Customer Relational Management

8/8/2019 Customer Relational Management

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MANAGEMENT CONCEPTS ANDPRATICES

TEAM MEMBERS: ANISH GUPTA 071218

BIDISHA MANDAL 071225AARTI MEENA 071001

HARSHIT BAHAMANI 071236

GURMEET SINGH 071234



We give our sincere thanks and gratitude to Mrs. Anju Singla for her constant

support and guidance in helping me to bring out this impeccable and

fabulous case study of two organizations on Customer Relation Manag ement.We thankfully acknowledg e the thoughtful comments, sugg estions and loyal

moral support extended by Mrs. Anju Singla under whose dynamic and

superlative leadership; we were able to complete such wonderful work in such

shortest time frame.

Lastly, we would also like to thank my classmates and friends who constantly

motivated us to work hard on the assignment and bring out the best in me.

The support of our teacher and help from our friends made us work

enthusiastically and dedicatedly on the assignment to explore the best

possible material and make this assignment to go on a level of epitome.

2MANAGEMENT CONCEPTS AND PRATICES



MANAGEMENT CONCEPTS AND PRATICES 3

Customer Relationship Manag ement (CRM) is one of those magnificent concepts

that swept the business world in the 1990·s with the promise of forever changing

the way businesses interacted with their customer bases.In the last several years, however, newer software systems and

advanced tracking features have vastly improved CRM capabilities and

the real promise of CRM is becoming a reality.As the price of newer, more customizable Internet solutions have

hit the marketplace; competition has driven the prices down so that even relativelysmall businesses are reaping the benefits of some custom CRM programs.

The g enerally accepted purpose of Customer Relationship Manag ement (CRM) is

to enable organizations to better serve its customers through theintroduction of reliable processes and procedures for

interacting with those customers.




In today·s competitive business environment, holistic approach is needed for

an eff ective and efficient CRM policy.It includes training of employees, a modification of business

processes based on customers' needs and an adoption of relevant IT-systems

(including soft- and maybe hardware) and/or usag e of IT-Services that enable the

organization or company to follow its CRM strategy.main misconception of CRM is that it is only software, instead of whole business

strategy.

CRM focuses on service automated processes, personal information gathering and

processing, and self-service.

It attempts to integrate and automate the various customer

serving processes within a company.




Three parts of application architecture of CRM:

Operational: It involves three parts:1)Enterprise Market Automation: information about business

environment including competitors, business trends and macro

environmental variables.

2)Sales Force Automation: It automates some of the company's sales and

sales force manag ement functions. It keeps track of customer preferences,

buying habits, and demographics, and also sales staff performance.3)Customer Service and Support: The customer service part automates some

service requests, complaints, product returns, and information requests.

Analytical - support to analyze customer behaviour , implements business

intelligence alike technology

C o operational - ensures the contact with customers (phone, email, fax, web...)

Technical functionality: Characteristics of CRM solution:-

Scalability - the ability to be used on a larg e scale, and to be reliably expanded

multiple communication channels - the ability to interface with users via many

diff erent devices (phone, WAP, internet, etc)

W orkflow - the ability to automatically route work through the system to diff erent

people based on a set of rules.

database - the centralized storag e (in a data warehouse) of all information




1) Identify the problem and solution:

Define your problem in clear business terms.Making your CRM challeng es specific will help you determine which

technologies or components are most likely to deliver success and how

you can prioritize your development and deployment plans.

2)Make the Short List:

Regardless of your relationship with existing vendors, previous experience, and

technology environment, you should make a short list of potential vendors andgive them a fair evaluation before you make a decision based on your

CRM goals, your existing environment and IT philosophy, your user

dynamics, your Budget.

3) Check Resumes: Look to independently developed case studies and your own

interviews with ref erences to know your vendor·s decision process, project successes

and challeng es, and whether their spending - and benefits ² met expectations.4) Justify your investment: Once you've identified your goals and selected a short list of

vendors, you can use a structured evaluation of costs and benefits to

determine the best solution in terms of ROI and build the business case for

moving forward. On the costs side, consider the initial and ongoing software, hardware,

consulting, internal personnel, and training costs associated with the project.




5) Evaluation of CRM solution:

The willingness of users to adopt the application: Successful adoption will also

depend on how much users will have to chang e their normal way of doing work to use

the solution.

The technology ability of potential users: Many CRM solutions are complex anddifficult to use; others have a more intuitive look and f eel. Choose a solution that fits

the abilities of your users.

6) Cost

In CRM, "you g et what you pay for" isn't always true. In fact, many companies in the

past have overspent on CRM components and f eatures that never delivered value to

their users - if they even made it out of the box.7) Existing Environment

How you integrate existing resources and applications into a CRM

project should not be an afterthought. In selecting a vendor, you'll want to explore how

it can integrate with your existing environment.

8) Flexibility:

how easy it will be to make chang es over time as your needs chang e.9) Deployment

Piloting a CRM solution can be a great way to judg e both whether or not the

solution will work for you and how flexible and agile the solution (and vendor) is in

responding to specific needs.




CRM Software: A key to scalability and efficiency

CRM Software provides added strength to your existing plan. CRM software is not a

"cure-all" for the CRM program in your business. Successful launch of a CRMsoftware campaign requires a strong CRM plan for your business, with

complete objectives and clear priorities. CRM software can off er

incredible accuracy, track-ability and detailed follow-up

capabilities.

How do you choose CRM Software? Does the emphasis of the CRM software packag e match the emphasis of your CRM

objectives?

Is your software user friendly? If you can't eff ectively use the software why use it

How do other companies f eel about the software?




What are some key components of CRM software?

History and Trend Manag ement

History Tracking - g et instant perspective into all customer interactions

Trend Manag ement- see the status of all pending sales and potential revenue of entire pipeline

CRM Software Automated Processes

Remote Web Synchronization- automatically follow-up with leads g enerated from your site

Automated Process Manag ement - allows consistent communication with customer based on user-

defined criteria

CRM software Data-base Information

Centralized Information - centralize, manag e and simplify access to critical business information

Industry Templates and Form s- allows access to a database of industry specific CRM forms

CRM Software Sales and Marketing Analysis

Sales & Quota Analyses - view forecasted sales, closed sales, and comparisons between sales and

quota

Leads Analysis - track responses to identify eff ective campaigns

CRM Software Mobile Technology Capabilities

Synchronization Wizard - keep calendar and contact information up-to-date on your PDA or laptop

while you travel

Remote Access Capabilities - access your CRM software through the internet.




THE RETAILERS DATA CHALLANGE

According to The Marriag e of Category Manag ement & Customer Manag ement, written

by Gary Robins and published in RIS, July 1999, Category Management and

promotion management need to include analysis of loyal customers.

Failure to consider the eff ects on loyal customers· means resources spent on category

manag ement and promotion might be and probably is in some or many cases harming

your business. Combining category and loyalty data analysis has been done before, but

with great difficulty.

The bigg est hurdle now is g etting robust, fast databases to handle the hug e amount of

integrated data.

In this economic environment, retailers must learn to generate more

business from their existing customers.

Today·s retail environment includes increased competition among stores, a g eneral

economic downturn, rising interest rates and higher gas and heating oil prices.




Customer View was designed to address these retail data challeng es. Customer View

supports the retailers. Top marketing objectives to solve these problems:

Reward loyal shoppers and g et them to buy more: In an example, a small regionalchain with seven stores targ eted 18,000 of their best customers based overall dollar

amount spent in USA. Of the 18,000 customers mailed, 921 responded, g enerating a

5.1% response rate. Total revenue brought in from this particular promotion was in

excess of $227,000 g enerating more than $22 for every dollar spent on the promotion.

Targ et top switchers

If your firm is not the lowest cost producer in the category and your switchers are price

sensitive, the best marketing strategy for addressing price-sensitive purchasers is to

attempt to change their preference structure by raising their awareness

of, and pref erence for, specific brand/product attributes.

Optimize trade areas and improve assortments store-by-store

A leading supermarket chain recently used data from loyalty programs to edit

which products to delist in a category. It is not just sales, it is how it is affecting loyal

customers was the mantra from the chain. In a test of the carbonated

beverag e category, the chain did not lose customers even after eliminating 26% of the

category·s SKUs.

Cross-sell the most profitable products and increase the averag e basket size

A leading beverag e company, which has been working with over 40 retailers, says that

use of loyalty data does help retailers increase basket size.




Who can benefit by using Customer View?

Financial

Customer View enables retailers to take existing customer data and use it to drive revenue,

increase market basket size, and build market share with no additional capital expenses and laborcosts.

Merchandisers

Customer View enables merchandisers to improve the eff ectiveness of their staff. Using Customer

View, merchandisers can quickly see how certain products can increase market basket size. Using

Customer View they can see how merchandise mix aff ects customer loyalty and adjust their

assortment accordingly. Customer View can help merchandisers measure and build retention.

Operators

Customer View can help Operations Executives make chang es in an intellig ent way. Using

Customer View a retailer can keep labor constant while increasing margins.

Consultants

Loyalty and POS databases tend to be stand-alone systems not integrated with category

manag ement systems. Most data is not clear and hosted in many locations. This leads to many

opportunities for consultants to create systems to clean the data, aggregate the data, de-duplicate

the data, household the data, etc. before the data enters the Customer View system.

Vendors

Customer View can help CPG manufacturers build category/brand sales by using real retail data.

Customer View can help them build their share of market by identifying customers buying a

particular category of products, but not their brands. Customer View can show the CPG

manufacturer how to increase multi-segment sales by identifying likely purchase behavior across

divisions, departments or categories.




The components off ered in a front- office application suite fall into three g eneralcategories:

Customer Service and Support: These applications automate the service and

support functions, including analytics, and they provide workflow engines

that facilitate efficient problem and inquiry escalation, tracking

and resolution. They provide customizable, dynamic scripting capabilities for the

customer service representatives as well as the capability to record customerresponses in a shared contact repository.

Sales Force Automation: These are tools that automate the collection and

distribution of all types of sales information. They allow for the design of

sales teams based on defined criteria. Calendar management, activity

management, sales reporting and forecasting, lead distribution,

and tracking sales contacts with customers and prospects are some of themyriad of capabilities off ered within these solutions.

Marketing Automation: These applications provide the ability to create

automated marketing campaigns and track the results. Generating

lists of customers to receive mailings or telemarketing calls, scheduling automatic or

manual follow-up activities and receiving third-party lists for incorporation into the

campaigns are all typical functions.




CRM Analytic Capabilities off er variety of resources to marketing automation:

Campaign Manag ement

Segmenting customers, generating targeted marketing campaigns

for these segments and tracking results are important parts of CRM analysis. Integrated MA tools provide these capabilities and provide campaign

off ers and results directly to the customer sales and support processes. Incorporating

off ers and solicitations into the common contact repository and prompting contact

ag ents to follow-up on campaigns can yield dramatic benefits.

Internet Personalization

Personalization is the ability to track and respond to customers in anindividualized fashion based upon their past contacts and behavior .

The true value of personalization in CRM is when it extends beyond the Internet to

encompass all customer contacts across the organization. Outbound e-mail

manag ement capabilities provide the ability to construct and execute permission-based

marketing campaigns

E-Mail Manag ementE-mail management capabilities are used in two ways in MA -

inbound and outbound. Inbound e-mail management capabilities

assist organizations in handling inbound inquiries from customers.

While on the surface this would seem to be a purely service-oriented activity,

organizations are linking these facilities to their personalization technologies and thus

tuning the resulting communications on the basis of CRM analytics.




New Customer Manag ement Tools for Higher IQ and Peak Business Results:

To create a sustainable competitive advantag e through CRM or customer manag ement

and marketing processes, a business must master leading-edg e intellig ence tools that

raise its organizational IQ (intellig ence quality) to peak levels. Fully-informedbusiness decisions, fully-informed tactics, and relevant, right-time

value propositions to individual customers ² require an integrated

infrastructure that can capture, analyze, and optimize information

from across the extended enterprise including all customer

channels ² with increasing speed and synchronicity. The best value

propositions will be created when a business has the CRM tools to do the following:

Understand the economics of your customer relationships both today and in terms of

individual lif etime value ² to better anticipate the migration of customer assets over

time;

Improve your ability to evaluate and use every customer interaction as actionable

marketing opportunities with rules driven lead manag ement tools;

Cultivate highly relevant and profitable dialogues with customers across all channels,

including the e-channel, for better strategic brand and customer equity manag ement;

Align business resources and customer communications for eff ective tactical process

execution that balances customer expectations and company objectives;

Master sophisticated multistep and event-based marketing and know when your

customers are most receptive to off ers and messag es;

Intellig ently manag e the e-channel to drive revenue growth across all channels; and

Leverag e the full power of a real-time, enterprise-wide data warehouse.




Seven Steps to Managing Your CRM Initiative:1. Business analysis: Focus on your customer data-collection process

The first step in your CRM project should be business analysis. Take a step back and look

at the areas of your firm that deal with customer data. How well are you handling data

right now? Are you collecting all the data you want from your clients or would you like to

collect more? Is this information accessible by all those who need it?

2. Needs analysis: Make a list of your customers' needsAs you ask yourself these and other questions, make a list of your customers' needs. Start

with the absolute essentials at the top. Examples of these needs may include collecting

certain types of information, a centralized database, scalability, and

capability to access the system remotely. This list should include all your

essential needs, even the needs met by your current system.

3. Product evaluation: Compare vendors and productsAfter you have your list of needs compiled, you can start comparing vendors and products.

As you are looking at f eatures off ered by the diff erent products, try to cross the critical

needs off your list first before you look at nice to haves. There will undoubtedly be

products that meet a lot of your nice to haves, but are lacking in one

or more critical needs. Critical needs must be met so that the time, money, and

ideas given to the CRM project do not chang e systems for the sake of chang e.




4. Product configuration: Make the system fit your firm

No matter what product you choose, there will most likely be some configuration that

needs to be done to make the system fit your firm. Treat this as a subproject with its

own project plan that includes timelines and milestones. Many products

are highly customizable at the front end, but far less so when they are implemented.5. Pilot implementation: Roll out a small pilot to marketing first

After you have customized the system to your specifications, roll it out in a small, pilot

environment. Start with your Marketing users; they will use the software heavily and will be

able to provide you with some high-quality f eedback. Keep it in a small group until you

have the system customized the way you want it. When you have reached that point, roll it

out to all users.6. Full implementation: Communicate with users to explain the chang e

As you roll the system out to all users, this will be a significant chang e for most of your

users. In addition to learning a new software interface, many users will be faced with

entire new business processes. The bigg est factor here is communication. Make sure your

users understand why this change is taking place; don't just mandate the

chang e. Use training sessions and documentation to assist the users with the new system.7. Evaluation: Follow-through for a successful implementation

As more and more firms are implementing CRM systems, plenty of success stories are

emerging. The firms that experience successful implementations have a plan from the

beginning and follow it through to the end. Failed implementations often are the result of

choosing a product that does not meet the firm·s needs or poor communications between

project teams and end-users.




Know the required commitment for CRM implementation success

Less thought is put into how the solution is going to be implemented which is one of the

reasons for the well documented, high failure rate.

Each person has their own way of doing things and those habits are difficult to chang e. To

overcome all of the possible obstacles.

CRM must become part of the culture of an organization and people must recognize that

by using the system they are helping the team become more eff ective as a whole. The

common mistake here is trying to do too much at one time.

The reality is that users who are overwhelmed by a tool end up not using it. It is important

that you establish and focus on short, medium and long-term goals.

Implement and Learn the Basics First

It is no surprise that once companies select a solution they race to implement thatsolution. Although often overlooked or assumed, the first goal is to make sure that the user

group is proficient on the base functionality of the system. Users need to be able to

comfortably duplicate what they have routinely been doing in the new system.

Users who quickly become proficient on this base functionality will be more apt to want to

learn more and reap the potential added benefits of more proficient use of the new system.




Outline an Implementation Strategy

The first step of implementing a new CRM system is to determine a strategy. The

implementation strategy should be developed with the software provider to determine

and document the process to roll the solution out to the user group.

User champions and administrative champions need to be selected.Look within the organization to determine whom the power users will be and solicit

their support on the project. Identify those users who will be the most reluctant to

chang e and help them understand how this will benefit them.

Short, medium and long-term goals need to be established and

monitored for each department and for the organization as a whole. Companies may

find that they want to track one metric for inside sales, another for outside sales, and athird for marketing.

Some companies have chosen to motivate users by offering incentive

compensation related directly to system utilization.

Each organization is unique and goals and incentives need to be thought through on

a case-by-case, department-by-department, and possibly user-by-user basis.

Invest Time in Training Training is a major component of long-term success and should be budg eted for

sufficiently.

Training should be divided into multiple stag es designed to fit the particular user

group needs. Those stag es may include beginner user training, advanced training,

trainer training, goal-specific training, utilization reviews, and users groups to name a

f ew.




Through dedicated and smart planning, businesses should see markedly increased

profits, as satisfied customers will continually re-visit them. Gradually, as businesses

g et to know their customers, their customers g et to know them, and a closely aligned

partnership is formed. This one-to-one relationship is the catalyst that sparks both

lif etime customer loyalty and revenue increase.

Experts at the Gartner Group believe ´the most successful organizations will be those who, through innovation and focus on business eff ectiveness rather than merely

efficiency, manag e to break the mold of traditional business thinkingµ.

The end goal of better serving customers and enabling a high percentag e of customer

retention cannot be met with out creative thinking and eff ective planning and actions.

Being on the cusp of the industry and always having a hand on the pulse of the

customer is key for success. As the CRM initiative begins to take hold, key players willsoon see patterns emerg e among customers, will discover what a productive strategy is

and what is not.

This is the essence of a successful CRM project: being able to really know what will

work for your customers, what satisfies them, and what keeps them loyal.




Advice for Breeding CRM Success:

1. Buy the best packag e you can afford. Choosing a high-end system that allows for growth is key,

Monster.com's Liddell says.

2. Choose wisely. Figure out who you need to reach and then find the software that will help you

accomplish that.3. Build and maintain a relationship with quality consultants. Consultants are important not only in

an initial deployment, but also as project parameters chang e - which they will, Liddell says.

4. Rely on internal resources. Consultants are helpful, but it's important to maintain ownership of a

CRM project. "Nobody's more interested in our success than the team at Monster.com," Liddell says.

5.Make sure everyone is onboard. It's important to have buy-in throughout the organization, Akin

says.

6. Align your project goals and implementation schedule.7. Start with a low-risk pilot. One project up and running quickly can validate your CRM concepts,

Berkson

says. Choosing a relatively simple, straightforward project - such as outfitting a department that

doesn't require integration with other back-end systems - is important

8. Aim for configuration, not customization. Take advantag e of today's CRM tool sets, Berkson says.

10. Provide adequate training. "If you have the time and the resources, train in advance of rollout,"

Akin says.9. Don't underestimate data requirements. The time and resources needed for data conversion and

cleanup will always be more than you think, Berkson says.

11. Set communications standards. In hindsight, Akin wishes his group had set content standards

among departments before going live with the project instead of trying to do it later.

12. Watch the details. CRM requires a team that is willing to take ownership of even the most minute

details.

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