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Transcript of 1 CUSTOMER RELATIONSHIP MANAGEMENT (CRM) Holly Pund Jamia Seifert Nakia Sharp Olga Skiridova.
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CUSTOMER RELATIONSHIP
MANAGEMENT (CRM)
Holly PundJamia SeifertNakia Sharp
Olga Skiridova
22
“CRM is the process of predicting customer behavior and selecting actions to influence that behavior to benefit the company usually leveraging on information technology and database-related tools.”
Koh Hian Chye & Chan Kin Leong Gerry, “Data mining and customer relationship marketing in the banking Koh Hian Chye & Chan Kin Leong Gerry, “Data mining and customer relationship marketing in the banking industry.” Singapore Management Review, Vol. 24, Issue 2, 2002, pp. 1-27.industry.” Singapore Management Review, Vol. 24, Issue 2, 2002, pp. 1-27.
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Benefits of CRMBenefits of CRM
Provide better customer service Make call centers more efficient Cross sell products more effectively Help sales staff close deals faster Simplify marketing and sales processes Discover new customers
Increase customer revenues
It costs 10 times more to get a new customer than it does to keep an existing one. Moreover, evidence suggests that companies focused on their customers are achieving higher growth rates than competitors who aren't.
“What is CRM?” Ehttp://www.cio.com/research/crm/edit/crmabc.html. “Keeping Customers is Smart and Profitable” http://www.businessweeek.com/adsections/care/relationship/crm_keeping.htm. Viewed April 12, 2003 Chettayar, Krishna “Using customer information effectively.” Financial Executive, Morristown, Vol. 18, May 2002,
pp.42-43.
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5 Elements Required to Implement CRM
StrategyChannel MarketingBranding AdvertisingPricing
Segmentation Technology Process Organization
Brown, Stanley A. “Customer Relationship Management: A Strategic Imperative in the World of e-Business”.Brown, Stanley A. “Customer Relationship Management: A Strategic Imperative in the World of e-Business”. Toronto, New York: John Wiley & Sons, 2000., New York: John Wiley & Sons, 2000.
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Defining Needs of CRM
Define customer strategy
Create a channel and product strategy
Understand the importance of an integrated infrastructure strategy
“The key is for the CRM effort to move beyond sales, marketing, customer services and assisting customers to include operations and the "Office of the CEO" or strategic planning. It's critical, for example, to integrate sales-force automation with demand planning efforts that then feed supply-chain systems.”
- Larry Yu
Brown, Stanley A. “Customer Relationship Management: A Strategic Imperative in the World of e-Business”. Toronto, New York: John Wiley & Sons, 2000. Yu, Larry. “Successful customer-relationship
management.” MIT Sloan Management Review, Cambridge, Vol. 42, Issue 4, 2001, pp.18-19.
66
Corporate Structure Before CRM
“What is CRM? A White Paper by TBC Reasearch.” IT Toollbox http://crm.ittoolbox.com/browse.asp?c=CRMPeerPublishing&r=http%3A%2F%2Fwww%2Esabresys%2Ecom%2Fpdf%2FWhat%5Fis%5FCRM
%2Epdf. Viewed April 18, 2003
77 “What is CRM? A White Paper by TBC Reasearch.” IT Toollbox http://crm.ittoolbox.com/browse.asp?
c=CRMPeerPublishing&r=http%3A%2F%2Fwww%2Esabresys%2Ecom%2Fpdf%2FWhat%5Fis%5FCRM%2Epdf. Viewed April 18, 2003
Corporate Structure After CRM
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Founded in 1993 2002 Revenue: Over
$1.6B Industry-specific best
practices, CRM applications, and business processes
Founded in 1998 2002 Revenue: Over
$2.3B Customer care and billing
software and services that add value to the relationships between clients and customers
Siebel web page. http://www.siebel.com/about/index.shtm. Convergys web page.http://www.convergys.com/company_overview.html
Viewed April 22, 2003
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Founded in 1977 2001 Revenue: Over $10.8B Internet-enabled enterprise software New software license sales were down 23% in 2002
“Oracle is the first software company to develop and deploy 100 percent Internet-enabled enterprise software across its entire product line: database, server, enterprise business applications, and application development and decision support tools.”
- Oracle 2001 Annual Report
Oracle Annual Report, http://www.oracle.com/corporate/annual_report/2001/index.html?intro.html. Viewed April 22, 2003. Seewald, Nancy & D'Amico, Esther. “CRM and SCM vendors post mixed
results.” Chemical Week, New York, New York, October 2002, Vol. 164, Issue 43, pp. 23-24.
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So What is the Cost of CRM?
Despite dropping by 5.4% in 2002, the CRM market is expected to expand from a projected $42.8 billion in 2002 to $73.8 billion by 2007.
-Forrester Research
CRM is expected to grow more than $20 billion by 2004
-AMR Research
Siebel web page, http://www.siebel.com/about/index.shtm. Veiwed April 22, 2003 “CRM Overview” http://www.ittoolbox.com/help/crmoverview.asp. Viewed March 20, 2003 “Customer Relationship Management” http://advisor.aol.com/what_you_can_do_online/goals/main.adp?article=crm. Viewed April 12, 2003Anonymous,
“CRM bounces back.” Chicago, Illinois: Marketing Management, Vol. 11, Issue 5, Sept/Oct 2002, p. 4. Patron, Mark, “If database marketing was so good, why is CRM so bad?”Journal of Database Marketing, London,
Vol. 10, Issue 2, December 2002, pp. 102-104.
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So What is the Cost of CRM?
Spending on CRM applications and services, which totaled $23 billion in 2000, are projected to grow at a compound annual growth rate of 27% and exceed $75 billion in 2005.
CRM services revenue will increase 15% in 2002. The market is forecast to nearly double and reach $47B by 2006.
Worldwide, organizations spent nearly $25 billion on CRM software in 2002 Of that total, only $3.7 billion, or about 15%, was spent on packaged CRM applications.
-Gartner Group
Almquist, Eric & Carla, Heaton. “Making CRM make money.” Marketing Management, Vol. 11, Issue 3, May/Jun 2002, Chicago Illinois, pp. 16-21. Anonymous, “CRM bounces back.” Chicago,
Illinois: Marketing Management, Vol. 11, Issue 5, Sept/Oct 2002, p. 4.
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CRM Success & Failure Rates
45%
35%
20% 45% of the CRM projects
are successes that are producing definite paybacks
35% are likely to fail
20% are generating some ROI but not in a timely fashion
Panker, Jon, “Research finds CRM failure rate lower than widely reported” News Editor12 Dec 2002, SearchCRM.com http://searchcrm.techtarget.com/originalContent/0,289142,sid11_gci868891,00.html. Viewed
April 22, 2003
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Travelocity.com was launched in 1996 as part of Sabre Holdings On April 11, 2002, Travelocity became a wholly owned
company of Sabre Holdings. For 2002: Travelocity’s revenue was $308 million, an increase of 2.2 percent
compared to $302 million for 2001
Travelocity’s gross bookings reached $3.5 billion, an increase of 11.8 percent compared to $3.1 billion for 2001
Since Travelocity is no longer a publicly traded company, information concerning IT’s budget was not available
http://www.sabre.com/, viewed March 23 2003
Overview
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Overview
World’s leading travel internet site providing consumers with reservation and information access:
700 airlines 55,000 hotels 50 car rental companies 6,500 cruise and vacation packages
Over 35 million members
1,000 customer service representatives
Web site in 7 languages across 4 continents
TDWI conference keynote speakers Caroline Smith, Director of Data Warehousing at Travelocity.com & Chris Warwick, Director of Relationship Marketing at Travelocity.com – February 20 th, 2003, & interviewed in person by
Jamia Seifert
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Travelocity’s Business Objective “Develop long-term profitable relationships by providing
exceptional service and highly relevant Travel offerings:”
Increase customer conversion Increase customer retention Increase revenue per member
TDWI conference keynote speakers Caroline Smith, Director of Data Warehousing at Travelocity.com & Chris Warwick, Director of Relationship Marketing at Travelocity.com – February 20 th, 2003, & interviewed in person by
Jamia Seifert
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Develop a “single view of the customer” The most important focus of the CRM project
Travelocity chose Teradata, a division of NCR, to assist with the CRM initiative
“To achieve this vision requires having a single view of the customer - from when they begin looking to when they take their trip, and afterward. This requires segmenting customers by type (business, leisure, college, bereavement, etc.)”
- Mamie Millard, Senior VP of Technology at Travelocity
CRM Focus at Travelocity
http://www.sabre.com/, viewed March 23 2003
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Six months conversion – The maximum recommended time
Three people dedicated Mapped a middle or metadata layer into their data warehouse for
the CRM equation Common problem of underestimated the amount of time required to
cleanse the data during transfer Duplicate records The big OOPS!
Williams C.C. “Just the Ticket: Travelocity.com books Teradata for virtually instant answers.”http://www.teradatamagazine.com/articles/archive/2Q_2001/just_the_ticket.htm, July 5th, 2001. Viewed
March 23, 2003 Woodcock, Neil & Starkey, Michael. “’I wouldn't start from here': Finding a way in CRM projects.” Journal of Database Marketing, London, Vol. 9, Issue 1, 2001, pp.61-74.
Travelocity’s CRM Conversion
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Seven Steps to ImplementationImportant:
Selection of a specific business process that can be measured The use of a system that did not require a re-build along the way
Step 1: Created a team Consisted of members from Travelocity and Teradata
Travelocity (from Marketing & IT) Data warehouse developers Marketing Director Marketing Analysis Marketing Managers
Teradata Data Modeler CRM Developer Project Manager
“The private sector’s CRM-ROI formula can work in agencies too.”http://www.gcn.com/research_results/crmgmt4.html Friday March 28, 2003. Viewed March 23, 2003
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Seven Steps to ImplementationStep 2: Prepared the data warehouse
Created new logical and physical data model (customer centric) Focused on data quality Added demographic data
Step 3: Identified unique members Customers with multiple accounts are now identified as one unique
customer
TDWI conference keynote speakers Caroline Smith, Director of Data Warehousing at Travelocity.com & Chris Warwick, Director of Relationship Marketing at Travelocity.com – February 20 th, 2003, & interviewed in person by
Jamia Seifert
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Seven Steps to ImplementationStep 4: Developed Customer Segments
Travelocity Member Groups: New Members Active Lookers Short-time Inactive Members 1st Time Booker 2 + Booker Best Customers Long Term Inactive Members
TDWI conference keynote speakers Caroline Smith, Director of Data Warehousing at Travelocity.com & Chris Warwick, Director of Relationship Marketing at Travelocity.com – February 20 th, 2003, & interviewed in person by
Jamia Seifert
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Seven Steps to ImplementationStep 5: Activated Channels
Aggregated data from all customer touch-points: Web interactions Inbound email Call center interactions Offline bookings
Activated customer touch-points to drive service levels and generate sales:
Targeted offers on the web site Outbound targeted email Cross sell/upsell opportunities at customer service
TDWI conference keynote speakers Caroline Smith, Director of Data Warehousing at Travelocity.com & Chris Warwick, Director of Relationship Marketing at Travelocity.com – February 20 th, 2003, & interviewed in person by
Jamia Seifert
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Seven Steps to ImplementationStep 6: Implemented CRM Tool
Utilized Teradata’s CRM solution for campaign management: New member conversion Post booking cross sell Pre-trip “Bon Voyage” message Frequent looker Toll-free reservation line message
Step 7: Analyze Campaigns Analysis and reporting processes are in place to measure
campaign performance
TDWI conference keynote speakers Caroline Smith, Director of Data Warehousing at Travelocity.com & Chris Warwick, Director of Relationship Marketing at Travelocity.com – February 20 th, 2003, & interviewed in person by
Jamia Seifert
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Delivering Incremental ValueCRM campaigns will be added incrementally, then
measured for effectiveness
Key drivers are: Customer segment needs Merchandising plan Revenue management requirements
Presently creating a position in Marketing: Manage CRM initiatives Link the IT and Marketing groups
TDWI conference keynote speakers Caroline Smith, Director of Data Warehousing at Travelocity.com & Chris Warwick, Director of Relationship Marketing at Travelocity.com – February 20 th, 2003, & interviewed in person by
Jamia Seifert
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Travelocity’s Business & IT PartnershipLet each area focus on their expertise
Data Warehouse group and Marketing partnered on major projects: Selection of Teradata Selection of Cognos tools for DB management CRM initialization
The project budget and timeline was not available
TDWI conference keynote speakers Caroline Smith, Director of Data Warehousing at Travelocity.com & Chris Warwick, Director of Relationship Marketing at Travelocity.com – February 20 th, 2003, & interviewed in person by
Jamia Seifert
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The Effects of CRM at Travelocity500,000 automated communications sent monthly
New member welcome/conversion series Post booking cross sell Bon voyage pre-trip 20,000,000 targeted promotional emails sent monthly 8,000,000 personalized newsletters sent weekly
Travelocity’s ROI for the CRM project The CRM efforts contribute a minimum of $2 million per month to
Travelocity’s revenues
TDWI conference keynote speakers Caroline Smith, Director of Data Warehousing at Travelocity.com & Chris Warwick, Director of Relationship Marketing at Travelocity.com – February 20 th, 2003, & interviewed in person by
Jamia Seifert
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Build the foundation first, then add the bells and whistles
Set scope of project and stick to it
Dedicate resources to the project
Set internal expectations and provide frequent updates
CRM projects take more time than initially anticipated
TDWI conference keynote speakers Caroline Smith, Director of Data Warehousing at Travelocity.com & Chris Warwick, Director of Relationship Marketing at Travelocity.com – February 20 th, 2003, & interviewed in person by
Jamia Seifert
CRM Lessons Learned
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CRM Lessons Learned
CRM is never “finished”
Focus on data quality first
Determine agreement on service levels between different groups
Talk to other companies utilizing CRM
Williams C.C. “Just the Ticket: Travelocity.com books Teradata for virtually instant answers.”http://www.teradatamagazine.com/articles/archive/2Q_2001/just_the_ticket.htm, July 5th, 2001. Viewed
March 23, 2003
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Six Key Success FactorsCorporate Buy-inTravelocity’s “CRM had significant senior management support, a
factor agency IT and business managers also know to be critical to any e-commerce effort.”
- Caroline Smith, Director of Business Intelligence - Travelocity
A robust data warehouse
Obtain the “single view of the customer”
TDWI conference keynote speakers Caroline Smith, Director of Data Warehousing at Travelocity.com & Chris Warwick, Director of Relationship Marketing at Travelocity.com – February 20 th, 2003, & interviewed in person by
Jamia Seifert
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Six Key Success FactorsFlexible and scalable CRM tools
Define event and wait for it to occur Event triggers a reaction Record event in data warehouse
Employ good communication channels
Ongoing analysis and improvement Establish control groups Continuously monitor campaign performance Maintain contact history Develop and apply data modeling to improve customer targeting
TDWI conference keynote speakers Caroline Smith, Director of Data Warehousing at Travelocity.com & Chris Warwick, Director of Relationship Marketing at Travelocity.com – February 20 th, 2003, & interviewed in person by
Jamia Seifert
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Greatest CRM Challenge Constantly implementing new features and
functionality into the Web site New sources of data
Web site traffic keeps increasing Creates greater volumes of data
Williams C.C. “Just the Ticket: Travelocity.com books Teradata for virtually instant answers.”http://www.teradatamagazine.com/articles/archive/2Q_2001/just_the_ticket.htm, July 5th, 2001. Viewed
March 23, 2003
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Best Practices & Leadership Award - 2002TDWI determent Travelocity’s CRM initiatives as innovative and unique
because:
Travelocity is able to perform analyses and execute automated, personalized marketing campaigns.
“Before their CRM initiative, customer information was available to only a few end users and that information was scattered. Now, all information for all travel categories—air, car, hotel, and cruise—is in one location and is available to anyone with a need to view the information.”
- TDWI recognition statement
“Best Practices and Leadership in Data Warehousing Award Winners 2002.” January 2003http://www.dw-institute.com/research/display.asp?id=6511. Viewed March 23, 2003
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Oracle Company Background Founded 26 years ago by Larry Ellison, Bob Miner, and Ed Oates
First software company to develop and deploy 100% internet able enterprise software
The World leader in supplier software for information management
The World second largest independent software company
Producer of the World’s greatest database-Oracle 9i
http://www.oracle.com/corporate. Viewed February 2, 2003
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Oracle Company Profile
Headquarters Location: Redford Shores, California
Employees: 40,000+
Revenues for 2001: $10.8 billion
http://www.oracle.com/corporate. Viewed February 2, 2003
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Oracle Company Areas of CRM
Marketing
Sales
Service
Contracts
http://www.oracle.com/applications/customermgmt/index.html?theme.html. Viewed February 5, 2003
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Oracle Marketing Solutions
Problem: Company makes marketing decisions by instinct rather than by solid facts from data.
Solution: Oracle offers Oracle Marketing. A system that automates the entire marketing function and process.
Products:
Oracle Marketing
Oracle Trade Management
http://www.oracle.com/applications/customermgmt/index.html?theme.html. Viewed February 8, 2003
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Oracle Sales SolutionsProblem: Ill preparation of a company’s sales staff leading to its inability to hit sales targets, reduce costs, and reduce sales cycles.
Solution: Oracle provides the company with an automated business process for all sales and customer interactions.
Products:
Telesales Sales Online
Sales Offline Incentive Compensation
iStore Quoting
Configuration iPayment
http://www.oracle.com/applications/customermgmt/index.html?theme.html. Viewed February 23, 2003
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Oracle Service SolutionsProblem: A company’s inefficiency due to gaps in communication between service, field service and maintenance.
Solution: Oracle’s automated and centralized process of tracking requests and dispatching.
Products:
iSupport
Mobile Field Service
Advanced Scheduler
Field Service
Wireless Option for Service
Depot Repair
http://www.oracle.com/applications/customermgmt/index.html?theme.html. Viewed February 23, 2003
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Oracle Contract SolutionsProblem: A company’s use of manual contracts leads to omissions of important information which later results in a loss of revenue.
Solution: Oracle’s complete automation of multiple style contracts
Products:
Service Contracts
Project Contracts
Lease Management
http://www.oracle.com/applications/customermgmt/index.html?theme.html. Viewed March 13, 2003
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The Oracle Strategy of Implementing CRM
Oracle’s focus of implementing CRM to their existing customers database
Single database instance
Suite of integrated applications
Software configuration, not customization
http://www.oracle.com/applications/customermgmt/index.html?theme.html. Viewed March 13, 2003
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Oracle Case Studies
Case Study #1
McData Corporation
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McData Corporation
McDATA Corporation was founded in 1982. McDATA (Nasdaq: MCDT/MCDTA) is a global leader in open storage networking solutions and provides high performance enterprise directors and Storage Area Networks (SANs). The company manufactures and markets high-performance switching solutions — Fibre Channel for open systems environments and ESCON for IBM data centers.
http://www.mcdata.com/about/profile/index.html. Viewed March 5, 203
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Company Profile Headquarters Location: Broomfield, CO
Industry: High technology
Annual income: $101 million to $500 million
Employees: 501 to 1999
CRM Outsourcing Company: Oracle
http://www.oracle.com/customers/profiles/PROFILE3441.HTML.. Viewed March 5, 2003
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Oracle Products & ServicesOracle Products & Services
Discrete Manufacturing
eMail Center Incentive
Compensation Mobile Field Service iLearning
TeleService Sales Online Depot Repair Oracle Support iSupplier Portal
http://www.oracle.com/customers/profiles/PROFILE3441.HTML. Viewed March 5, 2003
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Implement a scaleable solution to support growth
Create a 360 degree view of the customer
Streamline processes
Lower total cost of ownership
http://www.oracle.com/customers/profiles/PROFILE3441.HTML. Viewed March 5, 2003Crafton, Thomas W. “Do you really know your customers?” Strategic Finance, Vol.
84, Issue 4, October 2002, pp. 55-57.
Project Goals for CRM
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Outcome from CRM Implementation
Avoided $5 million in cost in one year and saved $1 million
Reduced days of sales outstanding from 80 days to 50 days
Reduced quarterly close days from 21 days to 4 days
Inventory was reduced from $68 million to $43 million
Product quality was improved by 22%
On-time shipments were increased from 79% to 97%
Time necessary to create reports reduced by 95%
http://www.oracle.com/customers/profiles/PROFILE3441.HTML. Viewed March 5, 2003
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Oracle Case Study
Case Study #2
Gevity HR
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Gevity HR
As the nation's leading provider of outsourced HR solutions, Gevity HR helps businesses:
Find the right people
Manage the paperwork
Develop and manage your people
Protect your business
Retain your best employees
Gevity HR services are provided through specific offerings, such as recruiting assistance, training, benefits administration, payroll processing and related paperwork management, and legal compliance.
www.gevityhr.com. Viewed March 10, 2003
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Customer Profile
Headquarters Location: Bradenton, FL
Industry: Professional Services
Annual Income: More than $1.001 Billion
Employees: 501 to 1999
http://www.oracle.com/customers/profiles/PROFILE3389.HTML. Viewed March 10, 2003
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Oracle Products & ServicesOracle Products & Services
Scripting
Oracle9iAS Portal
HR Intelligence Self Service HR Human Resources
Financials Training
Administration Oracle Consulting
Services
http://www.oracle.com/customers/profiles/PROFILE3389.HTML. Viewed March 10, 2003
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Project Goals for CRM
Create core service transactions related to HR and payroll administration
Implement Oracle TeleService and CTI applications
http://www.oracle.com/customers/profiles/PROFILE3389.HTML. Viewed March 10, 2003
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Outcome from CRM Implementation
Reduced total work time for transactions by 27%
Doubled payroll staff productivity in 18 months, which resulted in $3 million savings in personnel cost
No new clients terminated for service related reasons in first half of 2001
Integrated 24 hour access to customer data in 41 field offices
http://www.oracle.com/customers/profiles/PROFILE3389.HTML. Viewed March 10, 2003
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Best Best PracticesPractices for CRM for CRM
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A New CRM System Alone Will Not Bring Improvements
New Technology + Old Organization = Expensive Old Organization
Andersen, Henrik, and Per Jacobsen. “Implementing CRM: 20 Steps to Success”. In Stanley Brown, ed. Customer Relationship Management: A Strategic Imperative in the World of E-Business, 269. Toronto, New York:
John Wiley & Sons, 2000.Raymond, Ed. “Sorting Out CRM Best Practices.” http://www.crmdaily.com/perl/story/20304.html, viewed April 15, 2003.
““One thing that doesn’t work is going out and buying a single package to solve all your CRM problems. Without a business case, without business buy-in, without executive sponsorship the package will not solve the problem. The problem is not the technology – it’s the culture change.There is no silver bullet.”
Liz Shahnam Roche, Meta Group Vice President,
interviewed by CRMDaily.com, December 22, 2002
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Development of Customer Centric Business Development of Customer Centric Business StrategyStrategy
Object: to find win-win opportunities with customers
Plan around customer wants, not company goals Focus on listening to customers, rather than forcing them to listen to
you Avoid promotional marketing communication; stick to informed and
informational dialog with customers
Lee, Dick. “Four Steps to Success with CRM”. http://www.crmguru.com/content/features/lee02.html, viewed April 15, 2003.
: important focus of the CRM project - to develop a
single view of the customer
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4 Ps of CRM Success4 Ps of CRM Success
PPlanninglanning PPeople eople PProcessrocess PPlatformlatform
Gerson, Richard. “Secrets of CRM Success”. http://www.crmguru.com/content/features/gerson/2001_02_08.html, viewed April 15, 2003.
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Planning
#1 - - Develop a comprehensive plan for your CRM efforts – lay out what you want your program to accomplish (how you want to capture and use the data)
Gerson, Richard. “Secrets of CRM Success”. http://www.crmguru.com/content/features/gerson/2001_02_08.html, viewed April 15,
2003.
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Planning Example
Planned CRM Activity: to capture consequently three types of customer data from a corporate website
Type of DataType of Data•customer’s e-mail address and name
•customer’s physical address and phone numbers
•customer’s purchase preferences
Usage of the Data
•To capture 80% of the visitors to the site
•To turn 90% of those first-time visitors into customers
•To capture purchase preferences to personalize their future visits; to send hard copy direct mail to influence future repeat purchases
Look towards a software solution that will allow you to perform this activity
Gerson, Richard. “Secrets of CRM Success”. http://www.crmguru.com/content/features/gerson/2001_02_08.html, viewed April 15, 2003.
choice of Teradata
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Planning
#2 - - Carefully select the initial (pilot) implementation areas within the organization that will bring the greatest benefits and quick wins
Andersen, Henrik, and Per Jacobsen. “Implementing CRM: 20 Steps to Success”. In Stanley Brown, ed. Customer Relationship Management: A Strategic Imperative in the World of E-Business. 268-283. Toronto, New
York: John Wiley & Sons, 2000.
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PPeopleeople
Get employees and partners involved and on-board with your CRM effort – generate a new company culture!
Restructure employee compensation to reinforce CRM priorities
e.g. tie employee incentives to customer-oriented indicators (customer retention and satisfaction)
Gerson, Richard. “Secrets of CRM Success”. http://www.crmguru.com/content/features/gerson/2001_02_08.html>, viewed April 15, 2003.Sims, David.
“Principles Make the Best Practices”. <http://www.crmguru.com/content/features/gerson/2001_02_08.html> viewed April 15, 2003.
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People
Establish two training protocols
#1 - Communication the culture-change and associated soft skills
#2 - Technical training
Gerson, Richard. “Secrets of CRM Success”. <http://www.crmguru.com/content/features/gerson/2001_02_08.html>, viewed April 15, 2003.
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PPeopleeople
Best CRM Practices Proportion for Training and Infrastructure Budgets
- acquisition of software and hardware
- training and change management
$1$1
$3-15$3-15
Ramesan, Kevin. “CRM Application Users are Key to Project Success”. <http://www.technologyevaluation.com/Research/ResearchHighlights/Crm/2003/01.html>, viewed January 27,
2003
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Process
Re-engineering of work processes involves:
#1 - change of departmental roles and responsibilities
#2 - adoption of new work processes; creation of a service map, including: How a customer contacts the company How you will capture the information How you will process the information Methodology of repeated contact with a customer Consolidation of info from all customer touch-points
Gerson, Richard. “Secrets of CRM Success”. <http://www.crmguru.com/content/features/gerson/2001_02_08.html>, viewed April 15, 2003.
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You have:
Set your CRM program goalsInvolved your peopleCharted the process
Now you are ready for technology!Now you are ready for technology!
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Platform
CRM software comes in all shapes, sizes and functions – it should support, but not drive new work processes
Span of Focal Points
Identify your focal point and compare it to the focal point of every software you are considering
Marketing Marketing AutomationAutomation
Sales Sales AutomationAutomation
Call Center Call Center SalesSales
Call Center Call Center ServiceService
Field Field ServiceService
Lee, Dick. “Four Steps to Success with CRM”. http://www.crmguru.com/content/features/lee02.html, viewed April 15, 2003.
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Implementation Perspective of CRM Success
3 inter-related activities of successful implementation
Leadership (10%)
Program Management (10%)
Change Management (10%)
Petersen, Glen. CRM Best Practices: The Framework For An Industry Renaissance. GSP & Associates, Inc, 2002.
In brackets percentage relative to each section’s contribution to overall success of the project
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Implementation Perspective of CRM Success
Leadership
Find a sponsor in top management – they have influence to find necessary sources and accelerate decision-making
process
Hansotia, Behram, “Gearing up for CRM: Antecedents to successful implementation.” Journal of Database Marketing, London, December 2002, Vol. 10, Issue 2.
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Implementation Perspective of CRM Success
Program ManagementProgram Management
The effort must be well-coordinated and follow a defined schedule with checkpoints
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Implementation Perspective of CRM Success
Change ManagementChange Management
A change in culture and practice must shadow your CRM initiative – communication and training play an
integral role in the implementation process
Mullin, Rick, “CRM: Show us the payback.” Chemical Week, New York, New York, October,
2001, Vol. 163, Issue 40, pp.28-29.
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Summary of Best PracticesSummary of Best Practices
Develop a customer-centric strategy in you company Set precise goals Get employees and partners involved with your CRM
effort Re-engineer work processes Select the CRM platform adequate to your goals
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Questions?Questions?