I have worked with a number of firms recently who have recognised that they needed a CRM tool.
In three instances, the firms chose to heavily invest into expensive Salesforce licences. In all cases the firms have not achieved anywhere near the return on investment that they may have hoped for. So what has gone wrong and how can things be changed?
The CRM Conundrum: Why Your Firm's Culture is Key to CRM Success
When professional services firms decide to invest in a Customer Relationship Management (CRM) tool, they often look to the big names. Salesforce, with its robust features and impressive reputation, frequently tops the list. But before you sign off on a hefty CRM budget, it's essential to understand a critical truth: no CRM tool, not even Salesforce, will magically solve your firm's issues unless there is a corresponding shift in your firm's culture.
The Allure of Salesforce
Salesforce is often seen as the gold standard in CRM systems. It promises streamlined client management, enhanced sales processes, and insightful data analytics. The pitch is enticing, spend the money, install the software, and watch as your firm’s business development woes disappear. Remember the phrase no-one got sacked for hiring IBM?
My experience has been that when it comes out of the box it is not fit for purpose and so requires hundreds of management hours to mold it as to how you would like it to work, look and feel.
But here’s the catch: buying an expensive CRM tool without addressing the underlying cultural issues within your firm is like putting a new engine in a car with no wheels. It won’t take you anywhere.
The Pitfalls of Over-Reliance on Technology
Many firms fall into the trap of believing that technology alone can solve their problems. Remember, the technology is there to deliver on a strategy, so what is yours? They allocate significant budgets to CRM, expecting it to transform their client relationships and drive new business. However, they often overlook the crucial human element that makes any CRM system effective. Whether you are using Salesforce, Hubspot, Clio or one of the new breed of zero data entry systems such as Nexl, you need to still get the basics right!
Without a culture that values client relationships, prioritizes data accuracy, and encourages collaboration, even the most sophisticated CRM tool will fail to deliver. Salesforce can organize your data and automate processes, but it can't create the buy-in needed from your team to use the system effectively.
The Importance of Culture
A CRM tool is only as good as the data it holds and the people who use it. For a CRM system to truly benefit your firm, it must be embraced by your team, integrated into your daily operations, and aligned with your firm's goals.
This requires a cultural shift. Your team must understand the value of maintaining accurate data, consistently updating client interactions, and using the CRM as a central tool for client management. It’s about changing behaviours, fostering accountability, and creating a mindset that views CRM not as just a tool, but as a critical component of client service and business development. It should not be seen as a chore.
Steps to Ensure CRM Success
Start with Leadership: Change starts at the top. Firm leaders must not only endorse the CRM but also use it themselves, demonstrating its importance to the rest of the team.
Invest in Training: Ensure that your team is fully trained on how to use the CRM effectively. This isn’t just about technical training but also about understanding how the CRM fits into your overall business strategy. You need at least one champion (remembering that 1 is a dangerous number in case they leave) who knows the system inside out and can champion it’s cause on a daily basis.
Encourage Adoption: Make CRM usage a non-negotiable part of your firm’s operations. Recognize and reward team members who actively engage with the CRM and contribute to its success. Ensure all hardware delivers a message to open the CRM everyday.
Regularly Review and Adapt: A CRM system should evolve with your firm. Regularly review your CRM processes, gather feedback from your team, and be willing to make adjustments.
Align CRM with Firm Goals: Ensure that your CRM strategy is aligned with your firm’s broader business development goals. The CRM should be a tool that supports your firm’s objectives, not a standalone solution.
Conclusion
Investing in a CRM tool like Salesforce can be great for your firm, but only if it’s backed by the right culture. Without the necessary cultural changes, you risk spending large sums of money on a system that doesn’t deliver the expected results. Focus on fostering a culture that values data integrity, collaboration, and continuous learning, and your investment in any CRM tool will be far more likely to pay off.
Remember, technology is a tool, not a solution. The real difference comes from your people and the culture you create. To learn about the 6 things needed to create a better business development culture go here.
If you want your CRM to help you to cross service/upsell existing clients I suggest you read this article on Cross Selling for Professional Services Firms.