Customer Relationship ManagementShaik Abdul ZaheerFMG-16, Sec-ARoll No. 71038

Acknowledgement

Prof. Asif Zameer, Mentor for the project

Prof. Vivek Kumar, Programme Director, FMG-16

Examination Department

Academic Office

FORE School of Management

Outline of the presentation

1. Introduction

2. Introduction into the world of CRM

3. Types of CRM

4. Different Case Studies

5. How to implement CRM

6. Recent trends & Software

7. Learning’s & Recommendations

Introduction

CRM (customer relationship management) is an information industry term for methodologies, software, and usually

Internet capabilities that help an enterprise manage customer relationships in an organized way.

CRM should address 1. Marketing2. Sales3. Post-sales

Identify your customer

Differentiate

Interact

Personalize

Introduction into the world of CRM

What is CRM?

Why is CRM important•CRM gives a 360 degree view of the customer•CRM is a mindset and a philosophy•Implementing CRM requires patience•CRM = Customer Analysis•CRM for optimizing the timing of the sales•CRM for future customers

Who can do CRM?

Advantages & Disadvantages of CRM

Advantages of CRM

1. Increase in amount of information2. Increases customer satisfaction3. Increase sales by optimizing sales life cycle4. SME’s have fewer clients and so easier to implement

Disadvantages of CRM

1. High cost involved2. Difficulty in managing the flow of information

Types of CRM

Operational CRM

Sales Force Automation CRM

Analytical CRM

Sales Intelligence CRM

Campaign Management

Collaborative CRM

Consumer Relationship CRM

Case I – Cortech Engineering

Specializes in industrial pumps

Needs CRM software in order to keep a tab on its inventory and integrate its sales order with this inventory so as to have a smooth flow of work.

Major problem – Organization has to react quickly to the customer’s order, because there is not enough cash flow and the faster the organization reacts, the better the cash flow is.

Advantage of having a single view of the pending items, resulted in a reduced staff and at the end reduction in the costs for the company. This enabled the organization to have better profit margins and deliver better products to their customers.

Case 2 – Shulas Steak Houses

Challenge – Managing geographically separated restaurants.To integrate all these chains into one big organization and make sure that each of them is on track with respect to the company directives.

Answer – Implement CRM software that could achieve this and as well as grow with the organization as it added more and more restaurants in its chain.

The software gives an idea about the present scenario of the system and the steps to be taken in the future. This is especially useful in cases where there are restaurant chains or franchising networks.

Case 3 – Performance Cruising

How could CRM help a boat-building company?

Custom boat-building is the norm.

Everything that the client demands has to be captured effectively.

With the software, they could exactly understand what the client wanted and make a boat according to those specifics.

Keeps track of various sections and keeps a check that it is being built according to the customer’s specifics.

Preparation of sales is also prepared so as to do the billing and invoicing for the customer more effectively.

What is to be understood before implementing CRM?

Getting new Customers from Consumers in the Market

• Macro Level operations – Scanning the Environment

– Market Research

– Segmenting the Market

– Identifying the Target Market Segment

– Resources Planning

• Micro Level operations – Identify the potential customers

– Using the promotional methods

– Obtain the order and execute the same

What is to be understood before implementing CRM?

Converting him to prospective Customer – Collection of Data Through Data Mining Process

– Analysis of Data to segment customers

– Arriving at a differentiated Marketing Strategy

– Implementation of strategy arrived

– Monitoring of the implemented strategy

Converting him to Loyal Customer – Encouraging personnel-customer relationship

– Initiate business proposals

– Offering investment options for the Customers

How to implement CRM?

1. Kick-Off Meeting

2. Assessment

3. Requirements Definition

4. Statement of Work (SOW)

5. Finalized agreement

6. Begin implementation

7. Review

8. End Implementation

9. Acceptance Testing

10. Installation and setup

11. User acceptance testing (UAT)

12. Training

13. Deployment

14. Follow-up

How can consultants help?

Experience in the target industry

Experience with organizations of similar size

Experience with multiple CRM vendors

Common mistakes while implementing CRM

1. Data Is Ignored 2. Politics Rule 3. IS Organization and Business Users Can’t Work Together 4. There Is No Plan5. CRM Is Implemented for the Enterprise, Not the

Customer 6. A Flawed Process Is Automated 7. No Attention Is Paid to Skill Sets

Have a data quality strategy. Devote one-half of the total timeline of the CRM project

to data elements.

Formulate CRM strategies at the enterprise level. Appoint a senior manager to be

responsible for cross-departmental CRM

Establish cross-discipline teams early in the process, requiring the IS organization

and business users to work together. Ensure that both sides sign off on all steps

of the CRM process

Establish a high-level CRM plan that addresses issues of tactics, processes, skill sets and technology, and

publicize it enterprise wide so everyone knows how the enterprise is transforming itself

Involve employees and customers throughout the CRM process to ensure that their

interests are represented in the project

Use CRM as a springboard to examine all

customer-related processes, to remove

those that are not needed, and to rework those that

are impacted by technology

Educate employees on the CRM initiative and train them on CRM tools and

technology to enable them to communicate with

customers more effectively

Recent trends in CRM

1. Innovation

2. Experience

3. SaaS

4. Productivity

5. Process

6. Clean Data

7. Mobility

8. More Value

9. From CRM to CVM (Customer Value Management)

Software used in CRM

SEIBEL Software– Siebel Systems, Inc– Founded by Thomas Siebel in 1993– At first known mainly for its sales force automation products– In 2000, revenue surpassed the $1 billion mark– 45% market share in CRM in 2002

Learning’s

1. CRM is quite an effective tool when implemented properly.

2. A consultant can help tremendously while implementing CRM because of all the various complications involved with it.

3. An organization needs to understand if it really needs all the CRM aspects in its organization or what parts can suffice.

4. The best method of implementation has to be studied before implementation.

5. Selection of CRM vendor has to take place in consultation with the consultant.

6. The things to be taken care of before implementation have to be thoroughly understood before the implementation and taken care of.

Recommendations

1. A consultant has to be hired who has experience as well as expertise in implementing CRM.

2. Phase by phase implementation of CRM is the best way to implement it and should be followed.

3. A medium enterprise should implement CRM rather than a Small enterprise.

4. Constant review of the system has to take place.

5. Seibel is one of the best software’s in the market for the implementation of CRM.

References

http://en.wikipedia.org/wiki/Customer_relationship_managementhttp://searchcrm.techtarget.com/sDefinition/0,,sid11_gci213567,00.htmlhttp://www.columbusit.es/citp-hq---crm/crm---your-business/what-is-crm.aspx http://blog.gartner.com/blog/crm.phphttp://blog.printplace.com/2008/11/27/6-reasons-why-crm-is-important/ http://www.customerthink.com/forum/what_is_the_right_culture_to_implement_crm_s http://smallbiztechnology.com/archive/2007/12/if-crm-is-so-important-why-are.html

References

http://www.businessonlybusiness.com/theories/crm/03%20-%20advantages%20and%20disadvantages.htm http://www.goarticles.com/cgi-bin/showa.cgi?C=811804 http://www.ehow.com/how_2158436_implement-crm.html http://ezinearticles.com/?How-to-Implement-a-CRMhttp://www.squawkmarketing.com/Choosing_a_CRM http://www.tsgonestop.com/srf.pdf http://blogs.salesforce.com/ask_wendy/files/sfdc_crm_trends_webcast_6.20.07.pdf http://www.ficci.com/media-room/speeches-presentations/2007/may/rural/ArunSahay.pdfhttp://en.wikipedia.org/wiki/Siebel_Systems

Customer Relationship ManagementShaik Abdul ZaheerFMG-16, Sec-ARoll No. 71038

Thank You