CRM Implementation Process Tip #6 | Streamline Procedures
While you may be in the mood to shake things up by deploying a new CRM, you may not have thought to shake up your very business processes themselves. Well, in the name of efficiency, why not?
Use your CRM Implementation as an opportunity to streamline your procedures!
There isn’t an exact science behind this, but we’re willing to bet the majority of businesses who elect to set up their own CRMs aren’t so well-versed in how their systems work. There’s a good chance that they’re missing some opportunities to streamline processes inside of their unique CRM systems.
Hand off the right CRM data at the right time
Using a CRM to pass information from one department to another is common in businesses, but, it’s not always done in the best way. For example, your Sales team member’s objective could be to pass information to Sales Managers. Historically, your sales team had to communicate certain information to Sales Managers verbally because of an imperfect information transfer. Now that you’re implementing a new CRM this is a great time to look into how to transfer all relevant information from Sales Agent to Sales Manager!
Next steps for CRM Implementation Process Streamlining
That’s just one small example, of course. We recommend spending time to thoroughly outline all the areas in your business where information passage could be faster or serve the users better. Then research ways of doing those things inside your new system. Of course, if you aren’t quite sure what to do or simply don’t have time, you can always consult a professional, too.
Does your current CRM support your current procedures? Take the CRM Adoption Survey and find out where you stand.
CRM Implementation Tip #10 | Use a Project Manager
If you’ve found this article, there’s a good chance you know a few basics about getting your new CRM system deployed and running as it should. However, even if everything goes as planned, there’s one other thing you can do that will really cement everything together. It’s also very likely to improve morale for everyone involved. Not quite a magic bullet, but, it’s darn close.
Be Successful the First Time With a Project Manager.
It’s understandable if you can’t be the one to take this bull by the horns and ensure that all implementation steps are completed in a timely way – after all, you’ve got a business to run.
Hiring a project manager, or selecting a capable champion within your company to take charge can work wonders for generating enthusiasm among employees. This resource can help with more than answering their questions. They can also act as a liaison between you (or your teams) and your IT department (or your deployment consultants).
If you haven’t already, don’t miss all 10 of the CRM Implementation Quick Tips.
When selecting a Project Manager from among the ranks of your company, do be sure to pick someone with a sense of authority (read: management skills) and a good amount of charisma. They will need both in order to motivate both your employees and the people behind the implementation itself!
It helps if they also have some experience with your business processes.
The reasons for picking someone with those personality traits are clear: someone with management skills will know how to deliver tasks to your deployment team in a way the team can understand. They also provide it with structure so the team adheres to a schedule. As well, if that person is charismatic, they will be able to paint the chosen CRM migration in a positive light. They will motivate fellow employees to do their part to ensure the implementation goes smoothly.
CRM Implementation Tip #9 | Have an Open Door Policy
You can apply this tip to more than just CRM deployment. Upon deploying a new system of any sort, you’ll be greeted with both positive and negative responses. How do you deal with the pushback you might receive for doing something new?
Have a CRM Project Open Door Policy.
Keep your door open, as well as your training sessions and email threads. When making big changes to your business and employees’ work days with a new CRM, consider giving them all the information they need or want to make the transition smoother.
When you do encounter some blowback from your traditionalist employees, be sure to heed their criticisms. Then, explain calmly and succinctly what the new system does to either improve life or alleviate their concerns. Show them how everyone will benefit from the new changes. Keeping your ear open lets employees know you’re willing to consider their feelings. Having an open door policy will ultimately make them happier in the long run, even if they aren’t satisfied at first with the new system. Trite but true, a rising tide lifts all ships, and the same is true with upgrades in technology like Zoho CRM.
Include extra training opportunities
If employees’ problems lie in the fact that they don’t feel they’ve been trained enough on the new system, host another training session, or several of them. As well, keep everyone in the loop by maintaining a single group email thread, or message channel for company-wide CRM developments and questions. We also recommend these smaller group or department-specific channels for more specific developments and questions.
CRM Implementation Tip #8 | When in doubt, keep things simple
By now you likely know that CRM deployment isn’t quite as simple as you may have first thought. Your research may have shed a bit of light on problems you weren’t aware of, or made you remember more clearly some implementation problems you’d thought of before.
For a process that’s invariably complex, there’s one thing that always holds true:
When in doubt, keep things simple.
The time you implement a new CRM is a great time to re-think your data entry and information-sharing procedures. Ask yourself, “How much information do I need entered in the new system to achieve the desired outcome?”
Perhaps you’ve used a legacy system for years that has data fields in it that have become obsolete. Have you been faced with the task of including only some of your current CRM’s information in your new system?
These situations are good because they force you to think in ways you may not have thought before.
Which of the fields in your CRM will you actually need to use?
Can you consolidate any information at play?
What data could you archive elsewhere?
If certain information simply isn’t needed, it’s best to hide it behind the scenes.
In cases where absolutely sure no one will need it, do away with it entirely.
As well, if it turns out someone in your company needs to see more information, it’s easy to give certain users access to that information once again. With exceptional planning, and pairing down unnecessary data, you may reap the rewards of greater efficiency with your new system.
Is your current system is too complicated or does it have room for improvement? Take the CRM Adoption Survey and find out where you stand.
CRM Implementation Tip #7 | Don’t Rush CRM Deployment
We’re all imperfect and even the most meticulously planned project doesn’t go live without at least a little need for adjustment. We share this so it’s not a surprise when your system doesn’t work exactly how it should the very first day you go live.
The Significance of CRM Deployment
Evolving customer expectations have catalyzed the transformation of how businesses function. A robust CRM system that acts as the linchpin for effective customer interactions is central to this transformation. By methodically collecting, categorizing, and harnessing customer data, organizations can glean actionable insights that power personalized marketing, streamlined sales processes, and unparalleled customer service. However, the success of such endeavors pivots on the meticulous execution of a comprehensive CRM deployment strategy.
Our best advice is: Don’t rush deployment; make sure everything works as it should.
There will be a few hiccups. Some common first-day needs and troubles with a new CRM implementation can include:
Understanding the CRM use processes themselves
Answering errant questions missed in training
Retraining team members on some aspects of the CRM
Finding the data you were sure you migrated correctly
Don’t worry! These sorts of speed bumps are normal during the first few days of a CRM deployment or the implementation of any new program.
Meticulous Planning: Before launching into the tumultuous waters of CRM deployment, detailed planning guides your path. Rushing headlong without a well-laid roadmap often culminates in chaos and discontent. To prevent this, commence with clearly delineated objectives – whether it pertains to amplifying sales, augmenting customer service, or refining marketing campaigns. A profound understanding of your organization’s distinct requirements must be the bedrock for aligning the CRM system.
User Involvement: Averting the peril of neglecting end-users necessitates active user involvement. Ignoring the insights and preferences of those interacting with the CRM daily is an unequivocal blunder. Engaging employees in workshops and soliciting feedback is not merely prudent but indispensable. This collaborative approach engenders a sense of ownership and significantly boosts user adoption rates.
Selecting the Right CRM System: Amidst a labyrinth of CRM options, the specter of choosing an incompatible system looms. Avert the impending disaster by prudently evaluating potential solutions, analyzing their scalability, integration potential, and user-friendliness. Seeking counsel from CRM experts or drawing inspiration from businesses with analogous needs can be an invaluable compass.
Data Management Vigilance: Disciplined data management is the bedrock of successful CRM deployment. Lax data management practices pave the way for duplications, obsolescence, and impaired insights. Thwart this debacle by instituting data cleansing before migration and implementing data entry and upkeep protocols. Routine audits and data purges sustain the integrity and dependability of the database.
Harmonious Integration: Acknowledging that a CRM system doesn’t function in isolation is the first step to preventing data fragmentation. Failing to prioritize integration can erect insurmountable data barriers and inefficiencies. Consecrate resources to CRM solutions endowed with robust integration capabilities or invest in middleware to weave disparate systems into a coherent tapestry. This symbiosis guarantees an all-encompassing panorama of customer interactions and business processes.
Change Management: Underestimating the seismic impact of change during CRM introduction is a dangerous misstep. A seamless transition necessitates a comprehensive change management strategy with training, communication, and steadfast support. Enabling employees to grasp the manifold benefits CRM ushers in and providing ongoing assistance are critical cornerstones of this transformative journey.
Upholding Data Security: Handling customer data with circumspection is paramount during CRM deployment. Neglecting data security can instigate a cataclysm of legal and reputational consequences. Thwart this catastrophe by ensuring your chosen CRM system adheres to industry regulations and employs stringent security measures. Vigilant updating of security protocols coupled with diligent employee education fortifies data protection.
Tailored Customization: Standard CRM solutions might need to fit your organizational contours. The danger of disregarding customization can precipitate inefficiencies and user discontent. Exploit the customization options within your chosen CRM to sculpt workflows, reports, and dashboards following your unique requirements. An intricately customized CRM embellishes user experience and propels efficiency.
Persistent Improvement: Celebrating CRM deployment as the terminus of your journey is misguided. Successful CRM deployment is an enduring voyage characterized by continuous enhancement. Ignoring this tenet risks stagnation and missed prospects. Cast KPIs to gauge CRM efficacy and embark on periodic evaluations buttressed by user input. This perennial cycle of refinement sustains momentum and rejuvenates CRM vitality.
Cutting down on new implementation ‘hiccups’
To help minimize the effects of speed bumps, it’s a great idea to ease into implementation. Have a plan at the start to address this. Spread it out as much as you possibly can while keeping your budget in consideration.
You may spend a little extra on testing and training time. However, the benefit of knowing you’ve made sure your new system works exactly how it should is invaluable and cuts down on something you probably have a lot of business-related stress! This includes additional rework with your implementation partner, re-training staff, lost productivity due to staff being inexperienced with the new system, and lack of user adoption.
Conclusion
As the transformative power of CRM deployment dawns upon the modern business landscape, circumventing the predictable pitfalls becomes imperative for success. By adroitly steering clear of the pitfalls elucidated herein and adorning your strategy with the strategic deployment of transition words, you lay the foundation for a triumphant CRM implementation. Remember that beyond technological prowess, a successful CRM deployment harmonizes people, processes, and technology to craft excellent customer experiences and engineer sustainable growth.
Take the time to deploy your new CRM correctly, making sure everything is working as intended and that your teams are trained, and you’ll certainly reap the benefits later.
If you’ve already addressed this potential pitfall, and you still want to get more from your CRM, take a look at our CRM Adoption Survey and find out your improvement potential!
Knowing the data you’re already collecting and defining your business goals is the first step in developing a KPI strategy for your organization. (Finding the data that’s missing is where ZBrains can help.) However, today we’re going to share the types of KPI’s you should consider when creating a KPI strategy for your organization. Finally, make sure not to miss the end of the article. We share an infographic of KPI’s you could consider for each department or area of business.
A majority of today’s businesses use multiple systems to capture data about their customers, leads or website visitors, financials, projects, and more.
Many of these companies aren’t fully utilizing the information they can access. Usually, it’s too difficult, time consuming, and cost prohibitive to do reporting on regular intervals, much less on-demand. Does this sound a little too familiar?
While making data-driven decisions probably isn’t new to you, you can take it to a whole new level with Zoho CRM and its many integrations when you develop KPI’s for each of your organization’s departments. Using your financial and organizational metrics to define strategic KPI’s will result in useful reports and gained visibility to your organization.
Where should you start your KPI Strategy plan?
When you have a well-rounded knowledge of the different types and functions of key performance indicators you are able to collect and using the correct data needed to analyze your business. As a result, you’ll get a stronger strategy.
And for you Zoho users who already know about Zoho’s end-to-end solution, we hope this refresher can help you find even more opportunities to capitalize on the data you collect for increased successes.
Firstly, let’s start by defining the most common types of KPI’s. Then we’ll share a big list of Key Performance Indicators by organizational departments for you to consider as you are developing a KPI strategy.
What are the types of KPI’s you can use in your strategy?
Quantitative: This is among the most common types of KPI because it relies on data measurement. Generally speaking this is measurable by numbers such as total count, averages, or addition.
Qualitative: This KPI is more subjective, or based on opinions rather than hard numbers. An example could be the results from a customer or employee satisfaction survey. While you may use a numerical rating, the number is based on the individual’s opinion or experience.
Input: The money or resources that you invest to generate results in your organization are considered “input.” Measurable KPI’s of Input include dollars spent on training your staff, research and development, and materials.
Output: Output KPI’s are calculated from both the financial and non-financial outcomes of your business tasks. For example, outcomes such as revenue are financial and number of new customers acquired in a specific time frame is non-financial. Zoho Books or your Quickbooks integration provides this data.
Leading: Keeping future performance in sight means employing Leading KPI’s because they are the business activities that are commonly predictive of future success or failure. An example is Daily Website Traffic, Leads Generated, New Projects Signed, etc. Leading measures can indicate success in other metrics and initiatives. (For example, a marketing project to improve SEO on site could positively impact website traffic and leads generated.)
Lagging: Lagging measures show the success or failure of a business event that has already passed. Firstly, this data is helpful in determining if the event should be repeated. Next, you can determine how to revise it for future iterations when working on new strategies and business planning.
Directional: This KPI shows whether your trends are heading in the right direction. Are your directional KPI’s indicative that you need to make improvements, or are you maintaining or exceeding goals? For field services and technology companies this includes measurements like Service Level Agreement Compliance and On-Time Delivery.
More Key Performance Indicator Types for Strategy!
This set of KPI types are slightly more in depth. Challenge your business leaders, department managers, and other decision-makers. Ask them to consider how their area of business can use this type of KPI for deeper, performance improving insight.
Process: This KPI is an efficiency measure and keeping an eye on KPI’s for process help you answer the question, “Is my XYZ process efficient, or can we improve?” The data provided in this KPI informs process changes helping your organization increase efficiencies. Ticketing systems like Zoho Desk can provide many process KPI’s like new tickets created or resolution time.
Outcome: Outcome KPI’s quantify the performance of a business task. You define a goal or target for your budget and “outcome” is the result. (For example customer retention improvements.) Look at churn rate or customer lifetime value KPI’s for types of Outcome.
Practical: Practical KPI’s are the results of your business’ most personalized or unique metrics. These are based on your organization’s processes and the impact of those processes on the business and can be hard to track. In other words, maybe you already know what these are, but have difficulty capturing and reporting on them. This is where the ZBrains Difference comes into play!
Actionable: Whenever you are performing organizational changes, it’s essential to determine if your teams are dedicated to the change, and if it is effective for your business. An actionable key performance indicator distills the project or program metrics. It shows you where to take the action that ensures that business change efforts remain on track.
Financial: Finally, at the heart of your business are financial metrics. Pairing your financial KPI’s with other metrics allows you to craft a data story for your business. Net profit, Gross Profit Margin, and other familiar KPI’s tell you if your business is healthy, viable, growing, or unstable.
Build KPI Strategy for Your Business
Looking at your business and its goals, next select the KPI’s for each department. Next, select which are necessary to determine whether or not initiatives and teams are on track. In conclusion, this isn’t a comprehensive list, but we hope that the KPI’s by department shared here will be helpful.
As always, if you’re developing a KPI strategy and taking the next steps to gain business insights and efficiencies with improved KPI tracking with Zoho’s suite of solutions, contact us any time.
KPIs by Organizational Departments
With your KPI’s in place and tracking correctly in the Zoho ecosystem, you can create dashboards for areas or departments of your business, like the Sales dashboard seen here. Likewise, you can create executive summary dashboards. The permissions in Zoho allow you, as ever, to display data to only the relevant audiences.
Does this interest you? Then take a look at KPI’s by department to get started with your strategy.
Regardless of your business focus, implementing a CRM correctly is essential to its adoption and success for your organization, and this is why CRM implementation tips are so important. It can seem tempting to ease your way into a new CRM by simply turning it on. But we know from the experience of our clients that this can become quickly overwhelming and a point of abandon.
Working with a product like Zoho, which advertises itself as DIY, we see this kind of thing happen a lot.
For this reason, we’re offering 10 CRM Implementation Tips for you to consider as you begin planning or implementing any customer relationship management software. Let’s get started!
1) Your CRM Should Support Your Sales Cycle
If you’ve already started your project, or are starting your research here, this CRM Implementation Quick Start Tip to examine your sales cycle to determine what you really need is crucial.
Getting honest about your business needs and goals is a really important consideration.
Your CRM should support your sales cycle.
Out of the box, CRMs usually contain lots of functionality. You’ll have the ability to enter companies and contacts into your system, as well as convert them from leads to active customers, record notes about them, associate emails and sales orders with them…and likely, countless other bells and whistles you might not have known about.
Maybe your business doesn’t require all that functionality. If you run an insurance agency, for example, your needs may be perfectly satisfied with just half of those rudimentary features. Perhaps you may be able to do away with (or hide) several of the default modules inside your CRM entirely! You’re not losing functionality, in fact, these decisions to keep CRM aligned with your business can foster user adoption.
As you’re working through all the considerations for CRM Implementation – and it can be a bit of a process – be sure to give a healthy amount of time to how you’ll migrate existing data to your CRM.
Don’t underestimate data migration time!
Whether you’re already using a different CRM or a spreadsheet to keep track of all your data currently, this is a task that must be completed for a successful implementation.
When planning your project, or reviewing plans from your consultant, be sure to allow extra time for data migration – don’t underestimate it!
As you plan a CRM implementation, it’s important to know exactly how you’ll be using the modules inside your CRM. Who knows your business systems better than the folks who use them every day? Your expertise and their experience is a recipe for success.
Keep your staff in the loop.
This one’s very important. Obviously, you don’t want your staff to come in one day to a system they haven’t a clue how to use.
Big business changes, especially changes in everyday systems like a new CRM implementation, can be turbulent times. This CRM implementation tip describes how to disturb your business the very least during CRM implementation time. This one is really simple.
Transition in phases, not all at once.
It bears repeating – yes, again – that even a successful CRM implementation doesn’t happen all at once. With so many facets of your system designed specifically for your business, you’ll need time to test everything out and make sure it’s working as it should.
Once your CRM is up and running it can be a relatively common impulse to rush back to work using the new CRM tools you just spent so much time planning for and implementing.
However, before you take off running back to business, it’s time to think about training.
Make sure everybody who’ll use the system knows exactly how to do so – train them!
Even if your new CRM makes life easier all around the office, your employees probably won’t be able to sit down on launch day and navigate their way through the system without some prior knowledge.
While you may be in the mood to shake things up by deploying a new CRM, you may not have thought to shake up your very business processes themselves. Well, in the name of efficiency, why not?
Use your CRM Implementation as an opportunity to streamline your procedures!
There isn’t an exact science behind this, but we’re willing to bet the majority of businesses who elect to set up their own CRMs aren’t so well-versed in how their systems work. There’s a good chance that they’re missing some opportunities to streamline processes inside of their unique CRM systems.
We’re all imperfect and even the most meticulously planned project doesn’t go live without at least a little need for adjustment. We share this so it’s not a surprise when your system doesn’t work exactly how it should the very first day you go live.
Our best advice is: Don’t rush deployment; make sure everything works like it should.
There will be a few hiccups. Some common first-day needs and troubles with a new CRM implementation can include:
Understanding the CRM use processes themselves
Answering errant questions missed in training
Retraining team members on some aspects of the CRM
Finding the data you were sure you migrated correctly
Don’t worry! These sorts of speed bumps are absolutely normal during the first few days of an implementation of any new program.
By now you likely know that CRM deployment isn’t quite as simple as you may have first thought. Your research may have shed a bit of light on problems you weren’t aware of, or made you remember more clearly some implementation problems you’d thought of before.
For a process that’s invariably complex, there’s one thing that always holds true: when in doubt, keep things simple.
The time you implement a new CRM is a great time to re-think your data entry and information-sharing procedures. Ask yourself, “How much information do I need entered in the new system to achieve the desired outcome?”
Perhaps you’ve used a legacy system for years that has data fields in it that have become obsolete. Maybe you’ve been faced with the task of including only some of your current CRM’s information in your new system, for any number of reasons.
You can apply this tip to more than just CRM deployment. Upon deploying a new system of any sort, you’ll be greeted with both positive and negative responses. How do you deal with the pushback you might receive for doing something new?
Have a CRM Project Open Door Policy
Keep your door open, as well as your training sessions and email threads. When making big changes to your business and employees’ work days with a new CRM, consider giving them all the information they need or want to make the transition smoother.
When you do encounter some blowback from your traditionalist employees, be sure to heed their criticisms. Then, explain calmly and succinctly what the new system does to either improve life or alleviate their concerns. Keeping your ear open lets employees know you’re willing to consider their feelings. Having an open door policy will ultimately make them happier in the long run, even if they aren’t satisfied at first with the new system.
If you’ve found this article, there’s a good chance you know a few basics about getting your new CRM system deployed and running as it should. However, even if everything goes as planned, there’s one other thing you can do that will really cement everything together – and, improve morale for everyone involved. Not quite a magic bullet, but, it’s darn close.
Be Successful the First Time With a Project Manager
It’s understandable if you can’t be the one to take this bull by the horns and ensure that all implementation steps are completed in a timely way – after all, you’ve got a business to run.
Hiring a project manager, or selecting a capable champion within your company to take charge can work wonders for generating enthusiasm among employees. This resource can help by answering their questions, and acting as a liaison between you (or your teams) and your IT department (or your deployment consultants).
CRM Implementation Tip #2: | Don’t Underestimate Data Migration Time
As you’re working through all the considerations for CRM Implementation – and it can be a bit of a process – be sure to give a healthy amount of time to how you’ll migrate existing data to your CRM.
Don’t Underestimate Data Migration Time
Whether you’re already using a different CRM or a spreadsheet to keep track of all your data currently, this is a task that must be completed for a successful implementation.
When planning your project, or reviewing plans from your consultant, be sure to allow extra time for data migration. Don’t underestimate it! Looking for more insight beyond data migration?
Even in the best of times, data migration isn’t a one-fell-swoop sort of maneuver. Discrepancies between modules in different CRMs can prolong the process.
Additionally, if you want to migrate old data into a new CRM with customized data fields, your old data will have to be mapped to those new fields.
If you choose to import and map the data yourself, you’ll have to allot time to learn how the system works.
If you get help from a CRM consultant, you’ll probably spend at least a couple of phone calls and email threads explaining how you want everything to look.
No matter what, the migration process is one that takes time. In our experience, it’s better to overestimate. Then you’ll be pleasantly surprised at the outcome. Underestimation can lengthen the project and catch you off guard. If you aren’t quite sure how much time data migration will take, give yourself a month. And, if you aren’t comfortable blocking off that much time, you can always get the help of a certified consultant.
Is your organization using its CRM to the fullest? Take the CRM Adoption Survey and find out where you stand.
CRM Quick Start Tip #1: Align CRM with Sales Cycle
If you’ve already started your project, or are starting your research here, this CRM Implementation Quick Start Tip to examine your sales cycle to determine what you really need is crucial.
Getting honest about your business needs and goals is a really important consideration.
Out of the box, CRMs usually contain lots of functionality. At the core you likely require a CRM to support your sales cycle. With most systems, you’ll have the ability to enter companies and contacts. In addition, you will be able to convert them from leads to active customers. You can record notes about them, associate emails and sales orders with them…and likely, countless other bells and whistles you might not have known about.
Maybe your business doesn’t require all that functionality. If you run an insurance agency, for example, your needs may be perfectly satisfied with just half of those rudimentary features. Perhaps you may be able to do away with (or hide) several of the default modules inside your CRM entirely! You’re not losing functionality, in fact, these decisions to keep CRM aligned with your business can foster user adoption.
To determine the modules you need in CRM to support your sales cycle, begin with an outline of your exact sales cycle. Include all steps from prospective company (or lead) to contact. Start by answering each of these questions about your sales cycle:
Do you run a phone-based business, or do you do more email marketing?
Do you have a good deal of repeat business, or do your customers only see you once?
Do you require different sales processes for different products / services you offer?
What channels do you use to communicate with your clients?
If your cycle is known, then have you already defined your entire sales process, but have trouble tracking it?
What KPI’s SHOULD you track to move the needle, and can your system currently do so?
Different styles of communication and different sales processes require different kinds of fields inside your CRM. So do repeat customers versus one-time clients. At ZBrains, we specialize in Zoho, but we believe this information is compatible with all CRMs because of their very nature.
Are you already thinking a little more like a consultant? Ensure you’re getting the most from your CRM Implementation.
Unlocking Marketing Success with RFM Customer Segmentation in Zoho CRM
Off the top of your head, you can probably think of a handful of your ‘best customers.’ Those that have purchased recently, purchase regularly, and spend a decent amount with your company. Have you considered using the RFM model widely applied to your entire book of business? RFM segmentation model allows you to segment or group your customer data for even deeper insights. This means groupings like, “Best Customers,” “Loyal Customers,” and “At Risk Customers” are relatively straightforward to capture. And you can do it now in Zoho CRM!
Keep reading to learn more about the RFM model and how you can put it to use in your business.
What is the RFM model?
This acronym stands for Recency, Frequency, and Monetary value. This model, while not new, can provide you with new levels of customer information when using the data points in tandem.
Recency: how recently did your customer purchase from you?
Frequency: how frequently does your customer purchase from you?
Monetary: how much does your customer spend with your business?
The three dynamics of data in this model combine to give powerful information to your customer behaviors, and can help with strategy, planning and sales approach. In Zoho CRM, this model comes with some predefined and weighted values which makes implementation very straightforward. But first, let’s take a look at a little more about how the RFM model and customer segmentation can benefit your business.
How does the RFM segmentation model benefit your business?
Segmenting RFM data can benefit your business in several ways across sales and marketing departments. At the crux of it is the value in knowing your customer. However, here are a few additional points that illustrate how RFM segment data can be beneficial:
You can speak to the right audiences at the right time (targeted marketing). When you ensure your promotions are timely and accurate, you improve customer satisfaction and retention. This can ultimately impact your Customer Lifetime Value (LTV), an important KPI for a lot of industries [link Saas & Tech KPI’s article].
Timely, targeted messaging ensures you avoid marketing fatigue among your audience.
When you know your customers and in which segment of the RFM model they reside, you can better allocate your marketing budget.
RFM data can show areas with growth opportunities. For example, that could look like incrementally increasing the frequency of orders a customer makes with your company. Or inversely, using recency data to identify and re-engage customers who may not have purchased recently.
Because the RFM model is numerical, straightforward, and intuitive you will find that its output is relatively easy to understand and interpret. The result is a high-level view of customer behavior that can be mixed and matched for new sales and marketing approaches that weren’t previously possible without the data.
Combining RFM with other Data for deeper insights
On its own, RFM segmentation data is powerful, but having these metrics to combine with other key performance indicators can provide even greater value. Use the data for the successful customers you already have to determine what you did to acquire them, and then apply this new knowledge to your next acquisition efforts to save time and money.
An example of this would be to take your highest performing segment (where Recency, Frequency, and Monetary value all rank highly), and overlay geographic data. From this you may be able to see which areas of the country, or world, your best customers reside. Then you can use this information to craft targeted messages to ‘look alikes’ for an acquisition campaign.
Similarly, you can combine RFM data with age, gender, title, products purchased, sales agents they interacted with, company size, and on and on. The result is you can answer such questions as:
Where are my best customers located?
How big are their companies?
What is the title of the person who converts?
What does the product mix of our most successful customers look like?
And with those answers you can model your business to meet the needs of your best customers.
We hope you’re convinced that the information RFM captures for marketing, sales segmentation, and business strategy can take you a long way.
Put RFM Scoring into Action with Zoho CRM
Zoho CRM introduced this new segmentation feature in 2020. The system comes with some widely applicable segments already defined, with the scoring matrix already completed. The scoring for each segment of R, F, and M ranges between 1-5 points. The number 1 indicates low performance and 5 is high performance. It is probably best to customize your segments based on your business. However, the predefined segments give you a good starting point.
An example of segments could include, “A+ Customers” or best customers who purchase recently, often, and have a high spend. Your “Loyal Customers” might have a good spend and be responsive to promotions. There are a few others in addition to “At Risk” or “Churned Customers” who generally had a high spend, but have not purchased in a while.
Finding these segments in your Zoho CRM is as simple as applying filters to your account list. At that point, you can apply tags, and use them in your sales and marketing campaigns.
Use your CRM Implementation as an opportunity to streamline your procedures!
Be Successful the First Time With a Project Manager.
Have a CRM Project Open Door Policy.
When in doubt, keep things simple.
Your CRM should support your sales cycle.
Don’t underestimate data migration time!
As you plan a CRM implementation, it’s important to know exactly how you’ll be using the modules inside your CRM. Who knows your business systems better than the folks who use them every day? Your expertise and their experience is a recipe for success. 
Transition in phases, not all at once.
However, before you take off running back to business, it’s time to think about training.
Use your CRM Implementation as an opportunity to streamline your procedures!
Our best advice is: Don’t rush deployment; make sure everything works like it should.
For a process that’s invariably complex, there’s one thing that always holds true: 
Have a CRM Project Open Door Policy
Be Successful the First Time With a Project Manager
Don’t Underestimate Data Migration Time
On its own, RFM segmentation data is powerful, but having these metrics to combine with other key performance indicators can provide even greater value. 
