CUSTOMER RELATIONSHIP MANAGEMENT Vinod Ramanathan

2 What Is CRM CRM is fundamentally a strategy  Aligned with the overriding corporate strategy Ideally, CRM defines an enterprise-wide program that helps to align business processes and functions against customer-driven priorities CRM is implemented through various means  Organizational realignment  Process development  Cross-organizational functional alignment  Systems support

3 Goal Of CRM The idea of CRM is that it helps businesses use technology and human resources to gain insight into the behavior of customers and the value of those customers. With an effective CRM strategy, a business can increase revenues by:  providing services and products that are exactly what your customers want  offering better customer service  cross selling products more effectively  helping sales staff close deals faster  retaining existing customers and discovering new ones

4 Customer Loyalty –Repeat customers costs lesser to service –Word of Mouth Advertising increases customer base –Branded experience leads to emotional attachment –Willingness to pay higher price for good customer service Loyalty Leaders –Increased profitability and customer rentention –Eg: Verizon, Nokia, WalMart, SouthWest Airlines, SONY Facts: The cost to replace each defecting customer with a new one varies by industry but can range from about $330 per customer in telecommunications, to $75 in banking and $14 for online retailers, according to a study by Shop.org and Boston Consulting Group, and company reports.

5 Types Of CRM CRM application software can be broadly divided into five areas  Customer interaction management  Customer decision support  Systems integration  Customer information management  Workflow

6 Architecture of CRM There are three parts of application architecture of CRM: operational - automation to the basic business processes (marketing, sales, service) analytical - support to analyze customer behavior, implements business intelligence alike technology co-operational - ensures the contact with customers (phone, , fax, web, sms, post, in person)

7 Operational CRM Operational CRM means supporting the so-called "front office" business processes, which include customer contact (sales, marketing and service) Operational part of CRM typically involves three general areas of business: Sales force automation (SFA) Customer service and support (CSS) Enterprise marketing automation (EMA)

8 Analytical CRM Data gathered within operational CRM are analyzed to segment customers or to identify cross- and up-selling potential. Collaborative CRM Collaborative CRM facilitates interactions with customers through all channels (personal, letter, fax, phone, web, ) and supports co-ordination of employee teams and channel.

9 Categories Of CRM Tools Marketing - product and brand management, database marketing, telemarketing, analytical tools, configuration management, encyclopedias and marketing information systems. Sales - contact management, mobile sales, account management, opportunity management, sales literature, price lists and miscellaneous sales support materials. Customer service - call centers, mobile service, inside sales, tools used to streamline and automate customer support and help desks. Personalization - tools to build customer profiles and deliver personalized content.

10 To be successful A CRM program must be strategy driven CRM Enterprise Vision and Strategic Priorities Adaptable Value Proposition Design and Delivery Capabilities Customer Aligned Organization, Infrastructure, and Business Processes Enabling Capabilities  CFO Organization  Information systems  Interface design  Customer interaction process design  Organization structure  Incentive systems CRM DRIVERSCRM STAGE  Corporate strategy and objectives  Customer vision  CRM objectives & strategy  Customer marketing strategy  Value proposition design  Salesforce strategy  Channel strategy  Dynamic pricing  Delivery stream/supply chain strategy Customer Strategy Value Creation and Value Capture

11 Case Study – World Changers Church Business: Distribute the word of God through church services, CDs and books, and seminars and conventions Financials in 2004: $80 million in donations and product sales. Challenge: To build individual relationships with 25,000 members via refined tracking of their behavior, skills and needs. GOALS: Grow membership by 9 percent, from 25,000 members in 2005 to 27,250 in Reduce average length of time per call-center call by 9 percent, from 3 minutes, 52 seconds in 2005 to 3 minutes, 30 seconds by mid Replace existing homegrown church management system with more flexible software based on a relational database in 2007.

12 CRM - Key Success Factors  Developing Best Practices  Know Your Customers, All of Them  Recognize that CRM is about changing processes, not installing software  Avoid over-customizing  Develop IT Strategies for Specific Customer Needs  Make Implementation Easy on Your Customers, Not Your Company

13 BUILD V/S BUY  Detailed Analysis of Enterprise needs and mission  Test off-the-shelf products  Level of skill available within the organization  Calculate impact on business and ROI sought  Median Total 5-Year InvestMedian Return Build$2,088,860104% Buy$1,807,656140%

14 Top CRM Product Suites ISM Top 15 CRM Enterprise Winners Amdocs ClarifyCRM v.12-Amdocs C2 CRM v Clear Technologies Epiphany E.6 v.6.5-Ephiphany Firstwave CRM 2004-Firstwave Technologies CMS v.8.0-OnContact Software Onyx Enterprise CRM 5.0-Onyx Software ExSellence 4.8-Optima Technologies PeopleSoft CRM 8.9-Oracle/PeopleSoft Pivotal CRM Suite 5.1-Pivotal MySAP CRM 4.0-SAP AG Saratoga iAvenue v.6.4-Saratoga Systems Siebel 7.7-Siebel Systems growBusiness Solutions v.2.5-Software Innovation SSA CRM-SSA Global Tibco Process RM v. 9.0-Tibco

15 ScoreCard- Enterprise CRM Market Source:

16 References m/ BNP__Features__Item/0,1846,29026,00.html

17 THANK YOU