So you want to implement a new CRM system, part 4
IT, Budgets & Choosing a system
👋🏾 Hi, this is Lloyd with a new issue of The CRM Chronicles. In every issue, I cover CRM developments, strategies and technology through the lens of sales and marketing managers, product owners and the C-Suite. Subscribe to get issues like this in your inbox every week.
Welcome to the penultimate instalment of our Implementation series! Today, we'll discuss the importance of understanding your IT architecture, budgeting for implementation, and negotiating the right CRM system for your organisation. Let’s jump in.
Assessing Your IT Architecture and Infrastructure
Evaluate your current IT landscape and determine if it's ready for a new system to be integrated. Consider also using the implementation as an opportunity (or inspiration or business case) to clean up legacy systems that may be redundant or inefficient. This will ensure the CRM fits seamlessly within your IT infrastructure. Addressing any issues or inefficiencies beforehand will help you avoid complications during implementation.
Once, I worked on an implementation where the legacy data warehouse was on its last leg. It had served the company dutifully but was past its prime, held together with tape and prayer. The company had hoped the data warehouse would last a few years and declined the advice to replace it at the beginning of the CRM project. Unfortunately, it couldn’t handle the hundreds of API calls and data harmonisation the CRM required, so we had to pause the project until a suitable replacement could be found and made ready. It cost us 6 months and lots of frustration. Prudent sequencing could have avoided this.
Budgeting for CRM Implementation
Planning your CRM budget is crucial for a successful rollout. It's not just about licensing fees; the total cost of ownership includes the implementation itself, which involves vendors and employees who may need to shift their focus from ongoing tasks to work on this project.
Don't overlook the post go-live expenses. Maintaining and managing the CRM system requires dedicated resources. Whether it's internal staff or external vendors, ensure your budget covers the team needed to run the platform effectively once it's operational for the entire system lifecycle.
Negotiating and Choosing a System
Selecting the right CRM system should be a well-considered decision based on previously discussed factors like objectives, current system state, and budget. If budget constraints are a primary concern, weigh this factor heavily in your decision-making process.
Negotiation is a key step. Perform a thorough benchmarking analysis to understand market rates, leverage your procurement department if available, and talk to other clients to learn about their experiences and costs. An external consultant can be invaluable during the selection and negotiation process, shepherding your business through a detailed comparison of vendors. This process is often referred to as a Request for Proposal (RFP).
For more insights on negotiating CRM deals, check out these resources:
How to Negotiate a CRM Contract: https://technologyadvice.com/blog/sales/curating-contract-new-crm/
5 CRM Negotiation Tips: https://www.business-software.com/article/five-crm-negotiation-tips/
Negotiating a Favorable CRM Contract: https://www.f2strategy.com/insight/crm-migration-how-to-negotiate-a-favorable-crm-contract
Happy managing, and see you next week!