Managing relationship data from lead through customer lifecycle
One key element of a successful customer relationship management program is having the right data--not simply contact information, but information that can strengthen and enhance relationships well beyond the sales cycle. More importantly, it means changing the mindsets, behaviors, and processes required to capture and use that information to your advantage.
Consider this hypothetical example:
Innovative Consulting is a middle-market professional services firm with regional sales teams that focus on different service lines--a model that has worked well. Clients like this approach, because Innovative Consulting's business development representatives have deep functional and technical knowledge about the company's services. However, at times, it requires that customers interact with different people to gather information about different services.
Several of Innovative Consulting's functions--including business development, marketing, client support, and senior management--use the company's customer relationship management (CRM) system to track contact information and interactions, as well as new business leads and the services in which customers and prospects are interested.
Many organizations, like Innovative Consulting, use CRM systems to consolidate, track, and manage information about customers and prospects. But many of those only scratch the surface--they manage contact data rather than managing the data that drives relationships.
The data that drives relationships.
Managing customer relationships requires much more than tracking contact data. Among other things, it requires insight into:
- The nature of interactions with customers or prospects--their needs, issues, and concerns.
- Information about relationships and interactions beyond the selling cycle.
- Insight about others with whom those individuals have contact--within their organizations, in your organization, and at third parties such as associations.
Companies that capture the right information, and make it accessible to all those who may have contact with a particular customer, put themselves in the best position to develop strong relationships.
Going back to our example, Global Marketing Partners, an important client for Innovative Consulting, experienced quality problems with a large system recently implemented by a Innovative Consulting team. Jim Smith, the account manager for Systems Development, visited Global to assess the situation. After doing so, he logged the meeting results and resolution plan in the company's CRM system.
At the same time, Jill Brown, the representative for Accounting Services, was preparing for a significant negotiation session with Global that would represent the largest proposal to date for Innovative Consulting. Right away, Jill noticed Jim's entry into the CRM system, enabling her to adapt her sales message, prepare to discuss the issue openly with Global, and emphasize the company's commitment to quality service and customer satisfaction. As a result of having up-to-date customer relationship information, Jill and Innovative Consulting were able to close the deal.
Beyond technology.
Managing relationship information also requires changes in mindset, processes, and behaviors. To ensure a robust relationship management program, company personnel must exert discipline in capturing and logging relevant facts. And they must be willing to share information about their contacts and relationships that may be of benefit to others.
How do you initiate such a shift?
Many companies immediately look to new technology tools, but approaching it in several sequential steps can set your organization on the course for better understanding--and then leveraging--relationships:
- Define your objectives and metrics. What do you want to achieve? A higher closure rate? Increased cross-selling to existing clients?
- Identify the information you have today and then the information you will need to capture to achieve your objectives.
- Identify all the individuals who should be involved in capturing and reporting relationship information. Don’t overlook the vital role that executive assistants and support personnel can play in this process.
- Only then, determine the tool(s) are most appropriate for your needs.
Returning to our Innovative Consulting story -- Joe Brown has entered all of his professional contacts into the CRM system--valuable relationships that he has cultivated and managed over a period of decades. Jane Evans is preparing to call on a new client this week. Checking the CRM system, she realizes that Joe has a strong relationship with someone at this company through his participation in a professional association. Jane contacts Joe, who is able to provide counsel about hot topics and sensitive issues at the company. He also volunteers to call ahead to his contact to find out more about the individual with whom Jane will meet--all input that prepares her to side-step potential "land mines" and add value immediately.
This outcome, and others like it, can only benefit Innovative Consulting as a company. If Joe had not used the company's CRM system to manage his contact information, Jane would not have had the success she did.
This is a hypothetical example, of course, but it illustrates--in simple terms--the benefits of capturing information with an eye toward strengthening and enhancing relationships across the company.
West Monroe Partners helps companies develop effective customer relationship management programs--including defining and capturing the information that enhances relationships. For more information, please contact David Tilson at
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