Downturn a good time to streamline workflow More than a program

Well, that last one was not necessarily a direct result of the recession, and it may not really belong in the same category as the other two in terms of global impact, but introducing CRM to small businesses may create a significant lasting effect on the small business marketplace.

Once the domain of only the largest multinational corporations -- implementing a CRM system from a vendor like SAP, for instance, would typically cost about $15,000 per user -- there is now a pricing scenario available that most small businesses can afford.

While there are plenty of software strategies that try to automate or systematize business processes, CRM is the only way to integrate an organization's financial accounting, sales, inventory, manufacturing, logistics and anything else with the customer as the central focus.

What it does is break down the digital information silos that exist in many organizations.

Robert Barnes owns and operates a Winnipeg company called CRM Systems. It has been in business for more than five years, providing customer relationship management advice and installing Sage CRM and enterprise resource planning (ERP) systems and custom software solutions focused on CRM.

If he's not that well known around town right now, it's at least partially because almost all of his customers -- about 220 installations -- are outside the country in places as far away as South Africa and Australia.

In fact, business has been so good in southern California that Barnes opened an office in San Diego. The firm also has affiliated offices in San Francisco and New York.

But because of a few history-related dynamics, he hopes to now be able to start converting more local business to CRM.

"For one thing, many small and medium enterprises have been so busy for the past 10 years that they have not had time to stop to take a breath," said Barnes, 32, a gold-medal winner from the University of Manitoba's Asper School of Business. "The economic slowdown has given us the chance to work with companies. They now have time to look at their own internal situation."

The other factor Barnes believes to be in his favour is that Winnipeg businesses typically lag about five years behind in the implementation of new technology.

But Barnes said customers get a return on investment within less than a year of implementing CRM and an immediate 20 per cent increase in administrative productivity which are attractive payback scenarios for the cost-conscious Winnipeg business community.

The Winnipeg Chamber of Commerce, one of Barnes' most recent converts to CRM, may become the perfect local poster child for the business tool.

Karen Weiss, the chamber's vice-president of operations, said the organization is meant to be a model for small and medium-sized businesses. Being a small business early adapter to CRM, it would serve as an excellent example to its own constituents.

"We have fully integrated the membership database with the accounting system," Weiss said. "The system has impacted the organization across the board."

What that means at the chamber is when the salespeople are out selling memberships, at special events or at sponsorship arrangements, they have the whole history of communication between the chamber and that client in front of them.

Not only that, but the web-based system includes a secure online sales environment that can let members pay their dues online rather than require an administrative person to key in credit card information for verification and then re-enter the information into the proper accounting records. It all happens seamlessly.

"Now we can take that person and put them in a position to provide greater impact and direct interaction with membership as opposed to doing paper transactions," Weiss said.

It is not hard to start getting ideas of a business utopia when listening to Barnes and his team talk about CRM, but he points out there is plenty of hard work required.

Before any software is installed, the organization needs to be clear what it wants to accomplish.

"We look to be leading edge, but you have to maintain it," Weiss said. "The world that is changing pretty quickly."

martin.cash@freepress.mb.ca

"ö What is CRM? -- CRM is an enterprise-wide business strategy designed to learn about customers' needs and behaviours to organize customer relationships to maximize profitability and minimize expenses.

"ö How does it do that? -- CRM amalgamates information across departments into one central system. It is not just technology and software, it is a process and way of doing business that goes beyond the tools you use.

"ö What sort of issues are addressed? For instance, different departments might track and keep records on different software; management does not have real-time information; customer service does not have marketing information for cross-selling opportunities; salespeople do not have easy access to client records; customer service does not know the full history of contact with the customer.

"ö What are the benefits of CRM? -- Everyone is connected into one system so that everyone has the information they need to do their jobs. For instance, sales and customer service have a deeper knowledge of the customers; promotions, services and products can be pitched that are exactly what the customer is looking for; sales staff can close deals faster; and it can help retain existing customers and discover new ones.

-- Martin Cash

Republished from the Winnipeg Free Press print edition May 25, 2009 B16