However, just as a one-size-fits-all approach to CRM isn't the way to go for most companies, the first step with training is assessing a company's specific needs and then designing a program that fits.

E-learning
Web-based training, or e-learning, allows employees to participate anywhere there is Internet access. There are both self-paced and instructor-led programs.

Self-paced programs allow employees to do learn at their convenience. Programs can be designed to include testing and can provide progress reports to both participants and management. It provides a consistent approach for all users and is an effective way to provide continuous product enhancement training or serve as a supplement to other training methods. The biggest downfall can be the somewhat rigid content and the inability of the program to interact with the user.

Web-based training with an instructor has the additional benefit of a trainer, with which trainees can interact. Participants can be geographically dispersed and still be part of a "classroom" setting. While this approach costs far less than physically bringing people together, the one drawback is that it requires scheduling, which can be a challenge across geography and differing time zones.

CD-based training programs are self-paced and don't require Internet access. So, they can be used on any computer, allowing employees the flexibility of training at home. However, program on CD can also have rigid content and offer little or no interactivity. The biggest disadvantage is the initial development costs for CD-based training programs and the additional expense necessary to update these training programs to reflect improvements and updates in the CRM systems.

Classroom training
Classroom training can be used in conjunction with any of the above. Its greatest advantage is that it allows human interaction, so people can participate openly in questions and discussions that come up in a classroom environment. However, cost can be considerable if it involves bringing personnel to a centralized training location. And, this method is subject to scheduling considerations.

Miki Hall, marketing coordinator for Waltham-based Electronic Fasteners Inc., a distributor of commercial and industrial hardware, knows first-hand the necessity of matching employees to the right kind of training. While the company's employees had experience using web training to learn computer applications, such as spreadsheets and email, Hall says it wasn't the most effective method because employees were stuck in front of a computer, unable to ask questions or discuss specific issues.

When the company upgraded its CRM solution, executives were keenly aware of the critical role training would play not only in helping employees understand the new platform but also in making them comfortable during the training. "A lot of our employees were not computer savvy," Hall said.

Many of the company's sale force were from the "old school" and thrived on face time with clients, so the decision to use a classroom setting was easy. Hall knew the best training would come from a comfortable and conducive atmosphere.

When Boston software firm the MacGregor Group decided to move up from an in-house tracking system combined with databases for an integrated CRM solution, it also opted for classroom training. "When you're dealing with salespeople who are distracted by all the stuff in their day-to-day [routine]," says Hardy, "it makes more sense to sit them down in a room, leave their cell phone [and] make them focus for a couple of hours."

Training costs
CRM training costs vary, but the average cost on a per-employee basis falls between $500 and $1,000. This includes initial and follow-up training in the first year. But, depending on the company's needs and the sophistication of the products, training costs can go as high as $2,000 per employee.

CRM training can represent anywhere from 5 percent to 20 percent of a total project budget, according to research firm Gartner. Some analysts put the cost of integration, customization, networking and training for CRM software at up to four times the cost of the software itself.

Electronic Fastners spent $35,000 on its CRM project, with about 21 percent--or $7,500--going toward training 40 or the company's 49 employees.

The MacGregor Group spent $70,000 on its CRM project, paying about 8 percent of that to train 30 of the company's 200 employees.

Gartner reports that many companies severally underestimate the cost of CRM initiatives by anywhere from 40 percent to 75 percent because they look only at the cost of the software license and consulting fees. They don't take into consideration the project planning, testing, documentation, maintenance, integration, management and, of course, training.

With CRM spending projected to reach $30.6 billion by 2005, according to Cahners In-Stat, companies can't afford to omit training from their costs--if they hope to make the most of their investments in both the technology and the people.

"In any IT project, the training is one of those often missed and critical components," Hardy says. "You can't put together a deployment plan to implement any system ... and not block out a significant dollar amount for training and follow up." Not spending on the training, he says, is "like shooting yourself in the foot."

About the Author
Sidney C. Lejfer is president of Harvest Solutions, a customer relationship management consulting and training organization. He is a featured writer and speaker on the benefits of CRM technology. For further information, call (781) 530-3736, email slejfer@harvestsolutions.net or visit the firm's web site at www.harvestsolutions.net.

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