Trend

CRM boosts the SMB bottom line

CRM is fast emerging as an important tool among SMBs that use it to gain a better understanding of customer requirements and shrink response time, says Abhinav Singh.

Consider the case of Multitec Aids which manufactures special-purpose printing equipment in Faridabad. The company has many customers, each using different kinds of printing equipment. It wanted to manage quotations, prices and warranty terms throughout the shelf life of its printing equipment. If a customer calls and asks for replacement during the warranty period, then Multitec had to look into the customer data (historical data) and respond—a process that used to take two to three days. Using Adapt CRM solution, Multitec streamlined the process, and the response time now has been reduced to a few hours.

This is just one example of how small companies are leveraging the benefits of CRM solutions. Although the CRM adoption by SMBs is in a nascent stage, it is all set to grow exponentially. Let us look at what is driving CRM adoption among SMBs, and what is the market scenario as of now in India.

Major drivers for CRM imple mentation

SMBs are finding themselves in competition with world-class vendors, and they are looking at technology-based solutions for growth. Many SMBs are part of the global supply chain, and there is a compelling need for them to be more focussed towards fulfilling their customer requirements. Rajesh Ghosh, General Manager & Vice-president, India, Sage Accpac, explains, “Since many SMBs in India are a part of the global supply chain, they want control over their customers and have to be well versed in their customers’ requirements. All customer requirements need to be recorded, and an assessment and analysis has to be done by SMBs regularly to create a long-term relationship with customers. Keeping this in mind, adoption of CRM solutions by an SMB is set to take off in a big way in India.” Ghosh further adds that SMBs need to have an integrated solution to keep their customers satisfied, which can help them keep track of the dynamic changes in the global market and their customer’s tastes.

G S Nathan, General Manager, CRM Practice, Ramco Systems says, “SMBs have complex sales processes in terms of products, sales methodology, information requirements and so on. The level of after-sales service and maintenance requirements in the industry or as demanded by their customers would be another important factor that would drive the requirement of CRM solutions. In India, customer care processes are possibly not as well developed as in other developed countries, especially in terms of diversity in the processes for support. Hence, if an SMB has a customer base that expects this, for instance, an exporter of products or services, then there would be an interest in a CRM solution.” There would be a need on the part of SMBs to standardise sales, marketing and support processes at an attractive cost, he adds.

First phase of automation

Already many SMBs in India have gone in for the first phase of automation, i.e. ERP implementation, and are now looking at the second phase in the form of a SCM or CRM (with data warehousing and business intelligence becoming natural extensions) solution. The major driver for SMBs going forward with a CRM implementation is that many want to have a centralised information store, and then disseminate the same to their customers. Many SMBs in India are feeling the need to automate their customers’ engagement cycles and address any customer support issues properly. These requirements are necessary to fulfill customer demands and to aid them in new customer acquisitions. But companies such as Adapt Software, whose major focus is on SMBs, are of the opinion that many customers who have purchased CRM solutions from them had some form of automation, but did not have any ERP solution in place.

Ashish Kamotra, CEO, Adapt Software IAP India, comments, “Decision-makers of many SMBs in India are becoming aware about the fact that some of the large enterprises in the BFSI segment are benefitting from the CRM solutions. Hence, they want to leverage the benefits of the same in their own set-ups. They are also aware that unless they have a structured customer-centric database, they cannot be more productive, and the only thing that can make them productive is to fulfill customer requirements through after-sales service. Further, they are looking to automate their marketing departments for effective campaign management.”

SMBs in India are looking to automate their marketing departments for effective campaign management Ashish Kamotra CEO Adapt Software IAP India	SMBs are looking to improve campaign planning through the information generated by their CRM solution Srinivas Rao Director, Sales SMB, SAP India

CRM gets verticalised

One size does not fit all. This trend was first seen in ERP where solutions got verticalised depending on the industry. The same phenomenon is also being seen in the CRM market. Many SMBs in India, especially those into product manufacturing (consumer goods) and pharmaceuticals, and whose target are the indirect channels, are expected to use CRM for campaign management and sales force automation, i.e. to streamline their sales and marketing initiatives. Many SMBs in the automotive

sector who largely supply their products to larger OEMs are expected to use CRM not so much for sales and campaign management but for the execution of order bookings, handling support calls, easy order executions and better deliveries. According to Srinivas Rao, Director, Sales, SMB, SAP India, “SMBs are looking to improve campaign planning through the information generated by their CRM solution. The CRM solution helps them know about their advertising campaign’s progress and how much the company is benefitting from the same. It also helps in tracking opportunities. Opportunity-tracking is helping small companies identify their most profitable customers.”

Adoption expected to grow

CRM adoption will see good traction, but its adoption will be limited to SMBs that are ramping up their customer acquisition. At this point, CRM solution penetration among SMBs is not too high. However, as competition and productivity demands increase, SMBs will try to differentiate themselves on some aspects of customer and sales management, and demand should pick up dramatically.

abhinav@expresscomputeronline.com