7/28/2019 custumer relationship management
1/62
Chapter 1. INTRODUCTION
Customer relationship management (CRM)is a widely-implemented strategy for
managing a companys interactions with customers, clients and sales prospects. It
involves using technology to organize, automate, and synchronize business
processesprincipally sales activities, but also those formarketing, customer
service, and technical support. The overall goals are to find, attract, and win new
clients, nurture and retain those the company already has, entice former clients
back into the fold, and reduce the costs of marketing and client service. Customerrelationship management describes a company-wide business strategy including
customer-interface departments as well as other departments.
CRM Definition
CRM softwarestands for Customer Relationship Management software. CRM
provides an integrated approach to identifying, acquiring, retaining and managing
customers. For most organizations, CRM is usually implemented through a
software package - such as a database linked to a web interface - designed to
support these processes.
CRM is about organizing and streamlining of processes and information. CRM
software enables companies to quickly and easily get and provide access to all
aspects of business management and customer interactions, and also allows
customers to quickly and easily find and use information on their own. By
streamlining aspects of vendor-client interactions, CRM software helps
1
http://en.wikipedia.org/wiki/Customershttp://en.wikipedia.org/wiki/Saleshttp://en.wikipedia.org/wiki/Marketinghttp://en.wikipedia.org/wiki/Customer_servicehttp://en.wikipedia.org/wiki/Customer_servicehttp://en.wikipedia.org/wiki/Technical_supporthttp://en.wikipedia.org/wiki/Saleshttp://en.wikipedia.org/wiki/Marketinghttp://en.wikipedia.org/wiki/Customer_servicehttp://en.wikipedia.org/wiki/Customer_servicehttp://en.wikipedia.org/wiki/Technical_supporthttp://en.wikipedia.org/wiki/Customers7/28/2019 custumer relationship management
2/62
organizations manage and coordinate their businesses efficiently, as well as
provide excellent customer service.
No longer just for tech companies, industries such as the pharmaceutical,
automotive, construction, and airline industries have been implementing CRM to
manage all aspects of business and customer managment. Hospitals, banks, and
educational institutions are are also using CRM to manage qualitative data - such
as a customer's favorite products and testimonials or a patient's history - making it
easier to respond quickly and easily to individual customer needs without having to
look through files or records.
CRM software makes it easier for businesses large and small to manage the vast
amounts of information that running a business in today's world produces. CRM
software packages are highly customizable and are tailored to each organization's
individual needs for data and resource management. CRM vendors implement
single, easily navigable and user-friendly software systems that paperlessly bring
all kinds of customer and product information to employee fingertips, thereby
reducing overhead costs and saving both the organization and client time and
money.
2
7/28/2019 custumer relationship management
3/62
Chapter 2. PHASES OF CRM
The three phases in which CRM support the relationship between a business and its
customers are to:
Acquire: CRM can help a business acquire new customers through contact
management, selling, and fulfillment.
Enhance: web-enabled CRM combined with customer service tools offers
customers service from a team of sales and service specialists, which offers
customers the convenience of one-stop shopping.
Retain: CRM software and databases enable a business to identify and
reward its loyal customers and further develop its targeted marketing and
relationship marketing initiatives..
Chapter 3. History of CRM
3
http://en.wikipedia.org/wiki/Relationship_marketinghttp://en.wikipedia.org/wiki/Relationship_marketing7/28/2019 custumer relationship management
4/62
The History of CRM
CRM is an abbreviation for Customer Relationship Management, and refers to the
software and special programs used by businesses to identify customers and their
needs. CRM software is used by companies in several different industries, but
many of the businesses use them for sales purposes.
In the 1980s businesses began to utilize databases for the purposes of marketing.
This was the very beginnings of a simplified CRM programs. In the 90s, more
businesses began getting and utilizing CRM software, however, the hurdles of
expense and not knowing how to efficiently use the software became stumblingblocks to growing the CRM field.
In the 2000s the improvements in the technology of CRM software has meant an
increase in usage. The current software is easier to input information, and more
importantly easier to use the output. In early days of CRM, companies needed to
rely on CRM providers to interpret the information, which added to the cost. Now,
when companies use CRM software, they are provided training so that they can do
it themselves.
With the global economy in a difficult position, it is important for companies to
use resources properly. Those companies with CRM software are looking to work
with the software to help identify profit opportunities. Using CRM software has
many benefits for businesses.
Chapter 4. Benefits of CRM
4
7/28/2019 custumer relationship management
5/62
The use of a CRM system will confer several advantages to a company:
Quality and efficiency
Decreased costs
Decision support
Enterprise agility
Let's take a look at the advantages that a CRM or Customer Relationship
Management system can bring.
Shared or distributed data
As companies realize that customer relationships are happening on many
levels (not just through customer service or a web presence), they start to
understand the need for sharing all available data throughout the
organization. A CRM system is an enabler for making informed decisions
and follow-up, on all the different levels.
Cost reduction
A strong point in Customer Relationship Management is that it is making the
customer a partner in your business, not just a subject. As customers are
doing their own order entry, and are empowered to find the info they need to
come to a buy decision, less order entry and customer support staff isneeded.
5
7/28/2019 custumer relationship management
6/62
Better Customer Service
All data concerning interactions with customers is centralized. The customer
service department can greatly benefit from this, because they have all the
information they need at their fingertips. No need to guess, no need to ask
the customer for the n-th time. And through the use of push-technology,
customer service reps can lead the customer towards the information they
need. And, most of the time, the customer can do this on their own, as the
CRM system (remember, the 3 P's) is more and more able to anticipate the
need of the customer. The customer experience is greatly enhanced.
Increased Customer Satisfaction
The customer feels that he is more "part of the team" instead of just a subject
for sales and marketing (the proverbial number), customer service is better,
his needs are anticipated. There is no doubt that customer satisfaction will
go up. If the products sold exceed the customers expectation, of course, no
CRM system can help you with shoddy products. In my opinion, the term
statisfaction is a contaminated. Many companies think that if customers are
satisfied that this is a good predictor for repeat business. However, this is
not the case. Only delighted customers have a great level of loyalty.
Better Customer Retention
If a CRM system can help to enchant customers, this will increase customer
loyalty, and they will keep coming back to buy again and again, hence
customer retention.
6
7/28/2019 custumer relationship management
7/62
More repeat business
The repeat business is coming from the delighted customers, who are turned
from doubting clients into loyal advocates.
More new business
If you are delivering the ultimate customer experience, this will seed the
word-of-mouth buzz, which will spawn more new business.
More Profit!
More business at lower cost equals more profit.
CRM Solutions: Business Benefits
The benefits ofCRM solutions are multi-faceted and range from optimization of
customer service response times and satisfaction to reduction of operational cost.
Employees can manage their own 401(k) plans online, employers can manage
project schedules and organize employees remotely, travelers can get flight times
and transportation updates automatically, and financial transactions are immediate
and seamless. The goal ofCRM solutions is to establish relationships with
customers on an individual basis, and then use that information to treat different
7
7/28/2019 custumer relationship management
8/62
customers differently. The exchange between a customer and a company then
becomes mutually beneficial.
CRM benefits are multiple - both quantitative and qualitative - and as unique as the
businesses using them. Any organization that suffers from information overload,
whether it's keeping track of clients, transactions, or providing efficient customer
service, will benefit from implementing a CRM Solution. CRM works to organize
all aspects of the vendor-customer relationship into one easily navigable format.
Small businesses suffering from large amounts customer paperwork - due to things
like credit cards and credit accounts - can use Customer Relationship Managementsoftware to keep track of transactions, and link that to their inventory. Call centers
can use CRM to identify a customer before the call is taken, and quickly access
their purchase history as well as any previous customer service transaction notes,
thereby saving time and money. Medium size businesses can integrate CRM
solutions with their accounting records, automate quarterly customer reports and
eliminate third party services. CRM can significantly cut the amount of
outsourcing any business has to do for most aspects of Customer Relationship
Management, and greatly reduce overhead costs.
CRM has also helped to increase access to and reliability of company, market, and
client information. CRM solution enables investment firms to significantly
increase investor activity by providing current and reliable investment information
- including complete customer portfolio information - online. Consumers are moreconfident and comfortable making purchases online because they are able to read
and access product reviews. People get better medical care because health
organizations have accurate and immediate access to drug and health information.
8
7/28/2019 custumer relationship management
9/62
The benefits of CRM solutions - financially and sevice-wise, are both immediate
and long-term for vendors and their customers.
CRM makes doing business online much faster and easier. Businesses small and
large have found CRM solutions to be beneficial - and essential - to their success,
growth, development, and return on investment (ROI).
More than just customer service, CRM combines all aspects of vendor-client
relationships. CRM combines marketing, customer, and financial information so
that management, salespeople, customer service, and also the customer can access
the same information. CRM enables companies to automatically remind customers
of billing and service requirements, know what other products a customer has
purchased, and keep track of customer feedback in a detailed way. CRM integrates
all these business functions together.
Business benefits of CRM
Implementing a customer relationship management (CRM) solution might involve
considerable time and expense. However, there are many potential benefits.
A major benefit can be the development of better relations with your existing
customers, which can lead to:
increased sales through better timing by anticipating needs based on historic
trends
identifying needs more effectively by understanding specific customer
requirements
9
7/28/2019 custumer relationship management
10/62
cross-selling of other products by highlighting and suggesting alternatives or
enhancements
identifying which of your customers are profitable and which are not
This can lead to better marketing of your products or services by focusing on:
effective targeted marketing communications aimed specifically at customer
needs
a more personal approach and the development of new or improved products
and services in order to win more business in the future
Ultimately this could lead to:
enhanced customer satisfaction and retention, ensuring that your good
reputation in the marketplace continues to grow
increased value from your existing customers and reduced costs associated
with supporting and servicing them, increasing your overall efficiency and
reducing total cost of sales
improved profitability by focusing on the most profitable customers and
dealing with the unprofitable in more cost effective ways
Once your business starts to look after its existing customers effectively, efforts
can be concentrated on finding new customers and expanding your market. The
more you know about your customers, the easier it is to identify new prospects andincrease your customer base.
Even with years of accumulated knowledge, there's always room for improvement.
Customer needs change over time, and technology can make it easier to find out
10
7/28/2019 custumer relationship management
11/62
more about customers and ensure that everyone in an organisation can exploit this
information.
Disadvantages of crm
Disadvantages of CRM are as follows:
difficult to work with
require additional work inputting data
dehumanize a process that should be personal
require continuous maintenance, information updating, and system
upgrading costly
difficult to integrate with other management information systems
11
7/28/2019 custumer relationship management
12/62
Chapter 5. CRM PROBLEMS
Following are the major disadvantages that stops CRM systems from becoming
a perfect solution for any business:
Customer Dissatisfaction
Although several businesses have implemented CRM systems to focus on
customers, several clients are still dissatisfied with its execution.
They term CRM as "technology that delays" or "stops service". For instance,
lots of them find automated voice systems (or Interactive Voice Response) as a
big headache and look for companies which have eased its use.
As per a recent study conducted by Accenture, receiving poor customer service
remains the number one reason why consumers abandon one service provider
and move on to another, be it a mobile service supplier or a credit card provider.
Other factors weighing heavily in consumer defections include lack of
customised products and senseless corporate bureaucracies.
Authenticity of Remotely Hosted CRM Services
Lots of businesses these days tend to contract out CRM. At times, cost becomes
the driving factor in outsourcing CRM systems and not the vendor reputation.In such scenarios, it's possible that the CRM service provider can disappear
overnight, along with all official records. It is also possible that information
kept with the service provider might get used for other purposes.
12
7/28/2019 custumer relationship management
13/62
A good CRM service always allows the company to back up/export data so that
the outsourcing company has a control over the information. Also, in some
cases corporate and government laws stops the businesses from keeping all
client information (such as Social Security Number, Home Number, etc.) at an
external location.
Cost and Complexity Involved In Setting Up Locally Hosted CRM Software
Frequent technical expertise required for setups and upgrades of CRM systems,
makes the businesses pay for ongoing support of the application.
Security becomes company's responsibility, which can cause a few headaches -
especially as is the case with many applications, security patches are rolled out
and one needs to install them very quickly.
As the business grows, needs from a CRM package also changes and adding
these extra features can be quite expensive.
Improper Vision For Tomorrow's Needs
Bottom line is that salespeople are only interested in things that help them sell
more now.
A sales representative's only resource is time; their most important goal is
meeting quota or budget for this month, quarter, or year.
Yes, they are concerned about the long run, but if they don't make quota now,
they know that they probably won't be around to worry about the long-term.
13
7/28/2019 custumer relationship management
14/62
It's not completely fair to say that CRM doesn't benefit a salesperson in meeting
short-range goals because in some respects it does, but most sales
representatives feel that they can be just about as effective in selling in the short
term without it.
In other words, the benefits of CRM don't seem significantly greater than the
investment of time and effort required to use the system each day.
Training Sales Staff
As the CRM is still evolving, businesses are required to devote enough time and
revenue in training sales personnel. The workforce should be able to judge how
to use the stored data in best possible manner.
If they don't use it (or the information they do put in is out of date, inaccurate,
or spotty) then they can be of little value to the company who "rolls up" all this
"junk data". Inept call center employees can further worsen the situation.
Essentially, companies that don't provide service representatives with sufficient
training or information, or forms that make people fight their way through
repetitive, fruitless support systems are going to lose more customers. That's no
big surprise.
Chapter 6. CHALLENGES OF CRM
14
7/28/2019 custumer relationship management
15/62
Tools and workflows can be complex, especially for large businesses. Previously
these tools were generally limited to contact management: monitoring and
recording interactions and communications. Software solutions then expanded to
embrace deal tracking, territories, opportunities, and at the sales pipeline itself.
Next came the advent of tools for other client-interface business functions, as
described below. These tools have been, and still are, offered as on-premises
software that companies purchase and run on their own IT infrastructure.
Often, implementations are fragmentedisolated initiatives by individual
departments to address their own needs. Systems that start disunited usually stay
that way: siloed thinking and decision processes frequently lead to separate and
incompatible systems, and dysfunctional processes.
Business reputation has become a growing challenge. The outcome of internal
fragmentation that is observed and commented upon by customers is now visible to
the rest of the world in the era of the social customer, where in the past, only
employees or partners were aware of it. Addressing the fragmentation requires a
shift in philosophy and mindset within an organization so that everyone considers
the impact to the customer of policy, decisions and actions. Human response at all
levels of the organization can affect the customer experience for good or ill. Even
one unhappy customer can deliver a body blow to a business.
Chapter 7. Types/variations
Sales force automation:-
15
http://en.wikipedia.org/wiki/Contact_managementhttp://en.wikipedia.org/wiki/Information_silohttp://en.wikipedia.org/wiki/Contact_managementhttp://en.wikipedia.org/wiki/Information_silo7/28/2019 custumer relationship management
16/62
Sales force automation (SFA) involves using software to streamline all phases of
the sales process, minimizing the time that sales representatives need to spend on
each phase. This allows sales representatives to pursue more clients in a shorter
amount of time than would otherwise be possible. At the heart of SFA is a contact
management system for tracking and recording every stage in the sales process for
each prospective client, from initial contact to final disposition. Many SFA
applications also include insights into opportunities, territories, sales forecasts and
workflow automation, quote generation, and product knowledge. Modules for Web
2.0 e-commerce and pricing are new, emerging interests in SFA.
Marketing:-
CRM systems for marketing help the enterprise identify and target potential clients
and generate leads for the sales team. A key marketing capability is tracking and
measuring multichannel campaigns, including email, search, social media,
telephone and direct mail. Metrics monitored include clicks, responses, leads,
deals, and revenue. This has been superseded by marketing automation and
Prospect Relationship Management (PRM) solutions which track customer
behaviour and nurture them from first contact to sale, often cutting out the active
sales process altogether.
Customer service and support:-
Recognizing that service is an important factor in attracting and retaining
customers, organizations are increasingly turning to technology to help them
improve their clients experience while aiming to increase efficiency and minimize
costs. Even so, a 2009 study revealed that only 39% of corporate executives
believe their employees have the right tools and authority to solve client
16
http://en.wikipedia.org/wiki/Sales_force_automationhttp://en.wikipedia.org/wiki/Contact_management_systemhttp://en.wikipedia.org/wiki/Contact_management_systemhttp://en.wikipedia.org/wiki/Sales_force_automationhttp://en.wikipedia.org/wiki/Contact_management_systemhttp://en.wikipedia.org/wiki/Contact_management_system7/28/2019 custumer relationship management
17/62
problems.. The core for these applications has been and still is comprehensive call
center solutions, including such features as intelligent call routing, computer
telephone integration (CTI), and escalation capabilities.
Analytics:-
Relevant analytics capabilities are often interwoven into applications for sales,
marketing, and service. These features can be complemented and augmented with
links to separate, purpose-built applications for analytics and business intelligence.
Sales analytics let companies monitor and understand client actions and
preferences, through sales forecasting and data quality.
Marketing applications generally come withpredictive analytics to improve
segmentation and targeting, and features for measuring the effectiveness of online,
offline, and search marketing campaign. Web analytics have evolved significantly
from their starting point of merely tracking mouse clicks on Web sites. By
evaluating buy signals, marketers can see which prospects are most likely to
transact and also identify those who are bogged down in a sales process and need
assistance. Marketing and finance personnel also use analytics to assess the value
of multi-faceted programs as a whole.
These types of analytics are increasing in popularity as companies demand greater
visibility into the performance of call centers and other service and support
channels, in order to correct problems before they affect satisfaction levels.
Support-focused applications typically include dashboards similar to those for
sales, plus capabilities to measure and analyze response times, service quality,
agent performance, and the frequency of various issues.
Integrated/Collaborative:-
17
http://en.wikipedia.org/wiki/Computer_telephone_integrationhttp://en.wikipedia.org/wiki/Computer_telephone_integrationhttp://en.wikipedia.org/wiki/Predictive_analyticshttp://en.wikipedia.org/wiki/Computer_telephone_integrationhttp://en.wikipedia.org/wiki/Computer_telephone_integrationhttp://en.wikipedia.org/wiki/Predictive_analytics7/28/2019 custumer relationship management
18/62
Departments within enterprises especially large enterprises tend to function
with little collaboration. More recently, the development and adoption of these
tools and services have fostered greater fluidity and cooperation among sales,
service, and marketing. This finds expression in the concept of collaborative
systems which uses technology to build bridges between departments. For
example, feedback from a technical support center can enlighten marketers about
specific services and product features clients are asking for. Reps, in their turn,
want to be able to pursue these opportunities without the burden of re-entering
records and contact data into a separate SFA system.
Small business:-
Forsmall business, basic client service can be accomplished by a contact manager
system: an integrated solution that lets organizations and individuals efficiently
track and record interactions, including emails, documents, jobs, faxes, scheduling,
and more. These tools usually focus on accounts rather than on individual contacts.
They also generally include opportunity insight for tracking sales pipelines plus
added functionality for marketing and service. As with larger enterprises, small
businesses are finding value in online solutions, especially for mobile and
telecommuting workers.
Social media:-
Social media sites like Twitter, LinkedIn and Facebookare amplifying the voice of
people in the marketplace and are having profound and far-reaching effects on the
ways in which people buy. Customers can now research companies online and then
ask for recommendations through social media channels, making their buying
decision without contacting the company.
18
http://en.wikipedia.org/wiki/Technical_supporthttp://en.wikipedia.org/wiki/Small_businesshttp://en.wikipedia.org/wiki/Telecommutinghttp://en.wikipedia.org/wiki/Social_mediahttp://en.wikipedia.org/wiki/Twitterhttp://en.wikipedia.org/wiki/LinkedInhttp://en.wikipedia.org/wiki/Facebookhttp://en.wikipedia.org/wiki/Technical_supporthttp://en.wikipedia.org/wiki/Small_businesshttp://en.wikipedia.org/wiki/Telecommutinghttp://en.wikipedia.org/wiki/Social_mediahttp://en.wikipedia.org/wiki/Twitterhttp://en.wikipedia.org/wiki/LinkedInhttp://en.wikipedia.org/wiki/Facebook7/28/2019 custumer relationship management
19/62
People also use social media to share opinions and experiences on companies,
products and services. As social media is not as widely moderated or censored as
mainstream media, individuals can say anything they want about a company or
brand, positive or negative.
Increasingly, companies are looking to gain access to these conversations and take
part in the dialogue. More than a few systems are now integrating to social
networking sites. Social media promoters cite a number of business advantages,
such as using online communities as a source of high-quality leads and a vehicle
forcrowd sourcing solutions to client-support problems. Companies can also
leverage client stated habits and preferences to "hyper-target" their sales and
marketing communications. Some analysts take the view that business-to-business
marketers should proceed cautiously when weaving social media into their
business processes. These observers recommend careful market research to
determine if and where the phenomenon can provide measurable benefits for client
interactions, sales and support. It is statedthat people feel their interactions are
peer-to-peer between them and their contacts, and resent company involvement,
sometimes responding with negatives about that company.
Non-profit and membership-based:-
Systems for non-profit and membership-based organizations help track
constituents and their involvement in the organization. Capabilities typically
include tracking the following: fund-raising, demographics, membership levels,membership directories, volunteering and communications with individuals.
Many include tools for identifying potential donors based on previous donations
and participation. In light of the growth of social networking tools, there may be
19
http://en.wikipedia.org/wiki/Crowd_sourcinghttp://en.wikipedia.org/wiki/Crowd_sourcing7/28/2019 custumer relationship management
20/62
Chapter 8. STRATEGY OF CRM
For larger-scale enterprises, a complete and detailed plan is required to obtain the
funding, resources, and company-wide support that can make the initiative of
choosing and implementing a system successful. Benefits must be defined, risks
assessed, and cost quantified in three general areas:
Processes: Though these systems have many technological components,
business processes lie at its core. It can be seen as a more client-centric way20
7/28/2019 custumer relationship management
21/62
of doing business, enabled by technology that consolidates and intelligently
distributes pertinent information about clients, sales, marketing
effectiveness, responsiveness, and market trends. Therefore, a company
must analyze its business workflows and processes before choosing a
technology platform; some will likely need re-engineering to better serve the
overall goal of winning and satisfying clients. Moreover, planners need to
determine the types of client information that are most relevant, and how
best to employ them.
People: For an initiative to be effective, an organization must convince its
staff that the new technology and workflows will benefit employees as well
as clients. Senior executives need to be strong and visible advocates who can
clearly state and support the case for change. Collaboration, teamwork, and
two-way communication should be encouraged across hierarchical
boundaries, especially with respect to process improvement.
Technology: In evaluating technology, key factors include alignment with
the companys business process strategy and goals, including the ability todeliver the right data to the right employees and sufficient ease of adoption
and use. Platform selection is best undertaken by a carefully chosen group of
executives who understand the business processes to be automated as well as
the software issues. Depending upon the size of the company and the breadth
of data, choosing an application can take anywhere from a few weeks to a
year or more.
What Is Open Source CRM?
Open source CRM is a group of software products that provides business users
with the tools required to manage their customers. Customer relationship
21
http://www.wisegeek.com/how-do-i-manage-a-customer-relationship.htmhttp://www.wisegeek.com/how-do-i-manage-a-customer-relationship.htm7/28/2019 custumer relationship management
22/62
management (CRM) software has experienced a huge increase in demand as more
companies begin to understand the increased efficiency available with this tool.
Open source software is developed through a collaborative effort. The difference
between open source and commercial software is the ability to access the source
code.
How to manage a Customer Relationship?
Managing a relationship with customers is extremely important today or they may
turn to your competition. Maintaining a good customer relationship doesn't, and
shouldn't, mean that you almost have to give your products away to keep business.
Rather, an effective customer relationship means respecting him or her. Customers
who feel respected by being recognized by name and having any complaints
handled fairly are likely to remain loyal.
Customer loyalty cards, such as memberships with discount prices, are a good start
in building good relationships with consumers. These types of offers can show
customers that the business does care about their concerns for reasonable pricing.
Treating customers as members makes them feel welcome and like they belong to
a business and are not just entering a store to purchase something. Friendly service
with a genuine smile only adds to the great shopping experience.
22
http://www.wisegeek.com/what-is-open-source-software.htmhttp://www.wisegeek.com/what-is-source-code.htmhttp://www.wisegeek.com/what-is-source-code.htmhttp://www.wisegeek.com/how-do-i-maintain-customer-loyalty.htmhttp://www.wisegeek.com/how-many-muscles-are-used-to-smile.htmhttp://www.wisegeek.com/how-can-i-improve-my-shopping-experience.htmhttp://www.wisegeek.com/what-is-open-source-software.htmhttp://www.wisegeek.com/what-is-source-code.htmhttp://www.wisegeek.com/what-is-source-code.htmhttp://www.wisegeek.com/how-do-i-maintain-customer-loyalty.htmhttp://www.wisegeek.com/how-many-muscles-are-used-to-smile.htmhttp://www.wisegeek.com/how-can-i-improve-my-shopping-experience.htm7/28/2019 custumer relationship management
23/62
Chapter 9. The Importance of CRM Customer RelationshipManagement
CRM Customer Relationship Management is one of the newest innovations in
customer service today. CRM stands for customer relationship management and
helps the management and customer service staffs cope with customer concerns
and issues. CRM involves gathering a lot of data about the customer. The data is
then used to facilitate customer service transactions by making the information
needed to resolve the issue or concern readily available to those dealing with the
customers. This results in more satisfied customers, a more profitable business and
more resources available to the support staff. Furthermore, CRM Customer
23
7/28/2019 custumer relationship management
24/62
Relationship Management systems are a great help to the management in deciding
on the future course of the company.
As mentioned, there is much data needed for the CRM system to work. These
fields include the customer name, address, date of transactions, pending and
finished transactions, issues and complaints, status of order, shipping and
fulfillment dates, account information, demographic data and many more. This
information is important in providing the customer the answer that he or she needs
to resolve the issue without having to wait for a long time and without going to
several departments. With just a few mouse clicks, a customer support
representative for example can track the location of the customer's package or
order. This is infinitely better than the cumbersome process of tracking shipments
previously. Furthermore, the customer service representative will also be able to
see the previous concerns of the customer. This is a great help especially if the
customer is calling about the same issue since he or she will not have to repeat the
story all over again. This results in less time in resolving the issue, thus, higher
productivity of the support staff.
CRM Customer Relationship Management systems are also important to the top
management because it provides crucial data like customer satisfaction and
efficiency of service by the frontline crews. A piece of customer relationship
management software will also be able to generate the needed reports for product
development or new concepts. Furthermore, this system will also be a great help
for the top management in deciding the company's future course of action, whether
it involves phasing out one of the products on the shelves or making adjustments to
one of the products sold.
24
7/28/2019 custumer relationship management
25/62
7/28/2019 custumer relationship management
26/62
Chapter 10. CRM RESOURCES
There are several publications and websites dedicated to CRM news, systemreviews, resources, guides, and customer reviews available online. The following
is a brief list of resources that are useful when researching CRM solutions and for
keeping up to date with the most recent CRM technology.
The Customer Management Community by insightexec
www.insightexec.com
o The customer management community, Europe's leading CRM
service, provides a highly valuable set of tools, techniques, advice,
specialist events and best practice case studies to help members make
the most of customer management activities, achieve core business
26
http://www.insightexec.com/http://www.insightexec.com/7/28/2019 custumer relationship management
27/62
objectives and help improve the return on investment (ROI) of your
CRM programs.
o [news, forum, articles, events, whitepapers]
CRM Guru
www.crmguru.com
o CRMGuru is an online community focused on Customer Relationship
Management.
o [articles, forum, news, events, newsletters]
CRM Daily Newsfactor
crm-daily.newsfactor.com
o NewsFactor Network features an outstanding team of journalists who
produce daily news and industry analysis. Through syndication
agreements, the Network also features editors' picks of other top tech
stories from around the Web.
o [news, articles, whitepapers, newsletters]
IT Toolbox CRM Knowledge Base
crm.ittoolbox.com
o ITtoolbox is an interactive website that enables users to evaluate
vendor solutions, solve technical problems, research industry trends,
27
http://www.crmguru.com/http://crm-daily.newsfactor.com/http://crm.ittoolbox.com/http://www.crmguru.com/http://crm-daily.newsfactor.com/http://crm.ittoolbox.com/7/28/2019 custumer relationship management
28/62
stay current on specific segments of technology, exchange
information with other users, manage their careers, and even start their
own IT-oriented blog.
o [blogs, forum, case studies, news, white papers, articles]
CRMCommunity
www.crmcommunity.com
o CRMCommunity is a community-oriented Web source for
comprehensive, targeted information on evaluating, purchasing and
implementing customer relationship management technology and
solutions.
o [news portal, articles, events, webcasts]
destinationCRM
www.destinationcrm.com
o From the editors of CRM Magazine, destinationCRM is designed to
serve leaders engaged in the development of customer-centric
business initiatives and ventures. destinationCRM.com's internet
gateway is ideal for companies that have identified customer
relationship management as a key strategy for creating enhanced
customer value across many industries including technology,
communications, finance, retail, advertising, and healthcare. Includes
a Q&A section and sections dedicated to specific CRM topics.28
http://www.crmcommunity.com/http://www.destinationcrm.com/http://www.crmcommunity.com/http://www.destinationcrm.com/7/28/2019 custumer relationship management
29/62
7/28/2019 custumer relationship management
30/62
o [news, articles, events, webcasts, whitepapers]
Implementation
Implementation issues
Increases in revenue, higher rates of client satisfaction, and significant savings in
operating costs are some of the benefits to an enterprise. Proponents emphasize
that technology should be implemented only in the context of careful strategic and
operational planning. Implementations almost invariably fall short when one or
more facets of this prescription are ignored:
Poor planning: Initiatives can easily fail when efforts are limited to choosing
and deploying software, without an accompanying rationale, context, and
support for the workforce. In other instances, enterprises simply automate
flawed client-facing processes rather than redesign them according to best
practices.
Poor integration: For many companies, integrations are piecemeal initiatives
that address a glaring need: improving a particular client-facing process or
two or automating a favored sales or client support channel. Such point
solutions offer little or no integration or alignment with a companys
overall strategy. They offer a less than complete client view and often lead
to unsatisfactory user experiences.
Toward a solution: overcoming siloed thinking. Experts advise organizations
to recognize the immense value of integrating their client-facing operations.
30
7/28/2019 custumer relationship management
31/62
In this view, internally-focused, department-centric views should be
discarded in favor of reorienting processes toward information-sharing
across marketing, sales, and service. For example, sales representatives need
to know about current issues and relevant marketing promotions before
attempting to cross-sell to a specific client. Marketing staff should be able to
leverage client information from sales and service to better target campaigns
and offers. And support agents require quick and complete access to a
clients sales and service history.
Adoption issues
Historically, the landscape is littered with instances of low adoption rates. In 2003,
a Gartner report estimated that more than $1 billion had been spent on software
that was not being used. More recent research indicates that the problem, while
perhaps less severe, is a long way from being solved. According to CSO Insights,
less than 40 percent of 1,275 participating companies had end-user adoption rates
above 90 percent.
In a 2007 survey from the U.K., four-fifths of senior executives reported that their
biggest challenge is getting their staff to use the systems they had installed.
Further, 43 percent of respondents said they use less than half the functionality of
their existing system; 72 percent indicated they would trade functionality for ease
of use; 51 percent cited data synchronization as a major issue; and 67 percent said
that finding time to evaluate systems was a major problem. With expendituresexpected to exceed $11 billion in 2010, enterprises need to address and overcome
persistent adoption challenges. Specialists offer these recommendations for
boosting adoptions rates and coaxing users to blend these tools into their daily
workflow:
31
7/28/2019 custumer relationship management
32/62
Choose a system that is easy to use: not all solutions are created equal; some
vendors offer applications that are more user-friendly a factor that should
be as important to the decision as is functionality.
Choose appropriate capabilities: employees need to know that the time they
invest in learning and in using the new system will not be wasted, indeed
that it will yieldpersonaladvantages; otherwise, they will ignore or
circumvent the system.
Provide training: changing the way people work is no small task; to be
successful, some familiarization training and help-desk support are usuallyrequired, even with todays more usable systems.
Lead by example: upper management must use the new application
themselves, thereby showing employees that the top leaders fully support the
application or else it will skew the ultimate course of the initiative toward
failure, by risking a greatly reduced rate of adoption by employees.
32
7/28/2019 custumer relationship management
33/62
Chapter 11. Role of CRM in Insurance
Role of CRM in Insurance
CustomerRelationship Management, or CRM, is a catalyst in insurance industry
growth. Replacing the traditional in person encounter of door-to-door sales, the
CRM system engages solid business relationships to meet customer demands for
33
http://www.ehow.com/relationships-and-family/http://www.ehow.com/relationships-and-family/http://i.ehow.com/images/a06/bb/dg/role-crm-insurance-800X800.jpghttp://www.ehow.com/relationships-and-family/http://www.ehow.com/relationships-and-family/7/28/2019 custumer relationship management
34/62
7/28/2019 custumer relationship management
35/62
Collaboration between organizational team members to ensure a quality
customer service experience and follow up
Front and back end integration (supply chain)
Workflow and assignment processes
CRM Solution Success Stories
How are companies using CRM solutions? The range of organizations using CRM
systems today varies widely. While CRM was developed largely for service
providers such as banks, hospitals, and universities, businesses small and largehave found CRM to be beneficial to their bottom lines, regardless of size. Small
businesses are finding CRM solutions save them time and money by organzing
their client information, making it easier to provide quick and easy customer
service without all the paperwork and staffing. Larger companies are using CRM
to not only manage their clients, but also identify and retain new customers.
Below are a few customer stories about their experiences using CRM in different
industries worldwide.
Alta Resources
Alta Resources is an outsourcer of customized sales and service applications such
as call center management and customer data analysis applications. To keep up
with increasing internet and global demands, Alta needed a CRM solution that
integrates its clients' business processes with its own applications to create mutual
customized call center solutions for its clients. Alta Resources turned to PeopleSoft
to help them create a unified, seamless CRM solution that resulted in their ability
35
http://www.peoplesoft.com/corp/en/doc_archive/success_story/alta_ss.jsphttp://www.peoplesoft.com/corp/en/doc_archive/success_story/alta_ss.jsp7/28/2019 custumer relationship management
36/62
to expand their business, enter new markets, take on more clients, and increase
revenue significantly within a relatively short period of time.
IBM
As a longstanding technology organization, IBM suffered from too many
departments running on different platforms and applications that were no longer
compatible, as some upgraded while others didn't and new systems were
introduced. IBM was already using Sieble's CRM solution for it's call centers and
technical support, so when IBM needed help with it's sales and marketing, they
turned to Siebelonce again to create a single integrated, company-wide CRM
solution platform that supports IBM sales and marketing worldwide by providing a
single source for customer and marketplace data, in several different languages and
currencies.
Bedfordshire County Council
It's not surprising that the public sector has turned to higher-tech CRM solutions in
the past few years. Government and public agencies are responsible for interfacing
with and servicing everyone from private citizens to public corporations and
military agencies, and even small organizations can be overwhelmed with
management issues. Bedforshire City Council in the U.K. was experiencing
significant growth and a rapidly changing economy. SAP worked with the Council
to create a CRM solution that makes the Council more efficient and enhances
communications within its own department, with private companies, and with the
general public. Bedfordshire County, and other communities worldwide, hasrealized that CRM has huge potential benefits to the efficiency of our government
agencies, and can change the way government interacts with the public.
36
http://www.siebel.com/resource-library/search-result.shtm?content_type=case_studyhttp://www.siebel.com/resource-library/search-result.shtm?content_type=case_studyhttp://www.sap.com/solutions/business-suite/crm/customersuccess/index.aspxhttp://www.siebel.com/resource-library/search-result.shtm?content_type=case_studyhttp://www.sap.com/solutions/business-suite/crm/customersuccess/index.aspx7/28/2019 custumer relationship management
37/62
America OnLine
America Online, the world's largest Internet Service Provider, turned to
SalesForce.com to help it manage its extensive customer base and, on the IT end,
their customer - server interactions. AOL also had an increasingly complex sales
and marketing process that involved multiple external partners, and managing
information across multiple groups and contracts. SalesForce.com provided AOL
with a CRM solution that directs customers and employees through the fastest and
most efficient channels when seeking information or solutions, increasing
productivity for the entire organization.
Three Rivers Pharmeceuticals (3RP)
3RP is an example of a start-up company that implemented a CRM solution from
the beginning in order to maximize its profits and efficiency during this most
important growth period. 3RP had planned to do its CRM in-house, but after
researching the amount of staff and financial resources it would take to do so,
especially considering the FDA requirements they would be subject to, 3RP opted
to outsource their software services to Oracle. Oracle quickly implemented an e-business solution that allows 3RP to focus on it's research and business
development while the Oracle solutions work to manage its contracts, business
transactions, and helps to automate reports.
Blue Cross Blue Shield
Blue Cross Blue Shield worked with Pegasystems to organize and implement a
CRM system to provide accurate information via one application that could doseveral functions, as opposed to several, disconnected information centers. BCBS
saw the time it took to train new employees diminish significantly because of less
time spent teaching system navigation - only having to teach them to navigate one
or two screens instead of six or eight - and more time focusing on quality
37
http://www.oracle.com/pls/cis/Profiles.print_html?p_profile_id=6791http://www.pegasystems.com/http://www.oracle.com/pls/cis/Profiles.print_html?p_profile_id=6791http://www.pegasystems.com/7/28/2019 custumer relationship management
38/62
7/28/2019 custumer relationship management
39/62
Chapter 12. Case study:-1
Insurance and Securities Agency Streamlines Processes and Data Integration Using
Microsoft Dynamics CRM Software
By: Mike Hauck of Valmark Securities
For 45 years, Akron, Ohio-based ValMark Securities, a leading insurance
brokerage agency and securities broker dealer, has provided sales, underwriting
and administrative support to its network of over 300 wealth managers and
insurance agents. ValMark maintains a targeted member broker and agent network
that relies on ValMarks expertise in preparing investment and insurance packages
for high-net worth individuals. These insurance packages are typically valued at
three times the national average for insurance sales. In the spring of 2007, ValMark
identified the need to update its business processes and began the search for
software solutions that could address its demands to track workflows and manage
complex business relationships with multiple insurance companies, financial
institutions and investment firms.Managing complex interactions between partners
and its member sales network was one of the core business issues for ValMark
Securities. On the insurance side of the business for example, member insurance
39
7/28/2019 custumer relationship management
40/62
agents may submit sales opportunities to ValMark for customized
recommendations on financial products from a partner database of 35 insurance
carriers. Each sales opportunity for these clients is unique. High-net worth clients
typically purchase multiple securities and insurance products through the member
agent. Product recommendations are based on many client criteria using data
obtained during the underwriting process. ValMark adopt ACORD XML standards
for insurance-related data in order to facilitate electronic data interfaces. These
feeds include insurance case status, requirements ordering and status, policy
information and commission feeds. The new system would need to support these
data standards and requirements in order for ValMark to operate efficiently.
When the company realized it would be difficult to find a system to meet their
needs from existing agency management software, they explored the idea of
building the software themselves. However, expertise and resources were needed
to do so. A few years ago, ValMark Securities contracted with Customer Effective,
a value-added reseller and Microsoft Gold needed a system to track each insurance
case from the preliminary stages until the final decision or sale is closed.Data
integration was another important requirement for ValMark Securities in designing
a new customer management system. Many insurance products require intensive
data gathering during the underwriting process, which can be repetitive and time
consuming if data is not easily accessible. ValMark wanted assistance in migrating
and sharing client-related data. In addition,the insurance brokerage community
recommends that agencies Certified Partner, to replace their initial contact
management system with Microsoft Dynamics CRM 1.2. Over time, ValMark
realized the need for more customized applications to improve data integration and
track activities of its increasingly complex relationships between independent sales
agents, brokers and the insurance carriers and investment houses that provide
financial product.40
7/28/2019 custumer relationship management
41/62
ValMark contacted Customer Effective and together they worked to build a
customized agency management system within the Microsoft Dynamics CRM
platform. ValMark adopted the solution from Customer Effective known today as
Capital Effective, a relationship management solution based on the Microsoft
Dynamics CRM platform, designed exclusively for the financial services market.
ValMark chose to call their version of Capital Effective VBOSS or ValMark
Back Office Support System to emphasize that their solution is not off the shelf
but uniquely capable of supporting their business model. Employees benefit from
the solutions native integration with the Microsoft Office Outlook, which provides
a familiar, easy-to-use interface to access critical information. To further speed
adoption of the CRM solution among ValMarks employees, Customer
Effective used a unique approach to its implementation for the financial industry,
branded a User First Design FormulaTM. This approach begins with a definition
phase using input directly from the end users, designing corresponding workflows,
and modeling all potential customer interactions. Following the design phase,
Customer Effective created a strategic deployment plan to test and train employees
at every stage, integrating CRM use as part of their daily routine.
Results: CRM System Expedites Business Procedures
Since implementing the Capital Effective CRM solution, ValMark has improved
its client interaction activities and expedited the time involved in integrating data
to complete the insurance underwriting process. Accessing the system within the
Outlook environment made it easier and more intuitive for employees to use. As a
result, the CRM implementation did not entail an extensive training process, and
the learning curve was much shorter in comparison to ValMarks previous agency
management system. Additionally, Capital Effective can be changed quickly based
on user needs and ValMarks everchanging business requirements (such as quickly
adapting to industry regulations and standards, like ACORD XML). During the41
7/28/2019 custumer relationship management
42/62
rollout of the new system, ValMarks users requested that the system be
reconfigured to reduce the number of keystrokes necessary to track case
information in the system. Within a week, the system was altered to require fewer
keystrokes, allowing employees to conduct business through a more convenient
process. ValMark needed a unique solution to solve unique business requirements.
For this agency, the Microsoft Dynamics CRM platform provided the perfect
environment to address user needs for data sharing and management needs to
speed business process and sales reporting. Additionally, selecting the right
implementation partner, Customer Effective, who took the time to evaluate needs
from every level in the company, was a key part of their success in finding the
right solution.
Mike Hauckcurrently serves on the management team for ValMark Securities, a
leading insurance brokerage agency and securities broker dealer in the wealth
management and insurance industries.
42
7/28/2019 custumer relationship management
43/62
Chapter 13. Case study:-2
The Challenge:
The company needed to replace their existing CRM application that had been
supporting the Call Center activity for the past year. The existing CRM package (a
leading product in the market) had the following limitations:
Lack of performance in handling the growing number of incoming calls;
High cost to extend activities to backoffice departments the new application
needed to support communication between departments to fulfill requests initiated
at the Call Center;
Lack of flexibility and ability to change - as a package the application was not
easily customizable to address the evolving, specific needs of the insurance
business;
Integration with existing systems (claims processing and policy management) was
extremely difficult to do - users distrusted the data that was presented to them
wince it was constantly outdated. A trusted, single view of customer data didn't
exist;
The web interface was not tailored to the specific needs of insurance call agents - it
was missing concrete processes and form handling, and it was too complex in other
areas;
43
7/28/2019 custumer relationship management
44/62
Deficient analytical data - operational data was encoded in the specific metadata
format of the CRM package and too complex for 3rd party reporting systems to
use.
The Solution:
The company developed a custom Call Center and Fulfillment system with the
OutSystems Agile Platform, in just 6 weeks. The application was targeted at 100
call center agents and 150 employees from different departments that support the
backoffice follow-up process of more complex customer requests. To support the
complete caller contact/response process, the system included the following
features:
Automatic inbound handling - When a phone call is received the application
automatically pops-up so the operators can start registering the customer
interaction. The application is integrated with the companys Cisco ACD system;
Contact identification and definition- simple to use form where the contact
center agent classifies the contact (inbound or outbound call), its origin (e-mail,
phone, fax, mobile, or other) and identifies the number where the call is coming
from. The operator must also identify the calling entity: first its type (Customer,
Supplier, Agent, Employee, Third Party, etc) and then a specific person from the
database, creating a typified contact record. Depending on the contact nature, more
data can be entered, like a claim ID, a policy number or even a supplier key;
Contact automatic prioritization SLAs are defined (in the back office)
according to contacts type and reason, and the application automatically decides
44
7/28/2019 custumer relationship management
45/62
whether a call should be immediately answered, transferred or even if a task should
be opened. It also fills the deadline date for resolution automatically;
Intelligent customer routing Based on the defined SLAs, calls are
automatically transferred to the right person without any intervention from the
operator. Likewise, notifications of new tasks are automatically sent to the
responsible department. The operator no longer needs to look up a phone number
or write an email to send a notification. The whole process just became faster and
easier;
Contact Management and Analytics 84 types of contacts are catalogued and
associated to a specific workflow and SLA. From new product simulations to
claims or policy information, billing information or even agent related information
and campaigns, the call center agent is able to efficiently address and answer all
customer and partner agents calls;
Profile Management profiles and groups are managed through the backoffice
allowing the tasks to be viewed and owned by a group of people. When a specific
task is forwarded to a team, anyone belonging to the team can open the task and
become its owner. At any time the task owner can forward it to another team
member;
Contact and Task monitoring users can search on a list of all contacts and their
related details (general data, comments, tasks and history). A progress bar is shown
for all open data as well as the time remaining for closing a particular task;
Portal Integration - data collected by the contact center is available to all
applications under a portal, allowing any employee to check, for example, the
entire contacts history for a specific insurance policy;
45
7/28/2019 custumer relationship management
46/62
Real time Integration with existing claims and policy systems;
True analytics and flexible reporting capacity.
Results:
Accurate and complete collection of relevant contact data the company has
accurate contact data regarding reasons of contact, number of contacts, times of
resolution meshed with the relevant insurance business data;
No more on-the-side" tactical applications or spreadsheets. Critical, unforeseendemands from the Call Center are deployed, in some cases, in as little as 2 days;
High user satisfaction and adoption. The use of agile methodologies assured that
users were deeply involved during the whole development process, and that the
final system addressed their specific needs;
Integration with existing legacy systems was simplified and ensured that multiple
customer's related data was accurate in all systems.
46
7/28/2019 custumer relationship management
47/62
INSURANCE
Salesboom CRM software offers services in support of personal and commercial
insurance operations.
The table below addresses standard sales and support activities supported by
Salesboom CRM Software Solutions.
BUSINESS ACTIVITY SALESBOOM - INSURANCE SECTOR
Sale of financial
products such as
life insurance,
property
insurance,etc.
Marketing, sales, product
specification, pricing,
targeting activities.
Salesboom CRM lets you create highly
personalized marketing campaigns and
execute them across multiple channels.
With need analysis and product
recommendation capabilities, Salesboom
CRM helps agents close the sale by
providing the right product choices.
Salesboom CRM Referral management Automatically create leads for every
referral captured
Easily view the most valued source
of referrals
Targeted sales Maximize cross-selling
opportunities
Streamline account origination for
multiple product sales
47
7/28/2019 custumer relationship management
48/62
Call list management Accurate, complete and timely call
lists triggered by events, meetings,
predefined conditions
track, assign, escalate call activities
appropriately
deliver personalized investment
advice to clients in timely basis
Household management View data on familial and ad hoc
households
Roll up of portfolios, leads,
activities, notes, opportunities
Identify client values Consistent view of client portfolios
across multiple platforms
Accurately assess client value and
profitability
Segment clients for appropriate
marketing initiatives
Retain high value clients with
exceptional customer service
Self serve Universal sign up
Cross-channel application
processing
Targeted cross-selling
Multi-channel distribution of
48
7/28/2019 custumer relationship management
49/62
7/28/2019 custumer relationship management
50/62
Product
Description
Comprehensive and up to
date product descriptions
for sharing
Create, update and disseminate product
information that is consistent for all users.
Pricing and
Quotations
Produce and track quotes
for customers based on
pricing and
packaging/incentive
programs
Maintain history of quotations from
common pricing tables, document
incentives and successes on file.
Risk Assessment Proceed to underwriting
with solid client profile
and history in evidence.
Improves risk assessment as agents have
access to comprehensive of customer
specific underwriting from all business lines
Document
Management
Generate policy documents
such as quote packages,
declarations, certificates of
insurance, and payment
receipts
Can be generated automatically and can be
sent directly from the system to customer by
email, fax, mail.
Salesboom CRM services has capacity to integrate and support the following
business lines on-demand and as-needed to deliver successfully in your
financial enterprise:
BUSINESS
ACTIVITIES
ACTIVITIES
Marketing Develop marketing strategies and maintain campaign history in a
50
7/28/2019 custumer relationship management
51/62
Analysis company repository available as a working file, a reference repository for
lessons learned, a resources for decision making, training purposes, etc.
Sales Track sales activities, strengthen sales strategies, incorporate sales
protocols, study sales successes/failures to finesse future sales strategies,
provide instant overview for team overview and action. As a result it is
easier to develop better targeted sales offers, up-sell and cross-sell
opportunities.
Customer Service Deliver exemplary customer service with instant access to product
marketing collateral and partner product information.
Customer and
Partner
Manage information and activities for customer and partner relationships
from within one system to ensure good information exchange in support
of sales, supply management, customer and product support.Management
Call Center Manage call center services with on-line software that links the service
team in real-time to sales information, product information, pricing and
billing options and self service options.
Policy
Enforcement
CRM implementation enables consistent enforcement of organizational
policy. This capacity enhances areas where policy is important in terms
of revenue generation, legal responsibility, regulatory compliance,
Occupational Health and Safety, demonstration of fiscal due diligence.
Work-flow Embed business processes into Salesboom CRM to promote consistency
and reduce costly training activities.
BUYING IN ACTIVITIES
Customization Consider customization in the context of business lines, and updates as
changes occur. Salesboom offers a wide range of customization options
from within the system. This introduces the possibility for our customers
to manage as little or as much customization as desired from the desktop.
Once customization requirements are identified, implementation can be
accomplished with consultation with Professional Services to determine
what level of integration may be required to achieve your desired results.
51
7/28/2019 custumer relationship management
52/62
Events Driven
Advice
With access to 'up to the minute' information in organizational context, it
is possible to provide accurate advice where timely information is critical
to decision making.
Integration of
business
processes
If the customization required is complex or fairly sophisticated in terms
of true application, then the Professional Services team will review the
requirements and identify integration points and implementation options.
This includes identifying information holdings you wish to bring forward
for service support in your new system.
Technical
integration of
Web Services
Platform
Because of the flexibility built into the Salesboom CRM system, it is
possible to use the API packages to integrate existing systems for a rich
customer service environment. Additionally, Salesboom has back-end
functionality that can bring a full service on-demand system into
operation where retention and integration of existing back-end
information holdings is desirable. The Professional Services team will
work with you to identify and suggest trategic integration options.
QUESTIONNAIRE
Q1) What Is CRM?
CRM is a data tracking system used for customer, marketing, productivity and
organizational solutions. Beginning in the 1980s, CRM was focused on marketing,
but by the 1990s, with significant advances in technology, began providing
solutions to other industries. CRM has become an important part of operations in
the insurance industry.
Customers
Success in the insurance sector originates from positive customer relations. Using
CRM for your insurance book of business allows you to track leads, maintain
52
7/28/2019 custumer relationship management
53/62
customer profiles, provide more personalized service to meet specific needs and
build customer loyalty. Tools for communication, such as email, enable lead, client
and contact management.
Marketing
CRM offers a model for effective product management. Combining CRM solutions
with industry legacy systems immediately channels product enhancements while
tracking new product releases. This advancement allows insurers to meet the needs
of policy holders within a shorter product development cycle.
Productivity
Productivity and sales performance can be monitored with CRM tools. Results can
show which objectives are being met as well as areas needing improvement. After
implementing a CRM system, a leading insurance brokerage and risk management
consulting firm was able to meet set goals on performance metrics for 7,000 global
employees, according to Salesforce.com. Contact center solutions improve claims
procedures, providing first rate customer service while meeting business
requirements.
Organization
The processes of underwriting, claims processing and support are well structured
using industry software to produce positive results. Claims solutions have provided
built-in analytics, enabling an insurance carrier to save $4 million annually and
achieve 1 percent reduction in loss ratio, according to Oracle's website. This type
of efficiency strengthens relationships and keeps work processes at a high standard
Industry Growth
53
7/28/2019 custumer relationship management
54/62
The insurance industry has experienced broad strides within its corporate structure
in addition to the field division. Alleviating risk, meeting diversity needs,
improving financial challenges and employee operations are some of the successes
that customer relationship management has brought to the insurance industry.
More insurance companies are using advanced CRM technologies to meet the
needs of an increasing customer base for better retention rates and profitability.
Software developers have recognized this growth and are adapting technologies by
offering solutions specific to the insurance industry's needs.
Q2) Why is CRM important?
CRM is important for business enterprises because of three reasons.
1. Helps in acquiring new customers
Prospective customers are needed in order for companies to move forward.
Insurance CRM must have a way to gather leads or prospective clients. Cultivate
these cold leads until they turn hot with marketing or advertising. Eventually, in
theory, these leads turn into customers.
2. Helps in retaining current customers
Customer retention can be achieved with loyalty programs. Insurance CRM should
then definitely have updated information about all their customers. Centralization
of information can help in that aspect. It makes it easier to determine the customers
who are eligible for perks after some time.
3. Enhances their customers experience
54
7/28/2019 custumer relationship management
55/62
Enhancing the customers experience in dealing with the company can be achieved
in many ways. Even simple things like having all important information found
online can help.
Making sure that all clients have a way of getting customer service in a timely
manner is already of great benefit. Insurance CRM software providers can make
these things much easier. Insurance CRM can lessen the burden of the companys
Information Technology (IT) departments.
These main goals of CRM enable businesses to keep on running and continue to
grow. Without customers, what happens to businesses?
Keeping that in mind, customers are indeed an integral part of any business. None
would profit or even exist without them.
Q3) Why is CRM used in insurance?
Insurance companies do have customers. Thus, CRM plays a vital role in keeping
them. CRM also facilitates automation of many business processes. This alone
saves any company precious resources because automation does decrease operation
expenses.
Excellent customer service is also important. That includes providing information
regarding insurance plans. Providing information is crucial. Terms of agreement in
insurance should be well-understood by clients.
CRM also allows the collaboration of different departments within a company.Even insurance CRM deals with sales, customer service and marketing. In effect,
the business works seamlessly using insurance CRM.
55
7/28/2019 custumer relationship management
56/62
Q4)Why is insurance important?
Insurance, nowadays, is a requirement for various things. It is a form of risk
management. To insure something or someone means that in the event something
bad happens, people get money back for their loss.
There are different types of insurance policies. Therefore, there are also numerous
insurance companies. Insurance has many types. Here are some of the most
common types:
Vehicle
Home
Health
Accident, sickness and unemployment
Casualty
Life
Property
Liability
Credit
There are other numerous types of insurance nowadays for almost anything. Even
businesses can be insured, kidnap and ransom, legal expense, livestock and a lot
more.
56
7/28/2019 custumer relationship management
57/62
Q5)Why is CRM important?
CRM is important for business enterprises because of three reasons.
1. Helps in acquiring new customers
Prospective customers are needed in order for companies to move forward.
Insurance CRM must have a way to gather leads or prospective clients. Cultivate
these cold leads until they turn hot with marketing or advertising. Eventually, in
theory, these leads turn into customers.
2. Helps in retaining current customers
Customer retention can be achieved with loyalty programs. Insurance CRM should
then definitely have updated information about all their customers. Centralization
of information can help in that aspect. It makes it easier to determine the customers
who are eligible for perks after some time.
3. Enhances their customers experience
Enhancing the customers experience in dealing with the company can be achieved
in many ways. Even simple things like having all important information found
online can help.
Making sure that all clients have a way of getting customer service in a timely
manner is already of great benefit. Insurance CRM software providers can makethese things much easier. Insurance CRM can lessen the burden of the companys
Information Technology (IT) departments.
57
7/28/2019 custumer relationship management
58/62
These main goals of CRM enable businesses to keep on running and continue to
grow. Without customers, what happens to businesses?
Keeping that in mind, customers are indeed an integral part of any business. None
would profit or even exist without them.
Q6) Why is CRM used in insurance?
Insurance companies do have customers. Thus, CRM plays a vital role in keeping
them. CRM also facilitates automation of many business processes. This alone
saves any company precious resources because automation does decrease operation
expenses.
Excellent customer service is also important. That includes providing information
regarding insurance plans. Providing information is crucial. Terms of agreement in
insurance should be well-understood by clients.
CRM also allows the collaboration of different departments within a company.
Even insurance CRM deals with sales, customer service and marketing. In effect,
the business works seamlessly using insurance CRM.
58
7/28/2019 custumer relationship management
59/62
CONCLUSION
Insurance organizations recognize the need to identify, attract, and retain profitable
clients, but often lack a full or holistic view of their customers. In addition,
consumer demand for flexible, customized services and products that can be
accessed through multiple channels has leveled the competitive playing field.
Insurers are looking for solutions that will empower agents to make smarter
decisions at the point of contact, provide them with a complete customer view that
fuels greater customer intimacy, and supports their ability to up-sell and cross-sell
a full range of financial products and services. Though decision makers understand
the value of this comprehensive approach, they are hesitant to take the plunge.59
7/28/2019 custumer relationship management
60/62
7/28/2019 custumer relationship management
61/62
BIBLIOGRAPHY
Websiteso www.crm2day.com
o www.salesforce.com
o www.managementparadise.com
o www.google.co.in
o www.yahoo.com
61
http://www.salesforce.com/http://www.managementparadise.com/http://www.google.co.in/http://www.salesforce.com/http://www.managementparadise.com/http://www.google.co.in/7/28/2019 custumer relationship management
62/62
Reference Books
o CRM: Redefining Customer Relationship
Management
o Why CRM Doesnt Work?
o CRM: Getting It Right
Top Related