BizBreeze # 2. CRM Myths and Business Process Problems
We continue to cut your mini-digest. This week there were several interesting articles in foreign editions about CRM systems, CRM myths and business processes. We have chosen the brightest and are ready to comment on them - as always, subjectively and with a bit of irony.
When business processes don't go well
Disclaimer: we in the RegionSoft Developer Studio team have those who read in English, but there are no professional translators, therefore we give the initial materials in adaptation. However, meanings and messages are stored at 100%.
Let's start with the sign statistics. Fujitsu analyzed the upcoming business investments in IT infrastructure around the world (1,625 executives from all countries were surveyed). Over the next year, company executives plan to introduce digital technologies:
76% - solutions for cyber security,
72% are analytics and big data systems,
66% - cloud computing (not the system, namely, power). eight
')
80% noted that working with data and analytics is the key to the financial success of a business, 74% are confident that nothing will be as important in the next 10 years as cybersecurity.
Indeed, by the beginning of 2018, the issue of cybersecurity had risen more than ever. We are not talking about geopolitical, but about corporate aspects. Companies are forced to fear not only competitors, but also fraudsters and hackers of the “out of curiosity” category, and most importantly - their employees. This and such expenses. Unfortunately, the study shows the average temperature in the hospital, in Russia the business is too slow to realize that the data is a new asset that needs to be protected. For some reason, it is difficult to imagine an intrusion into the office - there are security guards, alarms, cameras, etc., but few people think about attacks on the client base and information about the company's transactions. CRM-system can be the first outpost in the protection of commercial information. But for this, the system must be accepted adequately, without prejudice. But there are still enough myths.
The Destination CRM website published an article on Larry Augustin, CEO of Sugar CRM. He talks about the myths that surround CRM systems today and are familiar to any vendor - even to us, a Russian company, the problems identified are close. At first glance, the myths look pretty simple and lie on the surface, but in fact, these are the underlying problems of the entire CRM system development industry.
AI (AI) is a buzzword that all industries strive to adopt. CRM vendors are not far behind - in 2017 some vendors introduced artificial intelligence components into their products. Of course, AI technologies will play a big role in the future of CRM. But the idea that AI is alpha and omega is more likely not a reality, but a marketing message. AI in CRM only complements the functionality to make the client a little more content. You can not go and buy a piece of artificial intelligence. Therefore, those who sell you an AI-based system are a little cunning.
RegionSoft comment : Yes, even in Russia, there are already CRMs that have announced the use of artificial intelligence and neural networks in their products. Of course, this is not AI, but only a built-in calculation of the probability of an event occurring (conventionally, 100 transactions with similar parameters ended with a purchase, which means that 101 and 102 will end the same way). For small and medium-sized companies, this is a dubious advantage: each transaction involves too many factors, including a human one, it will break a leg of a neural network, more typical workflows are suitable for it (for example, in a bank). So far it is just marketing and the situation will not change in the near future.
This myth is quite common, but the prospect of automation, completely replacing people in interaction with customers, in fact will do more harm than good. Which of us did not experience irritation, understanding that on the other side of the wire there was an electronic assistant? Since people interact well with each other and still appreciate personal communication, chatbots should not replace live communication with customers. But it is important that bots and people work together - you can automate some routine tasks (including organizing self-service), but only people can give context to the communication. Automated and human components must remain intertwined - customer interaction progresses continuously.
RegionSoft comment: After the chats came into our life, the business began to actively use them and gradually robotized. Of course, in most cases we are not talking about full communication, but about lead generation (chatbots beg for contacts to communicate with the client). Although there were interesting projects based on Kinect and IBM Bluemix, but they did not take off. The first prototype of such “botisation” of the business was IVR-dialogues, when the client contacts the electronic menu for some time and either solves his problem or reaches the manager. This significantly reduces the load on call centers and customer support, and therefore allows you to spend more time on non-standard and complex issues. The same approach should be maintained in work with chatbots.
This myth has real roots - at the dawn of its existence, CRM-systems were the main tool for managers to monitor the quality of the work of sellers. However, CRM today became the basis of a strategy for improving customer relations. Now CRM-systems combine customer data from different sources, thus giving employees the opportunity to have a complete picture of relationships (this also includes “bigdata” from social networks). CRM should be user-oriented for the user, not coercive by management.
RegionSoft comment: The CRM-system has long ceased to be a program for sales and a control system for employees; now these are large-scale, universal solutions for sales automation, marketing, support, production and logistics. And the most valuable thing in CRM is the ability to accumulate and process data that makes management productive. The only thing is that we (and our RegionSoft CRM) are completely alien to social networks as a source of data. This is partly due to the peculiarities of our customers, partly due to the cautious attitude to the private lives of people, and partly to the lack of demand for such functionality.
As for top managers, for them CRM is an operational management tool and a monitor of indicators for the company as a whole and for managers in particular. And frankly, most of the CRM employees help out: the management does not stand above the head, does not walk and does not scream above the ear, but sets tasks and controls their implementation through the system interface. A smaller number of contacts in certain conditions ensures more efficient operation.
This myth was created by CRM vendors who offer their products only on the SaaS model. They spent a lot of money and time to convince everyone that the SaaS = cloud, and now the industry has serious problems. The reality is that cloud CRM has several delivery and access paradigms: a private cloud, a public cloud, different cloud management mechanisms, including the rental of SaaS. The good news is that the cloud means a multitude of delivery options for the customer, reduces IT overhead, and allows you to distinguish between levels of security and data control.
RegionSoft comment: We remind you that the myths are discussed by the vendor Sugar CRM. And this is a weighty fact when discussing this item. The fact is that the open source version of Sugar CRM itself is a server version, but the commercial version is delivered just as a web service. So, it is important for Mr. Austen to emphasize the advantage of cloud delivery. And here he, of course, cunning. Reducing capital costs and IT overhead is a popular “cloud” argument, except that the cost of ownership of such systems is much higher than that of on-premise.
As for SaaS, then yes, an equal sign with cloud systems is not worth it, because a server solution can also be rented. For example, we offer our clients to rent RegionSoft CRM, and for many this is more advantageous than a one-time purchase, since discrete payments do not carry such a significant burden on the company's budget.
CRM systems used to be a sales tool. Modern CRM can synthesize information collected through channels and platforms, and turn it into ideas and then actions. This knowledge is at the disposal of sales, support, marketing. So a business can build deeper relationships with its customers. Business is growing by improving the quality of sales and service processes, and automating processes.
RegionSoft comment: We have already said that CRM today is striving for universality and end-to-end automation of the company. Separately, we note that it is time for small companies to stop being afraid of process diagrams and turn to automating each routine process. While this functionality is in demand from medium and large companies. However, in a small business, processes may not be any easier.
In general, business processes are increasingly attracting the attention of experts, companies and analysts. And evidence of this is a large and interesting report on the relationship between the state of business processes and the desire of employees to change jobs.
The beginning of the calendar year is a sure sign that interesting research and analytical reports will appear. They are valuable to users: you can get the necessary data and somehow extrapolate it to your development, your business processes. Recently, the results of a study conducted by Nintex. The main conclusion: the problems in corporate business processes lead to negative on the part of customers.
Top violated administrative processes:
Top issues related to document and sales management:
Many employees admit that broken processes play a decisive role in the decision to start a new job search. At the same time, 58% consider the last drop in IT-processes to fail, 41% in HR, 37% in sales and finance, 32% in customer relations (not PR!), 29% in operational activities. The entire report, useful for both IT and HR, is here .
The results of this survey fairly accurately reflect the trends that exist in companies. Only process automation is not the best solution. First you need to collect processes, analyze and debug, and then proceed to the automation of routine and periodic work.
And then there is another statistic that is not related to the previous one, but is related to automation. A relatively small (100 top managers and managers in the field of marketing), the WorkSpan survey showed even more interesting results: 27% of marketing managers use at least 10 different programs to collaborate with partners and colleagues, including:
47% spend more than 4 hours a week at meetings, 78% say they have a separate employee, whose only task is to track the progress and progress of marketing campaigns.
Zoo software in the company is not uncommon, and it is not just inconvenient, it is also expensive. Business overpays for systems with overlapping functionality. If you review the use profile and move to CRM or leave 2-3 really necessary decisions, you can save significant funds. This task should be assigned to the technical service or system administrator.
Myths and prejudices haunt us in all walks of life, but in business they are critically dangerous. We encourage analyzing, weighing options, counting money and choosing what will allow a business to work and spend a minimum of funds on tools. Then the question of payback will not be so acute.
⇒ RegionSoft CRM website
And we are slowly swaying our channel in the Telegram , in which, without advertising, we write not quite formal things about CRM and business. Come in, sometimes there is a light.
When business processes don't go well
Disclaimer: we in the RegionSoft Developer Studio team have those who read in English, but there are no professional translators, therefore we give the initial materials in adaptation. However, meanings and messages are stored at 100%.
Times of heightened danger
Let's start with the sign statistics. Fujitsu analyzed the upcoming business investments in IT infrastructure around the world (1,625 executives from all countries were surveyed). Over the next year, company executives plan to introduce digital technologies:
76% - solutions for cyber security,
72% are analytics and big data systems,
66% - cloud computing (not the system, namely, power). eight
')
80% noted that working with data and analytics is the key to the financial success of a business, 74% are confident that nothing will be as important in the next 10 years as cybersecurity.
Indeed, by the beginning of 2018, the issue of cybersecurity had risen more than ever. We are not talking about geopolitical, but about corporate aspects. Companies are forced to fear not only competitors, but also fraudsters and hackers of the “out of curiosity” category, and most importantly - their employees. This and such expenses. Unfortunately, the study shows the average temperature in the hospital, in Russia the business is too slow to realize that the data is a new asset that needs to be protected. For some reason, it is difficult to imagine an intrusion into the office - there are security guards, alarms, cameras, etc., but few people think about attacks on the client base and information about the company's transactions. CRM-system can be the first outpost in the protection of commercial information. But for this, the system must be accepted adequately, without prejudice. But there are still enough myths.
Five myths about CRM. let's discuss
The Destination CRM website published an article on Larry Augustin, CEO of Sugar CRM. He talks about the myths that surround CRM systems today and are familiar to any vendor - even to us, a Russian company, the problems identified are close. At first glance, the myths look pretty simple and lie on the surface, but in fact, these are the underlying problems of the entire CRM system development industry.
Myth 1. Artificial intelligence is the determining factor for the future of CRM.
AI (AI) is a buzzword that all industries strive to adopt. CRM vendors are not far behind - in 2017 some vendors introduced artificial intelligence components into their products. Of course, AI technologies will play a big role in the future of CRM. But the idea that AI is alpha and omega is more likely not a reality, but a marketing message. AI in CRM only complements the functionality to make the client a little more content. You can not go and buy a piece of artificial intelligence. Therefore, those who sell you an AI-based system are a little cunning.
RegionSoft comment : Yes, even in Russia, there are already CRMs that have announced the use of artificial intelligence and neural networks in their products. Of course, this is not AI, but only a built-in calculation of the probability of an event occurring (conventionally, 100 transactions with similar parameters ended with a purchase, which means that 101 and 102 will end the same way). For small and medium-sized companies, this is a dubious advantage: each transaction involves too many factors, including a human one, it will break a leg of a neural network, more typical workflows are suitable for it (for example, in a bank). So far it is just marketing and the situation will not change in the near future.
Myth 2. Automatic bots will replace people in client-related scenarios.
This myth is quite common, but the prospect of automation, completely replacing people in interaction with customers, in fact will do more harm than good. Which of us did not experience irritation, understanding that on the other side of the wire there was an electronic assistant? Since people interact well with each other and still appreciate personal communication, chatbots should not replace live communication with customers. But it is important that bots and people work together - you can automate some routine tasks (including organizing self-service), but only people can give context to the communication. Automated and human components must remain intertwined - customer interaction progresses continuously.
RegionSoft comment: After the chats came into our life, the business began to actively use them and gradually robotized. Of course, in most cases we are not talking about full communication, but about lead generation (chatbots beg for contacts to communicate with the client). Although there were interesting projects based on Kinect and IBM Bluemix, but they did not take off. The first prototype of such “botisation” of the business was IVR-dialogues, when the client contacts the electronic menu for some time and either solves his problem or reaches the manager. This significantly reduces the load on call centers and customer support, and therefore allows you to spend more time on non-standard and complex issues. The same approach should be maintained in work with chatbots.
Myth 3. CRM is most useful as a kind of “Big Brother” serving the vice president of sales.
This myth has real roots - at the dawn of its existence, CRM-systems were the main tool for managers to monitor the quality of the work of sellers. However, CRM today became the basis of a strategy for improving customer relations. Now CRM-systems combine customer data from different sources, thus giving employees the opportunity to have a complete picture of relationships (this also includes “bigdata” from social networks). CRM should be user-oriented for the user, not coercive by management.
RegionSoft comment: The CRM-system has long ceased to be a program for sales and a control system for employees; now these are large-scale, universal solutions for sales automation, marketing, support, production and logistics. And the most valuable thing in CRM is the ability to accumulate and process data that makes management productive. The only thing is that we (and our RegionSoft CRM) are completely alien to social networks as a source of data. This is partly due to the peculiarities of our customers, partly due to the cautious attitude to the private lives of people, and partly to the lack of demand for such functionality.
As for top managers, for them CRM is an operational management tool and a monitor of indicators for the company as a whole and for managers in particular. And frankly, most of the CRM employees help out: the management does not stand above the head, does not walk and does not scream above the ear, but sets tasks and controls their implementation through the system interface. A smaller number of contacts in certain conditions ensures more efficient operation.
Myth 4. Software as a service (SaaS) and the cloud are one and the same.
This myth was created by CRM vendors who offer their products only on the SaaS model. They spent a lot of money and time to convince everyone that the SaaS = cloud, and now the industry has serious problems. The reality is that cloud CRM has several delivery and access paradigms: a private cloud, a public cloud, different cloud management mechanisms, including the rental of SaaS. The good news is that the cloud means a multitude of delivery options for the customer, reduces IT overhead, and allows you to distinguish between levels of security and data control.
RegionSoft comment: We remind you that the myths are discussed by the vendor Sugar CRM. And this is a weighty fact when discussing this item. The fact is that the open source version of Sugar CRM itself is a server version, but the commercial version is delivered just as a web service. So, it is important for Mr. Austen to emphasize the advantage of cloud delivery. And here he, of course, cunning. Reducing capital costs and IT overhead is a popular “cloud” argument, except that the cost of ownership of such systems is much higher than that of on-premise.
As for SaaS, then yes, an equal sign with cloud systems is not worth it, because a server solution can also be rented. For example, we offer our clients to rent RegionSoft CRM, and for many this is more advantageous than a one-time purchase, since discrete payments do not carry such a significant burden on the company's budget.
Myth 5. CRM is intended only for sellers to forecast and close deals.
CRM systems used to be a sales tool. Modern CRM can synthesize information collected through channels and platforms, and turn it into ideas and then actions. This knowledge is at the disposal of sales, support, marketing. So a business can build deeper relationships with its customers. Business is growing by improving the quality of sales and service processes, and automating processes.
RegionSoft comment: We have already said that CRM today is striving for universality and end-to-end automation of the company. Separately, we note that it is time for small companies to stop being afraid of process diagrams and turn to automating each routine process. While this functionality is in demand from medium and large companies. However, in a small business, processes may not be any easier.
In general, business processes are increasingly attracting the attention of experts, companies and analysts. And evidence of this is a large and interesting report on the relationship between the state of business processes and the desire of employees to change jobs.
A bit of analytics on the role of business processes.
The beginning of the calendar year is a sure sign that interesting research and analytical reports will appear. They are valuable to users: you can get the necessary data and somehow extrapolate it to your development, your business processes. Recently, the results of a study conducted by Nintex. The main conclusion: the problems in corporate business processes lead to negative on the part of customers.
Top violated administrative processes:
- identifying problems and developing recommendations for elimination at the company level - 37%
- identifying problems and making recommendations for elimination at the team level - 34%
- cost accounting - 28%
Top issues related to document and sales management:
- document placement - 49%
- document exchange - 43%
- requests for approval and approval of documents - 43%
- upload and search of sales data - 41%
- filling in and execution of new client documents - 34%
- document version control - 33%
- receiving, negotiating and approving contracts - 27%
- work with sales results - 23%
- assessment of the potential of new directions - 19%
- recommendations of the new direction or product to the management team - 15%
Many employees admit that broken processes play a decisive role in the decision to start a new job search. At the same time, 58% consider the last drop in IT-processes to fail, 41% in HR, 37% in sales and finance, 32% in customer relations (not PR!), 29% in operational activities. The entire report, useful for both IT and HR, is here .
The results of this survey fairly accurately reflect the trends that exist in companies. Only process automation is not the best solution. First you need to collect processes, analyze and debug, and then proceed to the automation of routine and periodic work.
And then there is another statistic that is not related to the previous one, but is related to automation. A relatively small (100 top managers and managers in the field of marketing), the WorkSpan survey showed even more interesting results: 27% of marketing managers use at least 10 different programs to collaborate with partners and colleagues, including:
- collaboration with content (disks, balls) - 55%
- CRM - 40%
- marketing automation tools - 39%
- AdTech - 36%
- content marketing tools - 27%
47% spend more than 4 hours a week at meetings, 78% say they have a separate employee, whose only task is to track the progress and progress of marketing campaigns.
Zoo software in the company is not uncommon, and it is not just inconvenient, it is also expensive. Business overpays for systems with overlapping functionality. If you review the use profile and move to CRM or leave 2-3 really necessary decisions, you can save significant funds. This task should be assigned to the technical service or system administrator.
Myths and prejudices haunt us in all walks of life, but in business they are critically dangerous. We encourage analyzing, weighing options, counting money and choosing what will allow a business to work and spend a minimum of funds on tools. Then the question of payback will not be so acute.
⇒ RegionSoft CRM website
And we are slowly swaying our channel in the Telegram , in which, without advertising, we write not quite formal things about CRM and business. Come in, sometimes there is a light.Source: https://habr.com/ru/post/350304/
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