On a high level, this article explores and attempts to explain the convoluted world that is CRM. Primarily, what are the differences between CRM, LMS and SFA and what should you look for in your search for a solution.
Why CRM? Why Should You Care? Part II
By Deidre Hughey
Since the last CRM article, I have been asked some of the following questions:
“What about SFA, what’s that?”
“What about LMS…will that work for me?”
“Isn’t a CRM going to be too much MONEY?”
Okay, before we get too much further, let’s get some of the acronym translations out of the way.
SFA – Sales Force Automation, any software that helps a sales team and its processes to become more automated is considered an SFA. A CRM is an SFA tool.
CRM – Customer Relationship Management/Client, a software that helps to manage and streamline the sales, marketing and customer service functions through pre-established rules and automation.
LMS – Lead Management System, is a system that stores, classifies and provides set data on demand, or simply put, this software manages leads. You can imagine an LMS as a subset or even a branch of the CRM tree.
In its most simplistic state, an LMS can be a rolodex or a binder of business cards that has been organized in some fashion. An LMS is most useful as a software that allows you to input contact information and then output lists of contacts based on designated parameters.
One of the primary differences between a CRM and LMS is automation. A robust CRM can e-mail campaigns, capture leads, send leads, forecast sales, send reports and send messages to your sales people based on pre-designated parameters – essentially, automating a portion of your sales process. An LMS lacks the automation portion and as such, typically, an LMS will be less expensive than a CRM.
Expense
Both LMS and CRM packages are available to purchase or as a subscription on the web. Purchase prices can be in the thousands, but a subscription on the web can run from $30 to hundreds per month, per seat.
I recently met with a CRM expert, so designated by his being hired by large corporations to train their sales teams on the utilization of CRM. I asked him what he would recommend for a small business owner. He stated that if there are 1-4 users in an office, he would recommend using an extension of either Quickbooks, Microsoft Office or Outlook which all contain a quasi LMS for a one-time, nominal fee.
The Warning
When asked what he would recommend for a CRM, he stated that the most important thing to consider is what does the company want the CRM to do for them, then find a CRM that will deliver what they want. He went on to state that he has several that he likes but to be aware of the evils of CRM.
“Evils?” I asked.
He chuckled and stated, “Be very wary of the free CRM. Also, keep in mind, you will never be happy with the CRM you end up with, it’s a matter of finding the least frustrating CRM for your needs.”
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Deidre Hughey , partner at Dancing Elephants Achievement Group of the Carolinas, is a speaker, writer and sales trainer. Her mission is to teach business owners and salespeople how to be successful without compromising their ethical standards. For more information, please visit www.saleselephant.com or send an email to Deidre@deagsales.com .
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