Sarath, an executive director at JPMorgan Chase & Co. and a Salesforce CTA, discusses the dilemma of whether large enterprises should use a consolidated customer relationship management (CRM) tool for the entire company or different CRMs for each department. This decision impacts how companies manage customer information, interact with customers, and ensure employee collaboration. Sarath highlights the top ten considerations that companies should keep in mind when making this decision.
The first consideration is legal, compliance, and data residency. Companies with a global presence need to adhere to regulations in different countries regarding where customer data can be stored. For example, storing customer data in China may require it to stay within the country’s borders, making a single CRM system storing data globally a potential violation of laws. In this case, using multiple CRMs may be the only viable option.
Collaboration within the company is another key consideration. A single CRM allows for easier collaboration among employees, whereas multiple CRMs can complicate information sharing and require additional tools to connect them, leading to increased time and costs to set up and maintain these systems. Business processes also play a role in the decision-making process, with standardized processes benefiting from a single CRM and diverse processes benefiting from separate CRMs tailored to specific department needs.
Considerations such as time to market, reporting, integrations, performance, governance, data quality, and vendor lock-in are also important factors to consider when deciding on a CRM strategy. Companies need to weigh the pros and cons of a consolidated CRM versus separate systems for each department. By considering factors like legal compliance, collaboration needs, business processes, and reporting requirements, companies can better engage with customers, streamline processes, and improve team efficiency.
Ultimately, there is no one-size-fits-all answer when it comes to choosing a CRM strategy. It is essential for companies to evaluate their specific needs and requirements to determine the most suitable approach for their organization. By carefully considering these factors, companies can make informed decisions that will enhance customer relationships, improve operational efficiency, and drive business growth.
