
It seems like the acronym CRM is largely misused when discussing sales tools and platforms with executives of large enterprises and owners of SMB companies. Over and again I hear these individuals discussing CRM in reference to the technology used by their sales teams for lead generation, prospect qualification and opportunity management. But the CRM system is only used by sales – and that means we’re really talking about sales force automation technology.
This disconnect occurs because many sales technology providers refer to their solution as CRM, but really it’s not. This is primarily due to the herd mentality of companies wanting to be considered a player in a large multi-$B enterprise market space. And the major enterprise players like Oracle/Siebel, SAP, Microsoft and now even Salesforce.com have popularized the CRM acronym to the extent that many of the new players feel compelled to wave the CRM software flag over their technology.
When you Google the definition of CRM, 10,000’s of responses come up, and it is clear there is no universal definition of Customer Relationship Management. In fact the majority will agree that CRM is a business strategy, and not a technology platform. A businesses CRM strategy may be enabled by certain technologies, but this is not a requirement.
And when CRM is defined in terms of a technology platform, it is referred to as a database or repository for a company’s interactions with their customers, including an organizations marketing, sales, customer service and technical groups.
That’s why I believe many executives think they are looking for a CRM solution, when what they really need is sales force automation capabilities. CRM is a boiling down the ocean thing, a forever strategy that is never perfected and will be extremely costly in terms of corporate lives and dollars. But SFA can be accomplished quickly, easily and with very near-term payback.
It’s clear that many organizations are interested in automating and standardizing the methods by which they conduct their top of sales funnel activities; this is being handled by a host of new and fast growing companies that deliver marketing automation solutions.
Likewise companies are looking for tools to enable more streamlined, automated and optimized lead qualification and sales pipeline development capabilities for mid-funnel activities. This is where SFA begins, and continues through to opportunity management (where enterprise CRM may pick up). We call this Total Funnel Management at Jesubi; when you automate and optimize early funnel activities (lead generation), coupled with streamlined processes for prospecting and lead qualification mid-funnel, directed to opportunity management late in the sales funnel.
The reality is that enterprise CRM platforms are not equipped to handle this level of automation for a total funnel management strategy. Enterprise CRM was architected to be a repository/database for storing information and activity history for customer interactions, with reporting and dashboards. Enterprise CRM was not designed with end user productivity in mind, and typically fails at any measurable type of automation capabilities. As these systems get bigger and loaded with functionality and module bloat, they move even further away from sales force automation as they require more screen jumping & navigation, significant data input and ad-hoc manipulation by end-users, and increasing administrative requirements to maintain, update, integrate and enhance the platform.
Sales executives and SMB founders that we talk to want simple & fast systems to deploy. They want ease of use at the get go, with minimal to no training; a system that is easy to configure and update, with integrations to their marketing automation systems — and sometimes integration to legacy CRM platforms if they extend to customer support and technical ops. Most importantly they want a system that allows them to automate and manage their selling campaign activities and sales processes, with detailed reporting that allows them to continually optimize these capabilities … they want sales force automation.