As start-ups race ahead to gain an edge over competition, adoption of software such as customer relationship management (CRM) is now becoming a necessity.
Hitherto welcomed mainly by large corporates (due to accessibility and costs), CRM software is now increasingly perceived by entrepreneurs as being crucial for organisational success.
According to Limesh Parekh, CEO, Enjay IT Solutions, by implementing CRM early on, start-ups get to set up an efficient and productive business process that can prove instrumental in their success. “CRM can reduce a company’s turnaround time and help in achieving scale.”
Data gathered through the CRM software, say experts, proves to be beneficial for emerging enterprises in multiple ways by aiding in networking, funding and brand building, amongst others.
According to Parekh, most start-ups rely on multiple sources for networking. “Converting networking opportunities into tangible business leads is the next step. But with multiple sources involved, keeping track of the contacts and conducting effective follow ups can be tricky. With CRM, not only is there a recorded contact, but the development of that into a lead can be documented and it also helps in timely follow ups, resulting in business generation.”
Moreover, CRM helps effectively record and track funding opportunities. Since CRM sets up sound business processes in the nascent stages of a business, this helps in cementing trust and loyalty, say experts. “Factors instrumental in brand building like commitment and deliverables are strongly entrenched in CRM. It helps in connecting well with customers,” says Parekh.
As CRM streamlines data such as sales forecasts and leads, making it available and accessible for all relevant stakeholders in the company, bottlenecks are eliminated, says Thiagarajan Rajagopalan, co-founder of Shorebird Technologies. “This leads to the company getting better synchronised, thereby positively affecting the topline.”
Benefits aside, how open are startups towards leveraging the value of CRM?
“Not much”, say experts. “In the early stages, every penny counts, so startups are unwilling to invest in a CRM system. They make do with spread sheets and informal communication between stakeholders. When the company grows, and they have to manage growth in terms of customers and the sales team, startups do tend to switch to CRM – after experiencing significant pain,” says Rajagopalan.
According to Suhail Vadgaokar, VP – customer experience, Brand & PR, UrbanClap, although some CRMs provide flexibility for customisation basis the company requirements, these customisations are expensive and time-consuming. “Our processes at UrbanClap have changed rapidly and it is not possible for an existing CRM to customise nimbly. We invested in a ticketing tool and have created an internal information software. The two have been integrated along with our communication tool to give us an effective and user-friendly CRM-like system.”
Since cost was a major reason behind startups with tight budgets overlooking the CRM technology, that is set to change now. Experts say cloud computing and Infrastructure as a Service (IaaS) and Software as a Service (Saas) are expected to bring down the costs associated with the implementation of the CRM technology, making it more affordable. Add to this are a few recent innovative features. Enjay IT Solutions has worked out a mobile CRM application allowing the sales force to log onto calls while on the go. “Our solutions are pocket-friendly, making use of cloud computing which helps to provide superior service at lower costs,” says Parekh.
On the other hand, start-up incubators and accelerators are promoting the use of CRM. Start-ups at Brigade Real Estate Accelerator Program (REAP), on reaching a certain stage are encouraged to use CRM. “Most startups are open towards implementing CRM. After trying out a few different CRMs in the market, they invest in the one having easy-to-use tools,” says Apul Nahata, Mentor-in-Residence, Brigade REAP.
And enterprises that have invested in CRM are witnessing tangible benefits. Shiivani Aggarwal, COO, Formula Group, says CRM, besides helping manage the sales workforce, has helped in effective team monitoring, and “is an effective way to reward top performers and to understand the training requirements.”
Nahata says that post CRM, data suggests that startups have benefited in managing their sales pipelines, getting clear insights about customers. “We believe startups, once they reach a stage where they need to effectively manage their lead/deal pipeline, derive insights from the customers and do effective follow-up should invest in a CRM.”