Best Practices for an On-Demand CRM Implementation?

One thing that is always necessary to remember is that on demand is a delivery mechanism, not a determinant of what jobs you need CRM to do.

Consequently, one of the most important practices is to be clear on why you are implementing on demand CRM - both from the standpoint of the features and functions that you need - and only those - to accomplish the specific tasks that you bought the CRM technologies to enable.

Second, make sure you're clear that there is a genuine cost benefit in delivering CRM in a hosted environment. Are the costs of the system over a lifetime smaller, the same or greater than an on premise implementation. The long term benefit in most studies done to date is about a 15-25% savings over on premise in a midsized corporate environment over 3-4 years - the approximate time before a refresh of an on premise system is done via upgrade.

Third, make realistic assumptions about the "seamlessness" of integration should integration into existing products be needed. Even if you are integrating, say, sales with a customer service application from the same vendor, and its on demand, which typically means that web services are the communications backbone for each and all of the applications, there is NO guaranteed that the integration process will be smooth. So make sure that you are clear on the integration path and how it will work. Find case histories and other customers who have done similar integrations to find out what they did to make it work or to fix it when it failed. This is a best practice to uncover other best practices.

Fourth, understand the road map of the on demand vendor. How does their road map for their on demand product dovetail with your plans for the future. Of course, you could apply this to on premise applications as well. but since we're operating on the principle that on demand is a delivery method not a change in capabilities, this applies in the SaaS environment.

If you need more information, feel free to contact me here on Focus.

The best practices for an on-demand CRM implementation are fundamentally different from a traditional, premise-based CRM deployment. However, there are a lot of similarities. In short, it is important to do a thorough needs assessment and to prioritize in order to see a phased, quick-win approach that drives adoption and measurable returns.

The three tips I would impart on anyone looking into an on-demand CRM deployment I will pose as three simple questions to ask.

1. Who will be managing the deployment?

All too often, organizations get sucked in by the marketing hype around SaaS and the Cloud - thinking that the CRM system requires only a web browser. Truth be told, a knowledgeable administrator and/or a system "champion" will be needed to insure success. While there is certainly less technical work needed, a system owner (with a clear vision of how the hierarchical use of the system will unfold) is needed to insure success.

2. What should I turn OFF at go live?

While SaaS CRM systems are simpler to deploy - they are no less robust than traditional CRM tools. It is very easy to get overwhelmed with feature glut. But, if you have done a thorough needs assessment and set your deployment phases out in a logical manner, you can identify what features should NOT be made available to users at go live - again insuring higher user rates and system success.

3. What are our integration needs - today and tomorrow?

Not all SaaS CRM products are created equal, and this includes the ability (or inability) to link to internal and external applications and data sources/services. Insure that your CRM system can consume data from the sources you need it to leverage today, but also insure you are choosing a system with highly robust and flexible APIs (that utilize both REST and SOAP protocols) so that you do not paint yourself into a SaaS corner with your deployment.

...These are just three of the many important questions and issues that need to be addressed prior to deploying a SaaS CRM system. Ultimately, insure that the system is flexible enough to change with the pace of your business, and that there are no hidden charges (or at least not a lot of extra fees) above and beyond the subscription cost (mobile device access, API usage, data overages, etc.).

I agree with Denis and Martin.
To put those points together - whether it is On Demand or On Site - Implementation should follow certain basic principles.

1. Do Not Burn the Ocean
Typically customers or the implementation team everything to be done first and then start rolling out to the team. But most of the time "This Everything" seems to be just replacement of their existing tool with a new tool and not CRM Implementation.
Companies should work out the whole implementation to very simple doable things and start rolling out quickly. Simple Features should be made adoptable and then go to complex or more advanced features. So real time feedback can come in very early from the real users.
But if you hear "I want Everything to be done before I roll out" from the customer team, that person is the critical block in your implementation. He is the person who does not understand what "Change" means and without being aware of it, he will be the single roadblock for the implementation.. Inherently he does not want to change and also he wants to make it tougher for the team to change.

Whereas a process oriented person understands that change is easy to bring if it is given in very simple and incremental items.

2. Remove Everything that is not Required
Most of the CRM vendors provide as many features as possible to make sure they survive in the market. But as a best practice when you are introducing CRM in a company we need to remove the "unwanted features". Most of the customers compare products and want all the features just because other products are offering those features. But when we are looking for adoption in the company, we need to provide only the features relevant to the employee and not all. If we provide all features to most of the users, they feel "CRM is Complex". Most of the people who are habituated for routine life get overwhelmed by those extra features and start working with a feeling that "CRM is Complex". This might become resistance over a period of time across the team and can blame the product.

3. Process Owner
There must be a process owner in the organization who understands and takes ownership of implementation. The process owner should have enough time and bandwidth to participate. He also should consistently participate in the implementation.

If the above three are taken care in any implementation, the chances of failure are very very less.
But if any one is not taken care - the chances of the implementation failing are very hight. Ensuring that these three are understood well by the company which is implementing will help.

With Warm Regards

Ram Kumar

Although there are some differences between implementing an on-demand and on-premise systems, the most important considerations are similar, just with a slightly different slant. I agree with the advice given by other posters, so I’ll add some more to the mix:

1) Get user buy-in and make sure they use the system
The rapid implementation times possible with on-demand solutions, although an advantage in many respects, can be a potential pitfall here. And whether it’s an on-demand or on-premise solution, for a CRM system to be successful everyone has to use it fully. So you need to get buy-in from all your system users. Make sure they clearly see the advantages, have provided input, understand the system and are trained to use it properly. If you get some people who use the system, but others who use it half-heartedly or continue using spreadsheets or their own system, the implementation won’t work.

2) Communication
One of the most common causes of problems in any CRM software implementation is poor communication. This can be exacerbated particularly with some of the lower-end on-demand systems, which can be ‘switched on’ almost straight away. This can make it easy to let good communication lapse. This communication can be internally, between an organizations own staff and departments (for example, if an organization appoints an IT person as system admin, they really need to understand the needs and processes of their colleagues in sales, marketing and customer service, so when they make changes they can appreciate the effects and repercussions it could have). It’s also extremely important to maintain good communication between business partners, consultants, project managers, and client companies to keep the project moving, making sure people are working together and doing the right thing. So, whether it is formal project reviews or regular chats, make sure everyone talks to each other, and keeps talking.

3) Regularly review your system
Particularly with on-demand, because your business doesn’t actually ‘own’ the servers, hardware or software, it’s easy to leave the system alone after it’s up and running. But implementation doesn’t stop on the day you give everyone their log-ins and ‘go live’. Regularly review the system, check that people are using it properly, new users are trained and that the system’s functionality from a process, user and technical perspective is still meeting the needs of your business.

The best practices for implementing an on-demand solution are not that different from that of implementing an on-premise solution. That’s because the key factors in choosing between on-premise and on-demand are usually related to business strategy, and typically the main factor here will have been the choice between using capital expenditure for your CRM system (on-premise) or treating it as an operational cost, as with an on-demand or SaaS CRM system.

In my experience with hundreds of both traditional On-Premise and On-Demand CRM Implementations, I’ve found that organizations tend to over-focus on technology, which is of course important, but the ones that really get it right focus also on organizational factors - i.e. the ‘people stuff’ that makes all the difference between success and failure.

Since many of my esteemed colleagues have already covered the technology side of things, here are some best practices that I highly recommend.

1) Get some quick wins - up front: All too often large-scale enterprise systems are ‘sold’ to the organization with an implicit promise that ‘this is going to be painful for a while, but eventually it’s going to be great’. In most of those cases, especially as timeframes extend, the pain is immediate but benefits to be seen ‘eventually’ never arrive as the organization loses patience - and the project fails.

Successful implementations almost always focus on getting wins early - for instance, I’ve seen tools such as sales commission calculators (guaranteed to get the interest and attention of your sales team) and web-based order or case status updates (which helps customer service reps and customers themselves) moved ‘up front’ in the project plan.

Creating advocates and fans both inside and outside the walls of the enterprise can - and usually does - develop the enthusiasm and momentum that can sustain the project through the 'hard parts' and which make all the difference between success and failure.

2) Get relevant references - who have done what YOU want to do: As you’ve undoubtedly noticed, when you ask a software vendor if they can do something, almost always the answer is going to be ‘yes’. But the important question is not so much whether they can, but whether they HAVE.

Of course, if you are going to try to do something truly innovative and that no other enterprise has ever done before, then this Best Practice may not apply. However, if that applies to your organization, you probably rolled out On-Demand CRM 10 years ago - and you’d have no need to read this brief.

The bottom line is that there's nothing wrong with emulating what other successful organizations have done - and to be successful, your odds are significantly increased if you can work with a vendor who has already done what you’re looking for - and done it for customers who are willing to talk to you about it. Reading the case study isn’t enough (although it’s a start) - get that customer on the phone and talk to them.

Of course, once you're done (and successful) offer yourself as a reference to do the same for others. In the majority of conversations, whether you are giving OR receiving the advice, both parties will learn something.

3) Have IT in the room - but in the back of the room: One of the great attractions of On-Demand software has tended to be the opportunity to bypass that frustrating, stuck-in-the-mud IT department that is always holding things up and saying ‘no’.

Don’t do it. IT needs to be on board - because there is no system that should be in possession and control of your company’s crown jewels more than your enterprise CRM system. That information needs to be integrated, protected, and leveraged properly - and IT absolutely positively needs to be ‘at the table’ in order to do their jobs.

However, IT should not be driving the implementation - CRM is about customers and needs to be led by customer-facing operations and executives (Sales, Marketing, Customer Service - ideally all of the above). IT’s participation is critical and recommended, but the role is a supporting, not leading role.

Organizations that abdicate control of their CRM implementations to IT don't often succeed - but neither do organizations that try to leave IT out of the conversation.

I invite your questions and comments - good luck!

There are so many great answers here there really isn't anything that hasn't been covered. Here are a few things that may be of assistance.

1. Be realistic
Most companies turn to CRM out of pain, a pain they can no longer ignore. And because the company is hurting, it's trying to find a quick way to stop the pain, and many times the quick way is just a temporary fix - and the pain comes back bigger and badder than before. So it's important to understand that a CRM service in any form is not a silver bullet. The hard part is not done when you write the check to buy the service, in fact that's the easiest part. The critical, most important part is understanding that it will take some time, effort and thought by everybody involved in the customer relationship building process.

A Porsche is a great automotive machine, fabulously designed, looks great and can take you from here to there in no time. But in the hands of a 16 year old who just started driving - who can't handle the power - it's a killing machine which can get you from here to disaster in no time at all.

So, like it has been said many times above, make sure you truly understand what you're getting into when going down the CRM road. Writing the check is the easy part. Doing the real work (organizing the write project team made up of stakeholders of each kind, doing process reviews, identifying what success is and how to measure it, creating user adoption plans, training, etc) is what will determine how successful you will be with CRM.

2. Take into consideration how social the CRM service is, and how social the vendor is

The ability of the service to be able to help you integrate the social footprints your contacts are leaving all over the web is growing in importance with respect to understanding what is important to them in realtime. the ability of a service to help you listen, gather and analyze social information - alongside transaction and activity traditionally stored in crm services - can help in creating more opportunities to enhance and extend the relationship.

Also looking at the vendor's ability to create a robust community of app developers around their offering may be something to consider. Apple's ability to attract thousands of developers has created a robust marketplace that has enhanced the attractiveness of their devices. Google's app marketplace is attracting more developers to tap into their APIs and create more functionality that extends Google applications - making them more appealing to use.

So seeing what ecosystem surrounds the CRM vendor, and how the vendor supports it, may give some insight into how the service will be able to support your company current and future needs.

3. Read all the great answers above.

Interesting question and some interesting answers so far. I guess I look at it a little differently.

Firstly, the cart shouldn't go before the horse. As a vendor in the Social CRM space it would be easy for me to say, 'go SaaS and on demand and do it with us' but that won't be the right answer for everyone. The business requirement comes first and the tech follows. If it suits and fits your corporate strategy and architecture, go for it.

Secondly, I would have to agree with Denis - implement in chunks. Despite what management might like to think, people hate change and won't accept it or will with reluctance if that change is too big or too tricky. We all know implementations where stuff either looks too tricky or just comes in such a big flood that it doesn't get adopted.

Finally, ensure that what you use not only enables your internal people to do what CRM does well but future proof your business by ensuring that what you implement hooks into all the channels where your clients (and those who are not clients, and your competitors and people who you don't know are your competitors ... and I could go on and on) play and chat. If you don't, your competition will.

Well that's my three..and as anyone who knows me will tell you..I could go on...and on...and on :)

There is no big difference between an on demand implementation and any other implementation.

1. Start from your goal, target, business case backwards
What is it you like to have accomplished after 6 months, 1 year,... Make sure you have
enough quantitative targets to reach.

2. Have your to be processes ready, communicated and implemented prior to your software
installation. Don´t try to implement software without making sure your processes are supported. Even worse:Processes are not defined, communicated to the staff, not linked to KPI´s. Software implementation is not a replacement for your process homework

3. Focus on interfaces and integration with existing applications, your datawarehouse,.. On demand solutions not always offer the same flexibility when it comes to integrate with yourt existing IT-infrastrure. especially sensitive data might become an issue due to security concerns. Same is true for the ability to run analysis on data which is stored in your datamart or datawarehouse. If dataminig in your business is important the integration effort is vital.

Many others have added valuable contributions. I agree that On Demand CRM is not much different for the users of On Premise CRM (tactical deployment and maintenance considerations are what change the most). As an aside, hybrid models will likely rule over the next decade.

Here are 3 tips that assume you've already made the selection and it's time to get started rolling it out:

(1) WIIFM (What's in it for me?) - Answer this question AND DELIVER for each group of system stakeholders to set yourself up for maximum success.

(2) Quick Wins but Useful Functionality: Over Engineer and you're late, over budget and lose the trust of the stakeholders. However, if you don't build enough functionality in from the start, parallel and external databases and spreadsheet will emerge to compensate for the lack of functionality available. Target the scope where you have robust functionality with the minimum risk for value tradeoff.

(3) Plan to iterate: Many companies view the Go-Live date as the finish line. It's actually the starting line. You won't get everything right the first time. And your business is dynamic. Assign a steering committee ownership of the system and task them with continually looking to create and extract more value for the organization.

Great points so far.

1. IT Involvement

I want to reiterate something Chris Selland said about IT:

Yes, you want them in the (back of the) room, and you want them engaged, and you need an actionable plan of how IT is going to dedicate needed resources to the initiative.

"We'll have Dev Team A available X hours per week to address functionality and integration issues, and Project Manager Z will be the ad-hoc contact for the CRM 'Implementation Coordinator.'

Don't just hand-wave, "Oh, IT will be around when we need them." When push comes to shove, IT wants to work on their initiatives in their own time frames, and if the CRM implementation isn't part of that, it's going to be a struggle.

2. Plan future resources for training and re-training.

Let's face it, someone with enough management trust, someone who's bright enough and dedicated enough to spearhead a CRM implementation is going to be an employee "on the move." It's likely within a relatively short period of time they're going to get promoted, or leave for a different job. If that person is the only real "expert" on managing your CRM system, it can severely hamper efforts to use it.

Cross-train.

Have an in-house plan for training new employee hires on the system to get them up to speed, otherwise you risk the implementation failing, or having to pay expensive training fees to the vendor later.

3. Don't try to "push" the "value" of the system into areas/departments that don't really need it.

This could partially be correlated to Chris's idea of "get some wins up front," in the sense that it's difficult to get real, tangible "wins" from the system early if it's being pushed in ways that are unproductive.

Pick one thing, and get value from it NOW, then worry about expanding reach.

Before jumping into 3 tips, it’s important to state that anyone interested in implementing a CRM solution will need to embrace it as a strategic and holistic business strategy, and not merely as novel technology, software, or a one-of-many-different-attempted approaches to customer centricity. It’s a process that the whole company must undergo, understand, and embrace. Now, once that’s accomplished, the three most important factors to a smooth and successful implementation are 1.

Executive leadership and buy-in; 2. a timed implementation plan, and 3. budget. Executive Leadership buy-in is first: executive management needs to lead and set the stage for companywide change. Without a strong decision-making body and executive buy-in, no company can successfully adopt a CRM application. Budgeting ahead is also critical; and making sure you account for everything: everyone’s time, pre- and post-user training, training for employee turnover, ongoing technical support, application expansion, and an emergency fund for system/hardware issues as well as for the unexpected.

A gradual implementation plan is the next step. There’s no need to rush into anything, especially if you want longterm, sustainable results. Forcing everyone without adequate training, understanding or time to adjust will only ensure failure.

well preparation on marketing module, shared value among the whole marketing team, commitment of top management

Depends on lot of factors. First thing for you will be to define your goals that you want to achieve from the CRM system.
If you need any help contact on abhijitkumbhar1@gmail.com

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