Pint-Sized Platforms

Think your company is too small for a CRM structure? Think again.

According to a white paper from CRM software consultancy Vendor Guru, appropriate customer relationship management applications can help small firms:

• Automate basic labor-intensive business processes.

• Consolidate data to deliver real-time information throughout the organization.

• Analyze the market to focus retention, cross-selling, upselling and prospecting.

• Enable company departments to collaborate on a variety of initiatives.

CRM systems do this by analyzing information drawn from customer data and then disseminating it.

Depending on the setup the direct marketer chooses, CRM technology can:

• Organize and centralize customer information from contact centers, service bureaus, complaint departments and field technicians.

• Store and analyze response rates of various outreach programs.

• Improve communications with customers and avoid excessive soliciting.

• Prioritize tasks, appointments and prospects based on potential value.

• Export customer information to handheld devices and laptops, providing reps greater knowledge of their customers.

There are two models for incorporating CRM systems, regardless of a company’s size. Some are maintained by the DMer, others hosted by an outside vendor.

The benefits to maintaining a CRM application in-house include:

• The ability to integrate legacy systems.

• Proximity of data, which makes information readily available.

• Ease of customization, especially for businesses with complex infrastructures.

The drawbacks to maintaining a system in-office include:

• High initial capital investment for software and hardware.

• Charges for software upgrades.

• The need for an IT department.

• Lengthy implementation periods.

• Generally longer time frames to realize return on investment.

Some DMers may prefer to have their system hosted by an outside vendor.

Benefits include:

• Low initial capital investment.

• Shorter time frames to realize ROI.

• A greater likelihood that current software and hardware will be used; upgrades usually are built into the subscription price.

• Access to information anywhere with an Internet connection.

The downsides:

• Monthly subscription charges can be greater over time than the purchase of an on-premises application.

• Potentially sensitive information resides outside the company, so system outages and data security are in the hands of a vendor.

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For more CRM and database marketing material, go to http://directmag.com/disciplines/crm/.