What are common myths about success

5 common myths about CRM providers

Freely translated German version of the English article by SugarCRM CEO Larry Augustin about the CRM industry.

How did we as the entire CRM industry come to the situation that so many customers regret buying a CRM system afterwards? We find out about it on social media, in user forums and in meetings with interested parties: A large number of customers feel that they have been deceived.

Looking back gives more insight into why that is. Basically, large traditional CRM and enterprise software vendors have subtly promoted a series of CRM guidelines that tend to steer customers towards outdated CRM solutions. However, these obsolete systems by no means meet the actual current needs of customers. The result: disappointed customers.

The negative effects have been felt for several years. And choosing the wrong CRM system makes it difficult to differentiate your company from the rest of the market. Above all, however, flexibility and choice fall by the wayside. Furthermore, a rigid or inappropriate CRM system complicates the jobs of individual employees and does not help to create seamless customer experiences, which in the end costs far more than expected.

It is time to dispel the myths surrounding improper CRM systems and dissatisfied customers. And instead empower a new generation of CRM. Solutions that help customers transform their business from the first point of contact with the help of exceptional customer relationships are useful.

Myth # 1: I have to pick the most popular CRM to keep up with my competition.

Doing the same thing as everyone else is actually a risk. Why? It is a detrimental way to differentiate your business from others. And isn't that exactly what you want to achieve? To be better means to be different. If you want to differentiate yourself from your competitors, choose a CRM that transforms your customer relationships, innovates your account managers, and helps you create a truly exceptional customer experience.

The companies that win in this era of high-performing, smart customers do so because they create better experiences and better relationships with their customers. However, continuing to use the same legacy CRM system is the easiest way to create the same mediocre customer experiences.

Don't hesitate to ask for more from your CRM than just fair, average, or the status quo.

Myth # 2: The cloud is the future - regardless of the deployment environment.

Ten years ago, CRM providers who invented cool new SaaS offerings had to create their own cloud infrastructures - because there weren't any others. But that was a long time ago. It is now time for CRM professionals to get much more sophisticated and choose the deployment model that meets your business, security, and regulatory needs. Today there are modern clouds from Amazon, Google, Microsoft, Rackspace, IBM, etc. These modern cloud environments are cheaper, more flexible, more reliable and more secure than the proprietary cloud providers. Most importantly, these systems give you something that you need and deserve: choice. And don't forget the private and hybrid cloud options. These should also be taken into account.

Customize your CRM deployment to suit your business needs, not the other way around.

Myth # 3: I have to buy different "packages" for different departments in my shop.

Traditionally, companies were organized according to function and department. This was followed by the concept of CRM "suites" or "packages" for different departments. That's why many companies get stuck in their old habits and with their outdated CRM technology: to continue to support separate business functions.

Buying multiple suites or clouds and development platforms to support sales, marketing and service employees increases complexity, costs and marketing times for your users. It also means that you have to integrate a wide variety of solutions with one another. And that is often very problematic, even if they are from the same CRM provider.

Instead, it is helpful to take a closer look at the purpose of CRM. What do you need it for? Isn't it there to build better relationships with your customers? Shouldn't that be true for everyone in your company who interacts with customers? Here it should be mentioned that it is technically possible to link several teams / departments so that there is no need for complex integration

By providing a CRM system for all of your teams, you ensure that each of your employees is always up to date with your customer base.

Myth # 4: CRM software pricing structure is too complex before you buy it

For far too long, large software companies have allowed themselves an opaque pricing policy. It is usually difficult to see what price the CRM solution will ultimately amount to. Vendors publish prices that appear transparent at first glance. Yet the second step often requires a team of lawyers to understand all of the limitations and additional costs involved in getting the system to actually do its job. These include additional costs for:

  • System usage that is difficult to calculate in advance
  • API calls
  • Data storage
  • for mobile access

But it works more easily and clearly with transparent and uncomplicated pricing. Only in this way can companies make an informed decision and opt for a system that meets both their price and functional requirements. Unlimited API calls and flexible data storage capacities without unexpected additional costs characterize a modern CRM offer.

Myth # 5: My CRM provider cannot be a true partner.

This myth bothers us tremendously! Unfortunately, as an industry, we have not proven ourselves to be real partners with whom our customers enjoy working together. The fact that our products are easy to use, the pricing is transparent and the provision is flexible are certainly important aspects to increase the satisfaction of our customers. Far more important, however, is that we, as a CRM provider, strive for an open and responsible relationship that creates trust.

At best, your CRM reflects our role as a trustworthy and committed partner for your success. It thus offers you a holistic view of how you can balance your customers, processes and systems in order to build exceptional customer relationships. Solving the CRM myths mentioned above is the first step towards achieving this goal.

1st generation CRM vendors have sold tons of software. But they have only helped a few companies build strong customer relationships.

It is time to shed conventional CRM wisdom and instead explore the potential for differentiating your own company in the market.