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Factors to Consider when Choosing Customer Relationship Management Tools

4 min read

CRM, what is CRMCustomer relationship management (CRM) plays an important role in documenting, tracking, and managing relationships and interactions with existing and potential customers. It allows businesses to develop stronger customer connections, improve retention, boost sales, enhance customer satisfaction, and drive long-term profitability and growth. Luckily, technological advances have made it possible to have CRM tools that automate these processes. With numerous options available in the market, it’s crucial to carefully evaluate the factors influencing the selection of the right CRM tool.

8 Factors You Should Consider When Choosing a CRM Tool

CRM tools are built differently, and it is important to evaluate your business needs before making a decision. Below are some crucial factors to consider:

  1. Integration capabilities – Integration with existing software is a critical factor. A good CRM solution should offer robust integration capabilities with third-party applications, such as email marketing software, accounting systems, e-commerce platforms, and productivity tools. Seamless integration allows for smooth data flow, enhancing efficiency and accuracy.
  2. Customization and scalability – Every business has its unique requirements and workflows. Therefore, a CRM tool must offer customization options to meet the specific needs of a business. Additionally, the CRM should be scalable to accommodate future business growth. A good CRM tool should handle increasing data volumes and support adding new users, contacts, leads, and customers without major disruptions.
  3. Data security and compliance – Businesses deal with sensitive data that belongs to their customers, making data security and compliance crucial. A good CRM tool should offer robust security features like encryption, role-based access controls, and regular data backups. Additionally, CRM tools must adhere to relevant data protection regulations, such as the General Data Protection Regulation (GDPR) and other requirements, depending on geographical area and industry. Customers are concerned about the privacy and security of their data. Selecting a CRM tool with strong data security measures builds trust and confidence among your clients.
  4. Reporting and analytics capabilities – Effective reporting and analytics help a business monitor its performance and make data-driven decisions. In this case, a CRM tool should provide comprehensive reporting features and customizable dashboards. It should allow easy tracking of key metrics such as campaign effectiveness, customer acquisition costs, customer lifetime value, and revenue trends. Other tools that have advanced analytics capabilities include predictive analytics and machine learning algorithms that provide valuable insights into customer behavior and help identify opportunities for growth.
  5. User-friendliness – The ease of use of a CRM tool is crucial for user adoption. A good CRM tool should have a simple-to-use interface, easy navigation, and a short learning curve. A well-designed interface also enhances user experience, increases productivity, and encourages user adoption across all departments.
  6. Availability of training resources – Introducing a new CRM system can be challenging, especially if users are accustomed to legacy systems or manual processes. Therefore, it is crucial to choose a CRM vendor that provides comprehensive training resources, tutorials, documentation, and ongoing support to help users effectively onboard and utilize the CRM tool. It also helps to consider the availability of customer support options, such as email support, phone support, live chat or dedicated account managers, to address any technical issues or inquiries promptly.
  7. Mobile accessibility – As remote working has become more common, mobile accessibility has become a critical feature of CRM tools. A suitable CRM solution should offer dedicated mobile applications or responsive web interfaces, allowing access to essential CRM functionalities on the go. Mobile accessibility enables real-time collaboration, enhances productivity, and ensures crucial customer information is always available.
  8. Cost and ROI – Last but not least, consider the cost and expected return on investment (ROI) when evaluating CRM options. A CRM might appear to have good pricing, but it is crucial to look beyond the initial upfront costs and assess the long-term value proposition each CRM solution offers. At this point, it is advisable to evaluate factors such as subscription fees, implementation costs, customization expenses, and potential savings in time and resources.

Conclusion

Choosing the right CRM tool enhances customer relationship management and drives business growth. It is also good to stay updated with the latest advancements in CRM technology and keep an eye on emerging trends. For instance, the integration of new technologies such as blockchain into CRM is expected to offer new challenges and opportunities in managing customer relationships.

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Funding Foreign Military and Humanitarian Aid, Setting up a Tik Tok Ban, and Re-Authorizing Foreign Surveillance on U.S. Soil

3 min read

Funding Foreign Military and Humanitarian Aid, Setting up a Tik Tok Ban, and Re-Authorizing Foreign Surveillance on U.S. SoilUkraine Security Supplemental Appropriations Act, 2024 (HR 8035) – Introduced on April 17, this bill authorizes $60 billion to provide military aid to support Ukraine in its war against Russian invasion. More than a third of this allocation will fund U.S. manufacturing for the replenishment of weapons, stocks and facilities. The bill passed in the House on April 20, in the Senate on April 23, and was signed by the President on April 24. The President indicated that up to $1 billion in weapons supplies for Ukraine would begin delivery within hours.

Israel Security Supplemental Appropriations Act, 2024 (HR 8034) – Introduced on April 17, this bill authorizes $26 billion to provide military aid to Israel with $1 billion designated for humanitarian assistance for civilian victims of the war in Gaza. The bill passed in the House on April 20, in the Senate on April 23, and was signed by the President on April 24.

Indo-Pacific Security Supplemental Appropriations Act, 2024 (HR 8036) – Introduced on April 17, this bill authorizes $8 billion in defense spending to counter Chinese aggression against Taiwan and other key U.S. allies in the Indo-Pacific region. The bill passed in the House on April 20, in the Senate on April 23, and was signed by the President on April 24.

21st Century Peace through Strength Act (HR 8038) – Also on April 24, the President signed what is referred to as the Tik Tok bill, representing the first time Congress has initiated legislation designed to ban a social media platform. In effect, the Act mandates that Chinese tech firm ByteDance has up to a year to sell the short-form video streaming app to a U.S.-owned entity or be shut down. The bill was introduced on April 17 by Rep. Michael McCaul (R-TX), passed in the House on April 20, and in the Senate on April 23.

Reforming Intelligence and Securing America Act (HR 7888) – This Act reauthorizes Section 702 of the Foreign Intelligence Surveillance Act (FISA), which was scheduled to expire on April 19, 2024. This bill amends previous language (from 2008) to better represent technology updates in 2024. However, the premise of the bill remains the same. It authorizes targeting surveillance data of foreigners outside the United States. No Americans, or even foreigners located in the United States, can be targeted. This bipartisan-supported bill was introduced by Rep. Laura Lee (R-FL) on April 9, passed in the House on April 12 and in the Senate on April 19. It was signed by the President on April 20.

A bill to require the Director of the Office of Management and Budget to submit to Congress an annual report on projects that are over budget and behind schedule, and for other purposes (S 1258) – This bill was introduced on April 25, 2023, by Rep. Joni Ernst (R-IA). This bill would require federal agencies to make an annual report to Congress regarding the status of federally funded projects that are either more than five years behind schedule, or whose expenses have exceeded original cost estimates by $1 billion or more. The Act passed in the Senate on March 23 and currently resides in the House.

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Part 2: Pre-Retirement Planning Guide

5 min read

Part 2: Pre-Retirement Planning GuideThere are many steps to planning for retirement. Some are legal and financial, some are about communication, and some involve introspection – thinking about your life now and how you want to live the rest of it.

By the time most people start thinking about a retirement plan, they have a pretty decent foundation. Perhaps its assets – a house, savings, a retirement portfolio. Perhaps a strong social network comprised of family, friends, and colleagues. Furthermore, most folks have a sense of who they are, what they like, and what they don’t like. Some people may have all three of those factors in hand, while others have just one or two. What’s good to remember is that once you hit a certain age, you have a lot of the knowledge and logistics in place to create a sound retirement plan. And that’s a good place to start.

This article is Part 2 of a two-part primer on pre-retirement planning. The first article previewed the first three steps: 1.) Budgeting; 2.) Setting goals; and 3.) Finances. The following is an overview of the subsequent steps.

4. Health

The good news is that Medicare will cover many of your most basic healthcare needs in retirement. However, if you have extensive medical problems, you could be on the hook for hundreds of thousands of dollars. It is a good idea to earmark a separate funding source for potential medical expenses, such as a Health Savings Account (HSA). You can only fund one of these until you qualify for Medicare at age 65; hence the importance of pre-planning years in advance.

Long-term care is even more difficult to plan for because you might not need it. This is one of those high-cost scenarios best covered by insurance. However, be aware that long-term care insurance policies typically provide a limited per diem rate, which might not cover the full cost of caregiving. Therefore, you should keep some assets in reserve in case you need it for caregiving later. Another aspect of your health plan involves end-of-life decisions – make sure you communicate them to your loved ones.

5. Estate Plan

Another gift to loved ones is to leave them a roadmap of what to do with your assets after you pass away. At the very least, complete a will with instructions. And don’t wait until you retire; the burden of determining how to manage your assets is just as egregious if you pass away before retirement.

While there are financial components to your estate plan, there are logistical ones as well. Imagine if you (and your spouse/partner) both passed away suddenly in a car wreck. Is your house in order? Not only should you organize your financial house so loved ones can find your legal documents, but you also get the physical house in which you reside. Now is the time to think about downsizing and decluttering. Go through the closets, the attic, the garage and get rid of things you no longer need. Some of it your children or friends might love to have, some would make valuable contributions to local organizations, and some of it is just junk. Part of your estate plan should be to make it easier for your children to manage your property – and all the things in it – after you’re gone.

6. Legacy Plan

Your legacy is how you want people to remember you after you die. You can create your own legacy in different ways. For one, through philanthropy. If you expect to outlive your assets, develop a legal plan for giving. This could include to your children or grandchildren and/or charitable contributions to causes that represent your passions and priorities.

But your legacy is more personal than that. As you get older, you will lose people in your life, and you could die unexpectedly. Your pre-retirement plan should consider how you can repair and strengthen relationships with people in your life with whom you are estranged or not on easy terms. After all, how they remember you will also be part of your legacy.

7. Find Your Raison d’Etre

If you live a long life, you will lose friends. You may lose your spouse or life partner. You may lose siblings and even children before you pass on. How will you feel/survive/bear it? Translated from French, your “raison d’etre” means “your reason to be.” More than any other time in your life – when all your goals, dreams and relationships were ahead of you – in retirement you or your spouse may end up alone. It is vitally important that you think about and figure out what things make you happy, and are sustainable to keep making you happy should you outlive loved ones or even suffer from health problems. This is not an easy task, and a later article in this series will offer ideas on how to approach it.

The next seven Financial Planning articles in this series will discuss in more detail each of the steps previewed in this pre-retirement planning guide.

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Working Capital and the Role it Plays in Your Business’ Success

3 min read

Working Capital, what is Working CapitalThe accounting term working capital is essential knowledge for all business owners. Basically, it is the ability of a business to meet its ongoing obligations. Learning about some of the different aspects of working capital is vital for any successful business owner.

Net operating working capital (NOWC) is the gap between a business’ current assets (accounts receivable, inventories, cash, though excluding marketable securities) and its non-interest-bearing liabilities (which are financial obligations a business must meet, except those not subject to interest payments).

This calculation looks at a business’ cash flow availability and determines available current assets able to be liquidated inside a calendar year.

The formula is as follows:

NOWC = Current Assets – Non-Interest-Bearing Liabilities

Operating Working Capital (OWC)

OWC measures a business’ current assets and calculates how much the company’s day-to-day operations cost. This includes meeting supplier invoices, turning accounts receivable (AR) into cash, obtaining inventory, and making sales on inventory and/or services.

The higher the OWC, the easier it is for a business to pay supplier invoices, leverage pre-pay or early pay discounts, maintain healthy inventory stocks, and offer customers favorable terms to grow sales further.

OWC is calculated as follows:

OWC = Current Assets – Non-Operating Current Assets

It’s important to remember that cash isn’t included because this asset is considered a non-operating asset. While cash isn’t immediately connected to operations, it can be re-considered an operating asset once supplies and related items are obtained with it.

Operating Working Capital Considerations

The OWC calculation determines how proficient the business is with its finances. Since it immediately reveals the amount of funds a business has, the larger the resulting figure, the lower the funds a company has available to complete its rotation.

Companies can lower their results by increasing the rate of inventory turnover, increasing the percentage of customer payment collection, and working with vendors for better provider terms. As a business improves this metric, it can free up funds to reduce its loans, pay dividends, and/or build out new or existing revenue streams. 

Net Working Capital (NWC)

Also referred to as working capital, NWC is defined as the difference between total current assets held by a business and its liabilities. It shows a business’ level of liquidity. This looks at how capable a company is in generating profits, chiefly when it comes to near-term financial obligations (paying wages, electric bills, leases, etc.). It also tells a business if and how much it’s able to re-invest to grow profits and increase product or service capabilities.

It’s calculated as follows:

NWC = Total Current Assets – Total Current Liabilities

Total Current Assets = Cash Assets + AR + Inventory  

Current liabilities are short-term financial obligations due within 12 months, including accounts payable (AP) and accrued expenses.

Considerations

Positive net working capital implies a business can meet current financial obligations and invest in other operational needs. If the NWC is too high, the business isn’t using its short-term assets efficiently. Since some current assets can’t be converted to cash easily, NWC isn’t always the best measure of liquidity. It can similarly signify underused resources.

While there are unique considerations for every business, the more business owners and management are versed in these concepts, the more likely they are to increase their chances of surviving and thriving.

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April is Financial Literacy Month: How Much Do You Know?

4 min read

Financial LiteracyWhat started as Youth Financial Literacy Day some years ago is now a monthlong event: Financial Literacy Month. It all started in 2003 when some U.S. legislators got together and decided that we needed more days dedicated to this topic. So, what does that mean for us? Plenty. It’s one month out of the entire year you can dedicate to getting your financial ducks in a row by engaging in fiscally savvy activities, absorbing all the knowledge, and then sharing your learnings with family, friends, and the world.

Prepare the Kids

Unless you went to a school (K-12) that included business/money classes, chances are you didn’t learn basic finance until you were older.That’s why starting kids early in their understanding of how to make deposits, withdrawals and balance their checkbooks is key. Here’s a resource for downloadable PDFs that you can use to help kids understand the basics of banking. You can even read a children’s book on personal finance to your grands or nieces and nephews, something like The Berenstain Bears’ Trouble with Money.

Both of these resources give kiddos a strong foundation for digesting more complex financial products, like Non-Fungible Tokens (NFT) and cryptocurrency. (You can save those for when they’re older.) When children master everyday money tasks, they’re better equipped to navigate life when they leave the nest.

Subscribe to a Blog or Podcast

You can choose personal finances, investing, or whatever you like. Educating yourself about how to make the best use of your money will pay off – and we’re not talking about just cash. You’ll also discover a variety of strategic directions about how to handle future financial issues. A few blogs to check out are Think Save Retire and The Penny Hoarder. Here are a few more. In terms of podcasts, check out Millennial Investing and Ditch the Suits. After you’ve digested some helpful nuggets, share them with your family and friends.

Learn More with Jumpstart Coalition

Jumpstart Coalition is a non-profit organization out of Washington, D.C., that houses a world of info about all things money – a curated database of financial education resources. From tax tips to credit unions, it’s a one-stop shop. Just spend a little time looking around, and you’ll finish smarter than when you started.

Attend Your State’s Financial Literacy Events

While this varies from state to state, be on the lookout in April for an announcement signed by your governor or your state representative. Typically, these are held in your capitol and are free. For example, the Idaho Financial Literacy Coalition holds a piggy bank beauty contest for elementary kids. All you have to do is search (Google, Bing, your choice!) “[State] April literacy month events,” and a list will come up. After you’ve attended, you might even think of creating a seminar of your own.

Go Over Your Monthly Budget

So, after you’ve filled your noggin with all your new money knowledge, you might want to review your finances for the month to see where you can tweak. Money is a fluid situation, as you well know, and applying new tricks and tips can help exponentially.

At the end of the day, and of course, the month, taking time to dive into improving your financial literacy – and spreading the news­ – is well worth it. When you’re fiscally fit, everything else in life seems to fall into place.

Financial Literacy Month 2024: Financial Literacy Activities to Start With | EVERFI

April is National Financial Literacy Month (moneyfit.org)