By Jody Glidden
Across professional services firms, CRM adoption is less than 10% even though most implementations are considered successful. In fact, 60% of CRM projects fail to meet expectations. Those organizations that describe themselves as ‘not happy with our CRM results’ struggle to solve that problem. And that’s largely because they’re focused on the technology and how to get their users entering information into the CRM system. The real focus should be on how CRM improves business development and client interactions.
CRM automation has been shown to trigger widespread CRM adoption because it automates nearly all the work users need to perform. As a result, they focus on their strategic priorities while calling upon accurate data and timely intelligence. Let’s explore four key ways that CRM adoption impacts professional services firms.
1. Improves Client Retention
Driving more business year over year is always a priority, and professional services firms tend to go about this in three key ways:
- Acquire another firm
- Launch new service offerings
- Cross- or upsell existing clients
Of the three options, the third is the least expensive. Plus, the more services a firm sells to a client, the higher the revenues per client and the less likely that client is to churn.
The first step to successfully cross-selling or upselling is showing that you understand your existing clients’ needs. Then you offer them a service that will measurably impact their business.
CRM automation delivers relationship insights that help your business development professionals gain that foundational understanding. With it, they can easily determine what’s important to the client. For instance, they can see who knows whom within a company and upcoming events that are going to affect a client’s financial well-being. Calling upon these insights, they can engage in meaningful conversations and present the client with options for improving their business in some way.
2. Improves New Client Acquisition
Just as it pays to lead with insights when further developing relationships with existing clients, it’s important to open with these when meeting with prospects. Rather than make the mistake of presenting a deliverable, your business development professionals should demonstrate a knowledge of the prospective client’s business and industry. And they should come prepared with ideas and recommendations that will provide added value.
CRM automation can help. This software can send a pre-meeting digest of important information – such as insight on meeting attendees, previous communications, and useful company news – to your business development managers. This empowers them to get the most out of a meeting without lengthy preparation.
3. Boosts Billable Hours by Slashing Administrative Tasks
On average, firms’ CRM users spend 5.5 hours per week updating the CRM system with data – or pulling needed data from the system. If your fully loaded cost per hour is $200/ hour, your firm is spending $57,200 per year per CRM user with data entry alone – that’s not accounting for the missed revenue in terms of billable hours. Plus, when your business developers are spending time fussing around with your CRM system, they aren’t spending time finding new clients, tracking relationships, and building Go to the full article.
Source:: Business 2 Community