Selecting a vendor may be one of the most complex and confusing aspects of your customer relationship management (CRM) project, but it doesn’t have to be. I developed a systematic approach for uncovering inefficiencies in your operations and a script that clearly communicates your needs to potential partners.
The result?
Getting a CRM that works for your business, the first time around.
But you need to be in the driver’s seat. Don’t let technology providers control the conversation. Start with clearly understanding what you’re looking for.
What Has to Happen Before CRM Vendor Selection
After you complete a CRM audit, you will have a clear view of all the gaps in your current processes. However, a typical audit can reveal 80-100 gaps and trying to fix these gaps at once can overwhelm your team, and complicate vendor selection even more.
A philosophy I lean on is what I call the one-hand rule.
The one-hand rule is a way to create a manageable action plan focusing on five (or fewer) key areas where a CRM can provide the most value. Once you tackle those focus areas in phase one, you return to your CRM audit results and apply the one-hand rule to identify your next focus areas, and so on.
The one-hand rule then informs your statement of work (SOW) in the form of a “Day-in-the-Life Script.”
Pulling from the CRM audit, the SOW outlines the scope, objectives, timelines, deliverables and other important information so everyone remains on the same page. An ideal SOW ensures the CRM provider aligns solutions with the company’s true needs.
Now that we understand the role of a clear statement of work, let’s dive into what I call “A Day in the Life” script.
When we perform a CRM audit, we identify gaps by role. We evaluate what a user, whether an inside salesperson, outside sales, product specialist or marketing leader, needs the CRM solution to achieve to meet the business’s expectations.
Once we evaluate those needs and expectations, we can create a script of how each role will operate within the CRM. For instance, we clearly outline how to:
- Add a contact in the CRM
- Determine the key fields to capture for that contact
- Record customer details for opportunity management
These are just a few examples of what a script will include. Remember, a successful CRM implementation happens in phases, and you will create scripts for each phase as you progress. These scripts will be used throughout the entire CRM journey, especially during the testing and training stages.
When we serve up these scripts to our vendor, we are saying, “This is what we want your demo to cover.”
Have you ever sat through a technology provider’s presentation and thought that while the solution may have many bells and whistles, it’s not really focused on solving your business’ unique problems?
How a Day-in-the-Life Script Informs Vendor Selection
The CRM script streamlines vendor selection and provides a structured roadmap for you and a potential vendor to follow. It puts you in the driver’s seat and helps the provider see what functions a CRM needs to perform in your operation. It also saves time in the selection process, getting you across the finish line faster.
If you don’t take this critical step, you’re leaving it up to CRM vendors and partners who may not fully understand your sales process or business goals.
My advice? Build a CRM solution around your business, not your business around a vendor’s offering.
When you engage with vendors, provide them with your company’s back story and the challenges you want to solve.
There’s no question the vendor will give you plenty of information on the features and benefits it offers. But by telling the company your story – how you interact with the systems you have today, your work force makeup (remote, mobile workers, personas), the needs of various departments – you’re pushing them to think of their systems in the context of your needs.
How many CRM vendors are too many?
When evaluating technology providers, I recommend keeping your list of vendors to no more than four. You don’t want to overwhelm your team with endless demos, and this allows you to devote ample time and resources to the selection process.
To put together your list:
- Have your CEO for CRM assemble the internal evaluation team (Super Users).
- Start with an honest assessment (CRM audit) of your company’s needs, budget and restraints. (Not all CRM solutions are built the same, and neither are the costs.)
- Ask friends and colleagues about their experiences.
Read more: Who is the CEO for CRM?
Using a Scorecard to Evaluate CRM Providers
Any time you evaluate a vendor partner, you’re not just evaluating the CRM solution. You’re also evaluating the provider. Consider if the company will bring value to the equation or just sell you software.
Bigger vendors aren’t always better. Find the solution – large or small – that’s right for your business. And there is no one-size-fits-all CRM solution.
Potential vendors should consider your company’s unique workflows, sales processes, and business goals.
- The first demo covers the basics and includes the software’s features and benefits.
- The second demo should address your needs and allow you to revisit features from the first demo or ask questions to clear up any concerns.
Keeping track of each demo can become confusing fast. You’ll want a consistent approach to comparing each vendor and their solution.
We recommend your CEO for CRM and CRM evaluation team participate in these demos, and each member fill out a scorecard. The scorecard removes the “feels like” from the process. It takes emotion out of the deal.
Download your Free CRM Demo Scorecard
Developing a simple scorecard can help you keep track of performance throughout the evaluation process. This scorecard should be customized to align with your SOW and scripts, ensuring you don’t get swept away by bells and whistles that don’t really have an impact on your business. Some things to track on your scorecard should include:
- Vendor details and support, including industry experience and available hours
- Technology, including integrations
- Software details, including how easy it is to use, scalability, mobile app, reporting and more
- Onboarding process, including training and documentation
- Questions related to your business, including whether the provider understands the business, has a user council and has plans to invest in the technology
Rank each 1-5, with 5 being the best. After each demo, have a follow-up meeting with your evaluation team as soon as possible. Take an immediate vote to get a feel for where your team is at – a simple thumbs-up and thumbs-down vote is sufficient. If everyone says thumbs down, it’s an easy dismissal. If it’s all thumbs up, that vendor will likely move onto the next round.
Scorecards are an objective way to keep moving forward. It’s easy to get analysis paralysis with such a big decision. Establish guidelines that can help you get to your final two vendors so that you can do true due diligence for an informed decision.
Choosing a CRM that Grows with Your Business
Technology is moving at the speed of light, outpacing a company’s ability to leverage it effectively. It’s easy to get swept up in the bells and whistles of a shiny, new CRM and forget the business need for a CRM in the first place.
In most cases, companies are only using a fraction of the capabilities their CRM system provides, especially as they are working through the initial phases of their implementation plan. It’s why I stress the importance of choosing a solution and a vendor that can grow with your business.
Get as close as possible to an out-of-the-box solution to meet your needs. It’s easier to use software from the get-go. That said, be sure to ask the vendor how the CRM can evolve as your needs change. How does the provider prioritize development? Does it align with your CRM roadmap, not just for today but for tomorrow?
There is no shortage of CRM options on the market. Choosing the right one can feel daunting. But armed with your audit, script and scorecard, you can wade through the seemingly endless sea of options and choose the one that is right for you.
The real work begins after you choose the vendor. Let us help you from the start.
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