Microsoft Dynamics CRM Glossary

I saw an interesting Tweet from Neil Benson today discussing initial meetings with clients and debates over naming conventions – What is a Contact? – What is a Lead? Could it be called a ‘Prospect’.

I have had that same conversation over and over again, which got me thinking……

It’s easy to understand CRM terminology when you work with it every day, but most clients are new to CRM systems and have got used to calling their data what they want to call it. I guess our role as CRM consultants is to define what the concept is, then agree a naming convention.

The following is just my take on this, not an official Microsoft Glossary. It’s mostly about what I have experienced, and how I have explained it.

Name	Definition		Options
Lead	A Lead is an unqualified record. It can be thought of as no more than a name and address, similar to a list of names and addresses in a business directory. You have no relationship with them. At some point you develop a relationship with this contact, whereby you as a business decide they are more than just a name and address, and qualify them in to an Account and Contact, and possibly create an Opportunity to do business with them. This may be the qualifier…..If the name and address express an interest in a product or service of yours, then they are qualified.		Many companies like to use the name Prospect as opposed to Lead. It is a matter of personal choice, and the name Lead can be changed, however as you’ll see in the section for Contacts, in CRM terms, just because an individual is a Contact or a business is an Account in CRM, doesn’t necessarily mean you are actively doing business with them….they could even at Contact level still be a prospective customer, having expressed an interest, but not ‘bought’ anything.
Contact	An individual person. This is someone you have a relationship with. they may be an individual customer, or perhaps a business partner or supplier. They may also be a prospective customer or even a customer who no longer does business with you. They are more than just a Lead.		As with Leads the name can be changed. Some companies like to use the title ‘Individual’ or ‘People’.
Account	This is a business, a collection of Contacts or individual people. The word ‘Account’ shouldn’t be exclusively for businesses your are actively working with. An Account may be a supplier or business partner.		Accounts can also be changed  to suit business needs – Businesses, Organisations are some options.
Opportunity	This is, as the name suggests, and opportunity to sell. You cannot create an opportunity against a Lead, as a Lead is just a name and address.		Can also be changed.

It’s worth noting that each of these records can be sub-divided. For example an Account record could also be shown as one of the following:

Customer
Prospect
Partner
Reseller
Supplier
Vendor

In this way, you can segment your CRM data using views, perhaps creating views of Customers or resellers etc.

Microsoft dynamics CRM 2011 is an extremely flexible product. unlike many systems which make the end user bend toward their business process, Dynamics CRM will fit the clients needs. It’s important though as a first step that the client understands the language and concepts of CRM before rushing in with name changes.

Some clients I have worked with view their leads as opportunities. In CRM, no amount of bending will allow this. Understanding that a Contact could be a prospect, and therefore allow you to create an opportunity, is step one for a client like that, before looking at name changes.