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