This installment of CRMIQ’s Champions of CRM series features CRM pioneer Yacov Wrocherinsky. Currently founder, president and CEO of CRM consultancy Infinity Info Systems, Wrocherinsky started in the CRM business well before the term “customer relationship management” was even coined. He founded his company in 1987, at a time when contact management, salesforce automation and what we think of today as CRM software was just in its infancy. Today, Wrocherinsky’s firm is the largest SalesLogix reseller worldwide and one of the nation's top distributors of ACT!, Microsoft CRM and Goldmine. He also currently serves on the advisory board for Microsoft CRM.

Wrocherinsky took some time recently to speak with CRMIQ and offer his insights and expertise on choosing the right CRM vendor and implementing a successful CRM program.

CRMIQ: You are a real CRM pioneer who has played a key role in evolving what we today think of as CRM technology. Could you tell us how you got started and how you found yourself focusing on things like sales automation and customer relationship management? Was there some kind of “eureka” moment?

Yacov Wrocherinsky: I’ve always had this philosophy that business is about building relationships and to grow your business, you have to build more relationships. I probably learned this from my father, who attributed the success of his real estate career to his ability to foster relationships. I took this philosophy with me when I left IBM in the late ‘80s to start my own company. At the time, I had no idea what my company was going to sell. I knew from my experience at IBM that personal computers were the future, and that I should find an application to specialize in because off-the-shelf products were rare.

My “eureka” moment came in 1988 when I was introduced to ACT!, exactly one year after I started Infinity Info Systems. The concept of contact management appealed to me because it was a technology to help businesses better manage and build their relationships with their customers. It was then that I realized this would be my company’s specialization. I believe my success today is a direct result of my philosophy and passion for this industry.

CRMIQ: Today’s organizations seem to be struggling with this idea of hosted CRM vs. premises-based solutions.  How would you advise organizations on making the decision? Is it an either/or proposition?

YW: It’s not an either/or proposition. It all comes down to what pains the organization is trying to resolve and how they currently do business. There isn’t just one solution for every company and part of the decision depends on corporate culture, budget and how tech-savvy the company is. Additionally, the current infrastructure, the amount of security required and how flexible the solution needs to be must be discussed before any CRM decision is made. Given all those variables, it is imperative that organizations find a trustworthy CRM consultant who understands their business and can help them weigh all the options so they make the best decision. A good consultant can be indispensable in helping to determine what CRM system is right for an organization.

CRMIQ: Hosted solutions seem to attract small and mid-market businesses due to the perceived savings in administration and maintenance. Is this savings truly realized, and do you see company size playing a role in the CRM decision? In other words, are certain CRM offerings better suited to small companies?

YW: I look at hosted and premises-based solutions like buying and renting a house. While the upfront costs will be lower with the hosted solution, like renting a house, you don’t own it and you can’t make changes to make it more comfortable to live in.

Company size absolutely plays a role in the CRM decision, but should not be the first consideration when considering a hosted or premises-based solution. I believe it is crucial for organizations to look beyond their size and identify their needs first.

For instance, a company with 10 people selling corporate gift baskets has completely different needs than the same size financial firm dealing with hedge funds.  Even though the two companies mentioned are the same in size, a financial firm probably has to manage more complex relationships than the gift basket company, which may not even have access to an IT staff. These are two important variables in determining which CRM system would meet their specific needs.

CRMIQ: You say a good consultant is indispensable. What are the Top 3 things you recommend that users look for when choosing a CRM consultant?

YW: First, examine their primary business focus and references. Dedication to CRM is vital. Look for a consultant whose primary business is CRM, and not one who consults on CRM as a small piece of a larger business. Also, you always want to choose a consultancy that can back up its claims with a list of satisfied clients.

Second, check their methodology. Look for a truly independent perspective that is service-focused, not product-focused. A consultant that only deals with one or two vendors may try to fit your business into their solution rather than finding the right solution for your business.

Third, consider their industry specialization. Make sure to choose a consultant that has expertise in your industry. A consultant who has worked with companies similar to yours will be able to understand your unique business challenges and devise the best CRM strategy to overcome these issues.

CRMIQ: What do you feel is the best way to roll out a CRM program -- start small and grow it as you go or just do the whole organization in one fell swoop?

YW: Often times, management wants the system to do everything right away. It doesn’t make sense to bombard the users with a complex system. A phased approach is best for letting the users get used to the simple functionality before stepping them up to the more advanced functionality. By starting small, there’s more of an opportunity to learn, adapt and modify as you go. Also, when designing the CRM system and process, it’s imperative to get the end users’ input. Managers cannot possibly know everything that is important to the users. For example, what may be important to the marketing department may not be essential to the sales team. 

CRMIQ: A lot of smaller organizations today, struggling with tight budgets and uncertain economic conditions, say they simply can’t afford investing in CRM. What would you say to them?

YW: I read this quote once from Claudio Marcus, research director at Gartner, who said “CRM is not part of a business strategy; CRM is the business strategy.” And I agree that CRM is not an option for your business. CRM is a necessity to run a business and I view it as vital as the phone or computer. Organizations that make an investment in a well-thought out and well-managed CRM solution will see it pay off numerous times over.

CRMIQ: What advice do you have for organizations considering different vendors?  What are some tell-tale things CRM vendors might say to tip you off that what they are offering may not be the best fit for your company?

YW: Finding a CRM vendor who will recommend a solution that complements your business processes may seem like a daunting task, but it could make the difference in the success of your program. Here are a few things to watch out for:

• The one-size fits all solution - CRM should be tailored to your specific business
• CRM is not their primary business focus or they have very little experience
• They don’t have a referenceable client base or make excuses for not being able to share information on their large CRM implementations
• They can’t help their clients measure ROI on their CRM solution
• They are unwilling to make introductions to the individuals who will be supporting your account
• They don’t have proven expertise in your industry
• They don’t have a formal training program

CRMIQ: What are some of the biggest mistakes you’ve seen organizations make as they choose and deploy a CRM solution?

YW: One of the biggest mistakes I see is lack of support from upper management for CRM. I often see end users go to training, but at no point is the project "endorsed" by someone in management.  End users are already afraid of change.  Without someone requiring them to use the new system and all its functionality, they won’t embrace CRM or a new way of doing things.

Another mistake is a lack of comprehensive training and/or training that is specific enough for their customized system. Quite often, CRM implementations involve the re-engineering of business processes. However, when end users attend training, how the system addresses these business processes or even what business processes are changing is never conveyed, leaving end users confused and/or frustrated. Minimal training ties in with lack of support in the sense that training is often an afterthought or considered too expensive.

Organizations also underestimate the importance of cleaning up their data. While the task may seem overwhelming, it will greatly increase the success of the initial roll out.

CRMIQ: What are the biggest success factors for CRM? Are there key things organizations must have in place in order for a program to succeed?

YW: First, there needs to be upper management support for any CRM program to succeed. Since CRM is a people-centered application, finding that trusted consultant is essential. CRM advisors can ensure a successful implementation as they help to identify your needs and create a clearly defined CRM business strategy and design implementation plan. Take advantage of the buy-in from upper management and select a project champion to keep the lines of communication open between the implementation team, management and users. Most importantly, do not skimp on training documentation or end user training programs -- a CRM project is only as successful as its least skilled end user.

CRMIQ: Look into your crystal ball. Where do you see the CRM marketplace heading, technology-wise and cost-wise?

YW: The CRM marketplace will eventually become as common as e-mail, especially as today’s kids are more tech-savvy. And I have even seen some business schools teaching CRM and contact management. Given the proliferation of wireless, more CRM systems will likely be incorporated into these devices. While the cost for CRM will most likely decrease, we could potentially see it become part of a standard desktop item, placed easily alongside Excel and Word. Like most industries, we will probably see more consolidation as this market matures.  

CRMIQ: Any final words of wisdom for the small or mid-market organization embarking on its first CRM program?

YW: Be a smart consumer. Do the research and make sure to find a reputable firm to become your trusted advisor and help you navigate. Would you build a house without the help of an architect? Then don’t go start a CRM project without the indispensable advice and experience of your advisor. CRM is a journey, and remember, that investment will help transform your business.