these great systems—look at this, isn’t this fantastic—and then you have to switch it a couple years later because you realize, “Oh gosh, we picked the wrong one. We’ve got to switch it.” It is horribly painful because all your information is in there. All your users are trained on it. Your customer service, all your reports, everything revolves around this. It’s like trying to rip out your heart and put in a brand new one. It’s just very painful.

The second reason is to plan so you get the big picture and you don’t paint yourself into a corner. That’s a key thing to do that planning first.

2:31 – How to Not Waste Your Money, #3

Reduce Costs - How to not waste your money

Number three is to get expert guidance on truly the TCO, the Total Cost of Ownership, over five to ten years. Because when you add it up, things like do we buy it; do we rent it; you can get it on a monthly fee or you can pay for it up front—you need to look at those things ahead of time. A number of times I’ve seen people just start with whatever it is and stay with that and the costs, if you look at them over the years, are staggering. Try multiplying out by five or 10 years whatever the per-month cost is. You know, all the stuff in the cloud is great, it’s very exciting, but if you actually look at it over the long term, it’s a staggering number. So sometimes the cloud is right; sometimes on-premise, to just buy the software is right. It depends on your particular thing.

3:21 – How to Not Waste Your Money, #4

And number four is, identify in writing what your return on investment is.