In a recent Aberdeen Research study, 70% of the banks surveyed believe effective user adoption is the

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1 Opportunity Generation Coaching & Technical Support Improve Your CRM User Adoption Ron Buck Sales Tools That Make My Job Easier In a recent Aberdeen Research study, 70% of the banks surveyed believe effective user adoption is the primary driver to realize the full business value of CRM software. The best designed CRM system in the world has limited value unless the frontline employees actually use it. In another recent Forrester research study, organizations with high user adoption rates indicate they invested 70% of their total CRM budget on their user adoption program and only 30% on software. These are extraordinary numbers. In 2011 Forrester projects that US financial institutions will invest more than $1 Billion in CRM software to grow and retain customer relationships. However, 70% of the banks who have already installed CRM software wish they had spent more time and made a bigger investment in user adoption. This paper will focus on how they would invest their time and money to improve CRM user adoption.

2 Change and User-Adoption Change in any organization inevitably attracts resistance. This is especially true when the change is associated with implementing a new CRM software solution. Typically, employees feel uncomfortable with the idea of having to change their routines and adjust to an unfamiliar application. Implementing a new CRM software solution is no exception to the rule. Some employees may fear CRM is just a means for management ment to spy on them, but the vast majority of sales people understand that CRM, in reality, is an effective tool that can improve the sales process, help them fortify customer relationships, and improve their productivity. The challenge, however, is getting these employees to change their habits and adopt a new solution into their daily sales routines. The real facts about user adoption have been presented by a number of well-known researchers (Gartner, Focus, Aberdeen, BAI, ABA and others). Here is what their collective research tells us: Most CRM initiatives (>70%) fail to realize any measurable business impact. A typical bank will spend over 35% of their initial software investment getting it right and addressing user-adoption issues in the two years following the initial installation. After one year, less than 20% of the initially trained employees will be using the CRM software on a regular basis and they will only use a few select features. In a typical bank, the cost of the initial CRM software and its installation is less than 30% of the total cost of ownership when considering factors like user-adoption, organizational change management and long-term issues with data quality. Most banks over-invest in the CRM initiatives by at least 200%. The total cost of ownership (TCO), return on investment (ROI), and time to value (TTV) are less related to the specific CRM application selected, and more related to how the bank s scope is defined, how the software is configured and launched, and how much focus is placed on user-adoption. Most CRM initiatives fail because the bank launches too much too fast and fails to address user-adoption upfront and on a regular basis after they go-live. You probably have a user adoption challenge if: A high percentage of users are not logging into the system. Users are logging into the system but not creating or updating records. Users are not creating, using or updating customer profiles, notes or opportunities. Users are still requesting data from legacy systems to create reports or are still using Excel spreadsheets. A large population of users have a negative or apathetic attitude toward the CRM application. Users complain of poor data in the system, or the CRM data does not reconcile with the core processor data or other reports within the bank.

3 Building A CRM Adoption Program User adoption is more about changing user behaviors than technology. The skills and methods used to change behavior are very different than those required to build and deliver effective CRM systems. This means that the people who managed the CRM system implementation are probably not the right people to lead the user adoption program. CRM adoption needs to be addressed before, during, and after the go-live event. We have found that the best way to boost and then sustain high CRM user adoption is to develop and implement a formalized user adoption strategy. Most CRM failures occur when organizations take a go- live centric approach to CRM (on-time and on-budget delivery of technology) without taking the necessary actions to drive and sustain user adoption over the life of the system. St. Meyer & Hubbard has learned that most CRM initiatives fail because the bank launches too much too fast and fails to address user-adoption upfront and on a regular basis after they go-live. live. Our research (370 banks), experience (over 100 successful CRM implementations), and knowledge have all helped formulate the following ideas for a successful CRM Adoption Program. I. Formalize the CRM Adoption Program i. The first step is to ensure that the program has the right group of champions who are willing to sponsor the program and be its cheerleaders. These are probably not the people who selected the software and managed the CRM installation. This is a guiding coalition of executives and frontline salespeople, those who will most benefit from the system. ii. The second step is to define the categories of users. The call center, retail sales, commercial sales, wealth management, marketing and finance each have specific categories of users. Within retail there are sub-categories like tellers, bankers, branch managers and teller supervisors. Adoption should be defined by role (user category) using the following parameters. Purpose: : Define the purpose of the application. Every user category will have a slightly different purpose. For example, the purpose may be to improve sales tracking and reporting, or to improve internal communications between the frontline sales person and management. Perhaps the purpose is to reduce administrative costs, improve referral management, pipeline management, and lead/prospect or campaign management. Other purposes include supporting performance scorecards and improving sales force productivity.

4 Goals: : What are the goals for each role? In other words, quantitatively define the CRM initiatives success. Define success in terms of measurable user-adoption, change, sale performance improvement, and ROI. Determine specific CRM success measures (quantitative) and track them during the sales transformation period and align all employees performance e management plans (rewards and incentives) to these goals. Value: : What is the additive value for each role? This is a critical question that should be answered for each role. How will the system improve opportunity generation? How will the system make tasks easier? How will the system be supported? Frequency: : How frequently will each user category use the CRM software? When will each role use the software? iii. The third step is to build and maintain a Lighthouse. A Lighthouse initiative is more than a pilot it is an on-going initiative to establish internal CRM adoption best practices with an elite group of sales people, and serve as a beacon to the rest of the organization. The Lighthouse should be defined by its objectives, measures, goals and initiatives over a period of time (perhaps twelve months). Early wins should be defined, accomplished and celebrated in an organization-wide newsletter or communication stream. The guiding coalition of executives and frontlines sales people should be actively involved in the Lighthouse. II. III. Provide Training. The proper training should integrate sales processes, sales management routines and software navigation. The training should help the employees understand what is expected of them. Answer the question, What s in it for me? CRM software is sales force automation software (SFA) that has been designed to aid the salesperson who is managing customer relationships. However, our research shows most banks don t actively involve the frontline sales force when purchasing this software they typically purchase it for themselves and for their own reasons. Over the years we have learned that many employees think the software has been designed for management to look over their shoulders (like big brother) to monitor what they are doing or not doing. In other words, they don t trust management s intentions. Additionally, they don t see what s in it for me. Management s focus (self-orientation) is on themselves

5 and not necessarily on the employee and how the CRM system helps employees do their job more easily and efficiently. Steps to Success - Three Primary Gears Driving User-Adoption What we have learned in over 100 CRM installations at banks and credit unions is that when management begins with a focus on the sales employee (the real customer for CRM software), and designs the system to answer the question what s in it for me, the employee wins, the customer wins and the bank wins. Employees enthusiastically trust the bank for helping them with the tools they need to make their jobs easier, more efficient, and more productive. What s In It For Me? Opportunity Generation Coaching & Technical Support Sales Tools That Make My Job Easier This diagram illustrates the three primary gears driving user-adoption from the user s perspective. Users s are interested in sales tools that make their job easier, tools that give them access to new sales opportunities (like research, leads, and referrals) and a supporting organization behind the system. Sales Tools That Make My Job Easier A Single Shared View of the Customer (In a Single Location) A Research Portal Automated Sales Alerts Prompts Triggers A Central Library of All My Reports and Scorecards Eliminate All The Excel Spreadsheets Data That I Can Trust Accessible, Creditable, and Reliable (Timely) Performance Scorecards A Personal Performance Navigator Process Automation With Intuitive Navigation

6 Integration With Outlook and the Core The Way I Work Cloud and Mobile Access (Anywhere Access) Opportunity Generation Research Tools (Hoover, Data.com) Trusted Lead Generation Tools (Jigsaw) Team Collaboration Tools (Chatter) A Lead & Referral Management Portal Coaching & Technical Support An Internal Culture That Supports The CRM Initiative An Active (and Well Trained) Support Group Coaching Tools (like audits, and performance scorecards) That Are Integrated with Check-Ins, Huddles and Results Coaching. Additional Steps to Success IV. Keep it Simple. If a CRM solution takes too much effort to learn and use, sales people will resist incorporating the extra work. A CRM solution that easily integrates into, and automates, their existing daily routines and sales processes is one of the keys to user adoption. Sales processes should be documented and then automated by the CRM solution in a simple and elegant way. V. Work the way they work. Most sales people use Outlook or the bank s core processor throughout the day. Make sure the CRM system is not just another disparate system. Link the CRM system with the core processor and provide two-way way synchronization with Outlook (calendar, alerts and referrals, tasks, and notes). VI. Ensure one trusted version of the truth. But most of all, integrate the data from all these systems into one version of the truth - eliminating Excel spreadsheets and the need to use extraordinary resources to gather information from multiple systems. Accurate & Timely Data Educated, Trained & Motivated (WIFM) Users + Well Designed System + Consistent Use of Software + Data Validation Process (IT) = Accurate & Timely Data A Culture That Encourages the Use of CRM Software IT Driven Data Validation & Test Initiative That Involves The Frontline Sales People Data That is Trusted and Considered a Single Version of The Truth

7 Make sure data have been tested and validated to build trust with all users. Accurate and timely data is linked to many of the benefits of CRM software executive reporting, collaboration, forecasting, sales cycle visibility, coaching and decision making. The CRM system should be viewed as the most trusted place to get the information necessary for all these activities. A portal for accurate and timely data is a magnet for user adoption. Accurate & Timely Data Decision Making Insights Decisions Actions Results Sales Cycle Visibility Collaboration Accurate Forecasting Accurate & Timely Data Aligned & Cascaded Value- Added Scorecards Coaching Tools Executive Reporting VII. VIII. IX. Give them one piece of the pie at a time. Rollout the software implementation gradually in phases to avoid overwhelming the sales force. Begin with simple tasks like sending referrals, customer profiling, or perhaps simply entering contacts. Once they are familiar with various parts of the software, start monitoring and tracking the sales processes with the new system to generate reports and scorecards. Integrate e these reports and scorecards into your existing sales management routines (Check-Ins, Huddles, and Results Coaching). Continue this process until they have gradually (over a six to twelve month period of time) begun using every function of the new solution in their daily routines. Make part of their pay dependent on activities within the CRM solution. Once the CRM application is implemented and the sales force has been trained launch a new incentive program that includes incentives for CRM user-adoption. For example, sales people will only get paid on new opportunities that are entered into the CRM software. Make sure the incentive program is simple, to the point and aligns with the rest of your existing incentive program. Conduct frequent user-adoption audits and make them part of the sales culture. Useradoption audits should be done frequently. The results of these audits should be part of an executive quarterly review process that involves the entire team responsible for CRM adoption. These reviews should be used in (and re-shape) team meetings, check-ins, huddles and coaching.

8 The user-adoption audit should take two forms. The first is based on a set of questions that define user-adoption for each role (user category). These questions should be asked in a moderated session which includes a guiding coalition of executives and frontline sales employees who are the program champions. These questions should include: i. Does the CRM application support users and make their job easier? ii. Does the CRM application motivate users and help them achieve their goals? iii. Does the culture support the application? iv. Are sales processes automated and engineered to maximize user adoption? v. Does the CRM application give users better access to resources and information to better do their jobs? vi. Is there top-down visible and vocal executive support driving use of the software? vii. Does the organization foster a positive attitude toward the CRM application? viii. Are the CRM data reliable, accurate, timely and trusted? ix. Have users, managers, and technical administrators been adequately trained? x. Do the technical administrators proactively support the CRM application? xi. Do coaches and sales managers have access to quantitative user adoption audits? The second type of audit is more quantitative. St. Meyer & Hubbard offers an on-demand user-adoption program (The Performance Monitor) as a subscription service to the bank without purchasing software. Additionally, St. Meyer & Hubbard s consultants carefully monitor user-adoption, analyze the data and provide a written quarterly assessment that includes recommendations for coaching and performance improvement. The St. Meyer and Hubbard team accumulates the best practice behavioral patterns of your highest performers and crafts specific recommendations in the following format: Are your people using your CRM system? How are people using your CRM system? How is a specific user, or group of users, interacting with your CRM system? How is CRM adoption impacting your sales performance?

9 The Performance Monitor St. Meyer & Hubbard uses the Econiq monitor (The Performance Monitor) for CRM audits. The Performance Monitor is quick and simple to install on the bank s internal network. The monitor quietly listens to every activity within the CRM software as the frontline begins to adopt the software. The monitor can listen to the activity of each individual user over time as they use the CRM software to enter opportunities, update a customer profiles, respond to prompts, manage leads and referrals, manage a sales pipeline, and onboard new customers. Additionally, the monitor aggregates financial data (like closed accounts, new deposit $ and new loan $) and measures specific leading indicators like cross-sell ratio and win/loss ratios. The leading and lagging performance indicators are correlated to user-adoption and specific performance profiles. The Econiq monitor displays all information Live (in real-time).

10 The Performance Monitor Functional Usage View Figure 1.0, below, illustrates one of the CRM user-adoption screens that shows functional usage. Functional usage details what functionality is used and how frequently it is used by the frontline sales force. Figure 1.0 illustrates a bank that is using its CRM system for referral management (25.0% of the total usage); opportunity management (19.8% of the total usage); profiling (21.2% of the total usage); and responding to prompts (12.1% of the total usage). More detailed information is displayed in the lower section - how many new entries (active records) have been created new or updated which is an indication of how frequently they are using specific functionality of the CRM software. SM The Performance Monitor Functional Usage Select Timeframe Select Branch Market Region Select Employee Performance Monitor SM Performance Scorecard Report Library Prompt Monitor SM Referral Management Responding to Prompts 25.0% 12.1% 19.8% 21.2 Opportunity Management Profiling (Review & Update) CRM User Adoption Contact Management (9.3%) Notes (6.9%) Task Management (5.7%) Performance Profiles SM Live! Branch Transactions Personal Banker User Adoption Breakdown By Function Referral Management 189,098 Opportunity Management 111,987 2, Profiling Live! Active Records Total Actions 4,037 Total Created New 1, ,456 3, Responding to Prompts 96,001 1, Contact Management 69,001 1, Total Updated 2,667 1,701 3,098 1,000 1,100 8am 10am 12 2pm 4pm 6pm 8pm Walk-In Drive-In PoweredLive! By Econiq Monitor SM Figure 1.0 As shown at the top, this type of functional usage can be selected and viewed for an individual, a team (branch), a market or region, or for the entire bank. Additionally, functional usage can be viewed in any timeframe past or present.

11 The Performance Monitor System Usage View Figure 2.0 illustrates system usage.. In this case, the bank can define the meaning of each type of user (like Power, Active, Casual, In-frequent.) For example, a power user might be a sales person who either creates or updates at least 40 records rds per week and uses at least four different kinds of functionality. Whereas, a casual user might be a sales person who either creates or updates at least 10 records per week and uses at least two different kinds of functionality. SM The Performance Monitor System Usage Select Timeframe Select Branch Market Region Select Employee Performance Monitor SM Performance Scorecard Report Library Prompt Monitor SM CRM User Adoption Personal Banker System Usage Live! This Week This Month Total Users Power Users Active Users Casual Users Infrequent Users YTD Performance Profiles SM Live! Branch Transactions Personal Banker Comparative Analysis (User Adoption & Performance) High Performers Average Performers Power Users Active Users Casual Users Infrequent Users Low Performers am 10am 12 2pm 4pm 6pm 8pm Walk-In Drive-In PoweredLive! By Econiq Monitor SM Figure 2.0 The lower section of figure 2.0 may be the most important area as it correlates various levels of performance. The levels of performance can be defined by management. For example, High Performers might be defined by any combination of leading and lagging performance measures. This comparative analysis correlates user adoption and performance quantitatively. More accurately, use of the CRM system is directly correlated to a more effective, efficient or productive sales force.

12 The Performance Monitor Performance Profile View SM The Performance Monitor Select Timeframe Select Branch Market Region Select Employee Performance Monitor SM Performance Scorecard Report Library Personal Banker Profiling % to Goal Best Profilers 118.3% Win/Loss Ratio Cross-Sell Ratio 76.3% 4.25 Interdepartmental Referrals 2,201 Prompt Monitor SM CRM User Adoption Average Profilers 91.2% 51.3% 2.05 Low Profilers 39.9% 39.1% Performance Profiles SM Live! Branch Transactions Cross-Sell Ratio High Responders Average Responders Low Responders Non- Responders 40 Best Profilers Average Profilers Low Profilers am 10am 12 2pm 4pm 6pm 8pm Walk-In Drive-In PoweredLive! By Econiq Monitor SM Figure 3.0 Figure 3.0 illustrates how a specific performance profile ( profiler ) correlates to specific leading performance metrics. In other words, do those sales people who always review the customer profile before they meet with the customer and update it with the customer have higher cross-sell ratios and win/loss ratios? The bank can define each performance profile (profiler, responder, listener, adopter, etc.) and the leading performance indicators in a glossary. This feature of The Performance Monitor is very powerful as it correlates specific types of adoption to the improvement ent of specific leading performance metrics. Many other performance profiles can be automatically defined by the underlying intelligence engine of The Performance Monitor.

13 The Performance Monitor Performance Correlation View SM The Performance Monitor Performance Profile Select Timeframe Select Branch Market Region Select Employee Performance Monitor SM Performance Scorecard Performance Profile: Highest Performer (Personal Banker) Report Library Win/Loss Ratio Cross-Sell Ratio Performance To Goal (%) Prompt Monitor SM 77.6% % CRM User Adoption Performance Profiles SM Live! Branch Transactions High Responder Average Responder Power User Active User 87.8% 11.9% 55.6% 43.7% 98.7% 1.2% 56.1% 40.9% 95.4% 3.9% 57.9% 42.0% Best Profiler 92.1% 97.9% Average Profiler 6.9% 1.3% 96.8% 2.9% am 10am 12 2pm 4pm 6pm 8pm Walk-In Drive-In PoweredLive! By Econiq Monitor SM Figure 4.0 Figure 4.0 displays the correlation of two performance profiles ( adopters and profilers ). The Performance Monitor analyzes the data and, in real-time, displays three important dimensions of adoption functional usage, system usage and performance correlations. Performance correlations answer the ultimate question does user-adoption correlate to real sales results? Does profiling make the sales person more effective when face-to-face with the customer - resulting in higher win/loss ratios and cross-sell ratios? Does responding to prompts and alerts result in more referrals or make the entire call process more efficient? Do automated sales processes (by the CRM solution) improve employee productivity? Does time matter in referral management, specifically how quickly does a lead or a referral need a response? An additional benefit of The Performance Monitor is the Live Data Monitor shown in the lower left hand corner of figure Users can select from any performance metric to be displayed in real-time. Additionally, users can build their own dashboard of multiple data monitors to monitor branch transactions, sales activities, loan and deposit production, and many other critical performance metrics.

14 In Conclusion St. Meyer & Hubbard is revolutionizing CRM installations and user-adoption with The Performance Monitor which can be embedded in any automated scorecard or report system. For more information related to St. Meyer & Hubbard s User-Adoption Best Practices and Pre-Installation Planning Guide, and for a software demonstration of The Performance Monitor, please call Ron Buck at or rbuck@stmeyerandhubbard.com. St. Meyer and Hubbard has evaluated 16 of the most popular CRM systems for banks and credit unions. You may also contact Ron Buck for a free copy of An Evaluation of CRM for Banks.

15 About The Author Ron Buck Ron Buck is the author of The Six Disciplines of Execution SM and the creator of the Managing Breakthrough Results SM program at St. Meyer & Hubbard. He is an author, speaker and consultant to many bank executive teams. During the past 10 years Ron has conducted a research project with over 370 banks to determine the metrics that really matter and establishing benchmarks for over 100 key performance indicators. Ron has been involved in over 100 CRM installations at financial institutions. Ron s focus is on sales execution, performance management and CRM user adoption. Ron has used his experience and research to establish best practices and benchmarks that help banks adapt specific disciplines of sales execution and become high performers. Ron is also the Director of Performance Management with responsibilities that include managing St. Meyer & Hubbard s service bureau in San Antonio, Texas. St. Meyer & Hubbard s service bureau is a state-of-the-art art facility that operates 24x7. The service bureau provides a cloud computing and hosting environment for St. Meyer & Hubbard s Performance Navigator scorecard software that works with all CRM software systems and core processors. Additionally, the service bureau hosts the Econiq Performance Monitor providing critical insights for the CRM audits and quarterly reviews.