The 3 main processes that the CRM system must automate. Automate the conversion process. Part 2
We continue to describe and analyze the main processes that need to be managed when creating an effective sales system in your organization. We repeatedly wrote that the sales system includes three main control units (automation).
Block 1. Lead Generation - the formation of a steady stream of potential customers.
It is important that you come to people and organizations who are interested in your products and services. At this stage, the CRM-system should solve the problem of managing this stream.
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You must clearly understand that if you invest another 500 thousand rubles, you will receive an additional 100 or 1000 potential customers. The cost of attracting a potential client depends on the business: for one business a potential client costs 20 rubles, and for another - 200 thousand rubles. The cost of the potential client itself, but in the end the client is not important. It is important how much you earn on a new client and when the return on marketing investment will occur.
If in your business model it is impossible to make money on the first client transaction, then you need to work on repeat sales tools, therefore, in today's ruthless world of competition, business or subscription models are becoming increasingly popular.
CRM systems may also have requirements for the availability of lead generation tools, but for the most part, this implies mass e-mailing or recording of incoming conversations.
But these are just two tools out of 1000 possible to attract customers - for example, organizing webinars, seminars, regular mail and sending special coupons, partner channels, etc.
The CRM system should allow you to take these activities into account and track performance so that you can understand what works and how well for your market segment. The system should allow the right to qualify leads, identify channels that bring the most poor-quality leads, and turn them off. Quite often it happens that 80% of the marketing budget merges into nowhere.
Block 2. Lead Conversion is an important process when a potential customer becomes your customer and makes a purchase.
By making a purchase is meant the decision-making process, and not the mechanical action of processing the transaction. For different types of businesses, the client makes different decisions. For many products, this is an impulse purchase, and the decision has already been made in advance (this mainly concerns small transactions). The other extreme is a long sales process, where, on the one hand, there are professional buyers, and on the other, professional sellers, and the negotiation process can last for years. For example, in the sale of nuclear power plants the closing time of the transaction is about 25 years.
Block 3. Account management - the process of managing the existing customer base and organizing repeat sales, sales of value-added services and services.
Let's look at process number 2 and try to formulate requirements for the CRM system .
Lead Conversion - how it happens, how it can be automated, and what functionality the CRM system should have in order to meet the needs of your business as accurately as possible.
The decision to purchase from you or your organization can be made long before a potential client has contacted you. I watched for a long time, studied materials, read reviews, received recommendations, etc. The decision-making process took place before direct contact with your vendors. This means that this process is managed using marketing tools such as advertising, PR, personalized newsletters, seminars, demo days, etc. I do not specifically delve into the description of various tools, as this will only complicate the perception of the described processes and the formulation of requirements to the CRM system.
There is another situation when a client has contacted you for additional information, but at the same time he has not yet made any purchase decision, is considering several different options, and your salespeople can interact with it by tilting the balance in your favor.
By and large, transactions can be divided into two broad categories.
The first category is small transactions of impulse purchases , where there is a share of emotions in decision making. Such purchases are mainly made by individuals, and additional bonuses from purchases that may not be related to the product being sold, for example, two tickets for a new year's show for a child, etc., can have a positive effect on the deal.
However, such purchases are also made by organizations; the same people work in organizations. For example, the amount of the transaction is not great, the risks from the purchase are also insignificant, they can simply find the nearest supplier on the Internet and buy from him without even considering any competitive offers. There are also additional benefits from the purchase - convenient delivery, installment payment, quick preparation of documents, etc. - can have a positive impact on the outcome of the transaction.
The second category of transactions - complex long sales , when the client conducts a specific purchase procedure. These are the so-called professional buyers. The procurement team reviews various suppliers, compares the terms of the transaction, tests products, discusses special pricing conditions, etc. This negotiation process can last from several weeks to several years. And here you can also manage the decision making process in your favor.
Usually the second category of transactions is common in the b2b market, but it happens that ordinary people make purchases using this approach. This usually applies to cars (when not only the husband and wife are involved in the decision, but also, for example, grandmother, grandfather, children, and advise what to buy, etc.).
What is the main conclusion regarding the requirements for the CRM system?
If the company for the most part works with the transactions of the first category, then it will formulate requirements for the CRM-system, similar to the requirements for the accounting system, such as ERP. The company has a stream of customers, they come, and employees only need to ship, as usually the decision-making process is behind the scenes.
Therefore, when choosing a CRM system, it is necessary to clearly draw a line between managing the process of making a purchase and processing the transaction.
Such companies also have requirements for marketing automation, accounting, and lead qualifications. The CRM system can, of course, be used to fix the actions of sellers — the invoice is billed, payment has arrived, and the transaction is processed, but the most correct approach is to use a CRM system with accounting system functions, such as managing bills, acts, contracts, shipments, payment control .
On the other hand, for companies whose operations are of the second type, the requirements for the CRM system will be completely different. It will be important for them to manage the closing process, break it into stages, take into account the balance of power in the client’s team, track the actions of competitors, etc. Basically, such transactions are managed by the Opportunity object, which is the main object of most western CRM systems , but it is absolutely not suitable for automating work with fast sales and orders.
If your business basically deals with transactions of the first type (small transactions, minimal risks), then the following is important for you:
If your business deals mainly with type 2 transactions (long sales, high transaction costs) , then your requirements for a CRM system will be different. If in the first case, the functionality inherent in the accounting systems can still be included in the requirements for the CRM system, then with long and complex sales this functionality is practically not needed. As a rule, a business conducting such activities already has an accounting system that covers these requirements.
In this case it is necessary:
Even if they do not buy yet, they should know about you and if there is a need, remember and request a commercial offer.
Additional requirements for the CRM-system required for sales automation
Block 1. Lead Generation - the formation of a steady stream of potential customers.
It is important that you come to people and organizations who are interested in your products and services. At this stage, the CRM-system should solve the problem of managing this stream.
')
You must clearly understand that if you invest another 500 thousand rubles, you will receive an additional 100 or 1000 potential customers. The cost of attracting a potential client depends on the business: for one business a potential client costs 20 rubles, and for another - 200 thousand rubles. The cost of the potential client itself, but in the end the client is not important. It is important how much you earn on a new client and when the return on marketing investment will occur.
If in your business model it is impossible to make money on the first client transaction, then you need to work on repeat sales tools, therefore, in today's ruthless world of competition, business or subscription models are becoming increasingly popular.
CRM systems may also have requirements for the availability of lead generation tools, but for the most part, this implies mass e-mailing or recording of incoming conversations.
But these are just two tools out of 1000 possible to attract customers - for example, organizing webinars, seminars, regular mail and sending special coupons, partner channels, etc.
The CRM system should allow you to take these activities into account and track performance so that you can understand what works and how well for your market segment. The system should allow the right to qualify leads, identify channels that bring the most poor-quality leads, and turn them off. Quite often it happens that 80% of the marketing budget merges into nowhere.
Block 2. Lead Conversion is an important process when a potential customer becomes your customer and makes a purchase.
By making a purchase is meant the decision-making process, and not the mechanical action of processing the transaction. For different types of businesses, the client makes different decisions. For many products, this is an impulse purchase, and the decision has already been made in advance (this mainly concerns small transactions). The other extreme is a long sales process, where, on the one hand, there are professional buyers, and on the other, professional sellers, and the negotiation process can last for years. For example, in the sale of nuclear power plants the closing time of the transaction is about 25 years.
Block 3. Account management - the process of managing the existing customer base and organizing repeat sales, sales of value-added services and services.
Let's look at process number 2 and try to formulate requirements for the CRM system .
Lead Conversion - how it happens, how it can be automated, and what functionality the CRM system should have in order to meet the needs of your business as accurately as possible.
The decision to purchase from you or your organization can be made long before a potential client has contacted you. I watched for a long time, studied materials, read reviews, received recommendations, etc. The decision-making process took place before direct contact with your vendors. This means that this process is managed using marketing tools such as advertising, PR, personalized newsletters, seminars, demo days, etc. I do not specifically delve into the description of various tools, as this will only complicate the perception of the described processes and the formulation of requirements to the CRM system.
There is another situation when a client has contacted you for additional information, but at the same time he has not yet made any purchase decision, is considering several different options, and your salespeople can interact with it by tilting the balance in your favor.
By and large, transactions can be divided into two broad categories.
The first category is small transactions of impulse purchases , where there is a share of emotions in decision making. Such purchases are mainly made by individuals, and additional bonuses from purchases that may not be related to the product being sold, for example, two tickets for a new year's show for a child, etc., can have a positive effect on the deal.
However, such purchases are also made by organizations; the same people work in organizations. For example, the amount of the transaction is not great, the risks from the purchase are also insignificant, they can simply find the nearest supplier on the Internet and buy from him without even considering any competitive offers. There are also additional benefits from the purchase - convenient delivery, installment payment, quick preparation of documents, etc. - can have a positive impact on the outcome of the transaction.
The second category of transactions - complex long sales , when the client conducts a specific purchase procedure. These are the so-called professional buyers. The procurement team reviews various suppliers, compares the terms of the transaction, tests products, discusses special pricing conditions, etc. This negotiation process can last from several weeks to several years. And here you can also manage the decision making process in your favor.
Usually the second category of transactions is common in the b2b market, but it happens that ordinary people make purchases using this approach. This usually applies to cars (when not only the husband and wife are involved in the decision, but also, for example, grandmother, grandfather, children, and advise what to buy, etc.).
What is the main conclusion regarding the requirements for the CRM system?
If the company for the most part works with the transactions of the first category, then it will formulate requirements for the CRM-system, similar to the requirements for the accounting system, such as ERP. The company has a stream of customers, they come, and employees only need to ship, as usually the decision-making process is behind the scenes.
Therefore, when choosing a CRM system, it is necessary to clearly draw a line between managing the process of making a purchase and processing the transaction.
Such companies also have requirements for marketing automation, accounting, and lead qualifications. The CRM system can, of course, be used to fix the actions of sellers — the invoice is billed, payment has arrived, and the transaction is processed, but the most correct approach is to use a CRM system with accounting system functions, such as managing bills, acts, contracts, shipments, payment control .
On the other hand, for companies whose operations are of the second type, the requirements for the CRM system will be completely different. It will be important for them to manage the closing process, break it into stages, take into account the balance of power in the client’s team, track the actions of competitors, etc. Basically, such transactions are managed by the Opportunity object, which is the main object of most western CRM systems , but it is absolutely not suitable for automating work with fast sales and orders.
If your business basically deals with transactions of the first type (small transactions, minimal risks), then the following is important for you:
- The system should take into account all incoming customers, keep full records of all contacts, if you do business with organizations, and use the information obtained to generate repeat sales. The system should be able to work with orders, invoices, acts, contracts, have a grocery catalog, integrate with payment systems, have the ability to download bank statements to control payment discipline.
- The system should be able to customize action templates and process routes (for different types of objects) depending on the conditions of the transaction, so that managers can perform a verified sequence of actions; if possible, managers should automate the actions of the system.
- The system should be able to quickly send e-mails using templates (for example, typical commercial offers, additional information about products, etc.), send notifications about changes in order status, receive payment from a customer, etc.
- The system should have the ability to work with potential customers (categorization, segmentation). If a potential client approached you, but didn’t buy from you or postponed the purchase, you still need to record this in the system and continue working with it (usually, accounting systems do not know how to do this). In the accounting system there is only the counterparty with whom the contract was concluded and for which the shipments were performed or services were rendered.
- The system should have a convenient product catalog so that you can add products to transactions, analyze demand, form a sales forecast for product categories, if the decision making process is delayed in time or time is required for purchasing and order picking for the customer.
If your business deals mainly with type 2 transactions (long sales, high transaction costs) , then your requirements for a CRM system will be different. If in the first case, the functionality inherent in the accounting systems can still be included in the requirements for the CRM system, then with long and complex sales this functionality is practically not needed. As a rule, a business conducting such activities already has an accounting system that covers these requirements.
In this case it is necessary:
- record all incoming transaction requests,
- configure the process of qualifying requests (Lead Scoring)
- set up types and stages of transactions (sales opportunities, Opportunity)
- be able to track vendor exposure,
- display all potential customer contact persons and their role in decision making;
- be able to take into account all potential customers and be able to automatically contact them.
Even if they do not buy yet, they should know about you and if there is a need, remember and request a commercial offer.
Additional requirements for the CRM-system required for sales automation
- Open interfaces for integration with external accounting systems.
- The ability to quickly set up business processes and system modifications (since if the system is considered for serious business, then the standard boxed solution will not work - during operation, the requirements will change and you must be able to quickly set up and modify the system).
- The system should be able to invoice and generate primary financial documents.
- The system should be able to keep records of contracts.
- The system can provide for a warehouse or integration with the warehouse program, so that sellers can see the actual balances on the availability of goods.
- The system may provide for the possibility of collecting and consolidating bids from managers for the purchase of certain goods for resale or use in projects.
- The system may provide for the possibility of recording the cost of transactions, the calculation of marginality, cost of sales, etc.
- The system can be provided for the automation of the coordination of transactions, special conditions, counterparties and contracts.
Source: https://habr.com/ru/post/339422/
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