SAP CRM

CRM is a strategy for optimizing the lifetime value

of customers (CLV). (Todman 2000)
Three types of CRM: operational, analytical and
collaborative
Customer lifecycle stages: Acquire, Introduce, Profile, Grow,
Cultivate, End.
*Designing a Data Warehouse: Supporting Customer Relationship Managementby Chris
Todman. Prentice HallPub.December 29, 2000
Concepts and definitions
SAP CRM areas
Marketing
Sales
Service
E-commerce
Interaction center operations and
management
Channel management
Sales process steps
Campain
Lead
Opportunity
Quotation
Contract
Order
Invoice
Master Data
Business Partners
Products
Organizational Management
Conditions
Partner/Product Ranges
Installed Base Management
Transactional Data
Activities
Leads
Opportunities
Quotations
Order objects
Invoices

Marketing
Marketing resource management -- Control and manage budget and marketing spend;
facilitate collaboration among team members and coordinate marketing activities across
the enterprise, increasing the speed and effectiveness of marketing processes.
Segment and list management -- Manage enterprise customer and prospect data:
create and capture customer profile data to better target and personalize marketing
messages; view all relevant enterprise customer information from a central point; with an
interactive, drag-and-drop interface perform ad hoc, high-speed customer segmentation
and segment analysis, quickly identify opportunities and gain insights into customer
segments with data visualization features. ERP, BI.
Campaign management -- Analyze, plan, execute, and measure marketing activities
through all inbound and outbound interaction channels to build long-term profitable
relationships; develop and execute the best marketing strategy, using constraint-based
optimization techniques to determine the optimum marketing mix.
Trade promotion management -- Effectively manage trade promotions that increase
brand equity and achieve sales objectives; gain complete visibility into trade programs at
each stage of their life cycles; reduce error, improve efficiency, and control trade spend.
Lead management -- Generate highly qualified, prioritized leads and automate lead
distribution process to handle leads faster; align marketing and sales organizations;
extend lead management process to partner organizations.
Marketing analytics -- Leverage a wide range of analytics, such as customer values,
churn scores, and satisfaction scores, to make profitable decisions; understand why
marketing activities did or did not work; identify business challenges and opportunities;
predict customer behaviors, anticipate their needs, and create more relevant, targeted
messages.
1. Create a marketing plan in the CRM
Marketing Planner, maintain details,
define the hierarchical structure of a plan,
and assign marketing plan elements. MP
is transferred to the BI system for
reporting purposes.
2. Plan marketing key figures. The
planned key figures are transferred to the
BI system where they can be used to
plan the budget.
3. Release marketing plan. The data is
transferred to SAP ERP Profitability
Analysis (CO-PA).
4. Commit and release budget data to
ERP (BI). It is transferred to CO-PA,
where it can be used to evaluate the
costs of the project.
5. Compare plan/actual revenue and cost
(BI). Monitor response and success rates
in BI, monitor open orders, and compare
plan/actual revenues and costs.
Sales
Sales planning and forecasting -- Forecast accurately, manage budgets and opportunities, and
allocate resources efficiently. Proactively handle trends, shortfalls, and opportunities; plan and
forecast across all sales channels; and optimize supply chain planning and execution.
Territory management -- Optimize account coverage with clear territory definition and complete
visibility into team distribution; monitore sales force; respond to constantly shifting market demand,
and place the right resources in the right locations to optimize team performance.
Account and contact management -- Ensure that sales professionals remain focused on activities
that develop loyal and profitable customer relationships; complete visibility into all sales activities
fosters collaboration and team efficiency.
Lead and opportunity management -- Manage the sales cycle more effectively and predictably -- at
a lower cost of sales; get full visibility into the opportunity pipeline, improve team communication, and
route leads to the best-fit sales representative. Both manual and automatic lead creation.
Quotation and order management -- Generate accurate quotes, place orders, confirm real-time
product availability, and track order status; integrate order information with the supply chain for
planning and fulfillment.
Configuration -- Guide sales professionals through the product configuration process with
customers.
Contract management -- Develop and manage long-term customer contracts, incorporate customer
agreements into ongoing customer processes, and monitor the sales process from inquiry to
completion.
Incentive and commission management -- Develop, implement, and manage compensation plans
with improved visibility into team performance; Sales professionals can track their current
performance and evaluate potential compensation for opportunities in the pipeline.
Time and travel management -- Keep sale force focused on tracking opportunities, not expenses.
Eliminate paper-based processes, enforce travel policy compliance, and monitor and control costs
associated with sales professionals' activities.
Sales analytics -- Monitor and respond in real-time. Ensure forecast accuracy, remain below budget,
optimize resource alignment, and position the team to achieve revenue goals. Enable sales force to
address trends, measure customer retention, monitor revenue shortfalls, and assess future
opportunities.

Service
Customer service and support -- Access complete customer data such as service history,
warranty and SLA information, and accounts receivable information; maintain a problem-resolution
database; and manage incoming service requests efficiently and effectively. Manage installed-
base assets and associated configurations.
Field service -- Automate the process of dispatching field technicians to perform services in
remote locations. Keep field service professionals connected through laptops or ruggedized
handheld devices.
E-service -- Coordinate e-service activities -- including e-mail, service-ticket routing, and lead
routing -- from one central point of command. Manage large volumes of incoming e-mail using
features such as auto-reply and auto-suggest, and enable comprehensive Web-based customer
self-service.
Service sales and marketing -- Drive the sale of services and service-related products through
the service department with full sales and marketing support, from targeted marketing to lead
qualification and contract management.
Service-contract management -- Confirm a customer's entitlement to service before providing
service, meet service-level agreements (SLAs), and drive contract renewals by alerting service
agents when a customer's contracts are about to expire.
Warranty and claims management -- Manage the entire warranty and claims process, from
return materials authorization (RMA) to receipt and inspection. Coordinate with third-party logistics
providers to ensure timely customer credits and avoid unnecessary goodwill allowances.
Depot repair -- Automate the entire in-house repair process, from creating the RMA to billing and
shipping repaired products to customers. Issue and track loaner units as necessary.
Channel service -- Manage third-party service relationships, and reduce the cost of channel
service by delivering service and problem-resolution capabilities to the partners.
Service analytics -- Identify problems and trends and take corrective action. Compare the
effectiveness of service territories, and see how actual values compare with target values.
E-commerce
E-marketing -- Support demand generation and customer loyalty processes via the Internet.
Personalize customers' Web experiences with the most relevant and convenient online interactions
and information. A store locator, as well as comprehensive support for catalog management, content
management, campaign execution, customer segmentation, and personalization, enable to generate
additional revenue through a Web-based channel.
E-selling -- Run business-to-business (B2B) or business-to-consumer (B2C) selling processes on
the Internet. Provide customers with personalized content and interactive, easy-to-use sales and
self-service features, and streamline sales and fulfillment operations with an end-to-end order-to-
cash process.
E-service -- Offer customers an intuitive channel to perform service tasks, from requesting a service
visit to logging a complaint or registering a product; enable customers to perform service-related
tasks such as checking order status, obtaining order tracking information, managing accounts and
payments, and researching and resolving product problems. The application can support
personalized, portal-based service of complex products that require sophisticated maintenance.
E-analytics -- Get the right business information to measure and optimize the success of Web shop
and online content; track and use Web behavior to target customers and drive future marketing
activities.

Interaction Center Operations and Mgmt
Telemarketing -- Seamlessly coordinate all interaction center efforts -- including call lists, agent
scripts, promotions, and additional channels -- and coordinate interaction center agents with broader
marketing activities to ensure a focus on qualified prospects. Give agents all the information they
need to deliver relevant messages to prospects.
Telesales -- Enable agents to drive more qualified leads into the pipeline, target existing customers
with cross-and up-selling opportunities, and process orders and status information.
Customer service within the interaction center -- Enable agents to research and diagnose
problems, handle complaints, confirm contract entitlements, address customer concerns, assist with
returned materials, answer technical questions, make exchanges, and even schedule internal or
third-party field service personnel.
E-service -- Handle large volumes of incoming e-mail using functions such as auto-reply and auto-
suggest. Enable Web-based self-services, such as searching for FAQs and solutions to problems,
checking service contract entitlements, creating service requests, tracking the status of service
requests, and contacting customer service.
Employee interaction center management -- Combine advanced CRM techniques with HR
information in an integrated HR help desk. Streamline employee access to information through a
central point of contact, and enable HR professionals to provide consistent, personalized service to
employees across multiple communication channels, including telephone, e-mail, or chat forums.
Interaction center operations and administration -- Manage multichannel interaction center
through a role-based portal interface. Support agent activities with scripts, alerts and messages, and
knowledge management features. Provide managers with workforce management tools, and enable
forecasting and advanced scheduling.
Interaction center analytics -- Measure, predict, plan, and optimize interaction center. Analyze
customer interactions, business processes, and market opportunities -- and then apply the
knowledge gained toward improving all customer-focused operations. Predictive functions help to
uncover hidden patterns, helping to anticipate risks and exploit opportunities in marketing, sales, and
service.
Channel management
Partner management -- Manage channel partner relationships throughout the partner life
cycle; plan and forecast channel sales and revenues, segment the partner base for more
effective partner programs and management, and track partner training and certifications.
Channel marketing -- Motivate partners to sell products and services rather than competitive
offerings; provide relevant information to partners, maintain consistent branding, and manage
partner incentives, manage content, catalogs, collateral, campaigns, and leads -- as well as
personalization features and a partner locator; drive demand for products through channel
partners.
Channel sales -- Give partners and direct sales force the same knowledge, tools, and expert
advice, and gain insight into demand across all selling channels to effectively forecast future
business; have full range of channel sales processes, including account and contact
management, activity management, opportunity management, interactive selling and
configuration, quotation and order management, multi-tier sales tracking and forecasting, and
partner compensation management.
Channel service -- Ensure consistent and timely service to end customers by providing
partners with the tools and expertise to manage problem resolution and ongoing service
relationships; enable partner knowledge management, request management, real-time partner
support, installed-base management, and complaints and returns management.
Channel commerce -- Include partners in collaborative selling across organizational
boundaries, and enable end customers to order products and services across the demand
network; create a collaborative showroom environment and manage distributed catalogs and
content; support distributed and hosted order management.
Partner and channel analytics -- Get a broad range of standard reports and analyses to
determine partner coverage and gaps, partner and channel performance, revenue and sales
statistics, the return on partner investments, gross margins with partners, and partner
utilization; provide channel partners with reports and analyses relevant to their business.

Industry-specific CRM solutions
Aerospace and defense
Automotive
Chemicals
Consumer products
Retail
Telecommunications
Professional services
Public sector
High tech
Industrial machinery and components
Media
Utilities
Logistic service providers
Oil and gas
Wholesale distribution


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