CRM: first things first

Print Action, May 2003 by Scanlon, Tim

[Graph Not Transcribed]

One of the survivors of the battered information technology bust of 2000 are the CRM suppliers. In a nutshell CRM is a technoweenie term for methodologies, strategies, software, and other Web-based capabilities that help a company organize and manage customer relationships.

The benefits promised by CRM include: developing faster customer response, increasing efficiency through automation, providing greater customer knowledge, increased marketing and selling opportunities, identifying the most profitable customers, creating mechanisms for customer feedback that leads to new and improved products or services, accumulating more pertinent customer information for future use, and creating peace in our time.

There are two main factors that have conspired to create a window of opportunity for CRM products and services in the printing industry. First there has been a shift in customer perception from a product-based model of the printing industry toward a service-based model. Many of the items we bill our customers for are no longer tangible. These services can include scanning, scan tuning, file correction and manipulation, soft proofing, digital asset management, FTP, repurposing documents, distribution, etc. The second factor in the equation is the technological capability to share, access, change and manipulate current customer data. This data can include actual graphics files, distribution data, customer profiles, etc.

To frame a perspective on CRM, it is helpful to qualify the average printer. Based upon many industry statistics the average printer has no more than a dozen employees and is run by an owner operator. My own experience also suggests that a large portion of suppliers and clients are still not sufficiently Web capable. This actually may be a lack of high-speed Web service or a lack of knowledge (or willingness) regarding the Web. We still have some clients that insist on receiving fax proofs of stationery because they haven't figured out this new-fangled thing called PDF.

At the same time there are only a small minority of printers that have the ability, will and processes available to take greater advantage of their data-mining resources. The effectiveness of a company-wide CRM implementation is, however, indirectly proportional to the size of the organization. The further one gets from the customer the less likely they are to help or influence them. The intention of properly implemented CRM is to have almost everyone in the company thinking and acting customer service.

Our industry has always been a service-based business that just happens to provide a tangible product. This profile would suggest that our industry is a natural for CRM. I suggest, however, that we learn to walk before we run. I draw upon a personal (and painful) example to demonstrate. Having always been in sales, I follow the progress of our sales staff pretty closely (they would call it being neurotic).

Last year one of our sales representatives and I made team sales presentations to a qualified lead. Shortly after we had made this unsuccessful proposal we were informed by the contact that our offer was so compelling that his decision was very difficult. You can't get any closer than that! I recently asked our representative what progress he had made with the prospect on this yearly project. Making a long story short, he had let the lines of communication go slack. In fact, the contact had moved on and left a void. A void which we could have filled had we known. What good is an expensive and sophisticated CRM system if your sales representatives don't follow basic procedures?

I suspect that a great number of average printers haven't yet created a formal system for prospective and current customer support. Many important issues can be formalized using a CRM supplier. Who is going to communicate new product and service offerings to clients and prospects? Do you have a formal procedure for tracking a customer's project throughout the entire production process? Do you have a feedback mechanism to gather valuable information on customer satisfaction?

It is common knowledge that the more your company can differentiate itself from the competition the greater the likelihood that you will be more profitable. And many believe that the success of your business depends heavily upon customer satisfaction. Therefore, having a customer-focused mentality is essential. I recently read a business statistic that estimated over 70 per cent of repeat purchases are made out of indifference not out of loyalty. Also, it costs ten times as much to get a new client as to service (and thus maintain) an existing one. It might be more prudent for a printer to start a CRM initiative on a small scale. One of the easiest methods of altering your paradigm is to walk a mile in your customer's shoes. Think from your customers' prospectives. Have you called upon them lately? What are all the services that you offer? How could you be helping them save money, reduce their risk, simplify their processes etc?