Most companies have a process for closing the initial sales
What was clear is that they have invested lots of time and money in creating a sales organization that knows what it is doing and can close deals. That is, they could close new deals.
But they don't have a plan for what happens next
And they lose a lot of customers at renewalsThe problem is this: the customer has a different renewal process.
Including Customer Success Management activities after go-live is critical to renewals
1. Expected ROI over the life of the CRM investmentDon’t just look at implementation costs or total cost of ownership (TCO). Make sure the expected return and lifetime value is both positive and significant enough to warrant the time and effort required to implement and maintain the system. Perform a scenario analysis to weight the expected ROI to adjust for different levels of user adoption. Will this still seem like a good investment if you don’t get effective adoption?
2. Current level of user adoption of existing systems
3. Impact of future changes to users’ jobs and performance requirements
4. Identification of all drivers and barriers to IT user adoption
6. Identification of resources & budget required to drive initial user adoption
7. Plan and budget resources for sustaining user adoption over the life of the system
8. Defined approach for ensuring the CRM system stays relevant
There are many lessons here for IT departments (and, arguably, the organization as a whole) before it invests in a CRM System.
New 2014 mortgage rules require lenders consider customers’ ability to repay a loan before extending credit
Lenders (and others) need to consider their ability to achieve ROI before investing in CRM systems
1. Look at how much money you send out now (license and implementation costs) and how much value demand to get back (increase in sales, decrease in costs, or other measures of ROI on your CRM investment).
2. Critically examine and rate your ability to actually achieve the returns you require (ability to drive and sustain user adoption and benefits realization).
3. Oh, and depending on the size of the investment, you may require some sort of collateral to help incentivize successful payback of your investment (for CRM investments, this may be tying executive compensation to CRM success).
Don’t invest in Sub-Prime CRM.
Before you write a check for any CRM system, make sure it is worth it. It is better to not make any investment than to throw away a pile of money and waste tons of time on a system that is doomed to failure before it even begins.
Require a User Adoption & ROI Plan before you spend a dime on CRM!
1. Is there a written plan for how we will ensure a positive ROI on our CRM investment?2. Have we done a thorough analysis to identify all the drivers and barriers that will affect user adoption (and ROI)?3. Have we defined exactly what ROI goals must be achieved in what amount of time before we proceed?4. Is there a single, senior executive who will be held accountable (including having a personal financial stake) for meeting ROI goals on the CRM investment?
If you can’t say yes to all of the above questions, then the loan is not approved!
I recently had coffee with a very gifted organizational change consultant and we got talking about different change challenges organizations face. She was telling me about one of her clients, a CIO for a large, global organization that is struggling to improve internal operations and performance.
After a few months of work, her client asked, “So, are we changing yet?"
The answer was no.
How will you recognize when change is happening?
How will you know if things are changing or if you are just spinning your wheels?
Will you know where you are in the change process?
How will you know when the change is complete?
While every organization has unique needs and challenges, it is important that you think about these questions. And write down your answers. The more you can do to recognize where you are in the change processes, the better equipped you are to make change happen.
Set specific change goals. And deadlines.
While some changes are harder to map out and recognize (e.g., organizational culture change) other changes (e.g., adopting a new system or adhering to new policies) can be mapped out with clarity. Whenever possible, setting SMART (specific, measurable, achievable, realistic, time-bound) change goals can help align efforts and drive action. Of course, these can then become the metrics against which both change and users are measured.
For example, many organizations do not even set specific user adoption targets when rolling out a new system. When I have helped organizations set targeted weekly CRM system use goals (like create 4 accounts week 1, create 3 opportunities in week 2, etc.) we have consistently seen rapid increase in effective system use.
Assign ownership and accountability
Making sure that everyone is clear on who is responsible for making the change happen, and how and when you will hold them accountable, is critical to your success. Many change efforts are focused on completing change activities, but they are not focused on achieving change outcomes.
If you want a specific change outcome, make sure your change leaders understand the outcome they must deliver and what happens if they hit/miss/exceed those goals.
Pivot when necessary
Change doesn’t happen in a vacuum and when you make one change, it kicks off a domino process. Other changes – some planned, many not – will happen. You need to make sure you are constantly monitoring your organizational landscape to address any emerging issues and opportunities.
But be careful. Pivoting to respond to emerging issues is important, and do it in a way that does not remove accountability for achieving stated goals. When you shift your goals (short- or long-term) make sure everyone is still clear on ownership, expectations, incentives, and accountability.