Today's Technology for Tomorrow's Firm.
Issue link: https://cpapracticeadvisor.epubxp.com/i/94658
BRIDGING THE GAP By Jim Boomer, CPA.CITP Is CRM Part of Your Firm's Strategy? I s Customer Relationship Management (CRM) part of your firm's strategy? If not, you're missing out on a tremendous oppor- tunity to harness and leverage valuable information that you have flowing into your firm on a daily basis. Unfortunately, you're also not alone. Few firms invest the resources necessary to ensure that client relationships are managed properly throughout the process (from lead generation to service delivery). Tose that do are recognizing a tremendous competitive advantage. Client relationships are the life- blood of any accounting firm and should be maintained in an efficient, organized system. Too oſten, firms rely on a number of disparate back office systems to manage this critical information resulting in redundancy, inconsistency and missed opportuni- t ies. A Customer Relat ionship Management (CRM) system is the most capable tool to track and cen- tralize this data while managing workf low and employee-related activities. What is CRM? CRM within a firm varies depending upon specialization and industry but it is typically characterized by all of the following: r Improved Client Relations Cen- tralizes all contact information with key referral sources r Encourages follow-up with new and potential clients r Expands understanding of clients' needs r Enhanced Internal Management Establishes individual and group accountability for client manage- ment and service r Connects multiple business offices to a common source of data r Shares designated information among internal and external users r Expanded Business Development Enriches the sale of non-recurring services Jim Boomer is a shareholder and the CIO for Boomer Consulting, Inc. He is the director of the Boomer Technology Circles™ and an expert on managing technology within an accounting firm. He also serves as a strategic planning and technology consultant and firm adviser in the areas of performance and risk management. In addition, Jim is leading a new program, Te Producer Circle, in collaboration with CPA2BIZ and the AICPA. r Facilitates easy engagement solicita- tion r Maintains demographics informa- tion for each client r Demonstrates leadership in thought and the adoption of new technology Why CRM? CRM soſtware offers a host of bene- fits that improve client relationships and streamline the business develop- ment process. It simplifies the rela- tionship-building process while maximizing sales opportunities. In 38 December 2012 t www.CPAPracticeAdvisor.com addition, CRM keeps that critical client information all in one easily accessible and searchable location. Some of the more compelling benefits a CRM system can offer your firm include: r A "One Firm" Concept – client information is transparent and no longer kept in silos opening the door for true collaboration within the firm. r A Business Development Culture – through standardized sales pro- cesses, enhanced cross-selling opportunities, enhanced follow-up communications and improved overall client service to name a few features, CRM brings business development front of mind to the entire team. r Process Standardization – CRM helps standardize processes and provides the ability for any employee to track and measure client activities, thus ensuring client service by everyone in the firm. r Increase Efficiency – As you con- solidate the number of data sources and related tools and steps required to carry out tracking client relation- ship information, the process natu- rally becomes more efficient. In the short run there is always some pain with transitioning to a new way to doing things but in the long run, things tend to run a lot smoother. r Boost Client Service - A single system with consolidated informa- tion ensures that important tasks or data do not fall through the cracks. And, it enhances a firm's client rela- tionship processes, leading to improved responsiveness and service that ultimately translate to higher client satisfaction. It is much less costly to keep an existing client than to recruit new business. And happy clients tell others, a reality that leads to referral business. r Analytics and Reporting – Simply capturing client data within a single system is not enough. Your CRM system should make that data easily accessible and offer tools to analyze it once the data have been retrieved. Key Considerations CRM is a major undertaking that requires true commitment to ensure success. It is not a turnkey solution that you install and you magically recognize all the benef its listed above. Here are some of the most important considerations you should keep in mind as you set out on the path to tackling CRM: r Firm Project (Not an IT Project) – this cannot be solely an IT project and it cannot be solely a business user project. Both parties must work hand-in-hand throughout the plan- ning, design, implementation and training phases to ensure success. r Communication & Training – Clear and regular communication is critical to the success of a CRM implementation. As I said before, you're asking people to change some deep rooted behaviors and that doesn't come easy. r Tone at the Top – Leadership must be bought in from the beginning. Tis can't just be lip service either, the team needs to see you using the system and "walking the talk. " r Accountability – Management needs to set up a system of account- ability to ensure that people are using the system. This is particularly important in the early stages of adoption. Whi le implementing a CRM system is no small endeavor, client relationships are too important to be mismanaged and kept in siloes. With the advances in cloud technologies, there are solutions available in the market at price points that didn't exist even a few years ago. Most of these systems are highly customiz- able and can be adapted to meet your firm's specific needs. However, the success of implementing a CRM system in your firm will be deter- mined by the commitment from the top. If you haven't made CRM part of your firm strategy, I encourage you to do so.