CRM Selection For Your Business: Seven Proven Steps

CRM Selection StepsCRM selection has become more difficult over the last several years, as many vendors have upped their game. They playing field has become more level.

While healthy competition ultimately benefits all organizations, an abundance of choices make it more difficult for those tasked with selecting the right CRM solution for their company to achieve the optimal outcome.

Partly because of the volume of marketing messages from leading CRM vendors, many people are drawn to starting the process of selecting a CRM solution by signing up for free trials and by rounding up the leading vendors for demonstrations.

However, when the CRM selection process begins with vendor demonstrations, the evaluation cycle can take a lot longer than everyone, including the vendor representatives, wants it to. There are many hidden costs to an extended selection timeline. Choosing the wrong product can result in large multi-year expenditures with little return.

Recommended Steps for CRM Selection

The following is a planning and selection sequence that we recommend to anyone we talk to, whether or not they ask for our help. Adding structure will accelerate the overall process rather than slowing it down. Postponing activities such as vendor demonstrations and product feature comparisons usually works in favor of the buyer.

Step 1 – Interview Stakeholders and End Users

In order to be the most successful, a CRM solution needs to address the needs of both management and end users.

Input from would-be end users is highly valuable to the CRM selection process. End users spend the most time interacting with prospects and customers. They are well equipped to relay observed inefficiencies and user pain points with the current systems. These users may have already come up with some creative solutions that could be handled within a more robust platform.

When the right types of questions are asked, areas of operational inefficiencies and customer dissatisfaction that management may not have even been aware of will often emerge.

If end users feel that they have had input early on in the process, they will be even more willing participants in a CRM solution once the solution is rolled out.

The group of participants in the interview stage should extend as high into the organization as possible.

Step 2 – Assemble and Analyze Input

Once information has been gathered from participants, the information needs to be organized and analyzed. Recurring themes will emerge from user input. Additional questions may need to be asked of management and of end users in order to fully capture the current state and the optimal future state.

The functionality and performance levels of existing systems and processes (including manual processes) should be catalogued and described in reasonable detail.

Relevant details about existing systems, ranging from shared spreadsheets to the company’s ERP system and how these systems are currently functioning or not functioning, should be a part of the analysis.

The output of this step is normally both a working document and a summary presentation that will become an integral part of the next step. A condensed version of the summary presentation can also be used in Step 5.

Step 3 – Validate and Prioritize

CRM Selection WorkshopA thorough execution of Steps 1 and 2 will result in a considerable volume of information that needs to be reviewed and validated.

Validation of the assembled input is best accomplished via a workshop that includes stakeholders and representative end users. The workshop is a means of communicating, confirming and discussing a variety of details with participants.

Once this information has been presented to and discussed with the assembled group, decisions can be made about which requirements should be addressed first and which ones can wait until a later phase.

The short list of vendors that should be considered is also a part of this step. The vendor list may need to include point solutions and third party add-on solutions.

Step 4 – Develop a Vendor Ranking System

After a prioritized list of requirements has been developed, this information should be organized in such a way that participants can rank vendors based on the ability of each vendors’ platform to meet the documented requirements.

A ranking system can also serve as a general demonstration guide for vendors so they can make sure to address the highest priority requirements and address requirements in a logical sequence as they take the team through the details of their CRM platform.

A ranking system should be focused on functionality and the ability of each prospective vendor platform to specifically address requirements, rather than on generalized features.

Step 5 – Schedule Tailored Presentations

Prospective vendors and/or their channel representatives should be pre-briefed on your organization’s current state and desired future state. They should understand your company’s functional areas and the roles within those functional areas.

Ideally, each prospective vendor representative will deliver a customized demonstration of their solution. It’s up to each vendor to determine how much time they want to spend tailoring their demonstration system.

However, it’s normally in a vendor’s best interest to provide as complete a picture as possible as to how their solution will solve your organization’s most important business issues.

While a full ‘proof of concept’ often requires a paid engagement, most vendors are willing to put in the effort to ensure that the benefits to a solution built on top of their platform can be visualized to a great enough extent.

A single presentation by each vendor is not always enough. Vendors may need to research certain details and then follow up with you. A subsequent technical deep dive session may be needed in order for your team to develop an understanding of how legacy system integration requirements will be addressed, for example.

Step 6 – Select the CRM Solution

After the demonstrations, there will invariably be follow up questions for vendors regarding specific functionality and how it will be delivered.

The participants’ vendor rankings should be consolidated into a single document. While at this point the correct path is often clear, the rankings can be further scrutinized in the case of a close call.

A final vendor selection should be made as part of this step and an implementation timeline and strategy should be determined. Initial implementation estimates can be requested from vendor partners at this stage. Enough information will have been collected to provide would-be implementation companies with a solid basis for their initial estimates.

Step 7 – Negotiate and Procure

Once your team has chosen a CRM vendor, there is additional work to be done. The CRM vendor you select may have multiple editions of their product. The vendor may allow for mixing and matching of functionality licenses within an edition. There may be licenses needed to enable specific features or to meet storage requirements.

Your organization may get better overall pricing for pre-purchasing licenses that will not be deployed during the initial rollout. On the other hand, it might make more financial sense to initially commit to a subset of the number of user licenses that will ultimately be needed — and purchase additional licenses in the future.

There may be certain add-ons or complementary technologies that should be a part of your CRM deployment. Pricing and purchase timing needs to determined for these as well.

There can be multiple options for contract duration. The optimal contract duration should be determined at this stage.

Other Benefits to a Structured CRM Selection Process

It’s worth noting that a formal process for choosing the right system provides a lot more benefit than just making a CRM vendor decision.

Since the process involves defining requirements, it provides a significant head start toward the eventual CRM implementation.

Gathering requirements early on also allows for more time to expand on certain ideas and refine priorities — as compared to beginning the requirements gathering process after payments for the new CRM system have already begun.

For senior management, a clearer picture of the operational components of the organization will emerge from the process outlined above. Beyond the CRM selection process itself, the perspective gained will provide valuable information that can be used as inputs for strategic thinking and planning.

The process of formally selecting a CRM system will garner information from employees that has value beyond just CRM. Employees have an opportunity to provide feedback that can ultimately increase their job satisfaction and the quality of service that they are able provide to customers.

CRM Planning and Selection Services

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About the Author

Daryn Reif

Daryn Reif is practice manager and co-founder of CRM Switch. CRM Switch is a boutique consulting firm that offers unbiased, vendor-neutral services for evaluating and selecting the best CRM and marketing software.

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