Viva Las Economy: How not to gamble with the future of your business

October 16, 2008 at 16:57 · Filed under Uncategorized

I think everyone is getting sick of the current headlines. With stories of ‘Tougher times ahead’, and ‘Crumbling economy’ it’s small wonder that so many business owners are seriously looking for ‘quick fixes’ like CRM, to provide their business greater efficiencies, more marketing clout, and a systemised approach to scaling; albeit potentially in the negative sense of the word.

So, you can imagine the disappointment when I explain that CRM will not provide a business with ‘plug and play’ profit margins, or microchip staff to enable them to triple their output. Nor will it singlehandedly increase the success of your marketing toll.

Bad news, I know, and as an owner of a business dependent on small businesses subscribing to our Microsoft CRM systems, it’s even worse news for me.

I see a lot of business owners who still believe an investment in technology will spark an operational revolution within their ‘nest egg’, and unfortunately it’s then the job of organisations like ours to play devil’s advocate and explain that technology is only a small piece of the jigsaw.

I remember my Grandfather, an early adopter of the digital calculator, electric typewriter, and subsequently an IBM personal computer, explaining to me as an inquisitive 6-year-old how if we put “junk in, we’ll get junk out.”

Fast forward twenty something years to my first trip to a proper Casino a few weeks ago. Not, I’ll hasten to add, Monte Carlo, Las Vegas or even Blackpool… but Portsmouth of all places. My guide, a sailing friend famous for drinking fast, driving fast and the ‘odd flutter’ turned out to be somewhat an expert on all things 21, red-and-black and chip related.

True to form and new to this shiny, glitzy and sensory-overloaded environment I was full of questions. “But why can’t we just use cash?”, “Why can’t I put two cards down?”, “Why…”, “Why so many rules?”.

Patience quickly dwindling, my guide snapped “Look. A casino without rules or procedures just wouldn’t work. Everyone here knows the rules and they play to them.” Seeing my quizzical expression he continued, “We use chips because cash is too variable and it could be fraudulent. Now just shut up and play” he concluded.

Just like a CRM strategy with good customer data, discipline and process, a casino is nothing without its rulebook, chips and shared understanding.

Whenever I first speak with a business owner who wants a CRM system I’ll always ask them to try and explain their how their business operates today. What procedures they follow and the ‘rules’ they observe. This way, I’m always able to translate this into benefits that CRM could provide. It’s an easy conversation after that because we have a common understanding and goal.

So I’m not saying you need Scorsese or De Niro on your door brandishing guns and knuckle dusters to realise quick financial benefits and customer loyalties. Any business at any stage of its life can benefit from CRM technology after all. But remember the casino and it’s rule book, consider your rule book. Write down your processes and procedures.

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