Taking the plunge: Tales from the front
Cost-effective and user-friendly technology is changing the way accountancy firms view CRM. Verity Gough reports on the products and practices taking the industry by storm.
Once the domain of large and costly on-premise installations, the customer relationship management (CRM) technology market has seen a significant shift towards flexible, lightweight solutions hosted on web-based platforms. These allow businesses to access vital company information and manage customer relationships remotely – a useful tool for an increasingly mobile workforce.
Nick Williams, Sage
According to the experts, the future of CRM is the hosted platform, an area growing in popularity with accountancy firms thanks to its adaptability and suitability to service-based companies. "We are going to see more linking-in with business intelligence solutions so that CRM will be connected with the back office environment," says Nick Williams, senior commercial development manager at Sage. "This will permit accountancy firms to get all of the operating procedures information tied to customer information, giving them a high level view of which client is more profitable and which they spend most time with, etc. The software is now the enabler, not the inhibitor."
Putting the theory to the test
This has certainly been the case at the Norton Practice. Since implementing a new CRM solution in 2006, the Thames Valley-based chartered accountancy firm has seen far reaching changes, in particular with regards to its overseas clients.
The new platform has become essential to keeping track of every aspect of the business, from measuring the effectiveness of its marketing campaigns to allowing the international support team to collaborate, in real-time, on customer files. Employees now have a window into essential business metrics, and finance has one, integrated system for all accounts and company transactions.
Software as a service
A business model where software solutions are delivered through a subscription model over the internet. The customer rents a total solution delivered remotely. This reduces upfront costs as there is no need to support multiple platforms and versions.
Enterprise relationship management (ERM)
A step up from CRM, the aim is to strengthen competitiveness by balancing the interests and strategic objectives of business partners in tandem with the changing needs of the market, rather than concentrating purely on the client.
Business intelligence (BI)
Technologies, applications and practices for the collection, assimilation, analysis and presentation of business information. The purpose of BI is to support better business decisions through data-driven systems.
Mobility
A generic term describing the ability to use technology freely without being restricted to any one particular application. It often refers to access to information or applications from occasionally connected, portable, networked computing devices.
Similarly, Bentley Jennison has embraced the concept of CRM after acknowledging it needed a new system to help broaden its market share, in particular when targeting business with the larger firms. The key need for CRM arose because of the changing client base. Previously, the firm had a direct relationship between its local offices and the clients. But with the larger firms came multiple office relationships, which required more effective management. In response, the marketing team set about finding an uncomplicated software solution available to all departments, not just the tech-savvy.
The system now enables the company to gain a UK-wide view, as well as promote information-sharing and improve cross-border relationships "It has created a wealth of opportunities for the practice because there is an immediate level of visibility that was not there before," says Tim Tansley, Bentley Jennison’s database and internet marketing manager.
But while large firms can undoubtedly benefit from CRM, what about the SMEs that may not have the funds or capabilities to implement potentially complex software? One small practice that has taken the plunge is recently merged accountancy firm Sinclair Scott, based in Ayr. Consisting of four partners and 13 employees, the firm had initial reservations that it wasn’t big enough to use a CRM platform but the project has been a success.
Since becoming paperless, Sinclair Scott has halved the number of files stored. Incoming mail is scanned and linked to the relevant client, where it can be quickly viewed. All originals are shredded to ensure the firm does not accumulate paper while email has, in many cases, replaced the standard letter for client communication.
Following the paperless trail
With technology constantly evolving, the big question is what’s next for CRM? Williams predicts mobile solutions compatible with PDAs and BlackBerrys are going to take off. "If an accountant is going to see his or her client, they can get information of the last engagements they have had or view the profile of the customer that they are seeing on their PDA," he explains.
Another key development is customer data integration (CDI), which is gaining popularity within practices. Colin Rickard, managing director for software provider DataFlux, North and West Europe, believes CDI will revolutionise how firms deal with data and will see an end to the myriad of applications needed to convert information. Not only will this save valuable time but the data itself, rather than the application, will become the focus.
Software as a service (SaaS) is one of the newer concepts for accountants. This low-cost-of-entry CRM solution is as simple as it is succinct. Software can be quickly and cheaply accessed from an online server, doing away with the need to install software. And, as it will most likely be offered via a monthly payment model, it can be accounted for as a monthly business running cost rather than a capital expenditure.
All in all, while it might sound complicated, the new wave of CRM technology is designed to make life easier while improving client communication. This, in turn, will help you to build and maintain better business relationships – something key in the world of accounting.
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