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SAP CRM Interview Questions and

Answers

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1. What is Customer Relationship Management

(CRM)?CRM is defined as aligning business strategy, corporateculture and organization, customer information, andsupporting information technology so that all customerinteractions promote a mutually beneficial relationshipbetween each customer and the enterprise. Primarily,customer relationship management is a business strategy,but it is a business strategy enabled by advances intechnology. Widespread implementation of customerinformation, Enterprise Resource Planning (ERP) systems,sales force automation, and integrated point-of-sale

systems have made customer information readily availablein large volumes. Reduced costs and higher levels ofperformance for database management platforms enable usto gain access to this customer information and gain newinsights into our customers and their behavior through a

variety of analysis methods.


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3. What is the use of CRM?

CRM stands for Customer Relationship Management. It is astrategy used to learn more about customers' needs andbehaviors in order to develop stronger relationships withthem. After all, good customer relationships are at the

heart of business success. There are many technologicalcomponents to CRM, but thinking about CRM in primarilytechnological terms is a mistake. The more useful way tothink about CRM is as a process that will help bringtogether lots of pieces of information about customers,sales, marketing effectiveness, responsiveness and markettrends.


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4. What is the goal of CRM?

The operational side of the CRM equation consists of"customer facing" applications integrated across the front,back, and mobile offices which includes sales automation(SA), enterprise marketing automation (EMA), customerservice/support, and miscellaneous components.

5. What is an automating operation?The operational side of the CRM equation consists of"customer facing" applications integrated across the front,back, and mobile offices which includes sales automation(SA), enterprise marketing automation (EMA), customerservice/support, and miscellaneous components.


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6. What are the Benefits of customerrelationship management?

The Benefits of Customer Relationship Management are: a. Sell additional products and services b. Develop new products c. Increase product utilization

d. Reduce marketing costs e. Identify and retain profitable customers f. Optimize service delivery costs g. Retain high lifetime value customers h. Enable personal and relevant communications i. Improve customer loyalty j. Improve response rates to direct mail k. Increase product profitability l. Respond quickly to market opportunities

m. Acquire new, profitable customers


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7. How the data was collected in CRM projects?

There are different types to collect data fromCRM projects:

1. Responses to Campaigns.

2. Sales and purchase data.

3. Web registration data.

4. Shipping and fulfillment dates.

5. Account Information.

6. Service and support records.

7. Demographic data.

8. Web sales data.


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8. How long will it take to get CRM in place?

A bit longer than many software salespeople will lead you tothink. Some vendors even claim their CRM "solutions" canbe installed and working in less than a week. Packages likethose are not very helpful in the long run because theydon't provide the cross-divisional and holistic customer

view needed. The time it takes to put together a well-

conceived CRM project depends on the complexity of theproject and its components

9. Can CRM and ITS server maintained in onesystem?CRM and ITS servers can be maintained in one system, butit is technically possible and whereas it is not recommendedsince it would not allow for good security if both areimplemented in one server.


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10. What is the importance of CustomerRelationship Management?The past decade has seen concentrated efforts atintegrating enterprise relationship planning (ERP) systemsat the same time that organizations eliminated Year 2000concerns. Now, an increasing number of companies areturning to customer relationship management (CRM)strategies to retain and acquire customers in a worldwide

marketplace characterized by heightened competition.11. What is the action profile in sap CRM? How to

use complaints and returns life cycle in serviceprocess?

Action Profile is a Post Processing Frame work (PPF) whichgives some output (like as smart form, fax, document) ongiven conditions. And this is used in every place in SAPCRM where we define the Conditions for the successfulimplementation of the activity. Like in OpportunityManagement, Monitoring the Activity of the enterpriseemployees etc.


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14. How to integrate R/3 with CRM? To exchange data between ECC ( R3 ) and CRM systems we

need to maintain connectivity for both systems. They are Maintain Logical Systems in both systems and link with

respective clients. Maintain RFC destinations in both systems pointing to each

other system. Maintain Number ranges as mirror images in both systems. Ex: Maintain same number range in ECC as Internal and in Below are the steps for the integration between R 3 & CRM :

SAP ECC :

1) Define logical system for ECC ( Name )2) Define logical system for CRM ( To establish the cross

connection )SAP CRM :

1) Define logical system for CRM

2) Define logical system for ECC


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15. What is the Use of R/3 condition in CRM?We are trying to replicate SAP R/3 pricing conditions to

CRM. Initial download of pricing customizing has beendone. R/3 pricing conditions are displayed in CRMcustomizing well (pricing, rebates and free goods).Though when I go in customizing (in CRM) to use theseR/3 conditions in condition maintenance undermarketing planning and campaign management, I can

see my rebates conditions, the free goods conditions butnot the other conditions applying directly in the salesorder. I have checked the configuration for the conditionsnot shown. They are categorized in: Application = CRM;Usage PR for pricing; Source R/3. Conditions created in

R/3 and replicated to CRM can only be maintained in R/3.If your middleware is set properly, any changes (VK11,VK12) will replicate to CRM. - 7 - Only conditions createdin CRM are maintained in CRM (most likely documentsthat do not replicate back to R/3, if that scenario exists for

you).


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