Strencom Increases Revenues by 20% in Five Months using Salesforce.com
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"We're an ISP so we can see the value in a hosted multi-tenant CRM system. For a fixed monthly fee, we have some-one else taking care of the CRM system, while we concentrate on doing what we do best: selling and managing hosting and data connectivity."
- Replace existing Act database
- Cope with data growth arising from increased portfolio of clients and services
- Improve reporting and forecasting
- Increase sales productivity
- As one of Ireland’s fastest growing provider of Managed IP Services and Broadband connectivity, Strencom swapped-out an Act database for Salesforce. In only five months, sales have risen by 20 percent and sales productivity has increased by more than 30 percent.
- Powerful forecasting provided instant, detailed, dashboard view of the sales pipeline
- Helped increased revenues by 20 percent in five months
- Enabled the sales team on average to devote up to 40 percent more time to selling, as opposed to administration
- Provided the team with a complete, consolidated view of the sales situation at any time
- Enabled the company to customize multiple records, tabs, workflows, fields and other areas themselves—each phase only takes a couple of hours
Concerned by the lack of scalability and functionality of its existing Act database, leading Irish Managed IP Services and Broadband connectivity provider Strencom swapped it for Salesforce. It proved to be a canny decision. Since launching the system five months ago, sales have risen by 20 percent and sales productivity has increased by more than 30 percent. The responsiveness and quality of support case management has improved and the Strencom team is customizing the multi-tenant CRM system almost at will.
One of Ireland's fastest growing hosting and data connectivity companies
Strencom is one of Ireland's leading and fastest growing providers of Managed IP Services and Broadband connectivity. The company offers two data centers and network presence in locations such as Dublin, Cork, Shannon and London. Its services include managed hosting and co-location, broadband, wide area networks, leased lines and online data security and back up.
Established in 1999, Strencom has experienced relentless growth and is ranked in the Deloitte
Technology Fast Growth 50 companies for Ireland, as well as being ranked in the Deloitte Fast 500
for EMEA. Shortly after the company was formed, Managing Director Tim Murphy brought in an Act
system to help capture and store customer data. It ended up being used primarily as an address book
for contacts and for some of the sales function, and as time went by and Strencom grew, more
customized fields were needed to cope with the expanding customer information and workflow
patterns. At this point, it became apparent that the Act system was out of its depth, as Murphy
explains.
"In the last 18 months, we have doubled sales and the number of staff," he says. "With so
much data in the system, Act began to run slower and slower. We thought about running it on a
dedicated server to tackle this, but the problem ran deeper than that. We have three hundred
clients in the business, public sector and reseller markets—and thousands of products to support.
Our concern was that the Act system would not scale to cope with this growing demand for data. It
also lacked the functionality and flexibility we needed moving forward."
Flexibility, scalability and low total cost of ownership
A visit to the salesforce.com website—and consensus that this multi-tenant customer relationship management (CRM) system had the flexibility, scalability and low total cost of ownership Strencom was looking for—convinced Murphy to take up the free one month trial. It didn't take long for him to find out just how useful the system could be, as the following example demonstrates.
"Over a year ago, when we were still using Act, we had a prospect who had been let down by
another service provider. They contacted us and we loaded all their details into Act. We added in
the probability of sale, tasks and other data surrounding the opportunity. Eventually, the prospect
contacted us to say they had resolved the problem with their own provider and would keep using
their services, but asked us to call them in one year. When we began using Salesforce, I loaded the
lead into Salesforce and scheduled a call at the appropriate time for when they had asked me to
contact them. Salesforce alerted me to the time I was due to contact them and I had all the details
to hand to make the call. The prospect said they had literally just been let down again by their
other vendor. Because of the automated follow-up in Salesforce, we closed the business."
Today, nine staff in the company are using Salesforce SFA for lead, opportunity and account
management and forecasting. Once a sale is closed, the order is sent via automated workflow for the
project management teams to implement—again using Salesforce. The solution is also used to manage
after-sales case management enquiries. "We're an ISP so we can see the value in a hosted
multi-tenant CRM system. For a fixed monthly fee, we have some-one else taking care of the CRM
system, while we concentrate on doing what we do best: selling and managing hosting and data
connectivity." says Murphy.
Increased business agility
Murphy is impressed by the business agility that Salesforce lends to the company's operations. "I put a new order into Salesforce last Friday," he says. "Within an hour I could see on the screen that the implementation team had already done all the order management. I didn't need to call them or brief them. All the information was already there for them to use. Forecasting has also been transformed. In our industry we operate on an average 12 week lead time between contract signature and a system going live. The powerful forecasting in Salesforce means we have an instant, detailed, dashboard view of the sales pipeline over each sales cycle. With Act, the reporting was extremely basic."
The highlights of Salesforce for Strencom? Murphy says that revenues have risen 20 percent
since Salesforce was introduced and that the CRM system is a main driver for that increase in
sales. His sales team is on average able to devote up to 40 percent more time to selling, as
opposed to administration. And the team now has a complete, consolidated view of the sales
situation at any time.
This wave of benefits doesn't even include the ease of customization. "When we first looked
at Salesforce, there were a number of customer case studies on their website saying how easy
Salesforce was to adapt and to customize. To be honest, we were skeptical, imagining that
customization was only the domain of enterprise customers with large in-house development teams.
How wrong we were! It couldn't be easier. We've customized multiple records, tabs, workflows,
fields and other areas to meet the special needs of Strencom. We do it all ourselves and each phase
only takes a couple of hours."
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