What Your CRM Can — and Can’t — Do for Your Business

In the world of franchise recruitment, nothing is more sacred than a quality lead. And at any given time, there are potentially millions of Americans considering an entrepreneurial future, some of whom have always harbored a desire to own and operate a business of their own and others for whom circumstances dictated taking matters into their own hands. Both of these would-be entrepreneurial types are invaluable, as you never know which one may go on to sign an official franchise agreement.

That means tracking every lead is paramount. The majority of franchise sales and development teams are highly reliant on their Customer Relationship Management (CRM) systems to achieve this important task. Thanks to today’s technologies, now fully integrated with the power of AI, CRM databases have become much more complex in both design and functionality. Much thought and consideration go into these factors, providing development teams with what they hope will be an efficient roadmap to meet their outsized recruitment goals.

But there’s a catch. Regardless of how much time, capital and manpower sales and development teams pour into their proprietary CRM systems, they’re not exactly infallible. And that’s where the true issue lies. Accepting this reality means you understand the limitations, making now as good a time as any to confront the reality of what your CRM can do.

And what it can’t.

Whether you’re starting from scratch or looking to upgrade your CRM’s capabilities, there are some essential factors to consider in finding the right fit for your organization. Ideally, you’re looking to establish a critical technological component of your franchise recruitment effort, a centralized database of candidates that will come to define your “quantity vs. quality” approach.

When assessing your specific needs in a CRM, there are several rhetorical questions involved. But regardless of your organization’s size or its recruitment strategy, your CRM should be designed with long-term value in mind. Here is what’s most important to consider if you want to get started on the right foot:

• Scope: When sizing up your CRM requirements, you’ll need to map out the internal and external features you want it to facilitate.
• Parameters: Consider how you want to design the architecture of your CRM and how it will access and store critical lead generation data.
• Functionality: Create a checklist of requirements for how the CRM will be utilized, what features will be automated and how it will be integrated with other internal and external systems and networks.

Once you’ve defined these critical components, your sales and development team is ready to progress to the procurement stage. This is not the time to scrimp on your due diligence, so take the necessary time to evaluate your CRM options and pay close attention to the demos offered by different technology providers.

Why your CRM is not a silver bullet

The very title of this article establishes that CRMs are not the panacea for your franchise recruitment efforts. That’s because, despite the advanced automated capabilities baked into the most technologically advanced CRM, there are still things it cannot accomplish for you. These can be broken down into three key areas:

1. Activity tracking does not guarantee pipeline health

By design, the majority of advanced CRM setups are designed to capture data, manage incoming leads and keep track of real-time updates and activity. And they do a fine job with these capabilities — but what they can’t do is provide your sales and development teams with the predictive analytics necessary to make informed decisions on how to proceed. In other words, it can’t inherently show you the health and viability of your current sales pipeline.

2. Critical datasets may be siloed elsewhere

Even with the most advanced capabilities, including those powered by AI, CRMs can’t truly assess the total investment you’ve made in front-end lead generation and tie that back to long-term backend performance. That’s because the valuable insights you need to make informed decisions may not be readily available in the CRM, but scattered across other networks … even external ones.

3. The baby and the bathwater

In a typical knee-jerk reaction, franchise sales and development teams that miss the mark on their intended recruiting goals immediately go into finger-pointing mode. When signings fall short, the CRM often gets the blame. Before replacing it, examine how your team defines the process, maintains the data and follows through with candidates. But the issue here is franchise development teams mistaking their CRM as a structural sales methodology, when in fact success calls for a more disciplined, human-centric approach.

Meet the new boss — same as the old boss

Franchise recruitment teams can be quick to blame CRM systems when their lead-generation goals go unmet. So, they take the most drastic action first and decide to change it out for something shinier, better and — in almost every instance — more expensive. But even after all those changes, and the requisite amount of time goes by, they find themselves in the exact same situation down the road.

That’s because the standards they’re applying to measure results aren’t where the actual problems lie. More often than not, the real problem is in how they’re utilizing the CRM system and what they’re asking it to accomplish.

Some final thoughts

By design, CRMs are powerful systems that do an admirable job doing exactly what we program them to do — to the letter. They track activity, manage leads, store critical information for later retrieval, and can provide us with real-time updates of where every candidate is in the process. They keep the pipeline moving smoothly and efficiently. But never mistake that for visibility or predictive analytics.

CRMs are not infallible, and they’re definitely not the crystal ball you’re looking for when it comes to predicting the long-term success of your franchise recruitment goals. Before you blame your CRM, take a hard look at your recruitment process, the quality of your data and who is accountable for moving each candidate forward.

In the world of franchise recruitment, nothing is more sacred than a quality lead. And at any given time, there are potentially millions of Americans considering an entrepreneurial future, some of whom have always harbored a desire to own and operate a business of their own and others for whom circumstances dictated taking matters into their own hands. Both of these would-be entrepreneurial types are invaluable, as you never know which one may go on to sign an official franchise agreement.

That means tracking every lead is paramount. The majority of franchise sales and development teams are highly reliant on their Customer Relationship Management (CRM) systems to achieve this important task. Thanks to today’s technologies, now fully integrated with the power of AI, CRM databases have become much more complex in both design and functionality. Much thought and consideration go into these factors, providing development teams with what they hope will be an efficient roadmap to meet their outsized recruitment goals.

But there’s a catch. Regardless of how much time, capital and manpower sales and development teams pour into their proprietary CRM systems, they’re not exactly infallible. And that’s where the true issue lies. Accepting this reality means you understand the limitations, making now as good a time as any to confront the reality of what your CRM can do.