CRM – Less is more for IT recruiters

CRM is a much used and little understood term. This short article sets out to demystify a subject that should be close to the heart of all customer focused recruitment companies.

So what is it?

Customer Relationship Management is firstly a philosophy, and not as many think a set of technologies and thus an IT issue. It is underpinned by the following:

• It is easier to get business from existing customers than prospects
• 80% of business comes from 20% of the customer base
• everyone in the organisation should be client conscious

o        ie. Back office as well as front office

• your clients want to be managed

What isn’t it?

It has risen to prominence primarily because software vendors are selling it as ‘cure all’ for your company’s woes. Specifically it is not:

• A magic formula for turning poor sales staff into good ones
• A sure thing as far as clients are concerned

There is a great presumption that clients want to be managed. What would you say if having popped into a sandwich shop whilst on a client visit, the assistant asks you whether you would like to join their loyalty programme?

In response to this we are hearing about CMR, Client Managed Relationships, but this is really the same thing, but more devious.

And as far as the Harvard Business Review is concerned, clients want to be teased, entertained and tricked; anything but managed. So just because CRM is fashionable, it is not an exclusive approach to client relationships.

What some would like it to be?

It could be used as a (good, actually) reason for breaking down the ‘product silo’ mentality of your organisation. CRM forces the discipline of having all client records in the one database, rather than repeated across each product database.

Sales people have tremendous power, as they generally own the client relationship. Owners want the relationship institutionalised, ie owned by the company. They see CRM as a way to achieve this.

The impact of the web

Specifically referred to as e-CRM, the web is a perfect medium for managing clients. Why bother spending hours educating the client on your products, USPs and how to get to your office, when all of this can be placed on the web. A natural extension to this is online real-time CV monitoring. The candidate checks your website to see where their CV is in the recruitment pipeline; much like checking the whereabouts of a parcel dispatched via UPS.

The web can be used to create a virtual community around your brand. This can also form the basis of another feedback loop. Let client’s let off steam in ‘virtual’ public via an open forum. Demonstrate your attention to customer care by handling the complaint via the open forum, and thereby impress onlookers.

The less is more bit

CRM has the potential to become all consuming much to both the detriment of your business and to the staff’s irritation. Here are a few guidelines:

• Measurement is key, but chose the metrics carefully

o        Sales per person as opposed to number of times they say thank you

• Identify who are your low margin and high hassle customers

o        Drop them, unless they are all like that

o        Focus on your most profitable customers

• Ensure the web site downloads quickly

o        Scrub the introductory Flash animation. You are in recruitment and not the animation business.

In conclusion

CRM does provide a framework for getting the company customer facing. However it is not a mantra, and must be viewed with caution. Most big organisations that have attempted to implement CRM IT systems have failed. I recommend that a cautious approach will allow you to trial CRM and enable your organisation to adjust culturally to this new way of working.