1. CRM Are you ready for the change? David Cosgrave CRM Product Manager Sage Ireland Technology 4 Business Work Smart

2. Agenda  CRM – what is it and why should you care?  Louis Copeland Case Study  Sage CRM Survey

3. What is CRM ?  Customer Relationship Management  Definition “CRM is the process of managing all aspects of interaction a company has with its customers”

4. What is CRM?  CRM is not a technology any more than accountancy is a technology  A technique for building a profitable and sustainable business based on your customer relationships  In Summary : –“Getting new customers and keeping the ones you have “

5. Why should you care about CRM?  High Cost of direct sales –CRM can help increase sales force productivity and in turn contain or decrease the cost of sale  Increased competition -CRM puts you in better control  Need for better information - With CRM you know more about what is happening with your people and your customers

6. Customer view of your business  Have you ever asked yourself – “what are we like to do business with ?” –In research only about 20% of the time do customers talk about Price or features ; 80% of the time they talk about : “They are easy to do business with” “They are responsive or proactive” “A service and a value tailored for me” “Consistent Performance over time” “They ask me questions” “Great expertise” ….ALL Relationship based issues

7. What does a good relationship look like? Remember the golden rule : If you don’t look after your customers, someone else will The customer feels that you understand their needs and requirements The customer feels that they are important and not just another number You respond quickly and efficiently to your customers’ needs.

8. Sample Scenario before CRM  Customer calls with a pre-sales query and gives their details  The sales rep discusses their needs & promises to call back tomorrow with pricing  The sales rep forgets, then is out of the office.  The customer calls back, only to speak to a different rep, give all their details again, promised a callback, doesn’t get it……  Sales rep calls back a few days after returning and finds that….  Surprise surprise, the customer has bought elsewhere & has told colleagues of how disorganised the company is

9. Sample Scenario after CRM  Customer calls with a pre-sales query and gives their details  Sales rep stores this information in CRM system, creates a sales lead and assigns it to herself. Promises to call back tomorrow with pricing  Sales rep gets a pop-up reminder tomorrow to call customer; she calls, gives prices and arranges follow-up call when she gets back to the office. Rep writes a note of what they discussed and how much she quoted  Customer wants to verify the pricing while sales rep is out – her colleague retrieves his details from the CRM system and reiterates the prices quoted by the other rep.  Customer decides to buy straight away & gets an excellent first impression of an efficient, customer-focussed organisation

10. Benefits of CRM  Improve Loyalty / Churn  Gain Competitive Advantage : – relationship based differentiation  Increase Sales Revenue  Increase Profitability  Improve internal Productivity  Enhance executive decision making  Decrease costs and expenses

11. Benefits for Your Salesperson  Easy to use  Centralized customer data  Automate redundant tasks  Integrate with applications you use everyday  Stay on top of all key deliverables  Increase quality and effectiveness of communications  Improve opportunity management and predictability

12. Benefits for Your Sales Manager  Enable every sales rep to perform like your best  Accelerate time to productivity  Increase quality/effectiveness of communications  Reduce administrative burden on sales force  Improve timely access to critical customer information  Improve business predictability  Ensure user adoption and productive use

13. Benefits for Your Admin/IT  Centralize customer data  Multiple levels of security  Flexible deployment and administration options  Speedy rollout to get users up and running quickly  Remote access options  Customize and integrate as much or as little as you like  Low total cost of ownership

14. Value Add…..  10% increase in Gross sales –Sales staff are more efficient and more effective  5% decrease in general and admin cost of sales  5% increase in win rate for forecasted sales  5% or more improvement in quality rating by customers (NPS) Source ISM/Insight Technology Group studies

15. Why don’t we all have one then….. …the reasons why CRM is not widely adopted yet

16. Problems in CRM  Unclear what CRM can do for me  Lack of Sales, Marketing, Support services strategy  Lack of Corporate commitment  In company politics  Lack of proper training  Lack of Know How  Resistance by System users

17. So to implement CRM you need  To know what you need to change in Sales, Marketing and support services  Be willing to share information within the organisation  Overcome feeling intimidated by the technology  Have staff willing to undergo changes to work practices  Sales people need to overcome the “Big brother” fear  Invest over time in terms of man hours and discipline

18. ..or in summary, implementing CRM involves Change Many of us are not yet ready or willing to make the change Are you ready ?

19. What is this likely to cost ?  It varies significantly depending on the –Functional needs –Number of Users –Where the company is starting in terms of strategy –Attitude of the staff towards technology –….etc –Rule of thumb : Average spend of €1000 per user in the first year ( + Hardware) for software, implementation, training and support based on experience. –Simple contact management requirement – much less… –Highly integrated and automated – much more…

20. Mobility  Desktop  Laptop  Remote Desktop  Remote Laptop  PDA  Internet

21. Customer example

22. Retail Example – Louis Copeland Business typeMen’s tailors LocationDublin & Galway ProductsLine 50 & ACT! Key need  To grow the size of the customer base  To keep natural focus on customer relationships and personal service How they use it  Save and manage customer data as well as sizes, styles and personal information.  Archive relevant customer information to help them to tailor services and products  Reinforce the customer/business relationship with personalised communications & SMS

23. Customer Relationship Process New customer buys Customer information card filled in Information is entered into ACT! ACT! reminder for Courtesy Call 30 days later Phone call/SMS/Voicemail/Email when new stock arrives or at pre-sale time When customer returns, salesperson consults ACT! for details

24. What this brings to the business  Much closer customer-business relationship  Consistency of service  Allowed them to increase their customer base while keeping the personal touch  “If you took the software away today, the impact on the business would be severe”

25. Louis Copeland  ‘Because of the large number of customers that we have, no one person within our company can possibly remember every unique customer requirement. ACT! helps us to remember.’  ‘ACT! puts old-fashioned values into technology. I’m very pleased with it, and anticipate using the system to help us foster even better relationships with our customers.’ Louis Copeland, Managing Director

26. Sage CRM Survey – April 2006  Sage Ireland carried out a unique survey of its CRM customers.  The first to determine the difference CRM made to: –Business effectiveness, –Credibility –Profitability.

27. Sage CRM Survey

30. Thank You Questions? David Cosgrave david.cosgrave@sage.com 1800 255 300 david.cosgrave@sage.com