BT Business Advice - What the panel said
Small company investment in CRM
Published: November 1 2001 16:07GMT | Last Updated: February 6 2002 16:13GMT
Your question: Do small companies really need to invest in eCRM, when the communication structure between company and customer is small yet effective? And when exactly do you need to start thinking about eCRM? 100 customers? 1000 customers?

BT replies

Adoption of CRM can be variable according to the activities across an organization, ranging from identifying your goals for the future to channel integration and performance metrics. Small organisations can be helped in a number of areas by applying the principles of CRM to help them focus on their overall profitability and reduce costs, also by making investments in technology solutions that move them towards their goal.

If the communications structure between company and customer is already effective you can look to other areas of the business, which may benefit, such as understanding how to increase the lifetime value of your customer through increased loyalty. eCRM should be thought about when you have a greater number of customers than you can remember, particularly those who you have an ongoing relationship with. Intelligent collection of customer data via a software application can assist you in pulling together all the relevant information relating to sales, marketing, service and reporting in a single database with the relevant information available to those who need access.

You may also consider an Internet presence to be appropriate. This also depends on the nature of your business and the products and services you offer. If your customers, even if low in number, gain greater levels of satisfaction with you because of the increased contactability and 'on tap' information you offer, then you may achieve greater customer loyalty. I would suggest that you research your customers to see if an Internet service would be of value to them and you.