In this Issue:

Telephone Systems that Pay for Themselves

Technology and Selling

Is CRM right for my business?

Telephone Systems that Pay for Themselves  [TOP]

A couple of months ago we held a seminar entitled “Telephone Systems that Pay for Themselves”, and the response was very positive.  Because of the feedback that we received from that presentation, it seemed appropriate to share some of the content here.

The telephone in most organizations is the lifeline to the outside world.  Even with the increasing use of email, the web and on line purchasing capabilities, sometimes talking to a person and having a real dialog can make things a lot smoother.  This is particularly true for customer service organizations and selling products that may be more complex to purchase.

In a weak economy, the last thing most companies want to consider is a new phone system.  But how can you service an increasingly demanding customer base, satisfy an overworked internal support staff, and enhance your sales forces ability to remain in contact with customers and the office?  And what about those satellite offices that were so important just a few months ago?  Cost reductions have (or soon will) eliminated them.

XFER has two particularly good solutions for meeting these needs without breaking the bank.  First, consider the new generation of telephone systems, the software based PBX.  A software PBX (Private Branch eXchange, or more simply, telephone system) can provide functionality far beyond the traditional PBX, with the benefit of not becoming obsolete.  Software PBX’s run on standard computer hardware, utilizing standard telephony boards and industry standard operating systems.  Because the software can be enhanced on a regular basis, the systems have a much longer life cycle than the traditional phone system.  Additionally, even if the hardware wears out or becomes obsolete over time, the software is still state of the art.  That means that five (5) years from now you will still have the most current, up to date system available.  When a traditional system has breathed it’s last, the software PBX is as fresh as the day you took it out of the box.  And consider the feature set that comes with this arrangement.  Without generating a long, boring list features unheard of just a couple of years ago, suffice it to say that you can do almost anything that you can imagine doing with a phone system.

The second option is an add on product that provides a lot of the functionality of the software PBX, without replacing the installed PBX.  If you have recently purchased a traditional PBX, don’t have room in the budget for a completely new PBX, or if it would just be politically wrong to implement a software PBX at this time, you might want to consider a “unified messaging” platform that adds on to your installed phone system.  These systems attach to your telephone system much the same way that a voicemail system does.  They offer significantly more features than a simple voicemail system.  While these add on systems can have some limitations, (mostly due to the limitations of the telephone systems that they are attached to) they also breathe new life into an otherwise aging piece of equipment. 

Whether you chose a new software based PBX or a unified messaging upgrade, the payback is going to be a combination of “hard” dollars and “soft” dollars.  Fortunately for those of you who have to present your payback analysis to a CPA type, most of the dollar savings are “hard” dollars.  When you factor in the total cost of ownership including maintenance, upgrades, feature set, and value at the end of your payback period, most companies find one of  these alternatives significantly more cost effective than other alternatives.  And what about the “soft” dollars?  Customer retention, efficiency, improved operations, more calls answered more quickly, etc., are the icing on the cake. [TOP]

For further investigation go to: http://www.xfer.com/

Technology and Selling   [TOP]

In an economy that focuses on cost savings and cost reductions, how do you find customers that will spend money?  The answer is not necessarily working harder, but working smarter.  That seems a little trite, but from an insiders perspective on the business, finding ways to work smarter can be very elusive.

Perhaps you are like your prospects, you have downsized, you are working harder, but the result of more work is simply more frustration.  Jim Downes, from Acumen Group, says that most of his clients are finding that they have good people, but they have placed them in a role that does not match their personal work style.  By realigning the people and the job, he has had success in reducing frustration, improving morale, and (of course) improving profitability.

Similarly, if you are working hard to identify new prospects, but you are not “bringing in the business”, you may find that your sales process does not accurately reflect your client’s buying pattern.  If your sales force is capable (see previous paragraph), then perhaps the sales model that was working in the past (read: better economy) is not as effective in the current climate.  One way to ensure that you are getting the most from your sales efforts is to treat sales as you would any other part of the business.  Most managers know and insist that there are processes and procedures for buying goods, making goods and delivering goods, but they don’t apply the same thinking to selling their goods.  This is particularly true when an organization depends on sales professionals to  call on prospects and clients.  Sales people are thought of as individual contributors that bring success to the job by having the right personality or contacts.  In fact, the best sales professionals have both a process and a procedure for ensuring success.

Your challenge is to find that sales process, improve on it , and make it available to all of your sales force.  The right sales professional with the right sales process will yield improved, repeatable, predictable results.[TOP]

Is CRM right for my business?   [TOP]

 Customer Relationship Management (CRM) is rapidly becoming an important part of every business, regardless of size.  Industry experts frequently cite the statistic that it costs 5 to 7 times as much to acquire a new client as it does to retain an existing one.  Most small to medium sized businesses feel that the cost and effort to implement a true CRM solution is much to daunting to embark upon.  The truth is, you may already have the tools installed in your organization to provide a lot of “bang for the buck”.  You may actually be using a form of CRM and not even know it.  Software that focuses on your sales professionals is called Sales Force Automation Software (SFA), and is a good starting point for many organizations .

If you use Microsoft Outlook to manage your contacts and your calendar, and you keep notes in those records with follow up activities, you have the beginnings of an SFA/CRM system.  If your sales staff uses one of the many contact managers available (ACT!, Goldmine, etc.) then you are probably aware of some of the benefits of tracking and managing your client and prospect activity more deliberately.

But if all you do is keep track of appointments and phone numbers, then a lot of the potential payback from an SFA/CRM implementation is lost.  A key benefit of SFA/CRM is the opportunity to define and refine the sales process, share important information and gather historical trends. 

Consider the benefits of “cloning” the best practices of your best sales performers.  A well defined sales process that is tailored to your business and industry lets you automate the little things that sometimes don’t happen on a consistent basis.  For instance, do all of your sales people always send out the “Thank You” letter that reminds the client of your visit?  If they do, is it designed to get a positive response from the prospect?  As a manager, do you know the answer to these questions?

Almost as important as the improvement in the process is the improvement in the productivity of your sales force.  If an SFA/CRM implementation is done correctly, the sales force will embrace the technology and use it to their personal advantage.  If they embrace the technology, then they will use the technology and the long term success of the project is much more likely.

A properly integrated, properly deployed SFA/CRM system has tremendous potential for improving the sales and customer interaction for your organization.  Planning and training are the key success factors for this type of implementation.  To improve your chances for success, consider using an outside organization to assist you with the planning and implementation of the project.  Look for a company who has CRM professionally certified staff member to assist you in the assessment and planning.  And finally, stay the course.  Short term bumps are inevitable, but long term gains are yours for the taking if you hang tough.[TOP]

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