Tips Archives

Mastering SaaS Customer Retention: A C-Suite Guide to Metrics and Acquisition Costs

Posted on January 30, 2025January 30, 2025 by Sarah Bensimon

In today’s competitive Software as a Service (SaaS) landscape, customer retention has become the cornerstone of sustainable growth. As companies face increasing pressure to not only acquire but retain customers, the ability to effectively manage retention alongside key metrics and acquisition costs has become critical to long-term success. With the global SaaS market projected to reach $307 billion by 2026, mastering SaaS customer retention isn’t just about maintaining revenue—it’s about creating a foundation for scalable growth in an increasingly competitive landscape.

The Triple Challenge: Retention, Metrics, and Acquisition Costs

The SaaS Customer Retention Challenge

“According to Accenture, companies lose $1.6 trillion per year due to customer churn. And according to a study by Bain & Company, increasing customer retention rates by just 5% can boost profits by 25% to 95%,” quotes TheCMO.com. Unlike traditional businesses, SaaS companies must continuously demonstrate value to maintain subscriptions. Research from Custify indicates that it costs 6–7 times more to acquire a new customer than to retain an existing one, making effective SaaS customer retention strategies a crucial focus for executive leadership.

The Metrics Maze

SaaS companies face a unique challenge in tracking and interpreting the right metrics. Many organizations struggle with fragmented data and inconsistent metric tracking across their operations. This challenge becomes particularly acute as companies scale, with many relying on disconnected spreadsheets and various tools that don’t communicate effectively with each other.

Grant Packo, NetSuite Senior Consulting Manager at Caravel, states, “Clients have utilized saved searches and advanced reporting tools to gain real-time visibility into key metrics such as ARR and MRR. These insights have also enabled them to identify and diagnose patterns and root causes of customer churn, including trends related to specific products and locations.”

The CAC Conundrum

Customer Acquisition Costs (CAC) have risen by an average of 55% over the past three years in the SaaS industry, according to ProfitWell. This dramatic increase puts enormous pressure on companies to not only acquire customers more efficiently but also to retain them longer to achieve a positive return on investment. The challenge intensifies as markets become more saturated and competition for customer attention increases.

Transforming Challenges into Opportunities with NetSuite

Data-Driven SaaS Customer Retention

Successful SaaS companies are implementing multi-faceted strategies powered by robust technology. NetSuite’s advanced customer retention features include:

– Predictive Churn Analysis: Built-in AI algorithms analyze customer behavior patterns to identify at-risk accounts before visible signs of churn appear. Best practice implementation involves setting up custom-alert thresholds based on your industry’s typical engagement patterns.

– Customer Health Scoring: NetSuite automatically aggregates multiple indicators including product usage, support tickets, and billing history into a comprehensive health score. For optimal results, configure weighted scoring based on your most reliable churn predictors.

– Automated Engagement Tracking: The platform monitors customer touchpoints across all channels, providing early warning signs of disengagement. Implementation best practices suggest starting with core usage metrics before expanding to more complex engagement indicators.

Mastering SaaS Metrics

McKinsey research shows that companies excelling in metrics management generate 40% more revenue. NetSuite’s robust reporting capabilities help companies track and analyze crucial SaaS metrics, with best practices built into the platform for each. According to NetSuite, here are the most crucial KPIs for SaaS companies to be monitoring:

Net Revenue Retention (NRR)
The most critical metric for SaaS growth is measuring revenue retained from existing customers including expansions and contractions. NetSuite’s revenue recognition capabilities automate revenue scheduling, allocation, and reporting. Best practice according to NetSuite is to “create specific recognition rules for each product or service you offer, then easily link them to individual line items in customer contracts. [NetSuite] automatically recognizes revenue based on predefined schedules or milestones in compliance with ASC 606, IFRS 15 and other standards.”

Monthly Recurring Revenue (MRR)
Monthly recurring revenue (MRR) tracks the consistent income generated each month from new sales, upgrades, and renewals. If you have an existing churn rate, MRR should account for it by subtracting the churned revenue.

Annual Run Rate (ARR)
Also referred to as annual recurring revenue, ARR represents the yearly counterpart of MRR. This key performance indicator (KPI) enables you to forecast your future income, if your business maintains consistent customer acquisition and retention rates.

Churn Rate
Churn rate measures customer attrition, indicating the percentage of customers who cancel their subscriptions within a specified time frame. Typically, this KPI is evaluated over periods like 30 or 90 days, depending on the other metrics you’re using in conjunction with churn rate, such as Monthly Recurring Revenue (MRR).

Revenue Churn
Revenue churn refers to the loss of revenue rather than the loss of customers, though customer attrition contributes to it. To calculate revenue churn, begin by determining the number of customers lost during the period and the amount they were paying.

Conversion Rate to Customer
The conversion rate is the percentage of users who move from the free version of your software to the paid version. It can also refer to the percentage of website visitors who sign up to purchase your product, or the number of sales leads that ultimately become customers. Regardless of the specific process you focus on for measuring conversions, the calculation remains consistent.

The Average Revenue per Account (ARPA)
ARPA represents the average payment amount per account over a specific period. It helps companies assess the average revenue generated from new customers over time, providing insights to optimize sales strategies and pricing. Additionally, ARPA can identify which products generate the most revenue. Since customers may have multiple accounts, this KPI should be calculated at the account level. Choose a consistent time frame for calculation, such as monthly (using MRR) or annually (substituting ARR).

Customer Lifetime Value (CLV or LTV)
CLV represents the total revenue a customer generates over the duration of their contract. Churn rate plays a significant role in this metric, particularly when calculating the average across all customers. As a result, it’s important that the time periods for churn rate, ARPA, and CLV are consistent in this calculation.

Customer Acquisition Cost (CAC)
Customer Acquisition Cost (CAC) is a KPI that measures the amount a business invests to acquire new customers. It also indicates how long it takes to recover that investment through the revenue generated by those customers. This KPI focuses on the expenses associated with sales and marketing efforts.

Net Promoter Score (NPS)
NPS is a metric used to assess customer satisfaction and loyalty. It indicates the likelihood of customers recommending your products to their friends and colleagues.

Building a Scalable Infrastructure

Integrated Financial Management

Accurate revenue recognition and financial management are crucial for sustainable growth. NetSuite’s financial management features ensure compliance with standards like ASC 606 while providing real-time visibility into key metrics including:

– Customer acquisition costs by channel

– Revenue recognition schedules

– Churn rate impact on revenue

– Customer lifetime value calculations

Global Operations and Analytics

For companies scaling internationally, NetSuite OneWorld supports operations across 217 countries, 27 languages, and 190 currencies. This global capability enables companies to:

– Track regional variations in CAC

– Monitor SaaS customer retention rates across different markets

– Analyze metrics by geography and market segment

– Optimize customer acquisition strategies based on regional performance

Advanced Metrics and CAC Management

Real-Time CAC Tracking

NetSuite’s advanced analytics platform includes sophisticated features for optimizing CAC:

– Multi-touch Attribution: Track the complete customer journey across all marketing channels, with built-in models for attributing revenue to specific touchpoints.

– Cohort Analysis Tools: Automatically segment customers by acquisition date, channel, or other criteria to identify your most profitable customer segments.

– Predictive CAC Modeling: NetSuite’s AI-powered forecasting helps predict future acquisition costs based on historical trends and market conditions.

Comprehensive Metrics Dashboard

Research by ClientSuccess shows that companies actively monitoring comprehensive metrics can reduce churn by up to 30%. NetSuite’s customizable dashboards allow executives to:

– View all critical metrics in one place

– Set up automated alerts for metric thresholds

– Generate detailed reports for stakeholders

– Track progress against industry benchmarks

Implementation Best Practices for Success

To maximize the value of NetSuite’s capabilities, successful companies typically follow these implementation guidelines:

Phased Rollout: Begin with core metrics tracking before expanding to more advanced features. This approach allows teams to build confidence with the platform while establishing reliable baseline data.
Custom Dashboard Creation: Develop role-specific dashboards for different departments, ensuring each team has access to their most relevant metrics. Start with executive-level KPIs and gradually add operational metrics.
Automated Alert Configuration: Set up intelligent alerting based on your specific business thresholds. Best practice suggests starting with conservative thresholds and adjusting based on actual performance data.

The Future of SaaS Customer Retention

As we look ahead, artificial intelligence and machine learning are reshaping how companies approach retention, metrics, and CAC. According to Deloitte’s Tech Trends report, AI-powered tools can improve customer retention rates by up to 25% while reducing CAC by 20%. NetSuite’s continuous platform evolution, with bi-annual automatic updates, ensures companies stay ahead of these technological advances.

“As SaaS retention strategies continue to evolve, AI is set to become an essential tool in driving customer loyalty and minimizing churn. By harnessing the power of AI-driven analytics, companies can gain a clearer understanding of the key factors that influence customer retention—identifying not only why clients stay but also detecting early indicators if dissatisfaction or churn risk,” said Grant.

In today’s competitive SaaS landscape, success requires mastering the triple challenge of SaaS customer retention, metrics management, and CAC optimization. By implementing comprehensive solutions like NetSuite, organizations can build sustainable growth models that transform these challenges into competitive advantages.

Take the Next Step in Your SaaS Growth Journey

The path to mastering SaaS customer retention, metrics management, and CAC optimization requires not just the right tools, but the right implementation partner to unlock their full potential. As businesses navigate these challenges, having a proven NetSuite expert can make the difference between basic adoption and transformative results.

With over a decade of recognized excellence, including multiple NetSuite Partner of the Year awards, Caravel brings deep technical expertise and strategic guidance to help organizations maximize their NetSuite investment. Whether you’re looking to enhance your metrics tracking, optimize your revenue recognition, or build a more scalable financial infrastructure, our comprehensive service offerings can be tailored to meet your specific needs.

Ready to transform your SaaS metrics management and customer retention strategy? Our team of NetSuite experts is here to help you build a solution that drives sustainable growth for your business. Fill out the contact form below to start a conversation about your specific needs and discover how Caravel can help you achieve your business objectives.

Salesforce FAQ: The Top 6 Most Frequently Asked Questions

Posted on November 26, 2024November 26, 2024 by Sarah Bensimon

Salesforce is one of the most robust and widely used Customer Relationship Management (CRM) platforms worldwide. No matter if you are new to Salesforce or looking to expand your knowledge, navigating its functions and features can seem daunting. To help deepen your understanding, we’ve compiled the six most frequently asked questions about this versatile solution. Whether you’re a beginner or seasoned user, these insights will guide you through the essentials.

The top six most frequently asked questions about Salesforce are:

What is Salesforce CRM and its benefits?
Which departments use Salesforce, and why?
How do you ensure data quality in Salesforce?
What are some challenges faced in Salesforce, and how do you overcome them?
What are the top integrations with Salesforce?
Do you need an implementation partner for Salesforce?

Let’s dive into these responses!

1.What is Salesforce CRM and its benefits?

Salesforce CRM is a cloud-based platform offering a suite of products that provide a 360-degree view of your customer and relationship with them, allowing better service overall. It allows you to understand buying patterns, improve the customer experience, and even unite departments of an organization. Salesforce is designed to help businesses manage and analyze their customer interactions and data throughout the customer lifecycle. It offers a centralized system for tracking sales, customer service, marketing, and other business operations, allowing teams to collaborate and make data-driven decisions, especially with new enhancements with data cloud.

The key benefits of Salesforce include improved customer relationships; enhanced sales performance through automation and AI-driven insights with Einstein; better communication and collaboration among teams; and customizable workflows that adapt to the unique needs of each business. Because Salesforce cloud-based, it provides accessibility from any location, scalability to adapt to changing demands, and continuous improvements to enhance performance and reliability.

2. Which departments use Salesforce, and why?

Various departments of an organization can use Salesforce, including but not limited to sales, marketing, finance, senior leadership, customer service, and operations. Sales benefits the most directly, as they use it to manage customer relationships, take advantage of its automated workflows, and forecast sales. Marketing teams also leverage Salesforce to run targeted campaigns, analyze customer data, and track engagement through integrated marketing tools. Customer service and support teams also utilize Salesforce to provide efficient case management, track customer issues, and offer personalized support. Finance and operations teams use it for reporting, data analysis, and process automation. And finally, senior leadership uses Salesforce to gain a comprehensive, real-time overview of the organization’s performance and strategic metrics by leveraging customizable dashboards and reporting tools. They’re able to track KPIs, monitor sales pipeline health, analyze customer trends, and assess overall business growth.

3. How do you ensure data quality in Salesforce?

Ensuring data quality in Salesforce requires a balanced approach to managing custom fields, validation rules, and ongoing data maintenance. Overuse of custom fields can lead to data fragmentation, making it difficult to maintain consistency and find relevant insights. Using the path of least resistance is to only offer those fields that are required to fill, as too many will lead to user frustration. It’s essential to carefully evaluate the need for each custom field and avoid unnecessary complexity. Similarly, while validation rules are crucial for maintaining data integrity, excessive or overly strict rules can frustrate users and hinder adoption. Striking the right balance in validation logic is key to ensuring accurate data entry without creating bottlenecks. Additionally, regular data clean-up, typically performed on an annual basis by the operations team, is critical to identify and remove obsolete or duplicate records.

This will ensure the system remains efficient and reliable. By periodically reviewing and optimizing fields, rules, and data, businesses can maintain a high standard of data quality in Salesforce. Leads and contacts decay at different rates. Any leads that are over a year old are probably no longer viable. Any contacts over two years old are similarly ineffective as people change jobs rapidly. Consider using an integration with ZoomInfo or any enrichment service to help de-dupe or remove unnecessary data.

4. What are some challenges faced in Salesforce, and how do you overcome them?

Salesforce users often face several challenges that can hinder system performance and user experience. One common issue is duplication of data, which can occur when records are created or imported multiple times, leading to inaccuracies and inefficiencies. To overcome this, implementing robust data validation rules using tools like duplicate management and conducting regular data cleanups are essential. Another challenge is too much automation, where excessive workflows, triggers, apex flows, and process builders can cause performance issues and result in integration failures. To address this, it’s important to periodically review and optimize automation, consolidating processes where possible and leveraging tools like Flow for more streamlined automation. The accumulation of technical debt is another concern, as ad-hoc customizations and outdated configurations can make future changes more difficult. Regular code reviews, refactoring, and establishing clear governance can help manage and reduce technical debt. Finally, rogue integrations—especially those authenticated with a System Administrator license, thus making it difficult to triangulate the issue origin—can compromise system integrity and security. A proactive approach includes maintaining a strict integration management policy, using middleware for controlled connections, and regularly auditing integrations to ensure they align with best practices.

5. What are the top integrations with Salesforce?

Salesforce offers a wide range of integrations that enhance its functionality and streamline business processes. One of the top integrations is with HubSpot (utilizing HubSpot Selective Sync), enabling seamless syncing of marketing and sales data. This helps teams align efforts and improve lead nurturing. ERP integrations, such as NetSuite, allow businesses to connect their financial, inventory, and supply chain data with Salesforce, providing a unified view of operations. This is typically done with middleware such as Celigo, Workato, Boomi, or Mulesoft. DocuSign is another popular integration, simplifying the contract management process by enabling users to send, sign, and manage documents directly within Salesforce. For sales teams, Gong.ai, integrates conversation intelligence into Salesforce, providing valuable insights from customer interactions that can drive sales strategies and improve deal forecasting. Lastly, Jira’s integration helps development and product teams collaborate more efficiently with sales teams through ticket synchronization. Jira can sync your cases with your tickets to see how many customers are impacted by an issue or a change that someone may have made.

6. Do you need an implementation partner for Salesforce?

Technically, you do not need an implementation partner for Salesforce, but it’s highly recommended. When implementing Salesforce, you can make simple errors early on that often lead to a lot of technical debt. A good implementation partner will have deep knowledge of best practices to share with your team that will set you on the right path. If you opt to handle on your own, you will likely need to hire someone expensive in-house to unwind all the mistakes that were made during the initial implementation.

These experts bring specialized knowledge and experience, ensuring that Salesforce is configured and customized to meet your business’s unique needs, helping to maximize its potential. With a deep understanding of industry standards, an implementation partner can accelerate the setup process and minimize disruptions. They also provide valuable training and support to ensure your team can fully leverage the platform, leading to quicker user adoption and higher productivity. Additionally, an implementation partner can help with data migration, integration with other systems, and ongoing optimization, ultimately ensuring that Salesforce is aligned with your evolving business goals and driving long-term success.

Need help with your Salesforce environment? Contact Caravel in form below and we will get back to you immediately.

Ensuring Smooth User Adoption of NetSuite ERP

Posted on September 6, 2024September 6, 2024 by Sarah Bensimon

As astute organizations seek to optimize their operations and enhance decision-making, the significance of user adoption in NetSuite cannot be overstated. Effective user adoption ensures that employees are well-trained and comfortable with the system, leading to increased efficiency, reduced errors, and a more seamless integration of business functions. Embracing NetSuite ERP fully helps organizations realize their potential, driving better performance and supporting strategic growth.

What are the challenges of NetSuite user adoption?

In many organizations, change is sometimes resisted. The implementation of a new system can be daunting at times, which is why proper training and adoption are so vital to its success. Some users may not only have challenges with change, but also with lack of technical skills. A solid implementation partner will know this beforehand and take it into account. Knowing that each user learns using different methods at different paces, they will ensure that users receive training options – and not just provide a single method for adoption. Adequate training is crucial for successful adoption, with well-structured training materials so they may be used effectively. Because NetSuite has an intuitive user interface and aligns well with user workflows, the platform is more easily adopted.

Other challenges include data migration – moving data from legacy systems to NetSuite can be complex, which is why an experienced partner is so crucial. Poor data quality, incomplete migration or disruption of operations can reduce confidence in a new system. Additionally, integrating with other systems can be challenging and if it’s not seamless, it can lead to data silos and operational inefficiencies.

Addressing these challenges head-on is the job of the implementation partner. Ensuring the least amount hurdles will encourage users to embrace NetSuite and move forward with implementation into the organization.

Developing a Strategic Training Approach

A strategic training approach begins with an assessment of training needs and identifying the many user roles and their specific training requirements. Sometimes, a skills gap analysis is done to determine what needs to be taught, but it may not be necessary with some organizations whose employees have used other systems in the past.

What’s important is to offer training in various methods. Some users learn better through video instruction, while others prefer a more hands-on approach and may need a live walk-through. A good implementation partner will offer different options including in-person sessions, and self-paced online video courses. They can provide access to tutorials, guides, and FAQs as well.

Effective Communication Strategies

Developing positive user adoption of NetSuite involves good communication and accessibility. Articulating NetSuite’s advantages and why they have chosen to implement the software, how it will make their work much easier, and sharing client success stories and case studies can also help.

Keeping users informed about implementation timelines and changes is vital, as is providing progress reports and addressing concerns promptly. Being available to answer questions via phone, email, or scheduled Zoom meetings – offering various forms of communication can also ease their woes and help communication efforts. Encouraging user feedback to identify issues and areas for improvement and showing the implementation partner is open to changing things for the better is great. Urging user feedback to refine training and support efforts can also help the partner as well as the user.

Testing Before Go-Live

Testing your NetSuite instance before going live is crucial to its success and is an important part of training. Users must be comfortable with the system before launch. Ensuring functionality by testing helps to ensure that all modules and customizations are working as intended, and this includes validation of workflows, integrations, and that reports are producing accurate results.

Identifying issues or bugs before the system is fully operational can prevent disruptions in business processes once it’s live. Testing also ensures that data migration is accurate and complete, which is critical to maintaining the integrity of financial and operational data. Testing also provides opportunities for users to familiarize themselves with the system, and making sure they’re proficient with the functionality before they start using it in their daily tasks. A good implementation partner will also make sure that the customization is verified and works as expected and will create a sandbox for users to “practice” tasks, ensuring integrity of the system.

The importance of a structured approach is to achieve long-term success – the goal of any organization. Work with your implementation partner to weave in best practices to enhance user engagement and make sure they’re open to feedback so you can always be growing.

To understand more about how Caravel can help implement or improve your NetSuite instance, please contact us in the form below.

Measuring Success: Key Metrics to Track After NetSuite Go-Live

Posted on August 22, 2024August 22, 2024 by Sarah Bensimon

With nearly 40,000 companies employing and relying on NetSuite as their ERP of choice, the popular platform has helped them achieve substantial insights into their business processes. The journey for these began once the system went live, however, the more crucial phase – monitoring and optimizing NetSuite to ensure they’re reaping maximum benefits is an ongoing process that needs to be discussed.

Tracking key metrics post-NetSuite go-live is essential for a deeper understanding of performance, identifying areas for improvement, and driving business growth. Below, we will explore what metrics you should be tracking and how to leverage them to continuously enhance your operational and financial strategies – making sure your investment pays off.

Efficiency Metrics Relating to NetSuite

Measuring efficiency metrics is likely one of the more apparent metrics you want to delve into so you can see how effectively the platform is utilized to streamline operations, improve productivity, and optimize your resources. Ask your team about cycle time reduction by measuring the time taken from order to cash and other critical processes before and after implementation. Measure your transaction processing time, which indicates how efficiently transactions are processed within the system.

Take a look at process automation, which involves monitoring the execution and outcomes of automated tasks and workflows and tracking the percentage increase and its impact on operational efficiency. For instance, in SuiteFlow, you can view the workflow status and history. You can also check the audit trail, as each workflow action can be audited to track when it was triggered and executed.

NetSuite also offers event monitoring capabilities that track user activity and system events, which can include tracking when automated processes are triggered and executed.

Cost Savings Metrics due to NetSuite Implementation

As one of the more significant metrics, measuring costs can be done in a few ways. Firstly, take a look and see if there is a reduction in IT costs. Compare the pre-ERP and post-ERP costs, including maintenance, support, and infrastructure. Secondly, examine administrative costs by taking a dive into changes in administrative costs due to the now streamlined processes and reduced manual work due to the many automations offered in NetSuite. Next, you can measure procurement savings by looking at the savings in procurement through improved vendor management and purchasing processes.

Measure your labor costs by evaluating changes in staffing requirements for finance, accounting, and IT departments. with regard to compliance and risk management, take a look and see if there was a reduction in costs associated with improved compliance and reduced risk of fines and penalties.

Examine Financial Metrics from Implementing NetSuite

Likely, one of the more significant metrics to examine is financial. Companies want to know if their investment in NetSuite has paid off. There are several financial metrics that can be looked at, starting with revenue growth. Monitor revenue trends post-ERP implementation to identify any positive impacts on sales and profitability. You can also look at profit margins by evaluating changes, considering cost reductions and revenue growth facilitated by NetSuite. Businesses can also examine cash flow and assess improvement in cash flow management and liquidity due to better financial controls and forecasting capabilities.

Return metrics are also significant, so look at your ROA (return on assets) to measure how effectively assets are being used to generate profit. Look at your ROE (return on equity) if you have shareholders. NetSuite can also provide Gross Profit Percentage, EBITDA, Debt Covenants, and Current Ratio.

Customer Satisfaction Metrics

Looking into your customers’ satisfaction sometime after a NetSuite implementation is a great way to see if it’s paying off outside of your organization. Take a look at order fulfillment and track improvements in order accuracy, fulfillment speed, and customer satisfaction scores. Examine service response times by measuring the changes in response times and service levels post-ERP to gauge customer service improvements. Finally, analyze customer retention rates and repeat business post-ERP implementation. These are all ways to get a comprehensive view of customer satisfaction and identify areas for improvement after implementation.

Reporting and Analytics Metrics post NetSuite Go-Live

NetSuite affords users exceptional reporting and analytics capabilities, so you will want to measure some elements to ensure that you’re getting the expected business value. Some key metrics to consider include data accuracy and integrity metrics. For data accuracy, evaluate the precision and reliability of financial and operational data post-ERP. You can also track the frequency of data entry errors or system-generated errors, and also measure the percentage of data fields that are filled out correctly. Take a look at real-time reporting by measuring the efficiency and speed of generating reports and dashboards. Finally, take a look at user adoption by assessing user engagement and adoption rates of NetSuite features and reporting tools.

Employee Productivity Metrics Utilizing NetSuite

Evaluating your return on investment can also be measured by looking at employee productivity after NetSuite implementation. Take a look at time savings, and calculate time saved per employee in performing routine tasks and accessing information. Look at training effectiveness, and measure how effective NetSuite training programs were in improving employee productivity. Another thing to consider is employee satisfaction – gauge employee satisfaction and morale changes post go-live and see what these changes have brought to your user teams.

The importance of tracking metrics post NetSuite implementation is vital to finding out if your investment was worth the time, effort, and money. Making informed decisions comes with continuously optimizing your system, and the only way to do that is by examining these metrics mentioned above. Continuous evaluation and adjustment of metrics will ensure ongoing success and a good return on your investment.

To learn more about how your organization can benefit from a NetSuite implementation or optimization, contact us in the form below.

Mastering FP&A with Automation and Machine Learning

Posted on August 5, 2024September 11, 2024 by Sarah Bensimon

Many organizations are fraught with inaccurate data that is siloed from business operations when conducting planning and budgeting cycles, resulting in arduous manual work that is time-consuming and loaded with errors. Not to mention, relaying this vital information to leadership and key stakeholders can be laborious and flawed.

NetSuite Planning and Budgeting, or NSPB, is a powerful tool used by organizations to budget and forecast utilizing financial data from NetSuite. This robust solution propels finance teams to spend less time on manual tasks, saving them time and energy.

It is collaborative, scalable, automated, and accurate. NSPB provides predictive analytics, sophisticated modeling capabilities, “what-if” scenarios, rolling forecasts, reporting and approval workflows, transparency into performance, and real-time decision-making capability.

Predictive Planning with Machine Learning

The power behind NSPB is due to the integration of machine learning to automate processes, enhance accuracy in forecasting and budgeting, and offer deep insights into financial data, which enables users to make more informed decisions.

With predictive forecasting, machine learning algorithms analyze historical data and identify patterns and trends that financial analysts can miss. This aids in generating more accurate forecasts for future periods based on past performance. These same algorithms can automatically detect anomalies in financial data, which is helpful for pinpointing unusual spending patterns, unexpected variances, or mistakes in budgeting.

NSPB can leverage machine learning to optimize budget allocations based on various constraints and objectives. This might involve recommending adjustments to spending levels across different departments or projects to achieve desired financial outcomes.

Machine learning can help in generating and analyzing multiple scenarios based on different assumptions and inputs, which allows finance professionals to evaluate the potential impact of various business decisions or market changes on their budgets and plans.

Real-Time Data and Collaborative Endeavors

Because NSPB integrates financial planning across the entire organization, data is consolidated from various departments and functions which offers a wholistic view of performance and forecasts. Real-time financial data enables teams to make informed decisions based on the latest information, rather than outdated facts and figures.

With “what-if” scenarios, NSPB allows businesses to create several scenarios based on multiple assumptions and variables, which helps in comprehending potential outcomes of different strategies and decisions. This facilitates better risk management and contingency planning.

The collaborative approach that NSPB takes facilitates different teams to work together and ensures alignment with overall business objectives, assuring that everyone is working for a common purpose. Tools for monitoring performance against budgets and forecasts helps to identify deviations early on, and fosters corrective action to be taken sooner, helping to stay on track with financial goals.

Save Time, Cost, and Hours

Integrating NSPB into your NetSuite instance will greatly help financial teams to cut time on the budgeting cycle. It not only reduces human error in detecting anomalies, it also frees time from analyzing data and allows financial professionals to actually do the work and make decisions. Its out-of-the-box functionality allows teams to leverage these tools to get accurate forecasts without significant upfront costs.

Because all financial data, forecasts, and budgets are stored on a centralized platform, it eliminates the need for spreadsheets and disparate systems across departments. This ensures more accuracy and consistency in financial planning.

Manual work such as data entry, consolidation, and reporting are automated, which reduces time spent on these tasks and allows FP&A teams to focus more on analysis and strategy. Its customized reporting capabilities allows users to generate reports and dashboards that are tailored to specific needs, giving way to a more transparent view into performance and better decision-making. Financial plans and budgets also adhere to regulatory requirements by offering audit trails, version control, and security.

NSPB enhances FP&A by providing a unified, collaborative, and automated solution that seamlessly integrates with NetSuite ERP and empowers organizations to make more intelligent decisions based on accurate data, more precise forecasting, and ultimately improves overall performance and strategic outcomes.

For expert guidance on NSPB and NetSuite and how it can drive your organization to be more efficient and effective, contact us below.

The Complete Guide to Understanding Salesforce Org Merges

Posted on July 29, 2024August 1, 2024 by Sarah Bensimon

At some point during the growth of an organization, one might encounter a time when consolidation is required, particularly when it comes to tech merging. When companies merge or acquire one another, they might need to merge their various software. There are times when organizations are faced with redundancies in technology and need to decide which will be the primary in the merge. In this article, we will examine the merging of Salesforce orgs, as there are specific nuances and intricacies involved that you may not have thought about previously.

The benefits of merging Salesforce orgs are many. Beginning with operating from “one source of truth” is valuable to the entire organization so that all departments function under a singular platform with accurate data on customers, performance, leads, campaigns, and reports. Operating under one Salesforce system also streamlines operations and optimizes processes, thereby enhancing efficiency and effectiveness and reducing redundancies and bottlenecks. Cost savings are also a huge plus, with a reduction in maintenance and subscription costs from competing solutions.

Salesforce Org Merge Considerations & Planning

An org merge demands significant planning and training and can rarely be done effectively without a Salesforce implementation partner. In general, team members are mostly at capacity in their current roles and don’t have the necessary experience in the many intricacies of such a large project.

Starting by identifying key stakeholders to involve in the decision-making process and assigning roles and responsibilities is step one after selecting an implementation partner. Clearly identifying and documenting business processes is key so that those involved have clarity and common understanding of how things will operate moving forward. This reduces confusion and ensures that everyone is on the same page.

Creating a detailed merge plan and timeline is vital to minimizing disruption in ongoing operations, and to ensure that there is complete process alignment. Part of the merge plan may include processes like maintaining data integrity, user adoption and training plans, testing and validation proposals, as well as compliance and security implications.

Risk assessment and mitigation strategies are also key to lessening potential challenges and risks, but also help ensure a smoother transition, maintain data integrity, enhances system reliability, and support overall business continuity and compliance.

An effective communication plan for stakeholders and users is equally important to the process, to keep everyone on track with common goals and milestones.

Data Management and Migration

As part of the Salesforce org merge, a vital portion of the process is the management and migration of data. After you and your implementation partner decide which will be the primary Salesforce instance, they will work with you to take an inventory of existing data and systems. This involves determining all the sources of data that need to be migrated or merged.

Following the inventory, the next step is to cleanse the data and employ a deduplication process to ensure that your organization is working off one source of truth. Next is ensuring the data follows a consistent structure and naming convention, as well as validating the data against business rules and Salesforce requirements. Deciding whether the data will be migrated all at once or in phases is something that your implementation partner will decide with you.

The next step is to map the data by creating a mapping of data fields between the different Salesforce instances. Determining which objects from each Salesforce org will be merged, as well as identifying corresponding fields in the source and target orgs is part of this process.

Data transformation, another part of the process, involves modifying data from the source org to meet the structure and requirements of the target Salesforce org during the merge. This involves data cleaning, standardization, enhancing the data by adding missing information and additional details, ensuring that data is organized and structured uniformly, as well as validating transformed data to ensure it meets the rules and constraints defined in the target Salesforce org.

Customization, User Management & Security

The org merge process continues with the evaluation of any custom code, triggers, or workflows that were previously implemented. It’s important to identify any conflicts or dependencies that could arise during the merge with regard to code review, as well as ensure that integrations with external systems or APIs are compatible. You and your implementation partner will evaluate trigger logic to prevent conflicts or unintended behavior post-merge. Also, reviewing workflow rules to verify that criteria are still valid, and actions are appropriate after the merge is completed at this time, as well as checking field updates and dependencies to ensure consistency across the merged org. Your implementation partner will develop a strategy for merging custom objects and fields and will offer best practices for handling integrations and third-party applications.

Managing user roles and profiles during a Salesforce org merge is a critical aspect to ensure smooth transition and effective user access control. Part of this process entails documenting all existing roles and profiles in both orgs, and identifying and duplications or discrepancies. Determining the roles and profiles needed post-merge based on the organizational structure, user responsibilities, and access requirements will also be done at this point, as well as training and supporting users throughout the transition.

Testing & Go Live

Your implementation partner should relay the importance of thorough testing in a sandbox environment. It’s crucial to conduct thorough testing to ensure the merged org functions correctly and meets business requirements. Some tests may include integration testing, data integrity checks, data conversion testing, user acceptance testing, performance testing, and security testing. Part of your partner’s job will be to handle any issues that may arise from feedback from testing, as well as the final preparation and checklist for going live.

Monitoring the system post-merge and handling post-merge issues along with continuous optimization are some things that a strong implementation partner will be able to take on as well.

Salesforce org merges require careful planning, communication, and a thorough comprehension of technical and organizational landscapes. Working alongside an implementation team will ensure a successful org merge, as they recognize it’s not just about merging data, it’s about integrating cultures, aligning strategies, and driving growth for the organization.

Contact Caravel below to learn more about how we can help your organization successfully implement a Salesforce org merge.

How Can CRM Implementation Boost Team Collaboration and Efficiency?

Posted on June 3, 2024June 4, 2024 by Sarah Bensimon

A well-implemented CRM serves as a central focal point for teamwork that enables collaboration, communication, and coordination among team members. It’s a platform that offers automation and workflows to streamline repetitive tasks and is a place that can boost sales and the customer experience all at once. Let’s examine how this incredible software enables teams to achieve success.

Fostering Teamwork

With a successful CRM implementation, users can easily collaborate on sales opportunities when they share insights and resources. This coordinated effort in selling helps team members leverage each other’s strengths and close deals more efficiently and effectively. When customer data is stored in a central hub, it’s easily shared, updates are made in real-time, and everyone is on the same page. Visibility into reports and other elements, such as communication history, helps teams hold each other accountable and facilitates teamwork. Synchronized data and shared interactions from various departments provide a 360-degree view of the company and its goals, thereby paving the way to successful outcomes.

Reducing Workload

Customized workflows within a CRM allow processes to fit specific needs, which promotes streamlined operations, automated tasks that are repetitive, and consistency across the board. This all contributes to a smaller workload. Teams have visibility into everyone’s activities and progress, and this transparency leaves everyone accountable for their actions, thereby improving teamwork. In a time when automation has become almost mandatory, automating certain steps will speed up processes and allow team members to focus on more important tasks. Employees are more productive when certain tasks are automated and when they have faster access to information, which is what CRM implementation can offer.

Shared Databases

A powerful CRM tool such as Salesforce can serve as a centralized database for company information like customer profiles, interactions with customers, history of purchases, and more. All users have access to the same real-time information, thereby ensuring they’re all on the same page and eliminating any confusion.

Task Management

CRMs feature task management capabilities, allowing users to assign tasks to each other with deadlines and progress tracking. This ensures that all involved know what needs to be done and by when, which boosts accountability and efficient processes.

Real-Time Communication

Throughout the CRM, users can easily communicate with each other by leaving comments, notes, and updates related to specific outcomes and customers, thereby fostering collaboration and keeping everyone in the loop. Streamlined communication can inspire teams to collaborate more efficiently and promotes a sense of community.

Reporting, Data Analysis, and Insights

Analytics tools resulting from CRM implementation help users to track performance, identify trends and patterns, and make better, more data-driven decisions. Teams can better serve customers by targeting their efforts and optimizing their strategies. Without debriefs, teamwork is next to impossible. Robust reporting capabilities within a CRM are a big part of fostering teamwork and improving efficiency. Visibility into shared insights and promoting data transparency fosters a culture of collaboration that drives improved performance and customer experiences. Through reporting, inefficiencies are easily spotted and can be addressed together, too. Tracking progress in shared objectives helps to align efforts and see how everyone’s contributions are being implemented.

When executed properly, CRM implementation can significantly improve team collaboration within an organization. With data transparency, various teams are all on the same page, while sharing insights derived from reports allows for identifying opportunities, patterns, and trends that can then be expanded upon. A reduction in workload can boost morale and allow teams to focus on important goals, while real-time communication saves time and increases efficiency.

A Prime Example

A carbon-credit startup whose original CRM was Click-Up—a task management platform. Click-Up didn’t meet any requirements that the company needed from a sales perspective. They required a customer management system so they could have contacts, accounts, opportunities—and notes associated with those. Click-Up is a platform that works to monitor tasks and is not a repository for customer and sales data. It doesn’t give you the forecasting ability of a CRM, nor the ability to do trending, or give users the story behind anything. A CRM such as Salesforce allows users to see into deals and opportunities and gives you information such as who participated and who was responsible for each step. It answers questions such as, “How did we get here?”

The startup began to demonstrate that their sales were a lot more effective and really began to communicate with each other. They started to understand why they failed at certain opportunities and take lessons from those they won. They were also able to bring in other departments, such as marketing, which was not something they were able to do with Click-Up. Their velocity in bringing in more deals blew up, because marketing and sales were in step, in the same system. Their end-to-end reporting capability exposed their marketing funnel, and allowed them to see into each other’s progress, tracking, and conversions.

Collaboration between teams on a singular platform with one source of truth became the force behind their success.

Want to learn more about how your teams can benefit from CRM implementation? Contact us below, and we’ll walk you through it.

Your NetSuite Implementation Guide: A 7-Step Checklist

Posted on May 13, 2024May 31, 2024 by Sarah Bensimon

What’s involved in a NetSuite ERP implementation? Let’s dive into this complete checklist that will give you all the details you need to know before connecting with a NetSuite implementation partner.

What to expect from kick-off to go-live and beyond:

- Requirements Gathering
- System and Customization Design
- System Configuration
- System Testing
- Training
- Deployment, Preparation, and Go-Live
- Support and Maintenance

Requirements Gathering for NetSuite Implementation

The first step is to discuss and lay out the business goals with your NetSuite implementation partners. What are you trying to solve? What are the ERP requirements of the various departments within the organization and the issues they have that they will need to address? A deep dive into the needs, along with the challenges and goals, is imperative to the discovery and assessment phase. Look at current workflows and processes and identify inefficiencies that can be addressed with NetSuite ERP.

Once you have identified the issues that need solving, clarifying which processes you’d like the ERP system to take responsibility for and the business goals the new system will need to support is next. It’s also vital to examine the current systems within the organization that are working or not working to help reach business goals and decide whether or not to keep them.

Part of the assessment process is to also identify the key stakeholders that will be involved in the implementation, including the leads of different departments. These stakeholders should be involved in this initial phase, as their input is invaluable. At this stage, it’s also time to identify what KPIs will need to be monitored, tracked, and optimized. At the end of this portion of the process, your team and NetSuite implementation partners should be able to clearly identify the objectives and results you expect to come out of deploying the new ERP.

Throughout the implementation process, ensuring that accurate and complete data is transferred to NetSuite is pivotal. Conducting a thorough check of current data and its integrity is critical, as well as identifying what needs to be moved. If data must be cleansed prior to migration, then organizations must complete this effort prior to any other step. Once data has been cleansed and validated and is free of errors and redundancies, developing a mapping strategy to align the old with the new system is necessary. Determining which data sets are necessary for operations should be prioritized for migration. Be sure that security and compliance measures are taken to protect any sensitive information during the data migration. Consider how the data will flow between systems after the migration and that these integration points are configured properly. Decide whether data will be migrated in phases or in one fell swoop based on needs and limitations.

Once all these determinations have been solidified, testing the migration process to identify issues before going live is essential. Validation of the data’s accuracy and the completion of the migration should be verified and reconciled. A backup and contingency plan should be implemented as well, in case of unexpected failures, and to address any risks or disruptions. All of these considerations should be taken into account to maximize the success of data migration into your new NetSuite ERP system.

System and Customization Design

After the discovery and assessment phase, a plan for customization should be next on the checklist. Customizations should be prioritized based on their impact on the business, availability of resources, and strategic significance. The focus should be on customizations that present the most value. Consideration for out-of-the-box functionality should be evaluated first, as those may already meet the needs of the organization without the need for customization. When considering customizations, scalability should be taken into account to ensure they’re flexible and can accommodate future growth without too much rework. Prior to deploying any customizations, thorough testing should be done to ensure they function properly.

System Configuration

This vital step in the ERP implementation process involves setting up items like language preferences, assigning user roles and permissions, and changing any default settings to meet the needs of the organization. Your partner will also help to optimize any database settings for performance, security, backup, and recovery. At this point, you may also integrate the ERP with other applications, depending on the various phases in which you agree. This stage also includes the implementation of any change management practices to minimize interruptions and manage any changes effectively.

System Testing

Evaluation and testing of your new NetSuite ERP’s functionality, performance, and reliability is to make sure it meets the needs of the organization. There are several types of tests to perform, including functional testing, which ensures that all works as intended. These can include data entry, transaction processing, and generating reports. Another phase involves testing the integrations with other applications to ensure that data smoothly flows from the ERP to the other systems. Performance testing, another phase, evaluates the responsiveness of the ERP, as well as its performance under different workloads. Testing the security is also vital to address any vulnerabilities and includes user authentication, data encryption, and more. You will also want to test the user interface and experience to ensure that layouts, navigation, and overall user satisfaction are up to par. Once this phase is completed, full deployment across the organization occurs.

Training

Training not only involves educating new employees on the system but also teaching those who will be training others. There should always be a set group of employees that will be responsible for training new employees on the system, so they need to be read in first. Multiple scheduled training sessions take place in order to completely familiarize users with the new system. This involves providing hands-on practice where users can interact with NetSuite in a simulated environment, ask questions, and get assistance as needed. Feedback is an important part of the process, as it identifies any areas of improvement as well as the effectiveness of the training sessions.

Deployment, Preparation, and Go-Live

At this stage, testing and training have been completed and all parties agree that the next phase is to go live with the implementation. Change management strategies have been implemented to help users adapt to the new processes and system. Detailed plans have been developed for the launch of NetSuite, including scheduling the actual go-live, identifying key stakeholders and support personnel, and outlining contingency plans for any issues that may arise.

Support and Maintenance

Your NetSuite implementation partner should offer support services long after going live so that you and your team can focus on the business. Support services can include anything from administrative to analytical and technical support, as well as operations and integration support. These services should be offered through various channels, such as via phone, email, or even web-based support portals. You should also ideally be assigned a dedicated support manager who will look after your needs and make sure that your ERP continues to run smoothly.

Now that we understand how the implementation of NetSuite is not merely a technical endeavor, we can see how strategy, meticulous planning, thorough communication, and comprehensive training play a role as well. By utilizing this checklist, you can be more confident in knowing what to expect from an astute NetSuite implementation partner and how they can help transform your business processes and thrive in today’s dynamic business landscape.

Caravel is an award-winning NetSuite Alliance Partner who has worked with over 750 clients in various industries ranging from small businesses to enterprise-level corporations. Interested in learning more? Contact us below, and let us show you how we can help.

Behind the Scenes: A Day in the Life of a Salesforce Implementation Partner

Posted on May 7, 2024May 31, 2024 by Sarah Bensimon

We sat down with Caravel’s Director of Salesforce Practice, Kevin Dimond, and Senior Salesforce Consultant, Kelsey Rafac, to get an insider’s perspective on the responsibilities, challenges, and successes of a Salesforce implementation partner. Discover what they had to say and how you can apply this valuable insight into your due diligence for a CRM implementation partner.

What is a Salesforce Implementation Partner, and why do you need one?

A Salesforce implementation partner is there to guide you through best practices for optimal use of the software. From gathering your business requirements to turning them into the best solutions for your business, as well as optimizing them, your partner should be giving you recommendations on how Salesforce will help operate your business. In addition to the technical aspect, they should be reviewing your process—something that is vastly overlooked in CRM implementations. “Your Salesforce implementation partner not only provides you with technical help, but they offer you best practices with the software, which goes a long way to utilizing it properly,” says Kelsey Rafac, Senior Salesforce Consultant at Caravel. “They help with sales process, and finance process. Salesforce is a complicated ecosystem with many moving parts, and it’s difficult to know how to tailor it to your business and make it as efficient as possible.”

Kevin Dimond, Director of Salesforce Practice at Caravel, agreed with Rafac. He adds that a Salesforce Implementation Partner “should be your trusted advisor in the Salesforce ecosystem. They should be impartial to what Salesforce pushes and focus on the right choices for your organization. He continues by iterating, “Your partner will be your hands-on keyboard that will be helping your organization configure it to your needs. For instance, take Pardot. Many organizations choose to integrate the marketing automation system into Salesforce, but what they do not know is that if they ever decide to change systems, Pardot can never be removed. It can be turned off but can never be removed.” It’s use cases like these that he has seen throughout his career, where users make grave mistakes trying to configure Salesforce without knowing specific implications, that can leave you with technical debt.

What can a Salesforce implementation partner do for an organization as a whole?

Salesforce should be about adding business value to organizations. Many organizations are siloed in the way they track their business; therefore, having a Salesforce implementation partner come in and establish it as a single source of truth is tantamount. Rafac says, “It should be built out so all users can go into one place and see how the company is performing, whether it’s in the opportunity pipeline or how many cases need to be worked. Having everything in one place makes operations more effective and efficient and really gives back to the business.” Implementing Salesforce can potentially add to more revenue growth and quicker case closure.

Your Salesforce consultant may also collaborate with leadership to develop strategies and roadmaps to leverage the software to drive growth, improve customer experience, and achieve other KPIs. They can also assist in ensuring that Salesforce helps to comply with regulatory requirements and security standards that mitigate risk and protect sensitive information.

What are the challenges you can face with implementing Salesforce on your own?

Some in-house implementations can be successful, but it must be done with someone who has previously implemented Salesforce and succeeded. “The last thing you want is to accumulate technical debt…sometimes, when you’re implementing, you don’t see the forest through the trees. You stay focused on the one problem you’re trying to solve without taking a step back and thinking about the implications. And unfortunately, in the Salesforce ecosystem, there are many implications,” says Dimond.

Although Salesforce can be set up “out of the box”, not being aware of best practices and optimal usage can cause some issues down the line. Organizations can incur technical debt, which results from taking shortcuts instead of implementing tasks the right way the first time. By doing this, Salesforce is not being utilized optimally, and elements like unused workflows lingering in the background and other underutilized features can take up unnecessary space.

Another thing to consider is improper data migration. Transferring data from other systems into Salesforce is complicated, and without a proper understanding of data structures and mapping, you’re taking unnecessary risks. Going at it alone can also lead to incomplete customization, as some aren’t aware of Salesforce’s full capabilities, which may lead to using a system that doesn’t fully meet the needs of the business. Without a Salesforce consultant, you will lack adequate training and ongoing support, and you can take security risks that can otherwise be avoided.

What are the strategic steps you take to ensure that CRM implementation goes smoothly?

Beginning with a structured plan is first and foremost. A Salesforce implementation partner must have a solid methodology. Some partners will utilize agile methodology to see quick turnarounds with the work they’re doing for an organization. The process typically begins with requirements gathering and scoping, which is distilled into a business requirements document. It’s important that your partner hones in on your business challenges and finds ways in Salesforce to optimize those challenges. Rafac explains that their goal should be to relieve “any pain points you’re having.”

Once requirements gathering is complete, the partner should walk through everything to make sure you’re still on the same page. This time is a great opportunity for organizations to truly commit or adjust what they want and need. Things that should be discussed include any integrations with existing systems, customization, and data migration.

Once there’s an agreement, your partner should start configuring Salesforce in a “sandbox” to demonstrate and show you and your team what it will look like live. From there, you can make more adjustments. Your partner should maintain constant check-ins with you.

Project timelines are dependent on customization and what the organization is looking to accomplish. They can take anywhere from 3–6 months, if the organization is truly on top of what they’re doing. Pilot testing with a small group of users is also part of the process that identifies any issues or areas for improvement before rolling out to the entire organization. Performance monitoring and optimization are continuous during this phase, and here, you’re still gathering additional feedback to ensure you’re always improving efficiency and effectiveness.

End-user training is also part of the strategic steps taken to ensure a successful implementation. Your Salesforce consultant should train SMEs and sometimes all end users and provide documentation as well. Your Salesforce consultant should take this time to answer questions and provide further training, if necessary.

What should you look for in a Salesforce implementation partner?

According to Kevin Dimond, “A Salesforce partner should be one that understands the end-to-end process and the lead-to-cash process.” They should be helping their client service their customers as fast as possible before their competition does. They should be examined by their effectiveness, turnaround time, structured methodology, and knowledgeable consultants. Your partner should be going above and beyond with communication to your organization and be available when you need them to answer questions.

What defines a successful implementation of Salesforce?

A successful implementation means that value has been added to the business; they should be operating better, more efficiently with optimized processes and performance. “Simply put, return on investment; showing the work you put into it is generating revenue on day one,” reveals Dimond. He explains that a CRM should never be a cost center, it should be a revenue center; you should be generating money from it. User adoption is another important aspect of a successful implementation.

Part of a successful implementation means that employees are trained and ready to work the system. if users are not effectively using the platform, it will not deliver on its full potential benefits. Ongoing support is crucial as well, as continuous improvement and optimization cannot happen in a vacuum.

Success should be measurable, and the impact on KPIs should be regularly monitored and evaluated. Some metrics can include sales productivity, customer satisfaction, and revenue growth, as mentioned above.

Overall, a Salesforce implementation partner plays a crucial role in in aiding an organization to maximize the benefits of Salesforce, driving efficiency, innovation, and growth across the organization. It is with this hands-on experience and approach that organizations can truly benefit from Salesforce.

If you’re looking for help to either implement or optimize your Salesforce ecosystem, please get in touch with the experts at Caravel below.

What Does a CRM Do? An Effective Guide to Enhancing Customer Experience

Posted on April 18, 2024April 25, 2024 by Sarah Bensimon

According to WebFX, 87% of businesses use cloud-based CRM platforms, and 73% of customers express that their experience is a vital factor in purchasing decisions. A positive customer experience leads to repeat business, positive referrals, and an increased lifetime value. These experiences also influence the perception of an organization and can have long-term effects on its success. Investing in a solid Customer Relationship Management (CRM) system can help make or break an organization’s customer experience, thereby affecting revenue and profits.

A good CRM is a powerful tool used to engage customers, track and analyze their interactions with your organization, automate campaigns, manage your sales leads, and boost relationships. When implemented correctly, an effective CRM will improve your sales and retain customers by enhancing their experience with your organization.

Now that we are fully aware of how powerful a CRM is, let’s examine and answer some common questions circulating the customer experience and what a CRM can do to help.

CRM for Customer Data Management

Customer data management is the process of collecting, managing, and analyzing customer data. With complete and consistent data within a cloud-based CRM, organizations can learn more about their individual customers and can better provide relevant information that leads to customer retention. “Given that a CRM [such as Salesforce] is cloud-based, it allows users to access that data from anywhere, even on the go on their phone,” says Max Holton, Salesforce Solutions Architect at Caravel. He adds, “It’s all being stored and updated in real-time. So, wherever you are, you always have the most updated information on your customer.”

Customer data can include demographic information, work histories, email addresses, names, phone numbers, and more. The more organizations learn about the customer, the more thorough the data is and the better they can target that customer. This personalization strategy is what customers have come to expect in their purchasing journey. Personalizing communication can lead to an increase in conversion rate and business growth; it can improve analytics and the accuracy of forecasting and can, of course, enhance the customer experience. Holton also iterates, “CRM can be structured to collect data points that are not only important to your customer, but important to your business. You can create fields to collect important customer data or collect specific operational data points to report on Key Performance Indicators [KPIs].” This feature allows users to better extract information from the customer that becomes useful to them later in the purchase process and enables them to sell more efficiently.

CRM and Automated Processes

An effective CRM can automate certain processes for marketing, sales, and customer service efforts that can catapult engagement and communication. This smart function eliminates repetitive processes like manual data entry, saving time so they can focus on activities of higher value such as building relationships, generating and nurturing leads, and converting contacts into customers. These automated processes allow for more attentive customer service and support, allows the team to quickly respond to requests, and can help organizations communicate across multiple channels. This consistent and relevant communication leads to customer retention and a better customer experience.

“Automated processes enable faster time-to-value for the customer and for the business. The faster the business can service the customer, the greater the customer satisfaction. By eliminating manual processes, you’re minimizing human error, you’re expediting process, and removing bottlenecks so the whole process is more fluid, data is more accurate, and you’re getting the customer in the door, quoted, and delivering your product faster and more efficiently,” explains Holton.

CRM automation can also provide users with valuable insights that helps them better understand customer behavior, preferences, and trends. This enables more targeted and personalized campaigns, which result in a much-improved customer engagement rate and conversion rate. Automation in a CRM also helps to boost relationships with customers by tracking interactions, thereby enhancing the experience and empowering users to be more efficient, effective, and customer-centric in their efforts.

What Does a CRM do for Customer Segmentation?

A powerful CRM will allow its users to segment customers based on specific data points and provide more relevant messaging to those with diverse interests and needs. This will, in turn, improve sales and revenue, customer satisfaction, and the overall experience they have with your organization.

Targeting potential customers based on their preferences and behaviors is impactful. Segmenting lists augments the ability to create a more personalized campaign and creates a more effective way to track the effectiveness of a campaign or even a specific message. The organization can then re-focus its efforts based on results from testing these customer segments and establishing better and more meaningful relationships. “Companies only have a certain amount of salespeople or account managers, and with that, only a certain amount of bandwidth and human hours. By segmenting your customer, you can better allocate your internal resources and maximize that value. Avoid wasting internal resources on segments that are not generating value,” says Holton.

The Power of Customer Feedback Through a CRM

One of the most valuable tools an organization uses to improve and enhance processes is customer feedback. An effective CRM will help collect and analyze that feedback from numerous channels including surveys, reviews, and social media and provide insights into their preferences and needs. It can help identify trends and patterns and allow users to make more data-driven business decisions, improve products and services, and enhance the overall customer experience. Through dashboards and reports, organizations can better visualize the customer profile, and improve communication, satisfaction, and loyalty.

How a CRM Empowers Customer Service

What does a CRM do for customer service? A CRM offers immediate access to any and every interaction a customer has with a company. This includes any historical information, past and present purchases, as well as any communications. This valuable information allows for better customer service, as users can instantly retrieve what they need to help. Users will immediately know who they are communicating with, as the CRM can provide a complete view of the customer. This allows for a faster response time and results in better customer satisfaction.

“The companies that we see that have a full front-to-end CRM application that do not have their business process and data spread out across multiple platforms – which leads to unclean, inaccurate, and duplicated data – are the most successful as it pertains to customer service. Salesforce, for instance, allows the user to have all data, sales, and customer experience efforts in one place in the cloud. This allows for one customer record being updated in real-time so when you do get to the point where you need to service that customer with a case, you have all that data in one place at your fingertips that is reportable and allows you to better service the customer,” explains Holton.

How Does AI in CRM Help Boost the Customer Experience?

A strong CRM will adapt conversational AI into its platform to help users better understand company and customer data. AI empowers CRM users to quickly update information about customers from anywhere including their mobile devices, helps to surface answers about customers more swiftly, and allows cross-functional teams to collaborate better. Salesforce AI, for instance, allows companies to tailor promotions based on customer segments, which is powered by the company’s data. The AI is constantly learning based on the user’s intent, which helps to connect with customers faster, more efficiently, and more precisely. AI can help boost productivity and personalization, effectively making the customer experience more impactful.

When organizations implement a robust CRM into their daily activities, they’re committing to the customer. They’re collecting and managing customer data while automating their processes and personalizing communications. Effectively, these organizations are saving time and money while offering a better customer experience because they’re employing the right technology that will prove its worth as the brand grows and the customer remains loyal.

Caravel views CRM systems such as Salesforce as an enabler of better business and customer care. We advise our clients through a proven, successful implementation strategy that allows for flexibility and change. Through proper support and optimization, we help clients refine their Salesforce configuration and match it to their continuously evolving business model. Want to learn more? Contact us below.