Pages

Wednesday, April 10, 2013

SugarCRM 101: Leads, Contacts, Accounts and Opportunities.

Have you ever wondered about the reasons why some modules exist within SugarCRM? The reason is not always obvious, especially to someone new to the sales/marketing world, and often prompts questions.

Perhaps no other area generates more questions than the Leads, Contacts, Accounts and Opportunities modules. To some, the data contained in some of those modules seems redundant, especially the first two as they both contain data about individuals. In other cases, their usage seems like overkill. Yet others are confused as to their need, due to semantics, for example, to some a Lead and a Contact are synonymous with each other. 

Lets try to unravel some of this confusion and answer some of these questions.

If we quickly analyze sales procedures at a variety of businesses, we discover some commonalities across many industries, regardless of the size of the business. Here is a summary:
  1. Someone, typically in marketing, is in charge of attracting potential buyers of your services/products. 
  2. A potential buyer responds and is screened/qualified, to determine their specific interest and purchasing power. 
  3. Lastly, a deal is worked and if won, the potential buyer becomes a paying customer.
That is a very simplistic look at a sales cycle, but it serves our purposes rather well. 

Modern CRM systems, such as SugarCRM, are designed with the above principles in mind. As a result, they include functionality aimed at helping users more clearly differentiate the type of customer information they are looking at to fit in within those various points listed above. More specifically, an application like SugarCRM clearly draws a line between a potential customer and a paying customer, as well as what deals are in the works. 

That, in short, is the reason why the various modules exist, but lets talk some more about their usage.



Data in the Leads module would coincide with point number one in the list above. The individuals in said module represent potential customers. They are kept separate from paying customers for a couple of reasons, including:

  • Easier identification
  • Data integrity
  • Measuring effectiveness

Physically separating these records from the list of paying customers makes it very easy for anyone to quickly identify the records in the database that represent potential versus paying customers. The separation also helps keep your database clean, as your paying customers list would not include records the likes of Donald Duck or other random garbage data someone might provide -- remember, some of your leads may be coming by way of a web site. 

It is usually best to think of the Leads module as a holding bin where potential customers are screened and their interest in your products/services is measured. Lastly, SugarCRM provides a mechanism for promoting a Lead into a paying customer, commonly referred to as Lead Conversion

Converting a lead physically copies the data of the selected Lead entry to the Accounts and Contacts modules. The idea behind this process is to clearly denote the fact that the potential customer has been screened and an opportunity for revenue has been identified. They are progressing in the sales cycle from being a potential customer and inching closer to becoming a paying customer. Along the way, one also has the option to add an Opportunity, which represents the deal, with a monetary value, that would make them a paying customer. This, in turn, facilitates management of the sales pipeline at your organization. 

The conversion process also opens the door to another metric: conversion rates. Not all the records in the Leads module will be converted to Accounts/Contacts entries. Some of the individuals will drop out of the sales cycle either due to lack of interest, lack of funds, not a proper fit or various other reasons. However, it is valuable to know the percentage of Leads that do/do not get converted to paying customers. Measuring this number helps evaluate the effectiveness of not only your marketing efforts, but also those tasked with screening your potential customers.

Of course, not all businesses have these needs, which often leads folks to think this is all overkill. Different businesses use different strategies for their sales methodologies. In some cases, using Accounts, Contacts and Opportunities is more than enough. 

There is nothing inherently wrong with ignoring some modules in SugarCRM. In fact, the product provides customization tools that allow you to hide certain modules and features for this very reason. Remember, the software should adapt to your processes. The above is merely a description explaining the reason why some things are there in the first place. In some cases, this explanation actually prompts changes in a business, so as to adopt their usage, but the main goal is more so to make them available should you need them.

Hopefully that helps shed some light on the topic of Leads, Accounts, Contacts and Opportunities. In a future post, I will discuss the Accounts and Contacts module in greater depth and within this same context.







33 comments:

  1. Thanks Angel for the explanations.

    What do you think about creating Opportunities for Leads?

    I would like to keep my data as clean as possible, as you said.
    And not all my Accounts\Contacts will become paying customers

    ReplyDelete
    Replies
    1. The issue with that approach is that when one looks at a given Lead, the linked Opportunities are not readily visible (without some customization of the system).

      You might be served better by simply converting them from a Lead to a Contact, with a related opportunity. The opportunity is where you will make the determination as to whether or not they have paid you for something. There isn't anything inherently wrong with having those contacts mixed in with those that do, remember that these modules/features exist to facilitate process as opposed to forcing you to work a certain way. Also, assuming some of those contacts indeed aren't paying customers, they should all be qualified. Meaning, nobody in the contacts module should be someone that hasn't already been talked to about their interest in your products/services.

      Delete
  2. Hi angel ..Please give me the code for updating a field in contacts module when i click save in the feedback module which is user defined?

    ReplyDelete
    Replies
    1. I think the easiest way of doing it would be through a before_save hook on the Feedback module. The hook code can then include something like this:

      require_once('modules/Contacts/Contact.php');
      $contact = new Contact();
      $contact->retrieve($contact_id);
      $contact->my_custom_field_c = $my_value_for_contact_custom_field;
      $contact->save();

      Delete
  3. Thanks Angel good article.

    What do I do if I want to run a cross sell campaign to existing Accounts via a call centre. I could create new Leads to track the campaign but then the call activity won't be linked to the Account or I could just create a new Call record against the Account but then I can't track campaign activity. Any ideas?

    ReplyDelete
    Replies
    1. That's a bit tricky. Maybe you could create the new lead linked to the account, along the lines of your initial thoughts and then link the call to the lead. While you won't be able to do the roll up in the application, you should be able to create reports that pull that data and show you all the detail.

      Delete
    2. why not just create an opportunity for each responding account with Lead source of the campaign?

      Delete
  4. How can I create an account along with opportunity? i.e. I need a single page to create account and opportunity.

    ReplyDelete
    Replies
    1. You would need to create a custom view that allows a user to provide the data for both and then upon save, you could use a logic hook or a custom controller to create both records.

      It will require code, but it is not difficult.

      Delete
  5. Part of the reason why some people still struggle with what it means to be a Business Analyst is because it is a very diverse career by definition. Business Analysis is defined very clearly in the IIBA (R) BABOK (R) guide, and yet, if you read this guide, you will agree that there is enormous scope for a Business Analyst to do a wide variety of things with their careers. So let's look at some of the aspects that make our careers so diverse and interesting. Ebola antibodies

    ReplyDelete
  6. A great number of small business owners have a constant urge to expand. Of course, the mere idea of expanding and becoming a "big" business known to thousands and millions of people is fascinating. However, expansion is not all about finding a new office space and hiring new employees to fill the vacant seats. gel x

    ReplyDelete
  7. A great number of small business owners have a constant urge to expand. Of course, the mere idea of expanding and becoming a "big" business known to thousands and millions of people is fascinating. However, expansion is not all about finding a new office space and hiring new employees to fill the vacant seats. mental health blog

    ReplyDelete
  8. Fashion production as it relates to clothing has actually come a very long way. Basically, the term refers to the manufacturing of various kinds of clothing materials, dresses, and fashion accessories. Several factors have always influenced the production process... Marine

    ReplyDelete
  9. Your business operations keep your company running and generating revenue, so they're necessary. But you don't need to be the one who manages them. If you have a multiple 6-figure+ business and find yourself creating and maintaining systems, establishing guidelines and deadlines for your team, or handling product and service delivery, you're stuck in the "DOING" of the business. DUI Attorney Vancouver WA

    ReplyDelete
  10. The fashion industry offers a variety of challenging, yet exciting careers. Get the scoop on the hottest careers in the industry. Joseph Hobbs

    ReplyDelete
  11. Dergh.com is a social networking website that provides a safe platform for everyone. Our mission is to help people find and share anything from topics to messages. Dergh.com supports public and private messaging, profiles, pictures, search, notification, multimedia, polls and much more make friends

    ReplyDelete
  12. Part of the reason why some people still struggle with what it means to be a Business Analyst is because it is a very diverse career by definition. Business Analysis is defined very clearly in the IIBA (R) BABOK (R) guide, and yet, if you read this guide, you will agree that there is enormous scope for a Business Analyst to do a wide variety of things with their careers. So let's look at some of the aspects that make our careers so diverse and interesting. 출장

    ReplyDelete
  13. If you are a plumbing contractor looking to retire in the next 2-5 years, are you doing everything you need to do in order to ensure success selling your business? Most plumbing company owners NEVER sell their businesses. Those that do, often do so at a financial loss and only after having the business on the market for months... even years. Learn some steps you can take right now, to help achieve success when you sell your plumbing business. 출장마사지

    ReplyDelete
  14. Fashion development has been a progressive thing. Generally, the term fashion refers to popular styles and practices seen in the area of clothing, makeup, footwear, furniture and accessories. However, the term mainly refers to clothing, makeup and accessories when considered in a strict sense. The development of fashion can be considered in four major phases namely, ancient, medieval, industrial revolution and contemporary phases بوركيني

    ReplyDelete
  15. Games, used in the classroom, can help students develop skills in problem solving/critical thinking as well as knowledge and basic skills. All games have some advantages. In my experience, teacher designed games are the most effective in the classroom. This article discussed their advantages and disadvantages and the characteristics that create an excellent game for the classroom especially those designed by teachers to fit into a current teaching topic. The article also includes a game called "Buzz" used by many teachers to help their young students learn to count. pggame365

    ReplyDelete
  16. A career in the fashion industry sounds glamorous and lucrative. Have you consider getting into the fashion industry, but might think that you cannot manage it? There are so many different roles and positions that you can play in the fashion world. One does not necessarily be a fashion designer but still be able to have a very success career in the fashion industry. permanent makeup Houston

    ReplyDelete
  17. Fashion is fitting into the scene and making one look the best that he or she can look. Fashion is the norm of clothing, cars, homes, and yes, even pets. Fashion is fashionable. What is fashionable though? high fashion model agency

    ReplyDelete
  18. Online shopping is going to blast. Nowadays retailers are adding in-store pickup, offer free shipping and experiment with social media. It is getting difficult to say who is pure internet retailer and who are bricks and mortar shops with online portals. All of them are reformulating how we will shop online in the future: via a mobile device, tablet computer, in store kiosk, etc. diamond bracelets

    ReplyDelete
  19. Interesting website, i read it but i still have a few questions. shoot me an email and we will talk more becasue i may have an interesting idea for you. MichaelSEO

    ReplyDelete
  20. Part of the reason why some people still struggle with what it means to be a Business Analyst is because it is a very diverse career by definition. Business Analysis is defined very clearly in the IIBA (R) BABOK (R) guide, and yet, if you read this guide, you will agree that there is enormous scope for a Business Analyst to do a wide variety of things with their careers. So let's look at some of the aspects that make our careers so diverse and interesting. concealed handgun license classes

    ReplyDelete
  21. Great – I should definitely pronounce, impressed with your website. I had no trouble navigating through all tabs as well as related information ended up being truly simple to do to access. I recently found what I hoped for before you know it at all. Reasonably unusual. Is likely to appreciate it for those who add forums or anything, website theme . a tones way for your customer to communicate. Nice task. 해외축구중계

    ReplyDelete
  22. Part of the reason why some people still struggle with what it means to be a Business Analyst is because it is a very diverse career by definition. Business Analysis is defined very clearly in the IIBA (R) BABOK (R) guide, and yet, if you read this guide, you will agree that there is enormous scope for a Business Analyst to do a wide variety of things with their careers. So let's look at some of the aspects that make our careers so diverse and interesting. cek resi jnt

    ReplyDelete
  23. Great – I should definitely pronounce, impressed with your website. I had no trouble navigating through all tabs as well as related information ended up being truly simple to do to access. I recently found what I hoped for before you know it at all. Reasonably unusual. Is likely to appreciate it for those who add forums or anything, website theme . a tones way for your customer to communicate. Nice task. Build an enterprise

    ReplyDelete
  24. Generally, it is hard for a new business to become noticed, and even harder to gain your first few clients without any success stories to back up your claims. Your formal marketing plan should therefore project the right networking mix. The right networking mix is about being proactive-in a sense that you leverage your business and personal connections to bring you regular supply of new business. The whole idea about business networking involves relationship building-and it must be strategic and focused on networking for business growth. مقلع طمية

    ReplyDelete
  25. I do love the way you have presented this specific situation plus it does supply us some fodder for consideration. Nevertheless, from everything that I have experienced, I simply just trust as other commentary pile on that people stay on point and don’t embark on a tirade involving the news du jour. Still, thank you for this superb piece and even though I do not necessarily agree with the idea in totality, I regard your perspective. eyebrow microblading dubai

    ReplyDelete
  26. Appreciate it for this post, I am a big fan of this website would like to keep updated. link building strategies

    ReplyDelete
  27. Once I initially commented I clicked the -Notify me when new feedback are added- checkbox and now every time a comment is added I get four emails with the same comment. Is there any method you possibly can take away me from that service? Thanks! judi slot online 889

    ReplyDelete
  28. Perfect piece of work you have done, this internet site is really cool with superb info . Layanan SEO profesional

    ReplyDelete

Your comments, feedback and suggestions are welcome, but please refrain from using offensive language and/or berating others. Thank you in advance.