Presentation is loading. Please wait.

Presentation is loading. Please wait.

CRM Customer Relationship Management

Similar presentations


Presentation on theme: "CRM Customer Relationship Management"— Presentation transcript:

1 CRM Customer Relationship Management
Rich DuBose, Arnold Kelly, Mellisa Thom and Ben Wylie

2 Outline General elements of CRM Spending and trends CRM ROI
Why some company succeed and others fail at CRM Industry uses 12 key applications Top 5 providers of CRM Mini case studies - Square D and Graybar Argosy Gaming case study Don’ts of CRM Best practices

3 CRM Defined “CRM is a technology-enabled business strategy whereby companies leverage increased customer knowledge to build profitable relationships.”(1) CRM is first and foremost a business strategy, not merely a software package. (1) A Strategic Framework for CRM, by Patrick Sue and Paul Morin. February 2001

4 Functional Elements of CRM
Marketing Market Research Product Development Market Assessment Market & Customer Segmentation Product Lifecycle Management Product Pricing and Profitability Sales Sales Automation and Management Customer Profiling Account Management Opportunity Management Product, Price, and Contract Negotiation Sales Alignment and Incentives Customer Service Customer Inquiry Customer product support Customer Information Management Call Center Effectiveness Trouble Analysis & Resolution Billing Customer Relationship Management Solutions Data Warehouse Management and Decision Support Integrated Customer Management Systems

5 Marketing Functionality
"Half the money I spend on advertising is wasted; the trouble is I don't know which half." John Wanamaker, the department store pioneer, stated in 1886 A CRM can greatly enhance a company’s marketing efforts in the areas of : Market research Price planning Product development Market assessment Customer segmentation Product lifecycle

6 Marketing Functionality Cont...
Example: Hewlett-Packard Previously, HP sent out mass s to update customers on sales offers, new products, technical support, etc. After implementing a CRM, these efforts become much more customers specific 85% of customers said they were satisfied with the content of the s and additional revenue increase by $15M

7 Sales Functionality Common functions implemented:
Provide the sales force with detailed and current information, such as: Buying preferences Pricing Inventory levels Billing information Automate the sales processing activities (SFA).

8 Sales Functionality Cont...
Example: Empire Blue Cross and Blue Shield Extremely complex and highly manual sales process 33 redundant audit checks and took approximately 27 days On-line quote system developed Sales processing steps streamlined and automated

9 Service Functionality
CRM can be used to capture such things as: Customer’s complaint history Outstanding customer services requests Billing information Customer preferences Tracking unresolved issues Service representatives are much more prepared to service their customers

10 Service Functionality Cont...
Example: Marriott International Collect data on customer preferences and spending Data shared by all Marriott Hotels nationwide Once you check in they already know your smoking preference, which floor you prefer, any allergies, complaint history, whether you drink, etc.

11 Enable Enterprise-wide Information Integration
Collecting and integrating data from every point in the organization will allow customer relationship, life cycle and event information to be analyzed and driven through the marketing organization to the front-line, enhancing sales and retention. Phone Sales Support Front line Customer Branch Mobile Sales Force Internet Marketing and Sales Support Customer demographic and purchased services data. Marketing campaign tracking and offer development Customer and profitability data matched for service development and pricing Attrition data for retention modeling Customer value and preference information for customized experience.

12 Enable Enterprise-wide Information Integration
Collecting and integrating data from every point in the organization will allow customer relationship, life cycle and event information to be analyzed and driven through the marketing organization to the front-line, enhancing sales and retention. Phone Sales Support Front line Customer Branch Mobile Sales Force Internet Back Office Operations Customer relationship information and contact history available for issue resolution Information gathering follow-up or alert messaging to front line Rules development for value-based decisioning for all product support

13 Enable Enterprise-wide Information Integration
Collecting and integrating data from every point in the organization will allow customer relationship, life cycle and event information to be analyzed and driven through the marketing organization to the front-line, enhancing sales and retention. Phone Sales Support Front line Customer Branch Mobile Sales Force Internet Customer Touch Points Customer relationship data gathering Delivery of customized service delivery or sales offers Customer value information available for decisions Product information and sales process automation enables effective targeted sales efforts Relationship and contact information allows sales reps “know” each customer

14 Demonstration

15 Based on report by Aberdeen Group entitled “Worldwide CRM Spending: Forecast and Analysis ”.

16 Forces Driving Spending
“Only 7% of global companies have reached mature CRM deployments, indicating more spending to come.” (1) According to Gartner Group “CRM remains one of the top three, if not number one, business priorities in 2001.” “The average company loses 20% of their customers each year and the number is rising.” (2) (1) Data Warehouse Institute survey. CRM is Anything but Dead CRM Industry. June 2001 (2) Maximizing CRM Performance with Strategic Performance Measurement by James Brewton

17 Forces Driving Spending Cont...
“It costs up to 10 times as much to acquire a new customer as it does to keep an existing one.” Reasons growth is not higher: Hard to prove ROI Expensive customization High failure rate Slow economy has force IT budgets to tighten Maximizing CRM Performance with Strategic Performance Measurement by James Brewton

18 Trends in CRM Mobile CRM (mCRM)
PalmPilots, web phones, and pagers are becoming less expensive and more widely used Siebel and Sprint recently signed a join venture selling wireless CRM Domestic businesses are expected to spend $74B on wireless service by 2005 Wireless CRM: Strings Attached by Marc Songini Computer World, November 2001

19 Trends in CRM Cont... Netsourcing - Application Services Providers (ASPs) ASP work better in smaller organizations - less customization CRM applications are the second largest segment of hosting sales, led only by E-commerce applications By 2003, Forrester predicts hosted CRM applications will account for almost $2.5 billion in revenue The Forrester Report by Stacie S. McCullough. December 1999

20 CRM ROI Source: Swift, “Accelerating Customer Relationships: Using CRM and Relationship Technologies

21 CRM ROI Cont… Possible Returns
Up to 10 X’s more costly to generate revenue from new customer than existing customer 5% Increase in retention rate can increase company profits by % 6 X’s more costly to service customer through a call center than via the internet Loyal customer referrals generate business at little or no cost Source: Swift, “Accelerating Customer Relationships: Using CRM and Relationship Technologies”

22 CRM ROI Cont… Investments Upfront costs Takes time
Need to create measuring metrics It is marketing rather than sales Switching from product focus to customer focus Source: Swift, “Accelerating Customer Relationships: Using CRM and Relationship Technologies”

23 Succeeding VS Failing Keys to Success Managing the data
Managing the customer Business process before implementation All levels must buy in Flexibility on the company’s side Relationship vs database Source: Rigby, Reichheld and Schefter, “Avoid the Four Perils of CRM”

24 Succeeding VS Failing Cont…
CRM Mistakes Implementing CRM before creating a customer strategy Rolling out CRM before changing your organization to match Assuming that more CRM technology is better Stalking, not wooing, customers Source: Rigby, Reichheld and Schefter, “Avoid the Four Perils of CRM”

25 BMC “Learning from Failure”
BMC Software Systems-management software provider Based in Texas Failed Two Times Before Succeeding Source: Rigby, Reichheld and Schefter, “Avoid the Four Perils of CRM”

26 BMC’s Failures No research No top-management involvement
Software would change culture Source: Rigby, Reichheld and Schefter, “Avoid the Four Perils of CRM”

27 BMC’s Successes Recreated the strategy
Communicated benefits across the company Changed the culture not just the process Source: Rigby, Reichheld and Schefter, “Avoid the Four Perils of CRM”

28 Industry Uses Airlines Banks Car Rental Companies AA
Aadvantage Frequent Flyer Program Banks Barclays Realize profitability of customers Car Rental Companies Enterprise ECARS System Source: Swift, “Accelerating Customer Relationships: Using CRM and Relationship Technologies”

29 Enterprise Computer Assisted Rental System (Ecars) - introduced in 1992 now supports 1.4 million transactions logged every hour Locates cars, tracks customer preferences, measures customer satisfaction ratings Uses Enterprise Service Quality Index(ESQI)to measure satisfaction - compensation for management is tied to results

30 Enterprise uses its Automated Rental Management System (ARMS) to allow insurance companies to access rental information Allows agent to book reservations, EFT, and reporting to support claims processing Allows electronic monitoring of repair shop progress (CIO Magazine - Nov 2000)

31 Gartner’s 12 Key Application Components

32 Gartner’s 12 Key Application Components
Opportunity Management System (OMS) Sales Configuration System (SCS) Partner Relationship Management (PRM) Interactive Selling Systems(ISS) Gartner Nov 2001

33 Gartner’s 12 Key Application Components
Incentive Compensation Management Content Management E-Service Call Management Gartner Nov 2001

34 Gartner’s 12 Key Application Components
Field Service and Dispatch(FS/D) Personalization Data Mart/Analytical Campaign Management System Gartner Nov 2001

35 Today, for a B2B CRM application suite, three vendors can deliver features across all 12 key functionality components: Siebel, Oracle and SAP Gartner Nov 2001

36 Feature ratings are based on the current shipping versions of the following vendors' CRM suite offerings: Clarify eFrontOffice v.10 by Amdocs (i.e., an agreement for Amdocs to purchase Clarify CRM products from Nortel E-Business is expected to close by February 2002.) E.5, release 5.5 by E.piphany Kana iCARE by Kana Oracle CRM 11i v.5 by Oracle PeopleSoft 8 CRM by PeopleSoft SAP CRM 3.0 by SAP Siebel 2000 by Siebel Systems The scores in Figure 1 are based on vendors scoring 1 point for a 1/4 circle rating, 2 points for a 1/2 circle, 3 points for a 3/4 circle and 4 points for a full circle with 48 points equal to 100 percent. In the past year, SAP's scores improved the most, followed by Amdocs/Clarify, Siebel, PeopleSoft then Oracle (see Figure 2). Today, Gartner estimates that Siebel still provides almost twice as many features as the next closest competitors; and Siebel remains the only vendor to meet more than 50 percent of the horizontal functionality requirements for a B2B large enterprise CRM application suite. Gartner Nov 2001

37 North American CRO Magic Quadrant - Gartner March 1, 2002
CRO stands for customer relationship optimization, and it is the alleged potential new direction for customer relationship management (CRM). "It's no longer about managing your customers," the NRF session description stated. "It's about strategically investing in customer segments that will make the most money." tory/0,4167,STO67518_KEY51,00.html

38 Key CRM Providers PeopleSoft Siebel SAP Oracle Convergys

39 Headquarters: Pleasanton, CA 2000 revenue: $1.7 billion
Leading provider of enterprise applications that tie together customers' back-office operations Software addresses such tasks as accounting, human resources, manufacturing, and supply chain management Services such as consulting, maintenance, and training account for about two-thirds of sales Customer relationship management software has rekindled licensing sales growth and helped offset a slowdown in the broader enterprise software market, but it has also exposed PeopleSoft to more direct competition with companies such as Oracle and Siebel Systems. ( Headquarters: Pleasanton, CA 2000 revenue: $1.7 billion Customers: 4,600 Employees: 8,000 Worldwide

40 World's leading provider of eBusiness applications software
Provides an integrated family of eBusiness applications software, enabling multichannel sales, marketing, and customer service systems to be deployed over the Web, in call centers, in the field, through reseller channels, and across retail and dealer networks Sales and service facilities are located in more than 32 countries. Founded: 1993 2001 revenue: $ billion 2001 net income: $255 million Employees: 7,400+

41 29 Years in the Business of E-Business
10 Million Users, 44,500 Installations, 1,000 Partners, and 21 Industry Solutions. Founded in recognized leader in providing collaborative e-business solutions Headquartered in Walldorf, Germany World's largest inter-enterprise software company, and the world's third-largest independent software supplier overall Employs over 27,800 people in more than 50 countries 2000 Sales (mil.): $5, Yr. Sales Growth: 14.3% 2000 Net Inc. (mil.): $ Yr. Net Inc. Growth: (1.6%) 2000 Employees: 24, Yr. Employee Growth: %

42 2001 Sales (mil.): $10,860 1-Yr. Sales Growth: 7.2%
World's leading supplier of software for information management, and the world's second largest independent software company Headquartered in Redwood Shores, California First software company to develop and deploy 100 percent Internet-enabled enterprise software across its entire product line: database, server, enterprise business applications, and application development, and decision support tools. 2001 Sales (mil.): $10, Yr. Sales Growth: 7.2% 2001 Net Inc. (mil.): $2, Yr. Net Inc. Growth: (59.3%) 2001 Employees: 42, Yr. Employee Growth: 3.9%

43 (CVG) is a provider of outsourced billing and customer management solutions, which encompass activities such as targeting, acquiring, serving and retaining customers on behalf of its clients. Employees: 46,000 Market Cap (Mil) $ : 5, Complete Financials: Dec Updated: 04/05/2002 Revenues For the FY ended 12/31/01, increased 6% to $2.32B. Net income decreased 27% to $138.8M.

44 Mini-Case Studies

45 Began in 1902 , is a market-leading supplier of electrical distribution, industrial control and automation products A new safety switch with the company's new logo, a "D" (for Detroit) inside a square became the industry standard and many customers began asking for "the square D switches." The trademark was developed in 1915 and the name Square D Company was formally adopted in To this day, Square D is one of the few companies ever named by its customers. On May 24, 1991, Square D Company merged with Schneider Electric of Paris, France the world's leading manufacturer of electrical distribution and industrial control and automation products and systems, and the only manufacturer dedicated to the distribution and control of electricity. (

46 Information Technology
Web server-enabled equipment for the plant floor Equipment, including power monitors and PLCs, can automatically alert plant officials to emerging problems by audible alarm or Built-in server technology allows plant personnel to remotely monitor, diagnose and correct equipment problems and remotely change set points E-Way Online quote and order management system for distributor network Check pricing, stock availability, and obtain shipping information Digest Plus Selector Online product selection with more than 66,000 part numbers Search an electronic version of Square D's catalog based on the electrical characteristics of the application Generates a bill of materials to send to the distributor of choice for pricing and ordering (

47 Information Technology
An employee Intranet Powered by an Infoseek Corp. search engine. The site includes everything from employee telephone directories to spec-writing tools and news on customer-segment marketing activities. Employees can access the site remotely Customer Information Center Uses sophisticated customer relationship management (CRM) technology to give technicians instant access to a complete customer history, and knowledge management and case management tools to access a database of technical solutions to almost any question Links customer service representatives and technical experts around the country in a virtual technical support center through Soft Phone technology from Lucent. Extended nationwide in late 1999, the CIC now answers more than 13,000 calls each week from customers, distributors and employees. (

48 Successful CRM Implementation
Began in 1993, after Schneider Electric acquisition Reorganized the company’s three basic business units around customer segments - Industrial, Residential, Construction, and OEM Only after internal systems were refocused on the customer did Square D start using high-tech applications to upgrade its customer-facing processes According to Chris Curtis, VP of US marketing, managers were taken out of their line jobs for months at a time to understand issues involved in implementing the software In 1996, $75 million was invested in an order-management system that let sales engineers create proposals for customers based on what the factory floor could deliver (Harvard Business Review - Feb 2002)

49 World leader in collaborative (CRM) solutions that increase customer revenue, profitability, and customer loyalty Transformed how organizations support their customers, partners and associates at more than organizations representing over 100,000 users. Relavis eBusinessStreams - CRM automation that allows an organization to efficiently and effectively interact with their customers, prospects, partners and internal associates Received the 2001 IBM Beacon award for "Greatest Business Impact," and the 2001 Lotus Beacon Award for "Best eBusiness CRM Solution." Relavis is honored to have won the Beacon Award seven times ( "A tremendous benefit from using OverQuota is that we are able to use existing infrastructure for workflow communications. We have been using Lotus Notes in our worldwide operations since 1998," said Lee Chong Leong, telecommunications manager, Asia Pacific, Schneider- Electric.

50 In 2001 Graybar selected the mySAP
In 2001 Graybar selected the mySAP.com(R) e-business platform to run its business systems applications One of the largest ERP projects in U.S. industry Will deploy the entire suite of mySAP.com solutions including mySAP(TM) Customer Relationship Management mySAP(TM) Supply Chain Management mySAP(TM) Human Resources mySAP(TM)Enterprise Portals mySAP(TM) Business Intelligence Graybar’s new platform will run on IBM hardware DeLoitte Consulting is assisting in implementation

51 A Fortune 500 service provider of wholesale distribution of electrical and comm/data equipment and integrated supply services Serves contractors, industrial plants, telephone companies, power utilities and commercial users One of the largest employee-owned companies in the US, with approximately 9,500 employees and 275 stocking locations In business 131 years Annual sales in $4.7 billion

52 Graybar plans to go live with “just a sliver of mySAP CRM,” Graybar VP Beatty D'Alessandro told CRMDaily. “We were advised by our implementation partner, SAP and other companies in our industry that CRM implementations can be a bear.” "We seriously considered both companies," (Siebel) Beatty D'Alessandro, vice president IT strategy for Graybar Electric, told CRMDaily.com. "But in the final analysis we bought the whole mySAP suite." D'alessandro added: "Our feeling was that a completely integrated solution was preferable to a bolt-on (CRM) strategy." Another consideration, he added, was that SAP appeared to be committing a significant amount of corporate resources to its CRM product. "So, in whatever areas there were perceived inequities between SAP and Siebel, it was clear to us that SAP was spending the money to catch up with Siebel," D'Alessandro said. (

53 Argosy Case Study

54 Company Overview CEO: James Perry Revenue: $595 Million
Stock: NYSE Symbol-AGY $40.65 Employees:4,900 Source:

55 Jeff Poure, MIS Director
CIO CEO

56 Source: Argosy Marketing Report 2001
Current System Player Tracking System Built primarily as accounting/slot system, not marketing Only provide us with transactional data Not customer centric, slot machine is center of universe Not flexible Difficult ad-hoc queries Source: Argosy Marketing Report 2001

57 CRM Strategy Use knowledge of customers profiles
to develop offers and programs which appeal to our most profitable customers Source: Argosy Marketing Report 2001

58 How Argosy’s Goal was Defined
Committee Property Operating Committees Executive Committee Legal Staff Marketing Staff MIS Staff (including IT Supplier Representation) Source: Interview with Jeff Poure, Argosy Gaming Co. MIS Director

59 Argosy Partners with NCR Terradata for CRM Development
Why NCR? “Value Added Supplier” Harrahs (1998) Application Server Evaluation Model (ADEM) Evaluates IT Supplier on the basis of Technology, Market Momentum, Best Practice, & Database NCR won Technology & Database, and was second in Best Practices – Overall highest score Source: Interview with Jeff Poure, Argosy Gaming Co. MIS Director

60 Source: Interview with Jeff Poure, Argosy Gaming Co. MIS Director
CRM Application Scope 7,724 Hours (3+ Man years) Only NCR Applications and Database Developers time Estimated Cost = $849,640 Not including Software Licenses or Servers Two new full time MIS positions Source: Interview with Jeff Poure, Argosy Gaming Co. MIS Director

61 CRM Application Operation
Data collection during registration – Data Card Player Data Name Address SSN License No Age And More! Source: Interview with Jeff Poure, Argosy Gaming Co. MIS Director

62 CRM Application Operation
Data collection during the visit Wins / Losses Tables vs. Slots Preferences / History Restaurants Smoking vs. Non-Smoking Magazines Source: Interview with Jeff Poure, Argosy Gaming Co. MIS Director

63 CRM Application Operation
Prior to CRM Application Archaic Marketing campaigns based on recent nature of ones visit Source: Argosy Marketing Report 2001

64 CRM Application Operation
Allows a more granular view at customers Greater Market Segmentation to identify most profitable customers Redirect Resources away from marginal customers Source: Argosy Marketing Report 2001

65 CRM Application Operation
Better understanding of Customers and Revenue Sources Customer Lifetime Value = CONFIDENTIAL Identification of most profitable customers 40 to 50 + Years Old with disposable income and time – retirement age Average player spends $25-$30 a time and comes frequently, at least once a week…seeking social setting 80 percent of Argosy’s Revenue comes from slot machines Source: Argosy Marketing Report 2001

66 CRM Application Operation
Rewards Programs Customized for individual market segments Right Offer, Right Customer, Right Time, Right Decision Targeted mailings Based of points Incentive Programs Source: Argosy Marketing Report 2001

67 Source: Interview with Jeff Poure, Argosy Gaming Co. MIS Director
Implementation Argosy is implementing CRM Package in two phases Phase I – June 4, 2001 to October 4, 2001 Phase II – October 5, 2001 – June 8, 2002 Source: Interview with Jeff Poure, Argosy Gaming Co. MIS Director

68 Property Implementation Timeline Phase I
October 2001, Lawrenceburg, IN February 2002, Sioux City, IA March 2002, Alton, IL December 2001, Riverside, KS March 2002, Baton Rouge, LA Source: Interview with Jeff Poure, Argosy Gaming Co. MIS Director

69 Source: Interview with Jeff Poure, Argosy Gaming Co. MIS Director
Implementation Phase I Criteria for Success Have increased ability to view, analyze and act upon detail player data down to the transaction level by individual player, player segments or groupings. Develop and agree to a methodology and calculation for the “Lifetime Value” of a player. Have the ability to analyze and evaluate Argosy customers’ hotel, restaurant, entertainment, and offer preferences at the customer level. Source: Interview with Jeff Poure, Argosy Gaming Co. MIS Director

70 Source: Interview with Jeff Poure, Argosy Gaming Co. MIS Director
Implementation Phase I Criteria for Success - cont. Capture and maintain customers’ needs and preferences for the purpose of determining offers/programs, which will appeal to out most profitable customers. Increase analytical capabilities to drive more complex segmentation and communication strategies for the purpose of increasing customer trips/rate-of-pay, frequency of visits, and for finding new/profitable opportunities. Ability to have a unified/consistent customer reward program across the enterprise. Source: Interview with Jeff Poure, Argosy Gaming Co. MIS Director

71 Is Phase I a Success? “Yes, this phase has been considered a success. It(the CRM package) has given us the ability to more efficiently identify our key customers, anticipate their needs and respond to them quickly.” “…the application has allowed us to better serve our customers” “…give us the ability to improve customer retention” -Jeff Poure, MIS Director

72 Don’ts of CRM Data is ignored Politics rule
IS organization and business users do not work together No plan exists CRM is implemented for the enterprise, not the customer Source: Gartner, “Seven Key Reasons Why CRM Fails – And How to Avoid Them”

73 Don’ts of CRM Cont… Flawed process is automated
No attention is paid to skill sets Source: Gartner, “Seven Key Reasons Why CRM Fails – And How to Avoid Them”

74 CRM Best Practices CRM Best Practices consists of the following:
Customer Involvement Involve the correct sources early to develop CRM Strategy Understanding of Information Technologies place CRM Organizational Culture Incremental Implementation

75 Source: www.CRM-forum.com
CRM Best Practice Customer Involvement Focus Groups Prior to, during, and after CRM implementation Customer Survey If Feedback being passed to Top Management is being acted on, then change will happen Concentrate on your customer Lifecycle value Which Customers repay investment? Which Customers just take up resources and should be considered competitors? Segmentation Analysis You need people on you side Show cust what’s in it for them…SPC United Way example Source:

76 Source: www.CRM-forum.com
CRM Best Practices Involve the “Right” People Marketing Provide means of determining our customers? Business Strategists What are our organizational goals (i.e. growth)? If we want to est how we can best improve out relationships with customers, we need to understand what they are today and where and how we make $ from these relationships, and where the major opportunites lie for our organization. Different companies in different market sectors have varying opportunities with there customers. This understanding is unlikely to come from internal IT resources, or external consultants focused on IT implementation. It lies with marketing, business strategists, and exec mngt. If external support is required it should ideally be sourced from CRM practitioners that have experience in delivering value from CRM, ideally from the same industry, who should be able to provide the knowledge of the application of CRM to allow internal staff to eval opportunities. The business case for CRM needs to from business people w/I the org, and business case needs to shape and drive the CRM implementation project. Source:

77 CRM Best Practices Involve the “Right” People
“Value-Added” IT Suppliers (If required) Practical experience in CRM CRM experience in same/similar industry Can provide knowledge of CRM application(s) to allow Marketing and Business strategists to evaluate the opportunities To often companies allow technology vendors to dictate the manner they manage customers because the vendor has implemented CRM CRM is to be customized, not for software but for strategy If we want to est how we can best improve out relationships with customers, we need to understand what they are today and where and how we make $ from these relationships, and where the major opportunites lie for our organization. Different companies in different market sectors have varying opportunities with there customers. This understanding is unlikely to come from internal IT resources, or external consultants focused on IT implementation. It lies with marketing, business strategists, and exec mngt. If external support is required it should ideally be sourced from CRM practitioners that have experience in delivering value from CRM, ideally from the same industry, who should be able to provide the knowledge of the application of CRM to allow internal staff to eval opportunities. The business case for CRM needs to from business people w/I the org, and business case needs to shape and drive the CRM implementation project. Source: “Avoid the Four Perils of CRM,” Darrell K. Rigby, Frederick F. Reichheld, Phil Schefter; Harvard Business Review, Feb 2002

78 CRM Best Practices Involve the “Right” People
Involve TOP MANAGEMENT from the start For CRM to be successful, Top Management must… Clearly communicate a vision for the future of the organization that indicates the benefits of CRM The will power to make CRM work across functional boundaries Without Top Management participation or a Strong Top Management A common result is that a strong-willed committee member will shape the final implementation that will address their desires and not the organizations as a whole SPC Committee example Source: “Avoid the Four Perils of CRM,” Darrell K. Rigby, Frederick F. Reichheld, Phil Schefter; Harvard Business Review, Feb 2002

79 Source: www.CRM-forum.com
CRM Best Practices Implementation Should not expect to be able to implement CRM in one major undertaking Implement CRM in increments Each Increment should have… Its own business case Measures of success Evaluation of how customers perceive the results of this step Source:

80 Source: www.CRM-forum.com
CRM Best Practices While Top Management successful within ones organization, employees make CRM successful with your customers Companies serious about CRM tie employee incentives to customer indicators such as retention and satisfaction. The more serious a firm is about CRM, the sooner they will adjust the compensation plan. No less than 100 percent user buy in is acceptable.. Make it clear that using the CRM system(s) is not an option but rather a condition of employment. As soon as one person is allowed to get away with not using the system, the foundation may start to crumble Source:

81 Source: www.CRM-forum.com
Conclusion What must we understand? Expect a continuing evolution of CRM As it evolves, customers will become more and more familiar with what it can do for them If we an organization adopts CRM they must understand that the strategy will not be delivered by IT alone The primary CRM objective is to improve the interface between an organization and its’ clients. In doing so, for a CRM initiative to be successful substantial re-organization of the organization dealing with customers may occur Source:

82 QUESTIONS ???


Download ppt "CRM Customer Relationship Management"

Similar presentations


Ads by Google