Up until recently, CRM solutions have primarily been empty-box applications. A software came with everything a company would need to set up their CRM, except the leads. In essence, the tools for the “relationship management” part of CRM are present, but companies had to source their own customers. Full-box CRM aims to eliminate this issue and streamline the way that businesses manage their customers.
What is Full-Box CRM?
Full-box CRM comes with everything empty box CRM does, except leads are also included. Very often, lead generation is one of the most time consuming tasks for sales teams. With empty-box CRM, users have to source leads and manually enter in all of the data or outsource the process completely. Not only does this process drain time, but it can also be quite costly.
Full-box CRM utilizes databases from social media sites and even from Google in order to generate leads for sales teams. In many cases, the full-box CRM will allow a user to search through a database to find leads based on their own criteria and search filters.
Why Sales Teams Love Full-Box CRM
Convenience is the main advantage of a full-box CRM for sales people. The information contained in full-box CRM databases is already available through tools such as Klout or Data.com. The full-box CRM simply organizes this data so that companies do not have to use a separate tool or search manually.
By eliminating the need to actively find customers who may be interested in a product, sales reps are able to focus on the other steps of the sales process such as making sales calls, preparing presentations, and closing.
Full-box CRM can also save companies money on hiring full time data-entry employees to manually enter in leads. The information is already built into the CRM, so the only changes that will have to be made are updates to information after a lead has been contacted.
The Downside of Full-Box CRM
While a full-box CRM does have its advantages, there are also several disadvantages and issues to explore. Full-box CRMs use algorithms in order to generate the leads for a business. Leaving lead generation to what is essentially an automated system can drastically bias the quality of the leads. What constitutes a qualified lead in the company’s mind might not match with what the full-box CRM considers a good lead.
Another problem that the rise of full-box CRM presents is potential privacy issues. With social networks such as Facebook, LinkedIn, and Google+ collecting vast amounts of personal information from users, the line between convenience and invasion of privacy has become somewhat blurred. Although the information gathered from social networking sites has been used for advertising purposes for years, it has been contained to being used strictly for advertising on the social media platforms only. With full-box CRMs, companies are able to utilize this information to contact potential leads for sales purposes.
One downside that some companies may not consider is that many of these full-box CRMs will generate identical leads. This means that one lead could be getting contacted by multiple companies for similar products and services. Frustrated leads can lead to lost opportunities if a customer receives multiple cold calls every week.
Full-Box CRM Long Term
It is not clear whether or not full-box CRM will be the best long term solution for sales reps. Due to the privacy issues it creates, there may be a lot of public backlash generated in regards to how the leads are generated. It’s up to each individual business to determine whether or not the potential risk is worth the reward.
Kfir Bar-Levav started out as a sales rep in 1995 and since then has acquired extensive entrepreneurship skills and sales experience as a result of working in the field and managing the sales teams of leading international fashion and luxury brands. Kfir founded WRNTY Ltd. in 2006 and today serves as VP of Business Development.