Upgrading CRM tools in a downturn
Despite the economic slowdown, experts say now is a good time for midsize retailers to move up to Microsoft Dynamics CRM 4.0.
In summary:
| • | Investing in tools that can help make customers happy is a good strategy. |
| • | CRM is increasingly integrated with other key business applications. |
| • | Take advantage of Microsoft partner applications and expertise. |
Amidst limited budgets and even more limited staffing, refreshing your CRM tools might seem a low priority. But experts say you couldn't be more wrong. With the economy in distress, now is an ideal time for midsize retailers to take advantage of new features in Microsoft Dynamics CRM 4.0 that can keep them close to their customers.
"As the economy gets tighter, making customers happy is a good strategy, and CRM software will help you do that. It's definitely an area where you want to continue to invest," says Rebecca Wettemann, vice president of research at Nucleus Research in Wellesley, Massachusetts.
Newer tools such as Microsoft Dynamics CRM 4.0 offer deployment options that help lower midsize retailers' barrier to entry as well as risk, she says. For instance, the software is available as an on-premise enterprise application, a managed service, and on-demand through Microsoft's Dynamics CRM Online. "There are a lot of variations today that won't break your budget," she says. Microsoft Dynamics CRM Online is a new Microsoft-hosted version of Microsoft Dynamics CRM 4.0, offering the same functionality and available on a per-user, per month subscription basis; a 30-day free trial is available.
CRM now more integrated
Wettemann adds that there have been tremendous strides in the industry to integrate CRM with other critical systems, such as ERP, point of sale, and messaging, that are reflected in the upgraded offerings. "In the past, CRM applications have had a limited ability to allow users to share data across the supply chain. Now, with tie-ins to other applications such as Microsoft Office SharePoint Server, SQL Server, and BizTalk Server, people are starting to see end-to-end integration as a reality," she says.
New features in Microsoft Dynamics CRM 4.0 make it more scalable and enhance employee productivity, she says. For instance, there are wizards that help users customize their view, better reporting tools, support for multiple currencies, and multitenancy capabilities so that companies can have several instances of CRM on a single server.
"These features and the overall ability to automate the workflow process have been resonating well with customers," says Brian Campbell, CRM sales manager at InterDyn Business Microvar, a Roseville, Minnesota-based Microsoft Certified Gold Partner.
Already, his clients have used Microsoft Dynamics CRM 4.0 to create alerts that help them stay in front of customers. For instance, if they haven't talked to a customer in a while, the software will automatically set up a call for the sales team or e-mail the customer directly.
Sealing up disconnects
Like Wettemann, Campbell says that integration with other business systems is critical. "We found that even though a lot of retailers are thin on staffing, our clients were doing dual entry of data because their systems didn't interact. Now, as soon as something is entered into the CRM system, the ERP and marketing teams have the same information. It seals up disconnects throughout the organization," he says.
He adds that improved reporting tools in Microsoft Dynamics CRM 4.0 enable better decision making because users can customize their view of the data. "Executives can view key performance metrics while marketers can call up detailed information about the products people are buying. Everyone has a more presentable and personalized view," he says.
Microsoft Dynamics CRM 4.0 has also enabled retailers to extend their reach around the world by supporting transactions and other data in multiple languages and multiple currencies, according to James Townsend, founder and president of Information Strategies, a Microsoft Certified Gold Partner based in Washington, D.C.
He points to the importance of the software's support for multitenancy as a growth opportunity for businesses. "Before, you had to buy a server that was dedicated to that instance of CRM. Now you can have multiple Microsoft Dynamics CRM applications running in the same rack," he says. This is a benefit for companies with franchises that want to have separate implementations of the same CRM system within their data center.
Leveraging knowledge of channel partners
Wettemann says that time saved by upgrading to Microsoft Dynamics CRM 4.0 will free retailers to explore add-ons from Microsoft's ecosystem of partners. "There are a lot of partner applications out there that address the problems you're trying to solve and can add value to your sales and marketing efforts," she says.
While Microsoft Dynamics CRM 4.0 has eased deployment, Wettemann says midsize retailers should take advantage of Microsoft partners' expertise to ensure they are properly matching their business processes to the nuances of the software. "I wouldn't recommend going it alone—your partner can help you avoid costly mistakes. If your users turn it on and it doesn't work, they won’t use it again and you've wasted your investment," she says.
Townsend agrees. "You don't want to experiment on your users. Just like any upgrade, we'll help you test it offline before you roll it out," he says. For instance, even though Microsoft Dynamics CRM 4.0 is considered an upgrade for some, you still have to test how the customizations you did in 3.0, such as business rules, port over. "This is also the time when we can help you rethink how you do your processes," he adds.
Townsend advises retailers to provide users with proper training on the upgraded software. "Don't have them come in on Monday and wonder what's happened. Give them online training or a cheat sheet that explains the new features," he says.
 | Sandra Gittlen is a regular contributor to Momentum, the midsize business center newsletter. |
