CRM Intro

Customer Relationship Management
1
A BRIEF HISTORY
1980s: Database Marketing
– speak individually to countless customers
– The reality: It's too costly, too difficult, and

doesn't pay out on the bottom line
– the compromise: A little database marketing goes

a long way, maybe plus an iota of demographics
2
A BRIEF HISTORY
1990s: Relationship Marketing

– Major phenomenon: Loyalty programs.
– Major promise: Loyalty!
– Major result:
Companies such as airlines now have an
enormous incremental layer of expenses,
without much to show for it
Early 2000's: Customer Relationship Management
– Major phenomenon: Great promise

– Major reality: Promise unattained.
3
Evolution of Information Requirements
Materials Requirements Planning

(MRP)
Manufacturing Resource Planning

(MRP II)
Enterprise Resource Planning

(ERP)
Supply Chain Management

(SCM)
Customer Relationship Management (CRM)
4
Types of relationship marketing

Basic
Sale of product with no support and/or follow-up.
Reactive
Sale of product with minimal support.
Accountable
Following sale of the product, the salesperson follows up
and checks that all is going well. Customer suggests
improvements that are acted upon.
Proactive
Company contacts the existing customers finding out if
current product is meeting their needs. Defining future
needs and putting forward suggestions.
Partnership
Company continuously works with the customers to discover
ways to deliver better value.
5
Profit volume matrix
Relationship levels as a function of proﬁt margin and number of customers

6
Every Company’s Big Unknown ... Customer Value
bi ip
Full
ita sh
y
lit
of on
Potential
Pr lati
Re
Number of Relationships
Current
Current
Customer
Value
Current
Relationship Duration
7
Establishing a relationship-marketing programme
Identify the key customers meriting relationship

management
Assign a skilled manager to each key customer
Develop a clear job description for relationship

management
Have each relationship manager develop annual

and long range customer relationship plans
Appoint an overall manager to supervise the

relationship managers
8
What is CRM
Craig Conway ,CEO – People Soft
Customer approaches a business with an

expectation.
On company reactions they form an experience
that shapes their behavior. The ability to recognise
this process & to actively manage it forms basis of
CRM
Scott Fletcher , President - epipeline
Set of business process/policies that are designed

to acquire retain and service customers.
9
Ronni Marshak –Seybolds group

Every company’s game plan includes
Goals – Profitability
Strategy – Establish L.T customer relationships
Plans – Invest in CRM technology
Objectives –Achieve 60 % customer retention
Tactics – Implement 24/7 call centre
Robert Thompson , President , Front Line Solutions
CRM is a business strategy to select and manage customers to

optimize long term value.
CRM requires customer centric business philosophy & culture to
support effective marketing , sales & Service processes
10
Brent Frei , CEO Onyx Software

CRM is a comprehensive set of processes and technologies for
managing the relationships with potential and current customers
across marketing sales and service functions
Peter Keen ,Chairman Keen Innovations

CRM is the commitment of the company to place the customer
experience at the centre of its priorities
& to ensure that incentive systems , processes and
information resources leverage the relationship by enhancing the
experience
11
Customer Relationship Management Definition

Value ( $ )
nship
ela tio
he R
ue of t
al
he V
Duration of Customer Relationship
T
Targeting Acquisition Retention Expansion
• Who Do we target • What is the best channel for • How can we improve • How many products does our
• What segments are most each segment retention average customer buy
profitable • What is the acquisition cost for • What is our average • How can we induce our
• What segments match our Value a channel / segment customer relationship length current base to buy more
Proposition • Do certain channels deliver • How can we hold customer products
• What is the best segmentation certain types of customers for as long as possible • Who are the prime targets for
strategy for us / our industry • Cost effective acquisition • What is the most cost expansion
effective method of retention • What is the cost of expansion
Customer Relationship Management can be simply defined as everything involved with

managing the customer relationship.
12
Islands of Automation Need To Be Bridged

Over time, channels & operational systems are added to cater to changing customer
demands. The result…several functional groups are interacting with customers
independently.
Sales
Force
Customer
Service
Direct
Mail
We
b
$ Branche
s
13
Why CRM?
 It costs six times more to sell to new customer than to sell

to an existing one.
 A typical dissatisfied customer will tell 8-10 people
 By increasing the customer retention rate by 5%, profits
could increase by by 85%
 Odds of selling to new customers = 15%, as compared to
those for existing customers (50%)
 70% of the complaining customers will remain loyal if
problem is solved
 90% of companies do not have the sales and service
integration to support e-commerce
14
Goals of CRM?
* Provide better customer service

* Make call centres more efficient
* Cross sell products more effectively
* Helps sales team close deals faster
* Simplify marketing and sales process
* Discover new customers
* Increase customer revenues
15
Importance of CRM
Scope Depth
Customer Management Process
Marketing Selling
Threads Servicing
Customer Interaction Channels
Are we making the

Customer Relationship right level and type
of marketing, sales,
Broadcast Strategies and service
investments in each
Mail of our customer
segments?
Field Personnel
Are we taking a
Customer Relationship holistic approach to
Agents/Distributors
Structure our customers
across processes
Call Center and channels?
Retail
Internet Customer Relationship Have we

implemented best
Performance practices and
technology in
process/channel?
Back Office Process/Systems
16
Customer Relationship Management and Shareholder Value

Annual Cash Flow
Service/Usage Revenue
Acquisition
Cost
Duration of
Relationship
Cost of Service
 Customer Life Time Value (LTV) is defined by a customer’s Life Time worth
to the firm and is measured by the net present value (NPV) of the cash flows
generated over the Life Time of the relationship.
Successful Customer Relationship Management can generate positive shareholder value.
17
The Benefits of Customer Relationship Management

 In addition to LTV of the customer, likelihood to recommend is another
important benefit of CRM.
High Ownership of Problems
Impact on Service Quality

Available at
Convenient Times Know. Product/Svcs.
Resolution Time
Likelihood to
Acquisition Retention Lift/upsell
Recommend
Courteous
Easy to Reach
Access to
# of Rings Live AgentsRight Tel. #
Low Know. About Account
Low High
Total Perceived Current Performance
Value
The customer value analysis should be performed for each segment individually. The
perceived importance of price and service drivers can differ significantly by segment.
18
The Five Key Drivers of the Lifetime Value of a Customer
 Cost of Targeting;
 Cost of Acquisition;
 Service and Usage Revenue;
 Cost of service; and
 Duration of relationship.
Customer Relationship Management is about making every customer as valuable as

possible over the lifetime of the relationship
19
Customer Relationship Management Process
Capture
Capture Customer
Customer Data
Data
and and Measure
Measure
Results
Results
Capture Customer
The
DataCustomer
and Measure
Results Store Data, Mine
Capture Customer
and Make
The CRM Data and Measure
Information
Results
Accessible
Dynamic
Take Action
Capture to
Customer
Enrich the Customer
Data and Measure
Relationship Capture
Results Build and Customer
Manage
Data and Measure
Customer Value
Results
 The building blocks of CRM allow an organization to manage this cycle and use the
knowledge on customers to enhance the Life Time value of the customer portfolio.
 No organization has perfect information on its customers. Knowledge of customers is
continuously enhanced through the CRM dynamic.
Customer Relationship Management is a ongoing, dynamic learning process for an organization
20
Implementing CRM must be approached from an Integrated
Perspective Capture
Capture Customer
Customer Data
Data
and and Measure
Measure Capturing gigabytes of customer data
Results
Results in disparate operational systems that
are next to impossible to access may
render the data useless.
Taking action to improve the
Capture Customer
relationship without measuring the
results provides no evidence of
The
DataCustomer
and Measure CRM Store Data, Mine
Results
success or failure and limits the
opportunity for learning. without an Capture Customer
and Make
Data and Measure
information
Integrated Results
Accessible
A data warehouse full of data without
Approach the tools to extract knowledge is
nothing more than expensive
inventory.
Take Action
Capture to
Customer Sophisticated mining tools only
Enrich the Customer
Data and Measure produce results only as good as the
Relationship
Results Capture data they mine.
Build and Customer
Manage
Data and Measure
Customer Value
Results
Implementing new technologies without
the knowledge on how to enrich the Developing insights on how to improve the value of the
relationship is likely to yield a return below customer relationship without having the infrastructure to
the cost of the capital expenditure. take action has no impact on the bottom line. In addition,
there is no opportunity to test the ‘theoretical’ analysis.
All areas must be implemented, to some degree, to effectively manage the customer
relationship. When pieces are implemented in isolation, the benefits are less than
overwhelming.
21
The Building Blocks of CRM

Data Data Knowledge Enabling
Capture Warehousing Management Technologies
Customer Touch
EIS Segmentation Call Centres
Point Integration
Market Customer Sales Process

OLAP
Research Profitability Automation
External
Data Cleansing Data Mining e-Business
Databases
Statistical
MetaData Modeling
Organization
People
Deployment and Support
The building blocks of CRM are the things that need to be in place for an effective Customer
Relationship management program
22
Data Capture and Warehouse

 What Data do we capture on Customers?
Derived Data
Segments Profitability Life Time Value Intentions
Customer Customer Customer External

Behaviour Interactions Profile Data
Product / Service
Inbound Contact
Demographics /
demographics
Usage Profile
Firmgraphics
Preferences
Migration in
Information
Acquisition
Campaign
Outbound
Switching
Attitudes
Loyalty /
Census
Contact
History
Usage
Geo-
Product Portfolio Householding
Base Data
The Customer Data Model
23
Why CRM and conventional corporate culture are at odds?
There are three prevalent corporate inhibitors to making

CRM work:
1) Cultural
– most companies don't really care about their
customers
2) Economic
– CRM requires investment spending
3) Linguistic
– Customer Relationship Management is fraught
with so much jargon and so many acronyms: OLAP, Data
Warehousing, ERP, P-CRM, drilling down, WAP, ADRI
24
Enabling Technologies
25
CRM Technology
Operational CRM is the customer facing applications.

Customer service SFA Front office suites Call centres
Analytical CRM – capture storage extraction reporting of

Customer data to user
Collaborative CRM
Any CRM function that provides a point of interaction between
customer and channel
26
The Enabling Technologies

 Call Centre
 Sales Force Automation
 e-Business
Techniques: Relationship marketing, automated packaging and pricing, knowledge-based selling

• Increase revenue from your customer base • Consultative selling
• Customer satisfaction measure • Responsiveness to market conditions
Sales Force Automation

Techniques: ACD, IVR, CTI Techniques: WEB based
• Automatic Call Distribution (ACD) application, e-mail processing
Electronic Business
• Incoming Call Queuing CRM
• Performance Statistics • Automated product and service
Call Centre
• Integrated Voice Response (IVR) Technologies information

• Automated Inquiry & Transactions • WEB based sales and support
• Automated screen “pop” on agent’s through standard menus and
screen automated help screens.
• Integration with company legacy • WEB based training
platforms • Reaching the global market
• Billing & Meter Reading
• Direct Access to Customer Data
27
CRM Technologies on the Rise

 The implementation of CRM
technologies is projected to “The overall use of technology for selling is
accelerate over the next few years growing by more than 50% annually.”
– Gartner Group
“Sales Force Automation is the fastest

growing segment of the high-growth
(Dollars In Millions)
$3,000 $2,744 Client/server market, estimated to represent

$2,500 $3 billion in revenues by 1997.”
$2,000
$1,960 – Market Intelligence Research Corp.
$1,400
$1,500 “Sales Force Automation will become a major
$1,000
$1,000
driver behind enterprise-wide BPR
(inexorably linked to development of the
$500
customer-focused organization)”
$0 – META Group
1996 1997 1998 1999
CRM Revenue “Customer Management is a major initiative at

nearly 80% of Fortune 500 companies and
Source: IDC will grow to a $4.8 billion market by 2001.”
– Aberdeen Group,
Inc.
28
Call Centres - Definition

Call centres are a key enabling arm of Customer Relationship Management. A well designed call centre will
integrate people, process, and technology to improve operational efficiency and maximize the value of the customer
relationship for both inbound and outbound contact.
Call Centre
Technologies
People Process
IVR ACD
♦ External customer ♦ Marketing / up-selling
♦ Internal customer ♦ Technical support
♦ Sales Force ♦ Product support
♦ Support team ♦ Service support
♦ Back-office ♦ 7 x 24 support
CTI
♦ Technical staff Information
• Customer data updates, purchase information • Customer history, billing, purchases, value, profile
• Leads tracking update, customer tracking updates • Product & service information, packages, prices
• Call statistics, inquiries, etc. • Marketing hints, reports, promotions
Data
Warehouse
29
Call Centres - Architecture
Data
Warehous
e
• Customized Agent Desktop

Applications by Customer &
Call Type
• Automated Scripting of Call
Handling & Wrap-up
• Flexibility to Add New
Products, Services, and
Customer Service
Opportunities
• Scripted Cross-Selling
• Legacy Integration
• Billing & Meter Reading
• Direct Access
30
There is a major transition to integrated delivery channels and to
provide “one face” to the customer.
Call Centre Call Centre of the Future
Old Rule New Rule
Paradigm Shifts
Multiple
Multipleproducts
products
Single
Singleproduct
product and
andcross
crossselling
selling
Backroom
Backroomoperation
operation Front
FrontOffice
Officeoperation
operation
Stand-alone
Stand-aloneoperation
operation Distribution
Distributionchannel
channel&&
&&information
information information
informationintegration
integration
Leading
Leadingedge
edgeand
and
Minimal
Minimaltechnology
technology integrated
integratedtechnology
technology
Reactive
Reactive Proactive
Proactive
Low
Lowskilled
skilledCSR’s
CSR’s Multi-skilled
Multi-skilledCSR’s
CSR’s
Tactical
Tactical Strategic
Strategic
Customer Inquiries Enhanced Customer Satisfaction

Cost of Business and Retention Revenue Growth
Lower Cost Distribution
31
Sales Process Automation - Definition

 Sales Process Automation (SPA) is the approach for helping organizations dramatically improve their
sales and marketing effectiveness through the reengineering and automation of their sales and
marketing processes, with the ultimate goal of increasing revenues. SPA combines a working
knowledge of the market’s best ideas, technologies, and vendors with a practical, relentless focus on
implementation to deliver outstanding shareholder and customer value.
Basic Features
• Intranet - as an alternative sales channel • News Service - Optional news sorting and reporting
• Electronic catalog - On-line self served service will result in informed sales people
ordering • Order Entry Quoting - On the spot quoting will not
• Commission - Effective tracking of performances give the client a chance to shop around and be
and accurate commissioning hunted
• Opportunity Management - tools such as • Proposal Development - Automated document
automated customer data analysis and pop-up creation based on corporate standards
screens will assist in up-selling • Pricing - Automated on-line prices based on
• Competitor Data - effective analysis of competitive company rules
data and automated access for sales force • Product - On-line and easily accessed
• Contact Management - Effective tracking and • Just-in-Time Training - Automated training, WEB
follow-up of leads based training, and self training through information
• Customer Data - Sales people will have a sharing
complete analysis of the customer before their • Electronic Kiosk - WEB page shopping.
eyes when attending to a customer. No wait, no
repeated questions, no frustrated customers
32
Sales Process Automation - Benefits

PERCEIVED BENEFITS OF SPA FIELD TECHNOLOGY
ImproveSales Effectiveness
IncreaseCustomer Satisfaction
IncreaseRevenues
ReduceSell Cycle
ImproveCommunications
ImproveManagementEffectiveness
TeamSelling
DecreaseCosts
ImproveMargins
ReduceAdministration
IncreaseSell Time
ImproveForecasts
CurrentInformation
% of Survey Responses (N=295)
0% 10% 20% 30% 40% 50% 60%© Insight
Source: 70% Technology Group
Improving sales force productivity and effectiveness by implementing field technology is a

key goal for many organizations
33
e-Business - Definition
Business Partner
Integrating
more directly
with the
Business business
Processes
The Value processes of
Proposition Business Processes customers and
partners
of Business to Business
Electronic Tailoring
products and
Business Profiles &
services to
Preferences
Solutions customers
needs and
Business Partner values
Extending key business Business to Customer
applications to clients and
business partners
e-Business
e-Business is
is all
all about
about integrating
integrating the
the internal
internal and
and external
external processes
processes between
between business
business partners
partners and
and
customers.
customers.
34
e-Business - Benefits
 On average, it costs about $5 - $50 per query to support via phone

 On average, it costs about $1 - $3 per query to support via E-mail
 On average, it cost less than $1 per query to support via WWW
Internet technology can improve the level of customer care, while reducing the cost of
maintaining the customer base.
35
e-Business - Architecture
Internet
A$X,XXX B$X,XXX 5. Product
and
1. Adaptive Fulfillment
World
Product Offer
Wide Web  Pick and pack
 Customer preferences  Integration/configuration
 Products and availability of third party products
 Pricing and promotions  Ship products or deliver services
 Adaptive selling  Inventory management
 Build/configure to order  Order tracking
2. Order Capture  Payment

and Validation 4. Order
information Management
 Order entry  Security
 Tax calculation  Link with  Link with third parties
 Validation 3. Payment finance  Create pick list
 Confirmation Processing  Consolidate orders
For
For both
both business-to-business
business-to-business and
and business-to-consumer
business-to-consumer sales,
sales, there
there are
are five
five key
key elements
elements to
to
e-Business — product offer, order capture and validation, payment processing,
e-Business — product offer, order capture and validation, payment processing, order order
management,
management, andand product
product fulfillment.
fulfillment.
36
Conclusion
Customer Service
Call Centres Management Management
Customer Care Systems Systems Systems Billing System
Sales Force Automation
IVR
Enterprise
Management
Systems
Business Network
Data Warehouse Management Management OSS
Systems Systems
SAP, PeopleSoft, Oracle,

etc.
Customer Relationship Management is an integral part of successful convergence
37
The CRM Market
38
Explosive Market Growth
Application License Revenue in Billions

% Change
Customer
Management $1.46 53.9%
$5.33 265%
Industry Specific $2.02
39.5%
Human Resources $0.83 $5.49 172%
30.0%
Supply Chain $2.02 $1.83 120%
22.4%
$1.52 $3.70 83%
Manufacturing
18.5%
$2.53 66%
$1.83
Financials 6.0% $2.18 19%
1998 2008
Based on Forrester Research
39
The CRM Market

 60% of the $15Bn CRM software license market is controlled by 4
vendors
Oracle
SAP
Sales Force.com
People soft
 The consulting market for CRM is a large and growing high margin /
high revenue opportunity in contrast to the shrinking ERP market
40
Large Buz. Markets
 Oracle
 SAP
 Salesforce.com
 People soft
41
Small Buz. Market
 Microsoft
 Sales force.com
 Onyx
 Netsuite
42
MID Market
 People soft
 Saleforce.com
 Siebel
 Microsoft
 SAP
43
Magic Quadrants
 Customers seeking information before investing in

technology often turn to Gartner, Inc., because of its
detailed and methodical reviews.
 Among the most respected reports are its Magic

Quadrants, which help buyers assess vendor strengths
and weaknesses that can be used to meet the
purchaser’s current and future business and technology
requirements
44
Tier 1: CSS Applications for Tier 2: CSS Applications for Small to Midsize
Large Enterprises Enterprises or Divisions of Large Enterprises
Challengers Leaders Challengers Leaders
• Onyx
Siebel (6)
SCT Utilities (2) • Clarify •• Platinum Software/Clientele •
Ability to Execute
IMA • • Vantive
Broadway • Applix
& Seymour• (3) •Quintus
Pegasystems (8) • Remedy/Baystone
•
IBM/CorePoint (1) • Point Information •
• Oracle GWI (a) •

ERP
• Silknet (5)
ERP • CustomerSoft
Vendors • Astea • Chordiant (4) Vendors • SalesLogix
(7)
(b) • Royal Blue
As of 1/99 As of 1/99
Niche Players Visionaries Niche Players Visionaries

Completeness of Vision Completeness of Vision
(1) CorePoint is a subsidiary of IBM, consisting (7) Major ERP vendors currently have noncompetitive feature/
of various IBM customer service application function sets
assets
(8) Pegasystems: Due to its broad product line, its direct CSS
(2) SCT Utilities: Large utilities only applications license revenue and strategy is uncertain
(3) Broadway & Seymour: Banks only
(a) GWI: Lotus Notes platform
(4) Chordiant: Large call centers only
(b) Many mid-market ERP vendors express a vision of creating
(5) Internet-centric full-featured CSS applications, but have not executed yet
(6) Siebel now includes Scopus
45
46
CRM Vendors
Vendor CRM Market Position
• Acknowledge leader
• Very integrator focused
TRILOGY • Leader in their niches

• Not integrator focused
• Excellent product
• Number 2, but struggling
® • Product continually delayed

• Intimidation capacity lessening
• Bold announcements
• Claim high strategic priority
47
Siebel 99
 Siebel Sales Enterprise™

 Siebel Marketing Enterprise™
 Siebel Service Enterprise™
 Siebel Call Center™
 Siebel Field Service™
 Siebel Handheld™
 Siebel InterActive ™
 Siebel Product Configurator ™
 Siebel Sales ™
The Most Complete ERM Solution
48
Siebel Industry Solutions
 Siebel Finance™
 Siebel Insurance™
 Siebel Communications™
 Siebel Consumer Goods™
 Siebel Pharma™
 Siebel Utilities™
 Siebel Public Sector™
 Siebel High Technology™
49
Siebel 99 Product
 More than 600 Person Years of Engineering

 1100 Screens
 1300 Business Objects/Components
 110 Reports
 900 Database Tables
 144 Interface Tables
50
SIEBEL SYSTEMS
51
SIEBEL SYSTEMS
Tom Siebel
Worked for Oracle

OASIS - Oracle Automated Sales and Information
System was “hot”
Oracle did not want to market it
Siebel left and made money in new software
startups
Started Siebel with Patricia House
52
Major partners included

Microsoft
Cambridge Tech Partners
Deloitte and Price Waterhouse
More than 250 partners
Strategic relationship with Andersen Consulting
Marketing Strategy
Customer satisfaction
Customer references (customer saying good things about you..)
Respect for customer: no shorts, food on desk, etc.
Different than other Silicon Valley companies
53
Growth
Leader in Sales Force Automation market within 2 1/2 years

Strategy of tradeshows and high visibility presentations
Respect for the customer
Develop the human capital necessary for growth
Markets
Consolidation of SFA and Customer support functions

Siebel acquires Scopus making it the largest company in CRM
but only 5% of potential customers used CRM and many more
to go….
Product evolution was fast
54
PeopleSoft
– Started in the mid-1980s
– Company founders Dave Duffield and Ken

Morris built their first human resources application on a
client-server platform .
– In 2002, $700 million and 2,000 developers over

two years, new pure Internet platform for the real-time
enterprise — PeopleSoft 8, which has more than 150 pure
Internet applications, all with no client software to maintain.
– more than 1,000 customers in 144 countries
55
Strategy of PeopleSoft
PeopleSoft
– PeopleSoft 8 delivers both the relationship and
analytic data you need to the employee in your organization
who needs it
– Business analytic data indicates which customers
are the most important based on the amount of product they
are likely to buy and your cost of serving them, or which
vendors deliver the highest quality products, on time and at
the best price
– Optimizing interactions, managing real-time
business processes, analyzing your business to anticipate
opportunities, increasing revenue, and reducing cost
56
Strategy of PeopleSoft
Many kinds of managements

– Human resource, supply chain, etc.
From the technology aspect

– No Code on the Client
– Power HTML
– Scalability and Minimized Training
– Low Deployment Costs
57
Oracle
58
Oracle
Maximize shrinking budgets with Oracle marketing, identify

best campaigns and segments
Close a sale before competition: Plan and manage field

sales, Automate the call center, Create and manage quotes,
Configure complex products, Drive web sales, Optimize
mobile sales
Integrate Your Service Center: expand your customers base,
build customer loyalty and improve service efficiency
Interaction Center integrates with Service , Sales, Contracts ,

and Marketing applications to reduce the cost of customer
contact center operations.
59
SAP CRM
The solution connects front- and back-office

functions into a single, customer-centric operation,
is the only CRM solution that connects your
employees, partners, processes, and technology in
a closed-loop customer interaction cycle
Marketing , sales, services, analytics, field
applications, E-commerce, interaction center,
channel management
60
CRM Users
The financial services and telecommunications industries are

setting the pace in CRM. Other industries are on the CRM
bandwagon include consumer goods makers and retailers
and high tech firms
Heavy manufacturing is behind the curve
A 2008 survey of more than 1,600 business and IT
professionals (by The Data Warehousing Institute)
– close to 50% had CRM project budgets of less
than $500,000, which indicated that CRM doesn't have to be
a budget-buster
– however, the same survey showed a handful of
respondents with CRM project budgets of over $10 million.
61
According to a Morgan Stanley survey of 225 CIOs

– 8% think CRM is critical, 20% think it is useful, 38% reduced IT budget.
People are still doubting CRM, thinking it is overfitting

Call Center and SFA Winners
– PeopleSoft and Oracle led the way with a 7 percent installed base each.
– SAP and Siebel ran a close second, with 6 percent of CIOs reporting that their
companies currently use those packages
– Siebel has won a 5 percent install rate in the group for sales force automation
applications
– Linux platform is gaining momentum
– 40% other companies are using packages other than above
62
Top 10 Technology Priorities - 2010
 Virtualization
 Cloud computing
 Web 2.0
 Networking, voice/data communications
 Business Intelligence
 Mobile technologies
 Document management
 Service-oriented applications and architecture
 Security technologies
 IT Management
63
Top 10 business priorities for 2010:
 Improving business processes

 Cutting costs
 Increasing the use of analytics
 Improving enterprise effectiveness
 Attracting new customers
 Managing change initiatives
 Innovation in products and services creation
 More effective targeting
 Consolidating business operations
 Growing customer relationships
64
65
66
2010 IT Budgets to be Flat
67
Gartner’s business and technologies priority survey 2010

1500 CIO’s Survey
 “attracting and retaining new customers” comes in at #5 of the top 10

business priorities, CRM software doesn’t even make the list of
technology priorities.
 attracting and retaining new customers (#5), targeting

customers and markets more effectively (#8) and expanding current
customer relationships (#10).
 So why the lack of interest in CRM technology?
68
Michael Maoz, a Gartner analyst focused on CRM, partly blames the

hype around social networks
 Maybe the premise is off in the first place. We

shouldn’t be talking about CRM anymore at all.
 AMR long ago shifted to the term

customer management and Forrester’s Bill Band
has begun writing about the
extended CRM application ecosystem.
69
Here’s IT future according to Gartner

 By 2012, 20% percent of businesses will have no ownership of IT assets. Fueled by technological developments in
2009, such as virtualization and cloud computing
 By 2012, India-based IT companies will represent 20% of cloud service providers in the market
 By 2012, Facebook will lead the pack in developing the distributed, interoperable social Web through Facebook
 Other social networks (including Twitter) will continue to develop with focus on greater adoption and specialization.
However, they will all revolve around Facebook.
 Online marketing by 2015 will control more than US$ 250 billion in Internet marketing spending worldwide
 By 2014, mobile and Internet technology will help over 3 billion of the world's adults to electronically transact.
 By 2013, mobile phones will replace PCs as the most common device for Web access. A piece of advice: optimize
your site for the smaller-screen formats.
70
Trends in Enterprise CRM
 Old days, CRM was a simple affair

 CRM for Customer Service Contact Centers,
Social CRM, CRM for Multichannel
Campaign Management
 score of components, including
sales force automation, analytics, marketing,
customer service, support, collaboration,
social media, integration, data management,
data cleansing, automation,
71
 CRM and Business Intelligence Integration

 CRM and the Cloud
 CRM as a Service - Software as a Service (SaaS)
 Social Media and Mobile CRM
 Virtualization and CRM
 Social Media Startups
72
CRM and Business Intelligence Integration
 Recession : Cutting costs, Smarter about sales effectiveness

 Fewer deals going down, necessary to win a higher proportion
to maintain revenue and margins.
 Firm focus on analytics, segmentation, planning and best

practice workflow within the sales operation as a way of
improving targeting and win rates.
 More organizations are embedding business intelligence in the
sales and service process itself, rather than treating it as a
separate periodic activity
73
CRM and the Cloud

 Provision and delivery media for CRM are shifting.
 Cloud-based services, social networking tie-ins and

device-agnostic tools are rapidly gaining ground.
 Rise of social media, the CRM space has evolved
from support focused on traditional contact centers
to support concentrated in the cloud, where agents
can interact with their customers in real time on
social networks, search and knowledge sites, mobile
devices, or wherever their customers choose to be
74
 "Customers are no longer calling the help line when

they have a problem — they are Tweeting about their
problems or discussing them on Facebook with their
friends.
 the consequence of this is that companies can't be locked into

rigid on-premise systems.
 With this change, it has become critical to provide a great
customer experience on every channel in order to drive long-
term customer loyalty and increase lifetime value.
75
CRM as a Service - Software as a Service (SaaS)
 Gartner numbers show worldwide SaaS revenue within the

enterprise application software market (of which CRM is
one of many segments) is forecast to surpass $8.5 billion in
2010, up 14.1 percent from 2009. That means it now
represents more than 16 percent of the application pie.
 Salesforce.com, Microsoft Dynamics to provide more

options with regard to hosted solutions
76
Social CRM
 UK-based interior furnishings company Habitat started using
Twitter ……
 Habitat had committed a huge gaffe, by using ‘hashtags’ to force

links to its own catalogues and special offers into popular, but
totally unrelated, conversations.
 These included keywords relating to Apple’s iPhone and, more

seriously, the Iran elections
 Habitat’s failure to grasp the fundamentals of Twitter ‘netiquette’
77
 Vital that social media is integrated with the

other technologies a company uses to
manage its interactions with customers
78
79
80
 Salesforce.com. Service Cloud 2 the
most recent upgrade to its software-as-a-service (SaaS) applications for customer support staff, the
company announced several key social crm developments.
 Salesforce Knowledge
enables companies to build a knowledge base ‘in the cloud’, which customer service agents can use to
access the information they need to resolve customer issues faster. These knowledge bases can also be
made public, so that Internet users can access them for self-service, without needing to contact a call
centre at all.
 Salesforce Answers enables

companies to build customisable databases that support question-and-answer conversations between
customers, agents and partners about specific products and/or services.
 Salesforce for Twitter This

enables customer service staff to search Twitter in a real-time stream, monitor and track particular
conversations and create a Twitter ‘handle’ to which Twitter users can address their issues. When a
customer complains to the handle on Twitter, a customer service case is automatically generated on an
agent’s Service Cloud desktop and they are provided with links to relevant advice and information in
the internal knowledge base.
81
Social Media Startups
 CRM vendors aggregating social media

feeds into their products.
 For the time being, there will be a thriving

third party market of aggregators and
managers, such as Tweetdeck, Hootsuite,
SocialTalk and SocialWare," said
Hickernell.
82
IBM Boosts CRM with Social Media Analytics Tool
 SPSS Modeler data mining and text analytics

workbench, will use natural language
processing (NLP) to analyze everything from
product names and industry jargon to slang
and emoticons.
 Data from the social web can also be merged

with internal data to create even more accurate
intelligence about consumers
83
Virtualization and CRM
 CRM packages are becoming available in Virtual Machines, as well as some

vendors offering VMs that can be run on partner platforms like Amazon EC2
and other cloud platforms.
 Differ from SaaS because they are not multi-tenant, but are single-tenant
 SugarCRM Sage SalesLogix. RightNow Technologies
84
The Gartner & 1to1 Media CRM Excellence Awards 2010
85
 Customer Experience
Gold: Sprint Nextel
Silver: CIGNA
Enterprisewide
Gold: Merrill Lynch
Silver: RealNetworks Inc.
 Growth
Gold: Navy Federal Credit Union
 Innovation
Gold: Drugstore.com
Silver: Lowe's
 Efficiency
Gold: Diefendorf Capital Planning Associates
Silver: Gould & Lamb LLC
86
The keys to successful CRM implementation

Break your CRM project down into manageable pieces by
setting up pilot programs and short-term milestones.
Plot project that incorporates all the necessary departments
and groups that gets projects rolling.
Make sure your CRM plans include a scalable architecture
framework.
Don't underestimate how much data you might collect (there
will be LOTS) and make sure that if you need to expand
systems you'll be able to.
Be thoughtful about what data is collected and stored. The
impulse will be to grab and then store EVERY piece of data
you can. Storing useless data wastes time and money.
Recognize the individuality of customers and respond
appropriately. A CRM system should, for example, have
built-in pricing flexibility.
87

CRM Intro

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CRM Intro

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Customer Relationship Management

1980s: Database Marketing

– speak individually to countless customers

– The reality: It's too costly, too difficult, and

– the compromise: A little database marketing goes

1990s: Relationship Marketing

Early 2000's: Customer Relationship Management

– Major phenomenon: Great promise

Evolution of Information Requirements

Materials Requirements Planning

Manufacturing Resource Planning

Enterprise Resource Planning

Supply Chain Management

Customer Relationship Management (CRM)

Types of relationship marketing

Profit volume matrix

Relationship levels as a function of proﬁt margin and number of customers

Every Company’s Big Unknown ... Customer Value

Establishing a relationship-marketing programme

Identify the key customers meriting relationship

Assign a skilled manager to each key customer

Develop a clear job description for relationship

Have each relationship manager develop annual

Appoint an overall manager to supervise the

Customer approaches a business with an

Scott Fletcher , President - epipeline

Set of business process/policies that are designed

Ronni Marshak –Seybolds group

Robert Thompson , President , Front Line Solutions

CRM is a business strategy to select and manage customers to

Brent Frei , CEO Onyx Software

Peter Keen ,Chairman Keen Innovations

Customer Relationship Management Definition

Targeting Acquisition Retention Expansion

Customer Relationship Management can be simply defined as everything involved with

Islands of Automation Need To Be Bridged

 It costs six times more to sell to new customer than to sell

* Provide better customer service

Are we making the

Internet Customer Relationship Have we

Customer Relationship Management and Shareholder Value

Successful Customer Relationship Management can generate positive shareholder value.

The Benefits of Customer Relationship Management

High Ownership of Problems

Impact on Service Quality

The Five Key Drivers of the Lifetime Value of a Customer

Customer Relationship Management is about making every customer as valuable as

Customer Relationship Management is a ongoing, dynamic learning process for an organization

The Building Blocks of CRM

Market Customer Sales Process

Deployment and Support

Data Capture and Warehouse

Customer Customer Customer External

Why CRM and conventional corporate culture are at odds?

There are three prevalent corporate inhibitors to making

Operational CRM is the customer facing applications.

Analytical CRM – capture storage extraction reporting of

The Enabling Technologies

Techniques: Relationship marketing, automated packaging and pricing, knowledge-based selling

Sales Force Automation

• Integrated Voice Response (IVR) Technologies information

CRM Technologies on the Rise

“Sales Force Automation is the fastest