Evaluating Hosted CRM

1. Evaluating Hosted CRM EVALUATING HOSTED CRM HOW-TO GUIDE

2. 2 Evaluating Hosted CRM How-to Guide Until recently, Customer Relationship Management (CRM) software had the unenviable reputation for being difficult to implement in many mid-sized enterprises. Reasons for project failure included high start-up and maintenance costs, IT resource requirements, lack of user adoption, and large changes to existing business processes. Fortunately, vendors have recognized these issues and have adapted their products accordingly. Currently, there are many hosted CRM solutions that can be quickly implemented at reasonable costs. Read this summary to learn the benefits of hosted CRM and understand the current marketplace. Customer Relationship Management (CRM) is a business strategy that covers methods and tech- nologies used by companies to manage their relationships with clients. Information stored on existing customers (and potential customers) is analyzed and used to this end. Automated CRM processes are often used to generate automatic, personalized marketing based on the customer information stored in the system. There are two major types of CRM systems in-house or hosted. Hosted software, or ‘on-demand’ as it is often called, is delivered via the Internet. Examples of common hosted software systems include Hotmail, Travelocity.com, and online banking. HOW-TO GUIDE No IT Resources Required – organizations that have do not have IT resources find exceptional value from the hosted model, as system users and administrators can have little to no prior tech- nology experience. Monthly Subscription-Based Pricing – most hosted CRM systems provide a very attractive subscription-based pricing model. Ranging between $20-$125/user/month, these systems are affordable for mid-sized enterprises. Very Quick Implementation – most deployments can be implemented within a few weeks. When compared to in-house deployments of 6–18 months, the hosted model becomes a much more viable option. High Availability – Application Service Providers (ASP) deliver these hosted solutions and provide Service Level Agreements, which guarantee availability. Although these systems have been known to go down from time to time, there is a better chance that your in-house system would be less reliable. What Is A Hosted CRM System? Hosted CRM System Benefits Evaluating Hosted CRM 2 Evaluating Hosted CRM How-to Guide Until recently, Customer Relationship Management (CRM) software had the unenviable reputation for being difficult to implement in many mid-sized enterprises. Reasons for project failure included high start-up and maintenance costs, IT resource requirements, lack of user adoption, and large changes to existing business processes. Fortunately, vendors have recognized these issues and have adapted their products accordingly. Currently, there are many hosted CRM solutions that can be quickly implemented at reasonable costs. Read this summary to learn the benefits of hosted CRM and understand the current marketplace. Customer Relationship Management (CRM) is a business strategy that covers methods and tech- nologies used by companies to manage their relationships with clients. Information stored on existing customers (and potential customers) is analyzed and used to this end. Automated CRM processes are often used to generate automatic, personalized marketing based on the customer information stored in the system. There are two major types of CRM systems in-house or hosted. Hosted software, or ‘on-demand’ as it is often called, is delivered via the Internet. Examples of common hosted software systems include Hotmail, Travelocity.com, and online banking. HOW-TO GUIDE No IT Resources Required – organizations that have do not have IT resources find exceptional value from the hosted model, as system users and administrators can have little to no prior tech- nology experience. Monthly Subscription-Based Pricing – most hosted CRM systems provide a very attractive subscription-based pricing model. Ranging between $20-$125/user/month, these systems are affordable for mid-sized enterprises. Very Quick Implementation – most deployments can be implemented within a few weeks. When compared to in-house deployments of 6–18 months, the hosted model becomes a much more viable option. High Availability – Application Service Providers (ASP) deliver these hosted solutions and provide Service Level Agreements, which guarantee availability. Although these systems have been known to go down from time to time, there is a better chance that your in-house system would be less reliable. What Is A Hosted CRM System? Hosted CRM System Benefits Evaluating Hosted CRM

3. 3 Evaluating Hosted CRM How-to Guide CRM systems are one of the top investment priorities for mid-sized enterprises this year. Learn how the hosted model for service delivery can provide strong return on investment, and get your pilot started immediately. HOW-TO GUIDE Bottom Line Evaluating Hosted CRM 3 Evaluating Hosted CRM How-to Guide CRM systems are one of the top investment priorities for mid-sized enterprises this year. Learn how the hosted model for service delivery can provide strong return on investment, and get your pilot started immediately. HOW-TO GUIDE Bottom Line Evaluating Hosted CRM

4. 4 Evaluating Hosted CRM How-to Guide Action Plan STEP 1 - Discuss with Steering Committee 1 3 Discuss with Steering Committee Make a Decision Have a brief discussion regarding your organ- ization’s ability to track Sales, Marketing, and Customer Service activities to determine if migrating to a newer, more advanced system makes sense. 7 Conduct a Pilot 6 Select a Solution(s) 4 Document Requirements 2 Evaluate Existing Systems 5 Assess Hosted CRM Providers Roll-out to Enterprise8 The Steering Committee Charter Offers Visibility Steering Committee Charter V I E W R E S O U R C E 4 Evaluating Hosted CRM How-to Guide Action Plan STEP 1 - Discuss with Steering Committee 1 3 Discuss with Steering Committee Make a Decision Have a brief discussion regarding your organ- ization’s ability to track Sales, Marketing, and Customer Service activities to determine if migrating to a newer, more advanced system makes sense. 7 Conduct a Pilot 6 Select a Solution(s) 4 Document Requirements 2 Evaluate Existing Systems 5 Assess Hosted CRM Providers Roll-out to Enterprise8 The Steering Committee Charter Offers Visibility Steering Committee Charter V I E W R E S O U R C E

5. 5 Evaluating Hosted CRM How-to Guide Action Plan STEP 2 - Evaluate Existing Systems Conduct an audit of your current systems, such as excel spreadsheets, client lists, or CRM software, to identify the strengths and weaknesses of your current environment to determine potential impact. You should also use our CRM Readiness Assessment to measure your organization’s readiness to implement an enterprise CRM program and/ or system. 1 2 Evaluate Existing Systems 5 3 4 6 7 8 Make a Decision Conduct a Pilot Select a Solution(s) Document Requirements Roll-out to Enterprise Discuss with Steering Committee Audit Systems with the CRM Program Maturity Assessment CRM Program Maturity Assessment V I E W R E S O U R C E Assess Hosted CRM Providers 5 Evaluating Hosted CRM How-to Guide Action Plan STEP 2 - Evaluate Existing Systems Conduct an audit of your current systems, such as excel spreadsheets, client lists, or CRM software, to identify the strengths and weaknesses of your current environment to determine potential impact. You should also use our CRM Readiness Assessment to measure your organization’s readiness to implement an enterprise CRM program and/ or system. 1 2 Evaluate Existing Systems 5 3 4 6 7 8 Make a Decision Conduct a Pilot Select a Solution(s) Document Requirements Roll-out to Enterprise Discuss with Steering Committee Audit Systems with the CRM Program Maturity Assessment CRM Program Maturity Assessment V I E W R E S O U R C E Assess Hosted CRM Providers

6. 6 Evaluating Hosted CRM How-to Guide Action Plan STEP 3 - Make a Decision Determine if your current systems are adequate, or if a new CRM system is required. If you need a new system, have a discussion regarding the benefits of a hosted CRM solu- tion versus an in-house system. 3 Make a Decision 1 2 4 5 6 7 8 Conduct a Pilot Select a Solution(s) Document Requirements Evaluate Existing Systems Assess Hosted CRM Providers Roll-out to Enterprise Discuss with Steering Committee Choices Are Transparent with the Build vs. Buy Matrix Build vs. Buy Decision Matrix V I E W R E S O U R C E 6 Evaluating Hosted CRM How-to Guide Action Plan STEP 3 - Make a Decision Determine if your current systems are adequate, or if a new CRM system is required. If you need a new system, have a discussion regarding the benefits of a hosted CRM solu- tion versus an in-house system. 3 Make a Decision 1 2 4 5 6 7 8 Conduct a Pilot Select a Solution(s) Document Requirements Evaluate Existing Systems Assess Hosted CRM Providers Roll-out to Enterprise Discuss with Steering Committee Choices Are Transparent with the Build vs. Buy Matrix Build vs. Buy Decision Matrix V I E W R E S O U R C E

7. 7 Evaluating Hosted CRM How-to Guide Action Plan STEP 4 - Document Requirements Work with Sales, Customer Service, and Senior Management to understand what your requirements are. Next, prioritize these requirements so that you will be in a good position to compare vendors. 4 Document Requirements 1 2 3 5 6 7 8 Make a Decision Conduct a Pilot Select a Solution(s) Evaluate Existing Systems Assess Hosted CRM Providers Roll-out to Enterprise Discuss with Steering Committee Discuss with Your Team the Next CRM Requirements CRM Requirements Roadmap V I E W R E S O U R C E 7 Evaluating Hosted CRM How-to Guide Action Plan STEP 4 - Document Requirements Work with Sales, Customer Service, and Senior Management to understand what your requirements are. Next, prioritize these requirements so that you will be in a good position to compare vendors. 4 Document Requirements 1 2 3 5 6 7 8 Make a Decision Conduct a Pilot Select a Solution(s) Evaluate Existing Systems Assess Hosted CRM Providers Roll-out to Enterprise Discuss with Steering Committee Discuss with Your Team the Next CRM Requirements CRM Requirements Roadmap V I E W R E S O U R C E

8. 8 Evaluating Hosted CRM How-to Guide Action Plan STEP 5 - Assess Hosted CRM Providers Create a short-list of potential vendors and book a few demonstrations to learn about the pros and cons of each solution. Use independent research firms, or buyer’s guides, to save time with this exercise. 5 Assess Hosted CRM Providers 1 2 3 4 6 7 8 Make a Decision Conduct a Pilot Select a Solution(s) Document Requirements Evaluate Existing Systems Roll-out to Enterprise Discuss with Steering Committee Evaluate the Pros and Cons of CRM Solutions Offered V I E W R E S O U R C E CRM Vendor Evaluation Matrix CRM Solution Study V I E W R E S O U R C E CRM Solution Study 8 Evaluating Hosted CRM How-to Guide Action Plan STEP 5 - Assess Hosted CRM Providers Create a short-list of potential vendors and book a few demonstrations to learn about the pros and cons of each solution. Use independent research firms, or buyer’s guides, to save time with this exercise. 5 Assess Hosted CRM Providers 1 2 3 4 6 7 8 Make a Decision Conduct a Pilot Select a Solution(s) Document Requirements Evaluate Existing Systems Roll-out to Enterprise Discuss with Steering Committee Evaluate the Pros and Cons of CRM Solutions Offered V I E W R E S O U R C E CRM Vendor Evaluation Matrix CRM Solution Study V I E W R E S O U R C E CRM Solution Study

9. 9 Evaluating Hosted CRM How-to Guide Action Plan STEP 6 - Select a Solution(s) Based on your key requirements, determine which system can meet your requirements and budget. Include stakeholders from each department who will be using the system in the decision-making process, as their buy-in and adoption of the solution is absolutely essential. 6 Select a Solution(s) 1 2 3 4 5 7 8 Make a Decision Conduct a Pilot Document Requirements Evaluate Existing Systems Assess Hosted CRM Providers Roll-out to Enterprise Discuss with Steering Committee Decide with Your Key Stakeholders the Best Solution(s) V I E W R E S O U R C E CRM Vendor Evaluation Matrix 9 Evaluating Hosted CRM How-to Guide Action Plan STEP 6 - Select a Solution(s) Based on your key requirements, determine which system can meet your requirements and budget. Include stakeholders from each department who will be using the system in the decision-making process, as their buy-in and adoption of the solution is absolutely essential. 6 Select a Solution(s) 1 2 3 4 5 7 8 Make a Decision Conduct a Pilot Document Requirements Evaluate Existing Systems Assess Hosted CRM Providers Roll-out to Enterprise Discuss with Steering Committee Decide with Your Key Stakeholders the Best Solution(s) V I E W R E S O U R C E CRM Vendor Evaluation Matrix

10. . 10 Evaluating Hosted CRM How-to Guide Action Plan STEP 7 - Conduct a Pilot 7 8 Conduct a Pilot 88 1 2 3 4 5 6 Make a Decision Select a Solution(s) Document Requirements Evaluate Existing Systems Assess Hosted CRM Providers Roll-out to Enterprise Discuss with Steering Committee Test the system with a small group of users for a 30–90 day period. Adapt your busi- ness processes to accommodate for the new system and analyze performance results. It is critical that your new system enables more sales, improved marketing tracking, and better customer service, or else it is not worth the time and resources needed to migrate from your old system. Test Drive Your New System(s) with a Small Trial Group V I E W R E S O U R C E CRM Program Playbook

11. . 11 Evaluating Hosted CRM How-to Guide Action Plan STEP 8 - Roll-out To Enterprise 8 Roll-out To Enterprise 2 1 3 4 5 6 7 Make a Decision Conduct a Pilot Select a Solution(s) Document Requirements Evaluate Existing Systems Assess Hosted CRM Providers Discuss with Steering Committee Once the business case has been proven, scale up your deployment. Have each depart- ment come on board one at a time so that you can build momentum and internal system knowledge incrementally. Appoint a system administrator who can head up the training process. Once Proven, Scale Up and Build Momentum and Knowledge V I E W R E S O U R C E CRM Project Schedule

12. . Demand Metric is a marketing research and advisory firm serving a membership community of over 100,000 marketing professionals and consultants in 75 countries. Offering consulting playbooks, advisory services, and 500+ premium marketing tools and templates, Demand Metric resources and expertise help the marketing community plan more efficiently and effectively, answer the difficult questions about their work with authority and conviction, and complete marketing projects more quickly and with greater confidence — thus boosting the respect of the marketing team and making it easier to justify resources the team needs to succeed. To learn more about Demand Metric, please visit www.demandmetric.com About Demand Metric Follow us on Twitter Like us on Facebook Join Linkedin Group © Demand Metric Research Corporation. All Rights Reserved.