Sage Blog

Networking expert Andy Lopata shares his tips to help build a customer base. You can also catch Andy at our business event, Sage World, this October. Visit www.sageworld2011.co.uk to register for free.

According to recent research, on average it costs four times as much to gain a new customer, as it does to retain an existing one. So building a great customer experience is not just a nice to have, but is a must in today’s market place.

ERP expert, Julia Commons

Customer Relationship Management (CRM) software can help you retain valuable customers and provide them with an exceptional experience that will have them coming back to your products and services time and time again as well as delivering many other benefits to organisations large or small.

By creating a 360 degree view of your customer,  integrated Enterprise Resource Planning (ERP) and CRM software can help you to increase sales activity, track sales leads at every stage and get the right product to the right customer, on time, every time.

The evolution of CRM and ERP

In an ever-maturing CRM market, there is general recognition by vendors and end-users alike that CRM and indeed the whole process of customer management cannot be dealt with using a ‘one size fits all’ approach. Alongside this, the industry has evolved to take advantage of the growth of technologies such as eMarketing and social media. Vendors such as Sage can now also support multiple deployment and configuration options, for example, monthly subscription, hosted or on-premise.

Whilst sticking closely to its heritage of addressing key productivity issues, ERP software has also moved on from the foundations of being a data repository for larger organisations, to being used more and more to automate processes, identify business opportunities and drive management decisions.

So perhaps the most interesting trend is that of system integration and in particular, the integration of CRM and ERP into one single system and the benefits that system can bring to our customers.

Front to back office integration

Front to back office integration is about bringing together disconnected business processes, applications and data sets. With this integrated view, you gain a mechanism to manage customer relationships more effectively, reduce costs and increase profitability whilst achieving a sustainable competitive advantage over the long term.

A great example of this is the ‘quote to cash’ business process, which enables the user to create a quote during the sales cycle, apply the correct customer discounts and bundles, and carry this same information through to invoice – all within one integrated ERP and CRM system.

In simple terms, front to back office integration provides the following capabilities:

• Consistent data across ERP and CRM Applications
• A true 360 degree view of your customer – regardless of whether the data originated in the CRM or ERP.
• More efficient processes such as straight through order processing which enable the user to initiate a transaction that will then trigger all related business processes, for example – check stock availability, add customer discounts, create and track sales order, generate an invoice and verify order fulfillment.
• A strong mechanism to deliver the very best customer service and maximise customer retention

The benefits

The benefits that integrated ERP and CRM systems can bring to an organisation are many, and can be realised by sales, marketing, operational and finance teams as well as, and perhaps most importantly, your customers.

ERP and CRM vendors are continuously improving their products, making them available on new platforms and also adding new features to meet the specific needs of different vertical sectors across the range of company sizes.

An ERP and CRM system is a major purchase and choosing a vendor and product set can be a daunting task.  It is important that organisations settle on a system that will not only meet their current needs and budget, but which will be flexible enough to scale with them and to take full advantage of emerging technologies.

For more information on the integrated ERP and CRM solutions that Sage can offer you, such as Sage ERP 1000 or view our full range of ERP solutions.

Julia Commons, Product Marketing Manager, Sage Enterprise Solutions

Thanks to an endless wave of online storage devices and innovative ways of connecting to the internet, remote working has never been easier.

Steve Porter, Accountants' Team

I for one have definitely started to edge towards what people are calling a ‘digital nomad’ – someone who does what they do for as living, in non-specific locations. Plus the way I see it, continued economic uncertainty means that more British workers than ever, including marketers and accountants, will be looking to embrace freelance life and explore different ways of working in future. After all, there are no business boundaries in the connected era.

Fueling the trend

As I’ve already alluded, innovation is fueling the trend. Advances in communication technology mean the days when everyone needed a physical desk or expensive, rented office space to set up in business are long gone.

More and more workers are managing to carve out successful careers, operating remotely from wherever they feel like settling down and getting connected. Whether it’s a beach in south-east Asia or a back bedroom in Burnley, the world really is our oyster!

Cutting down on commuting could be seen to have an environmental benefit too.

Being a digital nomad is all about using the power of the web to do our job, and to make a living; whether this is blogging, online marketing or running a business via the web, etc. etc. etc.

But as well as the power of the web, it is the coming together of a string of other interesting technologies, and the rise of a consultancy style of worldwide working, which is making the digital nomad lifestyle possible – and so appealing.

All you need is a half-decent laptop with enough battery power to work effectively, a reliable Wi-Fi connection and somewhere to store data – and you’re good to go!

Gadgets like battery-powered Mi-Fis can now be used to create mobile Wi-Fi hotspots – which can be accessed by several devices at the same time. And the rise of Cloud Computing and advances in secure web hosting have had an important part to play too. There has been an explosion in the number of free, online storage services – allowing you to back-up data as you work.

Dropbox, Adrive and Microsoft Skydrive are just some of the devices allowing you to maintain and protect information online without charge, while Google Docs and Microsoft Office® Live will let you view, edit and share your documents online. As well as developers, computer manufacturers themselves have been quick to acknowledge – and respond to – the growing trend.

I read somewhere that laptop sales have now passed the 1 billion mark, and I’ll wager digital nomads have had a large part to play. This is why companies such as Dell are already hosting sites dedicated to mobile workers.

Okay so when I’m working remotely I may miss the office banter of my marketing colleagues, but with instant messaging, email and Twitter I can still stick my two penneth worth in! Plus I can smugly play the CSR card.

Now back to my beach hut, to start work on my next assignment…

Steve Porter, Accountants’ Team

If you ask any business how to get the most out of their existing team, the answer is usually “coaching”.

Coaching has become more and more popular, across all industries, as a way of increasing productivity. It’s a way of bringing new skills in, without the expense of recruiting.

So is coaching a quick win for a bigger turnover? Not exactly. You need to do it right.

If you do choose to train your team, it’s important to make sure that you, and your employees, get the most out of it. There’s no point throwing money at unsuitable training that wastes everyone’s time and energy. We’ve been providing Sage software training to our customers for over 20 years and we know you need to make it relevant, make it achievable and make it matter.

Who’s on board?

The first thing to consider is who you train. Do you coach everyone in your business? Or do you just coach the more senior members?

It might be cheaper just to coach those in higher positions, but do they really need more training? In fact, a lot of the time, it’s the more junior workers who get the most out of coaching.

Plus, those junior workers might lose morale if they see all the coaching resources going to their managers while they continue working as they were.

Consider if everyone needs the same type of coaching. Different training might suit different members of your organisation better than others. It’s a good idea to work out what you want to get out of a training session before it starts. That way, you can identify the best courses for each individual or group.

David Attenborough or David Brent?

Next, think about who is delivering the coaching. To save money, some businesses rely on their own managers to perform this role. However, coaching is a skill that not all managers possess.

Most like to think that they can educate and inform, but it’s best to take an objective look at who’s actually trained in delivering particular training modules.

External agencies are a more expensive proposition that could end up being more beneficial in the long run. There’s usually a reason that they specialise in coaching for businesses.

Joanne Waddell, Sage People Advice Team

Sage People Advice: For help with any areas of HR, Employment Law and Health and Safety for your business, contact our Sage People Advice team on 0845 111 2450.

Last night the final episode of The Apprentice, series seven was broadcast. The show saw the remaining four candidates interviewed mercilessly and their planning skills scrutinised. Planning is a fundamental aspect of business success – without foresight, attention to detail and relevant research, you can’t expect to achieve your best results.

Getting started

Novelist Mark Twain said “The secret of getting ahead is getting started” and never is this truer than in business. By starting out from an informed position, prepared for every eventuality, you can dramatically increase your chances of success. Strong business plans operate to long-term goals, not quick fixes. So, when Lord Sugar made his final, suspense-filled decisions, he was selecting an individual with a credible, well thought through plan that would hold water in a changing business world.

Work to your strengths

One candidate described his business plan as “amazingly brilliant.” While the plan may have shown creative flair, the judges were looking for something more meaningful – a practical, considered approach. Another stumbling block highlighted in The Apprentice was that candidates failed to stick to what they knew. If you have experience in a particular area, or specialised knowledge of a subject, use it! Work to your strengths wherever possible. One candidate who bucked this trend was Susan Ma who, as well as proving herself capable of picking out winning products and grasping complex concepts, also stuck with what she knew for her business plan. Multi-millionaire businessman Lord Sugar admired Susan’s approach and expressed disappointment that another candidate, Helen Milligan, who had experience in the baked goods sector, had written a business plan that strayed so far from her field of expertise.

Writing a business plan

Our Sage Planning for Business software will help guide you through the trickier areas of creating a winning business plan. But if you’re currently putting together your own business plan, here are a few vital points to help you get started.

• The audience – who are you speaking to? Whether you’re communicating with the bank, investors, potential partners or buyers, you need to consider the language they’re accustomed to reading, the information that will hold most significance and the details that could sway their decisions.
• The executive summary – this should be a concise, easy-to-digest overview of your plan.
• Your business, its products and services – don’t forget the basics. Spell out exactly what your business will offer.
• Your markets and competitors – use this area to show that you’ve conducted thorough research. A strong understanding of your markets and competitors will make your plan far more viable.
• Marketing and sales – a key planning area. However outstanding your products and services are, you need to communicate clearly how you’re going sell and promote them.
• Financial forecasts – this section will be the bottom line for your audience so invest some time in getting it right.
• Presenting your business plan- keep it short and to the point, have a trusted acquaintance read it through and avoid distracting design features.

Jason Sullock, Small Business Team

I’ll be totally honest, I care about the environment. Not in a happy-clappy, tambourine playing, hug a tree and wash yourself in a river kind of way. More like the rest of you, I’ve become accustomed to separating my cans from my bottles and paper, which led me to think more about my buying behaviours and what I can do to prevent excess waste and minimise landfill.

This I feel is a common sentiment. We all care about the planet, we don’t want to see natural resources wasted and we try our best to do our bit to help.

The environment and marketing

Alex Walker, Sage Accoutants' team

I work in Marketing, which as an industry doesn’t have a great reputation when it comes to sustainability. Most of us regularly receive Direct Mailers which go straight into our rubbish bins, and if you’ve ever been involved in a rebranding exercise it’s often shocking quite how much redundant collateral is thrown out.

How many leaflets just get binned after events?

By far and away, the worst offender though has always been the Events industry. And it got me thinking is there another way? Think about any stand you’ve even been on, or visited for that matter. Over the course of a couple of days they will hand out thousands of flyers, leaflets and other items of promotional material. If you take that number, then multiply it by the number of stands at the venue, and then multiply it by the number of events the venue hosts you begin to get an understanding of the scale of the waste problem.

Most of us if we put our hands up will admit that we only ever read 5% (or less) of the materials we take away from an event again, in fact most of us probably just keep a hold of salient business cards and the rest will end up in a bin eventually.

Then there is the issue of transportation, for all of the material, displays, badges, giveaways and other paraphernalia have to get to the venue and generally the only way to do this is by car or van. All of the delegates have to make their way to the event as well, while many will try to make use of public transport, the reality is that the majority still drive. All of this traffic adds up to a substantial carbon footprint for even a small event.

The Events industry does recognise there is a problem and is taking measures to improve standards and share best practice. In fact they are currently developing a British Standard for environmental practice in events. (BS8901)

Virtual conferencing

I was very excited to chance upon a new approach to Events which I believe will help to alleviate these problems. It’s called ‘virtual conferencing’ and I was introduced to it through the ACCA Global Virtual Conference, where Sage will be hosting a stand. The premise behind virtual conferencing is that it allows your delegates and exhibitors to interact in the same way they would at a physical event, but all through a computer at their desk.

Exhibitors have a fully branded virtual stand which allows them to network with delegates, host web-chats on areas of specialism and run surveys and giveaways.  Delegates can use the stands to access and download content to their computer, without it ever needing to see a printer.

For me this approach is a ‘no-brainer’, not only does it take delegates away from their work for less time, but they still come away with all the relevant information they need to inform their decisions without the inherent carbon footprint. I’m looking forward to seeing this method of conferencing in practice. We’ll be hosting our first virtual stand at the ACCA Global Virtual Conference on the 27^th of July, why don’t you log in and take a look?

Alex Walker, Sage Accountants’ Team

In 1900, the founders of Mercedes Benz forecasted that the total demand for cars would never exceed one million. Why? – because there were not enough chauffeurs available.

So, how was the traffic on your journey to work this morning?

That very same decade, a panel of British experts stated “The telephone may be appropriate for our American cousins, but not here, because we have an adequate supply of messenger boys.”

I remember PhONEday in the early 90’s when the 01 prefix was introduced for UK phone numbers. Why? BT were running out of numbers.

Proves that it’s easy to predict the future, right?

So, what about this “Cloud”. Well, there are more definitions than you can shake a stick at, but they don’t matter if people don’t want “Cloud Computing”, we’ve got our desktops after all.

Thing is, it’s likely that we already taking advantage of “Cloud Computing”, I just don’t think we know it yet. It might well be the telephone or automobile for a new generation.

Hotmail was launched in 1994, I signed up in 2000, it turns out I was cloud computing all along. I just didn’t know it. I’m assuming that most people now have a “webmail” account? You get your airline tickets emailed to you, maybe some concert tickets? You leave them there for a bit then print them safe in the knowledge that, should you lose them you can just find the email and reprint them? Welcome to the cloud friends.

I know being in “the cloud” is the current vogue. A little of that hype might just be justified.

I believe that I’m moving (knowingly or unknowingly) into “cloud world”. My email was first, then online backup for those photos I’d been meaning to back up because I would be devastated if I lost them. I use the online music streaming service Spotify*. It’s subscription based, basically I’m renting the music off them for as long as I pay my subscription, I can even sync to my mp3 player. It doesn’t change my listening experience and I have access to a much bigger music collection than I ever did buying CD’s in my high street record store (I spend less each month too).

As for business applications of the technology, I’ve used Microsoft Office 365 to help friends with Excel formulae, I’ve collaborated on writing a presentation entirely online. I’ll admit that I’m by no means one of the leaders of the new school, but I am very interested in how technology can help me.

I’m a dropbox user, I use Spotify, I make calls with Skype when I work from home. I use Hotmail, gmail and online back-up. They all work for me and with me to make my life easier. I even tried a virtual PC in the cloud, it didn’t really work for me but I could see the possibilities. I will revisit it though as I am sure having everything I need at my fingertips, pretty much anywhere in the world will become increasingly important as time goes on.

Each journey starts with a single step and for most, if not all of us, that journey has already started. It’s ultimately a matter of personal preference but I hope that the day soon arrives that I can have all the tools I need to do my job in the cloud. Once the office is out of the equation, imagine the possibilities (and environmental benefits for that matter).

Think about your working day, have you taken that step already? Could you consider taking that first step today? I bet you could.
A parting thought, in 1943 Thomas Watson the head of IBM said “I think there is a world market for as many as 5 computers.” I’ve got four of them, I wonder who has the other one?

*It could be argued that Spotify is not a cloud service as you really need a desktop client to take advantage of it and it doesn’t store your own music in the cloud. With that in mind I present to you DropTunes, it’s a browser based music player that allows you to stream music you store in your dropbox (dropbox is a web based file hosting service).

Mark Knights, Sage Accountants’ Team

What’s it all about?

Bribery Act? Why should small to medium-sized businesses care about the Bribery Act? That’s the kind of thing only multi-national finance corporations and arms manufacturers worry about, isn’t it?

Not anymore.

It was way back last year when we first covered the Bribery Act on our blog but from 1 July 2011, every company that has some presence in the UK must now adhere to the Bribery Act to help stamp corruption out of business.

We’ve collated the main points here but if you need more guidance then our Sage People Advice service can help, or check out the guidance published by the Ministry of Justice.

Let’s get down to brass tacks

What do you need to know? Well firstly, there are now four new criminal offences:

• Being bribed.
• Bribing another.
• Bribing a foreign official.
• Failing to prevent bribery.

What you actually need to do depends on your type of business and where you trade. For instance, if your business could be seen to be open to potential acts of bribery, you should probably put strict policies and procedures in place to eliminate any doubt.

If it’s very unlikely that bribery could happen in your company, then drawing up and communicating one simple policy to your employees could be enough.

The key thing is that you can show that you have taken adequate steps to prevent acts of bribery from taking place. If a bribery claim is made against you, these steps can help your defence.

Will this change the way you do business?

Probably not. Things like corporate hospitality aren’t affected by the Act, as long as they are proportionate and reasonable.

There have been a few hyped-up scare stories in the media, but if you’re doing nothing wrong, you’ll have nothing to worry about.

Matt Forrest, Small Business Team

For more help with HR, Employment Law, Health & Safety advice for your business, contact our Sage People Advice team on 0845 111 2450.