We are very often asked why one or two large providers are missing from the long list. Of course, these are questions that we always answer clearly. From time to time, the customer wishes that SAP, for example, was still included. The supervisory or advisory board could ask why Salesforce, Microsoft or SAP is/was not included. That’s why they get a wild card. And 95% of the time, these big players are not in the final. This is one reason why we often receive logs, because without our research into “who can do what”, many companies would not have come across one or more better suited candidates.
The managing directors can then say with a clear conscience: “But big players in the customer relationship were there, but were more expensive, weaker or better, for example. But, if this opportunity exists, they are with us right from the start. Logical.
That’s why it’s important to us that the selection process is transparent. It’s about the possibility of revision. We are 100% neutral. Everything has to be correct and done properly.
1st Beauty Contest: The presentation of the long list candidates
All long list candidates receive a briefing with tasks for approx. 1 hour. This 1 hour is either a web conference or a personal presentation.
We moderate this tightly for one hour. Care is taken to ensure that all tasks are shown and that the project participants can also evaluate them. All long list participants present one after the other on the same day or at most on the following day. This ensures comparability: On the one hand, everyone presents the same thing, and on the other hand, everyone has been to the assessment one after the other – in one go.
The evaluation forms are filled in during the breaks between the presentations. At the end, the project team selects its short list. These are usually 3 or 4 candidates.
2nd Beauty Contest: The presentation of the short list candidates
Before the short list candidates compete in the next beauty contest, they receive a detailed briefing. This includes specifications for evaluating the requirements, the use cases that should be demonstrated live in the CRM tools. And a form for an initial 5-year cost estimate.
The 2 to 3-hour presentation again follows a previously agreed pattern. The aim is to ensure comparability. We moderate the time slots tightly. Small breaks for discussion and follow-up are always built in. The general information on a provider is submitted in advance or made available afterwards. The “blah blah blah” only costs time.
The participants are also regularly informed about the evaluation. This means that the evaluation forms are collected again at the end of the 2-3 hours.
Afterwards, we receive feedback on the specifications and cost estimates from the providers.
We analyze these and ask questions so that unclear information does not affect comparability. We put these cost estimates into a standardized overview. This makes it clear for which of the 10 cost blocks which provider/service provider is more expensive/cheaper than the others.
We moderate this tightly for one hour. Care is taken to ensure that all tasks are shown and that the project participants can also evaluate them. All long list participants present one after the other on one day or at most on the following day. This ensures comparability: On the one hand, everyone presents the same thing, and on the other hand, everyone has been to the assessment one after the other – in one go.
The evaluation forms are filled in during the breaks between the presentations. At the end, the project team selects its short list. These are usually 3 or 4 candidates.
Who makes it to the final? 2 of the 4 are the lucky ones.
Both the cost overview and the functional evaluation are used to select the finalists. An assessment through reference discussions or an assessment of the service provider complete the picture.
If the two winners in the functional evaluation do not exceed the budget, then the functional evaluation takes precedence. After all, a good product can also cost a little more.
We inform the finalists. Depending on the customer’s wishes, the finalists may be available for a further day for all kinds of topics. A further half to full day is planned for questions on technology and interfaces.
The cost notes and information on the specifications are updated. The evaluation is supplemented and updated.
Another method of selecting the winner has proven its worth.
In recent years, we have introduced an alternative because of the agile methods: instead of the two days for the heart & kidney tests and the technology tests, we ran a proof of concept program for 3-4 days.
Each provider and the team sit together in a lab room. On the first day, vendor 1 is in the morning, vendor 2 in the afternoon, the next day vice versa and so on. The use cases are then implemented in the test system “live and in color” with the participants. At the same time, IT and data center specialists clarify the technical issues.
There is also an evaluation from this phase as well as an update of the cost estimate.
We then sit down with the management and the project team once again presents the pros and cons, the advantages and disadvantages and the costs in comparison. And the winner is usually chosen very quickly. The team gets the CRM system they want, a good CRM system.
If the two winners after functional evaluation do not exceed the budget, then the functional evaluation takes precedence. Because a good product can also cost a little more.
We inform the finalists. Depending on the customer’s wishes, the finalists may be available for a further day for all kinds of topics. A further half to full day is planned for questions on technology and interfaces.
The cost notes and information on the specifications are updated. The evaluation will be supplemented and updated.
The question of “cloud” or “not cloud” hardly arises any more.
When I founded my own company 17 years ago, the cloud was still in its infancy. Salesforce advertised with the slogan “No Software” on posters, stickers and at trade fairs. Salesforce began its triumphal march in the USA with Cloud CRM. It wasn’t until much later that the wave spread to Europe. Medium-sized companies and large corporations had all invested in expensive data centers. They were also afraid of the cloud. Their own data is not in “my data center”, but with strangers. Will that work?
12 to 15 years later, the cloud began its triumphant advance. Today, it is impossible to imagine life without this type of storage and data usage. A SaaS solution from the cloud made it easy for users. You could log on in your browser and immediately have a fully functional CRM solution.
Almost every CRM provider favors cloud computing. The advantages for the provider are obvious. They have a stable ongoing income. The monthly rent is much easier to calculate for the cash flow than when selling a bundle of licenses.
Each provider and the team meet in a lab room. On the first day, provider 1 is in the morning, provider 2 in the afternoon, the next day vice versa and so on. The use cases are then implemented in the test system “live and in color” with the participants. At the same time, IT and data center specialists clarify the technical issues.
There is also an evaluation from this phase as well as an update of the cost estimate.
We then sit down with the management and the project team once again presents the pros and cons, the advantages and disadvantages and the costs in comparison. And the winner is usually chosen very quickly. The team gets the CRM system they want, a good CRM system.
If the two winners after functional evaluation do not exceed the budget, then the functional evaluation takes precedence. Because a good product can also cost a little more.
We inform the finalists. Depending on the customer’s wishes, the finalists may be available for a further day for all kinds of topics. A further half to full day is planned for questions on technology and interfaces.
The cost notes and information on the specifications are updated. The evaluation will be supplemented and updated.
Open source CRM or proprietary CRM software
An old argument about which is better. A study from 2015 or 2016 on Wikipedia shows that the market for open source in the CRM sector does not appear to be particularly large. It is even smaller in the ERP sector.
However, there are some success stories for open source software in the CRM sector:
SugarCRM started as an open source solution (today the open source base v.6X is a standalone product within Suite CRM), Wice CRM and vTiger (also a fork of SugarCRM) or products from Acquia (here, for example, Mautic) are as well.
How many licenses do you need and what are the prices?
Whether licenses should be available in a defined or unlimited number is best clarified in the contract negotiations. We have dedicated a separate chapter to this. It doesn’t matter whether you compare the prices in euros or US dollars. The main thing is that you know the daily exchange rate between the US dollar and the euro. You also need to clarify whether future invoicing will be in dollars or euros.
Tip: Far too often you order too many licenses. Topping up is easier than canceling. Special offers with the title Enterprise suggest that the licenses are available in unlimited quantities? Be careful if you also need Microsoft licenses for the virtual server in a data center cloud, for example. You should clarify this urgently beforehand.
