Hello, this is Matsubara, CRM Evangelist.

Many people in charge of promoting CRM 4.0 are drawn to the concept and want to propose its implementation within their company.
However, how to explain this theory in a management meeting in a way that will convince senior management—this is a point that many people in charge struggle with.

This time, we will explain specific ways to communicate CRM 4.0 in a management meeting.

table of contents

1. Why is explaining CRM 4.0 difficult?
2. Basic framework for explanations that can be used in management meetings
3. Step 1: Make the problem "visible"
4. Step 2: Explain CRM 4.0 in one sentence
5. Step 3: Explain "Why Now?"
6. Step 4: Demonstrate return on investment
7. Step 5: Demonstrate preparedness for risks
8. Step 6: Present the implementation plan.
9. A collection of answers to frequently asked questions from management.
10. Proposed structure of explanatory materials
11. Explanation methods you should NOT use
12. An example of an explanation given by a project manager.
13. Things to prepare as a follow-up after the explanation
14. Frequently Asked Questions (FAQ)
15. Summary

1. Why is explaining CRM 4.0 difficult?

If you use the term CRM4.0 directly in a management meeting, you might get the following response:

- People become wary, thinking, "Is this another new buzzword?"
- It creates confusion, leaving the user wondering, "In the end, I don't know what's going to change."
- Too much time is spent on theoretical explanations, and in the end, the only question left is, "So, how much does it cost?"

The reason these reactions arise is that the CRM 4.0 theory is a "new concept that management has never heard of," and it is difficult for them to see the connection to "why it is necessary for their company."
Regardless of the validity of the theory itself, if the order in which you communicate it is wrong, it will not reach the management team.

2. Basic framework for explanations that can be used in management meetings

When explaining CRM 4.0, it is recommended to structure the explanation in the following order, rather than starting with the theory.

・WhyWhat problems is our company currently facing?
・What: What is the way of thinking to solve that?
・How: How exactly will this be achieved?
・ROI (Return on Investment): What are the effects and risks involved?

Many people in charge of promoting CRM tend to start by explaining the "What" of CRM 4.0, but what management really wants to know is first the "Why"—their company's challenges.

3. Step 1: Make the problem "visible"

The first step in the explanation is to present the challenges your company faces with specific numbers, without using the term CRM 4.0 at all.

- "How many instances have there been in the past year where customer relationships were severed due to the resignation or transfer of the person in charge?"
"How many deals could have been lost due to oversight?"
- "How much time is the entire team spending on creating reports?"

These challenges were previouslyLoss simulation if CRM is not implementedUsing the estimation model introduced earlier and presenting it as a specific amount will greatly increase its persuasiveness.
The first step is to present it not as a "theory," but as "a real-world challenge for your company."

4. Step 2: Explain CRM 4.0 in one sentence

After the challenges have been shared, we will introduce the concept of CRM 4.0.
The key here is to explain it in the simplest possible sentence.

"CRM 4.0 is a concept that focuses on accumulating customer relationships not as individual employee memories, but as organizational assets."

This single phrase doesn't require you to immediately include a detailed theoretical background (such as One with One marketing, the 6 market models, or LCV theory).
At this stage, it's sufficient if the management team feels, "Okay, this seems relevant to our challenges."
If you'd like to learn more about the theory,History and Definition of CRMArticles like the one above can be provided as supplementary material.

5. Step 3: Explain "Why Now?"

The next thing that management is concerned about is the timing: "Why is it necessary to address this now?"
Introducing the following social background will make this argument more persuasive.

The lesson learned is that many companies that overcame the COVID-19 pandemic valued their relationships with existing customers.
- Amid concerns about a global economic slowdown, there is a growing trend to prioritize retaining existing customers over acquiring new ones.
Many Japanese companies are currently not adequately prepared for the risks of cyberattacks and data breaches.

These are topics that I explained in detail in previous articles in this series.
By presenting the issue not as "unique circumstances specific to our company," but as "a social trend that many companies are currently facing," we can elicit a sense of urgency and interest from management.

6. Step 4: Demonstrate return on investment

After explaining the theory and background, we will show specific return on investment.
The important thing here is to separate and organize the costs and benefits.

・Cost side: Monthly fee, initial setup time, learning cost
・Benefit side: Preventing missed responses, reducing handover costs, improving churn rates, and reducing reporting time.

For less obvious benefits, we recommend quantifying them using the concept of "losses that did not occur."
BeforeCRM Investment Decision-Making Guide for Executives and Decision-MakersAs explained earlier, by multiplying the effect of improving the churn rate by the average revenue per customer, it becomes easier to present the return on investment in monetary terms.

7. Step 5: Demonstrate preparedness for risks

Management naturally evaluates the risks associated with new investments.
We recommend explaining the following three risks in advance and preparing for them.

・Vendor risk: Business continuity of the provider. EMOROCO CRM Lite supports switching to self-hosting and exporting all data, and runs on the globally trusted Azure cloud platform.
・Transition risksIs there a migration method that allows us to use our existing Excel data as is?
・Retention risk: Whether it's possible to implement it in stages and design permissions according to roles.

By explaining the measures taken to address these risks in advance, you can proactively alleviate the concerns of management regarding "what will happen if we implement it and it doesn't work?"

8. Step 6: Present the implementation plan.

Finally, I will present a plan for how we will actually proceed with the implementation.
It is important to emphasize here that this is a phased plan, rather than a large-scale, all-at-once implementation.

Preparation phase: Clarifying objectives, selecting project managers.
• Pilot implementation: Test operation with a small team
Partial deployment: Data migration, adjustment of permission design.
Company-wide rollout: Training, notification settings, dashboard utilization
• Establishment and Improvement: Continuous review of operations

This step-by-step approach was previouslyCompany-wide implementation playbookBut I've explained it in detail there.
A key point in gaining approval is to reassure management that "this is not about taking a huge risk all at once."

9. A collection of answers to frequently asked questions from management.

The following questions are anticipated at the management meeting:
We recommend preparing your answers in advance.

・"How is it different from other CRMs?"Its key features include theoretical backing based on relational assetization, patent applications, and ease of implementation at a low cost.
・"Will it really be effective?"First, you can try it out using actual business data with a free trial.
・"Is it suitable for our industry?"Because it can be designed to suit your company's operations without coding, it can be used in any industry.
・"Is the security okay?"It can run on the Azure platform, offers self-hosting options, and allows for information control through permission design.
・"How long will it take to implement?"A phased implementation plan can be carried out without difficulty.

10. Proposed structure of explanatory materials

Here is a draft of the structure of the materials that will actually be used in the management meeting.

Slide 1: Current challenges facing our company (presented with numbers)
Slide 2: The concept of CRM 4.0 (brief explanation)
Slide 3: Why now? (Social background)
Slide 4: Return on Investment (comparison of costs and benefits)
Slide 5: Risk Preparedness (Vendor Risk, Transition Risk, Adoption Risk)
Slide 6: Implementation Plan (Phased Roadmap)
Slide 7: Summary and request for approval

With this structure, you can convey the necessary information to management in about 10 to 15 minutes of explanation time.

11. Explanation methods you should NOT use

Finally, here are some ways of explaining things that you should avoid.

- They start their explanations with theoretical background (such as One with One or the 6 Market Model).
- The term "CRM4.0" is used repeatedly without being defined.
- It ends up just listing the functions in order.
I haven't prepared anything until I'm asked about the risks.
- Not presenting an implementation plan gives the impression that they "just want to sign a contract."

These are all ways of explaining things that put aside the "meaning for the company" that management really wants to know.

12. An example of an explanation given by a project manager.

To give you a concrete idea, let me share an example of how one of the project managers explained the process at a management meeting.

First, within the sales team, we presented specific figures showing the number of missed responses and the number of existing customers whose relationships were severed due to changes in the person in charge.
Next, without mentioning the theory's name, I introduced the concept of CRM 4.0 by stating that "a system is needed to record these issues not in the memories of the person in charge, but as organizational records."

Next, I briefly touched upon the social context that "many companies that overcame the COVID-3 pandemic valued their existing customers," and then started with a small-scale proposal to try out the service for one sales team for three months at a price starting from 1,500 yen per month.
Finally, they touched upon support for self-hosting and data export functionality, providing reassurance that "if it doesn't suit you, you can always take your data and switch to another method."

As a result of this explanation, we were able to get approval from management to "try it out on a small scale first."
One of the factors that led to approval was starting with a low-risk proposal rather than asking for a large investment all at once.

13. Things to prepare as a follow-up after the explanation

Even after your presentation at the management meeting is over, I recommend doing some preparations beforehand.

- If approval is obtained, ensure that the next actions (trial registration, data inventory, etc.) can be started immediately.
If approval is put on hold, prepare additional information that may be requested (such as how it could be used by other companies, or a more detailed cost-benefit analysis).
• The explanatory materials should be shared not only with management but also with the on-site managers involved in the actual implementation, to ensure everyone is on the same page.

The explanation at the management meeting is not a one-off event, but the starting point for the entire subsequent implementation process.
How you act immediately after the explanation will greatly influence what happens next.

14. Frequently Asked Questions (FAQ)

Q. How should I explain things to management if they are not familiar with IT?
Prioritize describing your company's challenges and the desired state after those challenges are resolved, rather than simply explaining technical functions.

Q. What is an appropriate volume for the explanatory materials?
Depending on the length of the management meeting, we recommend a structure that uses around 7 slides and keeps the presentation to 10-15 minutes.

Q. What should I do if I don't get approval the first time?
Switching to a proposal that starts with a small-scale pilot implementation, demonstrating actual effectiveness, and then resubmitting the proposal is also an effective approach.

Q. What should I do if it's difficult to explain using numbers?
Even if you can't provide perfect figures, you can still present them by clearly stating the assumptions, such as, "As a rough estimate, this much effect can be expected."

Q. Is discussing patent applications effective in management meetings?
Yes.
It is effective in explaining to management not only as technical backing but also as a source of confidence that "this is not just a product competing on price."

Q. If management asks me, "Why EMOROCO CRM Lite?", how should I answer?
In addition to its low cost and ease of implementation with no coding, we recommend explaining it from multiple perspectives, including its theoretical backing as a relational asset, security provided by the Azure platform, and the option of self-hosting.

15. Summary

When explaining CRM 4.0 at a management meeting, it's important to structure the presentation in the following order, rather than starting with theory: the company's challenges, the concept of CRM 4.0, the background behind why it's necessary now, the return on investment, risk management, and finally, a phased implementation plan.
By following this order, you can transform the initial apprehension of "Oh, another buzzword?" into a sense of conviction that "This is a meaningful proposal for our company."

EMOROCO CRM Lite costs ¥1,500 per user per month (minimum 3 users) and has no initial setup fee, with a 30-day free trial.https://www.emoroco.com/You can start from there.
IT implementation subsidy eligible tool number: DL07-0022934.

We also offer a monthly newsletter, "ARCUS NEWS," which provides updates on EMOROCO CRM Lite and other useful information for CRM operations.
If you likeCLICK HEREPlease register here.

Additionally, we publish useful articles about CRM 4.0 on note ( https://note.com/arcuss_crm ), so please check them out as well.

Related article

・CRM Investment Decision-Making Guide for Executives and Decision-Makers
・Loss simulation if CRM is not implemented
・The History and Definition of CRM — From CRM 1.0 to CRM 4.0
・CRM Patent Application Explanation
・Self-hosting and Azure Configuration Guide