Selling CRM to CEOs and CFOs

To the CEO, the CRM technology is secondary. Yes, it will come with a price (the CFO is very interested in this), but the intricacies and complexities of the technology (either software or web-based) and the associated costs are not as important to the CEO. The CEO wants to know how CRM will help her increase productivity, generate more revenues and profits, and run the business better. Companies that buy the technology first without determining their business/performance processes or what they want the technology to do are putting themselves in a position to fail. That is why the CEO wants to make sure the business runs better because of the “technology”. She does not want to change the business to suit the technology.

The CEO wants a strategic relationship with a vendor so that his company can leapfrog the competition. One way to do this is to ensure that CRM is primarily usable with a 20% customization factor. This means that you are using a systematic process that has been proven effective in a variety of other settings. You are now customizing the process for your company. Remember, the CEO is interested in adapting the CRM processes and technology to the company, not changing the company to fit how the software model works.

The CEO wants the CRM effort to ensure a return on investment as well as increase performance, productivity and profitability. Now, we know that it is the people in the company who will make the CRM efforts work and who will have the greatest effect on performance. The models and “technologies” will support and enable them to do their jobs better. Additionally, constant use of the new CRM interventions reinforces the corporate cultural approach to a service or relationship performance focus. This will then provide a competitive advantage because performers will continue to improve and become highly motivated to do so since they will be aided by the technology. When all this happens, there is a definite and calculable return on investment, which the CEO loves.

The CEO wants the psychological switching costs to be increased because of CRM. As we all know, performers will switch back to their comfort zones when either the financial costs and/or the psychological costs to switch are low. Sometimes, they will even switch when the financial costs are high, as long as the psychological costs are low. What do we mean by psychological costs? Those are the emotional attachments performers feel to your company. They are the internal relationships that have built up over time.

The more relationships created with people inside the company, and the stronger the bonds of those relationships, the higher the acceptance rate of the CRM interventions and the greater the psychological switching costs. And that is the goal of your CRM program. Make these costs so high that performers will never want to go back to “the way they were”. They will totally embrace the CRM approach. Then, there will be no problem justifying any type of investment in CRM to the CEO.

WHAT CFOs LOOK FOR

The CFO is usually looking for some different things than the CEO. While the CEO is mainly interested in the strategic advantages of the CRM effort, the CFO is interested in the financial feasibility of that effort. Obviously, strategy affects finances and vice versa. You still have to convince the CFO why the CRM effort makes sense in his or her own arena. Here is what CFOs will look for and what must be done to win them over.

The first thing is to ask the question, is the CRM initiative a sound business investment with a guaranteed return on investment (ROI)? And, what is the time period for the ROI? If the initiative does not make financial sense, the CFO will not support it. That is why you must prepare a financial analysis and plan for the CFO. Once this is complete, the CFO will want to know how the CRM initiative fits in with the overall and long-term corporate strategy. This is where you can meld the reasons for “doing CRM” between the CEO and the CFO.

The next question the CFO will have relates to the buy or build question. Should the company buy someone else’s approach to CRM and customize it for their own CRM efforts, or should they build their own program internally? This is a tough question to answer. One way to answer it is to find out how much of the outside program is customizable, and what will additional customization cost? Will an outside program be less expensive and more effective than building one internally, or should you create your own CRM program from the ground up because you know it will work in relation to your business approach? Does the company have the internal expertise to “do all that CRM does” at a cost that is lower than hiring a CRM programming consultant or simply buying software? The CFO is definitely interested in this.

Along the same lines,the CFO wants to know what the measurable deliverables are and when they can be expected. This requires a solid execution plan that the CFO can follow. To a CFO, time is money and she wants to know how much is being spent, when it is being spent, and why it is being spent. You need to provide her with a time frame for all this so that the actual ROI can be calculated. This requires some project management knowledge, and if that expertise is not available, go out and find someone who can manage the project for you. Any delays in implementing the CRM project will cost more money, and that will upset the CFO. You must meet your deadlines as promised to maintain the CFO’s support. GENERAL BENEFITS FOR BOTH CEOs and CFOs

There are some general benefits that both CEOs and CFOs want to see from your CRM initiative. When all of these benefits can be justified, you are well on your way to having a successful CRM implementation. If you can only achieve some of the benefits, remember that a small number of benefits are better than none at all. Consider this list and add to it. Remember to “emotionalize” these benefits for the CEO and CFO so they can feel the importance of CRM to their company.

• Internal cost reductions from new process efficiencies.
• Clear advantages for performance, such as increased performance response time, decreased rework and increased productivity.
• Ease of use, as skill levels improve.
• New sales and service opportunities.
• Relevant metrics to corporate performance.
• Train staff on CRM and evaluation of that training.
• Systematic, and possibly even a phased in approach with adequate checkpoints, milestones, opportunities for revisions, key user involvement, reduction of implementation risk, and a reinforcement of the value proposition of CRM benefits to the company.
• Use of CRM to increase sales, service, motivation, performance and customer and employee retention.

Now that you know some of the things CEOs and CFOs are looking for, you should be able to customize a CRM presentation and proposal to best meet your company’s needs. Tailor your discussions, interviews and dialogue to the goals of each important executive. When you do this, you will get faster buy-in for your CRM efforts and greater acceptance for what you do.