Why independent CRM consultants do more than help you choose software…

February 16, 2008 Richard Boardman

When people think about independent CRM consultants they tend to see us as advisors on technology selection. While this is a key part of what CRM consultants do, in reality we tend to be involved throughout the implementation cycle and add value in ways that may surprise the uninitiated. The following article sets out how.

First of all though it’s probably wise to add some definition to the term ‘independent CRM consultant’. I tend to see the role of the consultant as helping organizations select and implement CRM technology in a way that generates business value. For reasons that are beyond the scope of this article CRM technology and business value have not generally gone hand in hand. I’d suggest perhaps 80% of CRM implementations fail to generate more than marginal value.

While we might share the same name it’s important to point out there are two very distinct types of ‘CRM consultant’. There are those who focus on the customer experience, and there are those that help organizations implement CRM technology. If it helps clarify the difference; the customer experience can often be improved without implementing CRM technology, and CRM technology can generate all sorts of benefits and efficiencies for an organization which might have nothing to do with the customer experience. In terms of this article I’m talking about consultants that work in the later camp.

It’s also worth noting – as it’s a somewhat abused term – independent CRM consultants are by definition independent, they don’t have software to sell, are vendor agnostic, and receive their compensation from the organization buying the software and not the seller.

Traditionally the CRM consultant has been heavily involved in the technology selection process because choosing the right CRM software has never been the easiest of tasks. There’s a lot of technology options, and then throw into the mix the marketing hype, the claims and counterclaims of competing salespeople, and the knowledge that the wrong selection can doom a project; it’s no surprise that organizations turn to the independent consultant for help in making the right choice.

However this is only part of the consultant’s role. There are five other key areas where independent CRM consultants are looking to add value:

Feasibility and planning – consultants are helping organizations determine whether a CRM project makes sense in the first place and in what form. This involves helping define the business case, estimate cost and resource requirements, evaluate different options and identify key implementation considerations so that organizations can make a dispassionate assessment whether to proceed, and can structure a project in a way that the potential return on investment is maximized.

Requirements definition – defining and documenting business and functional requirements for a CRM system, and helping organizations re-engineer or introduce new business processes in order to benefit from the technology, can be a demanding process. It is also essential to being able to make the right technology choice, and has a big impact on the speed of the downstream implementation. However it’s not easy to do unless you have a good working knowledge of CRM technology, which means it’s often an area best performed by an outside specialist

Negotiating pricing and terms – while many organizations would feel they are strong negotiators, CRM consultants have very specific knowledge as to what’s achievable through negotiation with each vendor, and perhaps more importantly can review implementation estimates to spot any excess fat. It’s not uncommon for a consultant to reduce the initially quoted price very significantly, and clients can get a very big return from a very brief engagement.

Implementation – the implementation phase is also an area that consultants are increasingly playing a role, either as project managers, or more commonly mentoring the client’s project manager, who may not have extensive experience of managing CRM projects. While the instances of outright project failure are rarer these days; budget overruns, and missed live dates are common place, which means that companies look to get specialist advice to keep things on track.

Working with existing systems – the big growth area in CRM consultant involvement has been for organizations wrestling with the decision as to whether to replace an existing system. Systems often under perform as a result of a poor implementation or user adoption issues, rather than a fault with the underlying technology. Re-implementing existing software can be considerably cheaper than buying a new system, but organizations often need outside guidance as to whether they are ‘salvageable’. For those that choose the re-implementation option, getting help ensuring ‘it’s done properly this time around’, is also common theme.

While many may continue to associate independent CRM consultants primarily with the vendor selection stage, many organizations are finding we can add value throughout the life of the system. It may not be the most common approach to implementing CRM technology – most organizations will continue to work solely with a CRM vendor- but for many, working with an independent consultant is proving the key to unlocking CRM’s often elusive promise.