A case for crm team 11 - beacon hill version 1.1 ppt

"Successful CRM is a major business initiative, not a technology initiative"

Are you looking for an integrated sales, mar-keting and service driven processes?

Is your organization looking for an IT enabler which will help your cross-functional team-members understand and appreciate the different strengths and skills that each member brings to teams?

Are you looking for an approach which effectively manages customer relationships?

CRM is the answer.

Customer Relationship Management SystemA business strategy to acquire and maintain more loyal customers

Team 11, Beacon Hill

Anastasia Elpida Kokkota

Ato Mensah

Junhee Han

Manish Murarka

Ricardo Moraes

IT for Business Managers, Module B, MBA, 2010Professor Jim Slusser

March 2011

Final Presentation

Customer Relationship Management SystemFinal Presentation, March 2011


1. Definition2. History3. Current4. Future

Executive Summary

Introduction

Current Usage of CRM

Current Trend in CRM

Benefit of CRM

Risk Involved

Measures to Overcome Risk

ROI of CRM

Implementation of CRM

Future of CRM

Conclusion

CONTENTS

01

02

03

04

05

06

07

08

09

10

11

Customer

Relationship

Management


IT for Business Managers, Module B, MBA, 2010Professor Jim Slusser 1

01 Executive Summary

- Sales of Customer Relationship Management (CRM) software have grown

from $800 million to over $14 billion annually.

- Adoption of CRM has grown from 53 percent in 2003 to 75 percent in 2010.

- CRM is a management strategy that enables an organization to become

customer-focused and develop stronger relationships with its clientele.

- Analysts predicts that by 2015, 33% of CRM spending will be on hosted

on-demand services.



02 Introduction

1. Definition of CRM

Analysis /Reporting

RelationManagement

Service

Finance / ERP

SalesMarketing

- CRM is the ability to collect data

from customer facing mediums, and

integrate data into meaningful

information for CRM stakeholders

and business processes.

- Stakeholders within an organization

typically include executives,

marketing, customer service

(operations), finance and various

groups within the organization.



2. History of CRM

- Build a marketing database to satisfy individual customers- Improve service to key clients - Collect surveys from smaller clients

- Give incentives, gifts, and loyalty programs to customers- Increase sales

- Advanced CRM solutions that could dynamically use information. - Understanding customer needs and behaviors- Customize features for specific customer groups - Break down of information to evaluate concrete statistics & the reactions of customers

02 Introduction



3. Three Major Perspectives of CRM

02 Introduction

Technological Perspective

Customer Life Cycle Perspec-

tive

Business Strat-egy Perspective

3 Major Per-spective



02 Introduction4. CRM Strategy

STRATEGY

CRM PROGRAM

MARKETINGPROJECT

CUSTOMERSERVICEPROJECT

SALESPROJECT+ +

Begins with a Business Strategy

Leads to a CRM program

Program made up of a series of project

CRM Strategy is executed in the form of a program and projects



1. Industry

Financial Services

Telecommunication

Insurance

$12 Billion Sales Annually

$12 Billion Sales Annually

03 Current Usage of CRM

Small Com-panies

38%Large com-panies

62%



03 Current Usage of CRM2. Vendors of CRM

• Salesforce.com• Oracle• SAP• NetSuite• Epicor• Infor

ERP vendors with CRM solutions

• Cegidim Dendrite• Amdocs• Aspect• Verint Witness• Microsoft Dynamics

Pure CRM solu-tion companies

include

•SugarCRM•SplendidCRM•ConcourseConnect•Hipergate•Compiere

Top open source options include



03 Current Usage of CRM3. Different Countries Example

Middle Asia

Latin America

Asia Pacific

European Union

North America

0 10 20 30 40 50 60 70

CRM Application Rate

58%

24%

13%

3%

2%

India

- Between 2009 and 2014, CRM in

India is projected to grow at a

compound annual growth rate

(CAGR) of 16% to 19%

- One of the fasted growing CRM

countries in the world.



04 Current Trend in CRM

Uses new online channels and

new communica-tion tools

Trusts in advices made by online acquaintances and strangers

Seeks support to connect with like-

mined peers

Reads and cre-ates product re-views, product rankings and

blog posts

Trends to buy more online than

offline

Wants to provide feedback about the product and

customer service

Expects better customer experi-

ence

Customer

1. Fundamental changes in Customer behavior




AcquisitionTargeting

RetentionExpansion

DecisionEstablishingNeed

ExperienceSharingImpressions

Marketing Sales CustomerService

Support Processes ValueOperating Processes

- Customer processes developed from the company standpoint (Customer Life Cycle for the company)

- Process Centric : Adapt and optimize processes to support better customer interaction

- Focused on CRM processes

- Company processes developed from the customer standpoint (Company Life Cycle for the customer)

- Conversation Centric : Include the conversation factor to establish brand community, enable idea capturing and better segmentation- Focused on the evolution of CRM processes and resulting impacts in the value chain

VS

2. Paradigm Shift in CRM




Process Support

Account ManagementContact ManagementActivity Management

Lead / Opp ManagementCampaign Management

Sales ManagementService Management

…

Process Support

Account ManagementContact ManagementActivity Management

Lead / Opp ManagementCampaign Management

Sales ManagementService Management

…

Forums

Widgets

RSS

Blogs

Wikis Podcast

Social Networks

Conversation Tools

Monitoring /Interconnecting Tools

DataMining

CustomerOwnedData

APIs Open ID

CloudComputingBrand Monitoring

Service

VS

- CRM Solutions focused in automating and supporting internal business processes

- CRM Solutions focused in community creation internally and externally

3. Conceptual Extensibility in CRM

11



05 Benefit of CRM1. Benefit of CRM

Increased Revenue

Decreased Cost

Intangibles

- Up Sell / Close Sell- Attract New Customer- Improve Customer Retention

- Automate Tasks- Improve Campaign Efficiency- Improve Forecast Accuracy and Timeline

- Marketplace Differentiation- Increase Knowledge Retention- Increase Customer Satisfaction- Improve Product Pricing Model- Increase your Understanding of your Customer

Increased Revenue

Other

Lowered Costs

Increased Competitive Advantage

Improved Effectiveness

Improved Efficiency

0 10 20 30 40 50 60 70

Typical Benefits Claimed

*Garner Survey of December 2003, 150 respondents

55%

29%

28%

23%

61%

35%

12



05 Benefit of CRM

Company Business Benefits of CRM

Mitsubishi Motors NA - 8% reduction in call abandon rate- Able to handle 75% increase in call volume with similar level of staffing

Honeywell Industrial Control - Customer satisfaction rose from 92.3% to 98.1 %- 15% reduction in call center personal costs

SKF - 25% increase in service related revenues

FleetBoston - Increased the number of products sold per customer from 4.6 to 6.2- 200% return on technology investment through cost reductions

Telstra - Threefold gain in employee productivity

Novell - Achieved 99% forecasting accuracy

Quick & Reilly - 10% increase in customer retention

2. Business Facts of CRM

13



06 Risk Involved

“A customer service system affects the culture of the organization” – Paul Doughty, VP of sales consulting, KANA software -

1. Risk of CRM

Organizational Risks

Technological Risks

-- Company’s own ability to undertake the project-- Users acceptance

-- Current vs. New-- Lose sight of the end goal. -- Too much focus on the technological aspect

Vendor Risks

Market Risks

- Stability and maturity of the vendor- Long-term commitment

- Uncertain times- Consolidation of the industry

14



07 Measures to Overcome Risk1. Critical Success Factor

CEO Involvement

Risk Management

Data Integrity

Security Management

Culture Shift

Performance Metrics

Software and Legacy System Integration

Business Process Change

Executive Commitment

Minimize Risk Expose

Common across the Enterprise

Control the Data One Collects

From Product Centric to Customer Centric

Determine Metrics / Establish Baseline

Avoid Data Pockets

More Important than Technology Change

15



07 Measures to Overcome Risk2. Overcoming Risk

- Create a customer focused environment.

- State clear objectives.

- Focus less on technology, make sure business and IT are both responsible for implementation.

- Roll out CRM in phases if the company is large.

- Do not take a whole vender solution, because it seems comprehensive.

16



08 ROI of CRM1. CRM Industry Expenses

Software Licenses16%

Software Maintenance 6%

Hardware7%

Telecommunication5%

System Intergrators27%

Software Vendor Pro-fessional Service

4%

Internal Staff16%

Other19%

CRM Spending by Categoty


17



08 ROI of CRM2. ROI Metrics

Economic Value Added

Other

Benfit-Cost Ratio

Payback Period

Internal Rate of Return

Net Present Value

0 5 10 15 20 25 30 35

Common ROI Methodologies for CRM


ROI Metrics

As reported in Garner Survey, the most

common financial measures are NPV,

IRR, Payback Period, Benefit-Cost

Ratio and Economic Value Add (EVA)

18

22.8%

8.8%

3.5%

29.8%

10.5%

24.6%



09 Implementation of CRM

Life Cycle Phase2011 2012

04 05 06 07 08 09 10 11 12 01 02 03 04 05 06 07 08

INVESTMENT APPRAISAL

Business Case Objective ; Get project buy-in, approval and funding

Business Case Role ; Inform and convince, develop collective ownership

Key Persons and Groups Involved ; Executive sponsor project owner, investment committee

PROJECT EXECUTION

Business Case Objective ; Keep project on track

Business Case Role ; Baseline reference for scope decisions

Key Persons and Groups Involved ; Project manage, project steering committee

BENEFIT HARVESTING

Business Case Objective ; Achieve project payoff

Business Case Role ; Measurement yardstick for auditing

Key Persons and Groups Involved ; Business unit management, auditors

19



10 Future of CRM

• Corporate Performance Management (CPM)

• Customer Interaction Management (CIM)

• On-demand, less integrations on site.

• Software as a service (SaaS) CRM, managed in the

Cloud Compounding

• The rise of social CRM

20



11 Conclusion

• Identify High-Value customers

• Build Customer Loyalty to grow Revenues

• Reduce Costs through Micromarketing

• Create a Customer-Focused Organization

CRM is an IT enabler

21

IT can Help…But there are Non-IT Hurdles…



11 Conclusion

• Getting the right data

• Organizational Resistance

• Performance Management and

• Reward Systems

Non IT Hurdles for CRM

22

“How you gather, manage, and use customer information will de-termine your organization success or failure"

- Beacon Hill Team 11 -

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