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4 Tools for organizing your Web Based CRM Software

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One the biggest challenges, and potentially biggest rewards in setting up a new Contact Management (CRM) system relates to how you organize (categorize) your database of contacts. So often I see companies simply import their contact list and jump right in with the same organization (or lack thereof) of contacts they had before. The good news is that many of them have upgraded from programs that are more like basic address books to a full featured contact management system. This alone is going to pay huge dividends for them. The bad news is that many do not invest a little time on the front end to think through how their contacts are currently organized and how they could be better organized going forward.

What would your contact list look like if you were to sort them into their natural groups and categories? How would you label each these groups? Do you have contacts that you would like to associate with more than one group? We encourage our clients to open a word document, a spreadsheet, or simply take out a sheet of paper to begin identifying the various groups, interests, categories and general opportunities that exist within their current list of contacts. I have seen countless examples of both approaches and I can tell you that this exercise will produce big dividends for you over time. A well organized database of contacts can help you to

• Build stronger client relationships
• Increase your Sales, and
• Create a more efficient business.

A good Contact Management (CRM) system should offer 3-4 different methods for organizing your contacts, and will allow you to customize each of them. I have listed what I consider to be the "Core Four" that you should require in your next system.

I. Contact Types
Look at this method as the "30,000 foot view" of your contacts. They are the very general categories you create within your system. (Prospects, Clients, Vendors, Family, Personal, etc) These are usually organized into a "pick list" of a series of "radio buttons" that you can choose from. Think of this as the very first layer of segmenting your contacts. As we move into each of the other methods below, we are able to get more granular in how we parse/ sort our contacts. Because this is designed to identify your very general types of contact, I suggest no more than 6-8 types.

II. Groups & Categories
Moving down to about a "15,000 foot view", you will want to have the flexibility to customize and build a handful of groups and categories within your system. Here you would track things like (Industry, Region, Referral Source, etc.) The typical format of this type of custom field is a "pick list". The key factor in determining when you use this is simple. If you have very specific and finite values that you want someone to select from then you will load them here. You determine what you want to call/label each group or category, load all of the options you want someone to be able to choose from and you're done. This method prevents someone from entering their own "version" of the information and will ensure that your data stays very "clean" and accurate when you go to pull reports later. For example, if you and I were to both to identify what industry a client is in, I might type "Financial" and you might type "Financial Services". The pick list allows you to set the standard label and prevent any deviation from that standard. Anything overdone can become a hindrance. We suggest that this sort of organization be contained to no more than 5-6 different groups/ categories. Remember, we are still flying at a high level here. There is a more granular method called "Tags" where it is appropriate to use more generously.

III. Custom Fields
We're still flying at about a "15,000 feet". The difference here is that you may have fields that you want to create where you don't always know the exact set of options you want to choose from. A custom field is a "free-form" field that will allow the user to type in exactly what they need. You still create the label for the field, but the data entered is left up to the individual. The most effective use of custom fields usually involves no more than 8-10 different values.

IV. Tags
Finally, we have "Tags". This relatively new and unique method has really opened the door for creating multiple associations and multiple labels for a given contact. This is you most granular level of categorization within the database. It allows you the flexibility to assign multiple values/categories to a single contact. For example, you might want to track someone's interests (golf, tennis, wine, etc.), and you want to easily keep track of products that they have an interest in or products that you have already sold to them. If you think of all the possible subsets for labeling a particular contact it could get very cumbersome to try and create a custom field or pick list to accommodate all your needs. Tags are a very quick an easy way to create a label and "tag" it to any one of a number of contacts. As your business evolves and products, interests, and campaigns change, it is very easy to remove one label and replace it with another.

If you invest the time on the front to outline your needs and use elements of all these methods, your Contact Management (CRM) System will become a more powerful tool in managing your clients and prospects going forward.

For more information and a more detailed discussion on the best practices for each of these areas, feel free to contact us at 1-888-286-6578.