Customer relationship management

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Customer relationship management (CRM) is a model for managing a companys interactions with current and future customers. It involves using
technology to organize, automate, and synchronize sales, marketing, customer service, and technical support.
[1]

Contents
[hide]
1 Types
o 1.1 Marketing
o 1.2 Customer service and support
o 1.3 Appointments
o 1.4 CRM in B2B market
1.4.1 Characteristics of CRM
1.4.2 Importance of CRM to the B2B sector
1.4.3 Implementing CRM to the company
1.4.4 CRM software
1.4.5 Differences between CRM for B2B and B2C markets
1.4.5.1 SaaS CRM Software
1.4.5.1.1 Sales Force
1.4.5.1.2 BPMonline CRM
1.4.5.1.3 AmoCRM
1.4.5.1.4 Oracle CRM on Demand
1.4.5.1.5 Vutu.re
o 1.5 Small business
o 1.6 Social media
o 1.7 Non-profit and membership-based
o 1.8 Customer-centric relationship management (CCRM)
1.8.1 Features of CCRM
2 Adoption issues
3 Market leaders
4 Trends
5 See also
6 External sources
7 Notes
Types[edit]
Marketing[edit]
CRM systems for marketing track and measure campaigns over multiple communication channels, such as email, search, social media, telephone and
direct mail. These systemstrack clicks, responses, leads and deals.
Customer service and support[edit]
CRM systems can be used to create, assign and manage requests made by customers, such as call center software which helps direct customers to
agents.
[2]
CRM softwarecan also be used to identify and reward loyal customers over a period of time.
Appointments[edit]
CRM systems can automatically suggest suitable appointment times to customers via e-mail or the web. These can then be synchronized with the
representative or agent's calendar.
[citation needed]

CRM in B2B market[edit]
The modern environment requires one business to interact with another via the web. According to a Sweeney Group definition, CRM is all the tools,
technologies and procedures to manage, improve, or facilitate sales, support and related interactions with customers, prospects, and business partners
throughout the enterprise.
[3]
It assumes that CRM is involved in every B2B transaction.
[4]

Despite the general notion that CRM systems were created for the customer-centric businesses, they can also be applied to B2B environments to
streamline and improve customer management conditions. B2C and B2B CRM systems are not created equally and different CRM software applies to
B2B and B2C conditions. B2B relationships usually have longer maturity times than B2C relationships. For the best level of CRM operation in a B2B
environment, the software must be personalized and delivered at individual levels.
[5]

Characteristics of CRM[edit]
Well-designed CRM includes the following characteristics:
1. Relationship management is a customer-oriented feature with service response based on
customer input, one-to-one solutions to customers requirements, direct online communications
with customer and customer service centers that help customers solve their questions.
2. Salesforce automation. This function can implement sales promotion analysis, automate
tracking of a clients account history for repeated sales or future sales, and also oordinate
sales, marketing, call centers, and retail outlets in order to realize the salesforce automation.
3. Use of technology. This feature is about following the technology trend and skills of value
delivering using technology to make up-to-the-second customer data available. It applies data
warehouse technology in order to aggregate transaction information, to merge the information
with CRM solutions, and to provide KPI (key performance indicators).
4. Opportunity management. This feature helps the company to manage unpredictable growth and
demand and implement a good forecasting model to integrate sales history with sales
projections.
[4]

Importance of CRM to the B2B sector[edit]
Many of the characteristics in the B2B market suggest that CRM is a factor which influences the business. According to Zeng
[4]
CRM has special
characteristics in the B2B market. First of all, there is the critical mass. Due to customer relationship this network can be established and extended.
Extension causes the network not to increase benefits linearly, but in an exponential way. As new members can be contacted by any existing member
the benefit of a network of 200 people is much more effective than one with 100. Hence, these networks can be used to increase the amount of
available information for each company. This may lead to more information about a customer which can be used to make the way of handling the
customer easier in the future. The history of previous sales from this customer may be a great relief. Moreover it is possible to establish technical
cooperation a bigger network is more likely to provide special services. These services include among others systems integration, hosting, financial
services such as payment processing, receivables management, credit analysis and logistics services.
[4]
Services of this kind encourage companies to
join the B2B network by using CRM. Furthermore, B2B hubs have another advantage as they can substitute external personal if members of the
network liaise. This may not only avoid extra costs for arrangement of a new contract but is also likely to accelerate the speed of this arrangement, as
they are in the same network and already possess information about their negotiating partner. Ultimately, special knowledge is required for B2B
markets. As B2B customers generally more rational customers than B2Cs, a person or a team with special knowledge to each customer or industry
may enhance the sales in this area.
Implementing CRM to the company[edit]
There are numerous steps company should follow while implementing CRM system. The project manager is responsible for the success of this
process. Some conditions need to be checked by the company before the starting implementation directly:
1. Make a strategic decision concerning CRM desired goal: to improve or to change the business
processes of the organization?
2. Choose an appropriate project manager: usually it is IT-department that is responsible for CRM
system implementation. However, it is reasonable to hire the manager with a Customer
Service/Sales and Marketing business focus as there are a bunch of decisions that are related
rather to the business processes rather than to the hardware, software or network
3. Executive sponsorship: provide the top management support and systematic introduction to the
project manager
4. Project team commitment and training: make sure team members have enough time and
authority to complete project tasks and are committed to its success
5. Define KPI metrics
6. Use phased approach: work towards long-term enterprise with a series of smaller, phased
implementations
[6]

CRM software[edit]
Selecting a CRM program means finding the software that fits the companys needs. CRM software comes with many features and tools, and despite
the fact that many of CRM products offer similar feature sets, there are some unique tools in each one. Programs can be divided into categories by the
following criteria: Features mean how well it integrates with other applications (ex. Outlook, Gmail, iCall etc.) and how accessible information is. It
covers everything from calendar alerts and to-do lists to mobile access and synchronization capabilities. Contact information ranking outlines the
programs ability to store specific information for each contact. Business world is a fast-paced so managers are need to be able to access customers
information quickly. Sales and marketing tools designed to help and maintain current clients and gain new ones. Important that this tools help find
campaigns with positive ROI and those that are not performed. Ease of use is about apps design. Programs are checked on clean, quick navigation
and easy-to-locate of the most important items. Help and support is about what support CRM software manufacturer provides for their product.
[7]

Differences between CRM for B2B and B2C markets[edit]
B2B and B2C marketing operates differently, that is why they can not use the same software. All the differences are focused on the approach of these
two types of businesses:
B2B company has smaller contact database than B2C
The amount of sales in B2B is relatively small
In B2B there is less figure propositions, but in some cases they cost a lot more than B2C items
Relationships in B2B environment are built over a longer time
Patricia Jones found out
[8]
that B2B operations require special CRM solutions that are not the same for B2C industry:
B2B industries are needed in specialized CRM solution, which is different from B2C companies
requirements. It is the reason for ineffective application working, despite of the same aim - to
understand its own customers better
There must be different CRM solutions for industries within the B2B market, because of special needs
of each one. Also there is a demand of designing solutions using special color schemes.
B2B CRM must be easily integrated with other companies IT-solutions. It should be able to create the
forecast about customer behavior based on its buying history, bills, business success, etc.
The application for B2B company must have a function to connect all the contacts, processes and
deals among the customers segment and then prepare a paper
Automation of sales process is an important requirement for B2B solutions. It should effectively
manage the deal and send it through all the phases towards signing
A crucial point is personalization. It helps the B2B company to save strong and long relationships with
the customer. To communicate with them more effectively, there should be integration with the email
solutions
So, all the B2B applications must be both personalized and be able to establish channels of support communication for customers
SaaS CRM Software[edit]
These are software created on-demand which are available via Internet and do not require install and support. Vendors do not buy it, they have a rent
payment per month.
[9]

Sales Force[edit]
This software allows the company automatically track all the web activity generated from marketing and automatically sets the Lead Source as
Marketing: Website.
[10]

BPMonline CRM[edit]
The solutions built-in features and process management tools let the company automate all its CRM activities, driving greater response of the
marketing campaigns, more closed deals, and customer service.
[11]

[12]

AmoCRM[edit]
AmoCRM's software assists the manager, sales team and sales management with full contact management, lead management, and sales pipeline
reporting and analysis. For the B2B CRM needs, amoCRM's software is a user friendly, cost effective approach. It comes scalable to meet future
growth needs without having to change platforms and retrain.
[13]

Oracle CRM on Demand[edit]
Oracle's CRM solutions help organizations drive sales, marketing, loyalty, and service effectiveness. It has solutions for different types of industries:
Medical, Pharma, High Technology, Insurance, Automobile, Wealth Management.
[14]

Vutu.re[edit]
The solution plugs in too InterAction, ContactEase or SalesForce to add additional CRM functionality
Small business[edit]
For small businesses a CRM system may simply consist of a contact manager system which integrates emails, documents, jobs, faxes, and scheduling
for individual accounts.
[citation needed]
CRM systems available for specific markets (legal, finance) frequently focus on event management and relationship
tracking as opposed to financial return on investment (ROI).
Social media[edit]
CRM often makes use of social media to build up customer relationships. Some CRM systems integrate social media sites
like Twitter, LinkedIn and Facebook to track and communicate with customers sharing their opinions and experiences with a company, products and
services.
[15]
Enterprise Feedback Management software platforms such asConfirmit, Medallia, and Satmetrix combine internal survey data with trends
identified through social media to allow businesses to make more accurate decisions on which products to supply.
[16]

Non-profit and membership-based[edit]
Systems for non-profit and membership-based organizations help track constituents, fund-raising, demographics, membership levels, membership
directories, volunteering and communication with individuals.
[citation needed]

Customer-centric relationship management (CCRM)[edit]
CCRM is a style of customer relationship management that focuses on customer preferences, instead of customer leverage. This is a nascent sub-
discipline of traditional customer relationship management, to take advantage of changes in communications technology.
A CRM system becoming more customer-centric means being able to manage critical relationships more effectively and being positioned to offer new
and expanded services.
[17]

Customer centric organizations help customers make better decisions and drive profitability. CCRM adds value by engaging customers in individual,
interactive relationships.
[18]

Customer-centricity differs from client-centricity in that the latter refers almost exclusively to business-to-business models rather than customer-facing
firms.
Features of CCRM[edit]
Customer-centric relationship management is used in marketing, customer service and sales, including:
tailored marketing
one-to-one customer service
retaining customers
building brand loyalty
providing information customers actually want
Subscription billing
Rewards
Accenture
[19]
and Emerald Insight
[20]
are now beginning to focus on CCRM as a discipline, with studies appearing on Mendeley.
[21]

Adoption issues[edit]
In 2003, a Gartner report estimated that more than $2 billion had been spent on software that was not being used. According to CSO Insights, less
than 40 percent of 1,275 participating companies had end-user adoption rates above 90 percent.
[22]
Many corporations only use CRM systems on a
partial or fragmented basis.
[23][citation needed]
In a 2007 survey from the UK, four-fifths of senior executives reported that their biggest challenge is getting
their staff to use the systems they had installed. 43 percent of respondents said they use less than half the functionality of their existing system.
[24][citation
needed]
. Recently, it is found in a study that market research regarding consumers preference may increase the adoption of CRM among the developing
countries' consumers.
[25]

Market leaders[edit]
The CRM market grew by 12.5 percent in 2008, from revenue of $8.13 billion in 2007 to $9.15 billion in 2008.
[26]
The following table lists the top
vendors in 20062008 (figures in millions of US dollars) published in Gartner studies.
[27][28]

Vendor 2008 Revenue 2008 Share (%) 2007 Revenue 2007 Share (%) 2006 Revenue 2006 Share (%)
SAP AG 2,055 22.5 (2.8) 2,050.8 25.3 1,681.7 25.6
Oracle 1,475 16.1 1,319.8 16.3 1,016.8 15.5
Salesforce.com 965 10.6 676.5 8.3 451.7 6.9
Microsoft CRM 581 6.4 332.1 4.1 176.1 2.7
Amdocs 451 4.9 421.0 5.2 365.9 5.6
Others 3,620 39.6 3,289.1 40.6 2,881.6 43.8
Total 9,147 100 8,089.3 100 6,573.8 100
Trends[edit]
Many CRM vendors offer subscription-based web tools (cloud computing) and software as a service (SaaS). Some CRM systems are equipped with
mobile capabilities, making information accessible to remote sales staff.
[citation needed]
Salesforce.com was the first company to provide enterprise
applications through a web browser, and has maintained its leadership position.
[29]
Traditional providers have recently moved into the cloud-based
market via acquisitions of smaller providers: Oracle purchased RightNow in October 2011
[30]
and SAP acquired SuccessFactors in December 2011.
[31]

The era of the "social customer"
[32]
refers to the use of social media (Twitter, Facebook, LinkedIn, Google Plus, Pinterest, Instagram, Yelp, customer
reviews in Amazon, etc.) by customers. CR philosophy and strategy has shifted to encompass social networks and user communities.
Sales forces also play an important role in CRM, as maximizing sales effectiveness and increasing sales productivity is a driving force behind the
adoption of CRM. Empoweringsales managers was listed as one of the top 5 CRM trends in 2013.
[33]

Another related development is vendor relationship management (VRM), which provide tools and services that allow customers to manage their
individual relationship with vendors. VRM development has grown out of efforts by ProjectVRM at Harvard's Berkman Center for Internet &
Society and Identity Commons' Internet Identity Workshops, as well as by a growing number of startups and established companies. VRM was the
subject of a cover story in the May 2010 issue of CRM Magazine.
[34]

In 2001, Doug Laney developed the concept and coined the term 'Extended Relationship Management' (XRM).
[35]
Laney defines XRM as extending
CRM disciplines to secondary allies such as the government, press and industry consortia.
CRM futurist Dennison DeGregor describes a shift from 'push CRM' toward a 'customer transparency' (CT) model, due to the increased proliferation of
channels, devices, and social media.
[36]

See also[edit]
Automated online assistant
Business intelligence
Business relationship management
Comparison of CRM systems
Consumer relationship system
Customer experience
Customer experience transformation
Customer intelligence
Customer service contains ISO standards
Data management
Data mining
Database marketing
E-crm
Employee experience management (EEM)
Enterprise feedback management (EFM)
Farley file
Help desk
Partner relationship management (PRM)
Predictive analytics
Professional services automation software (PSA)
Real-time marketing
Sales force management system
Sales intelligence
Sales process engineering
Support automation
Supplier relationship management
The International Customer Service Institute
containscustomer service standards
Vendor relationship management
External sources[edit]
Customer Relationship Management
Notes[edit]
Ads not by this site
1. Jump up^ Shaw, Robert, Computer Aided Marketing & Selling (1991) Butterworth
HeinemannISBN 978-0-7506-1707-9
2. Jump up^ SAP Insider (15 November 2007) Still Struggling to Reduce Call Center Costs
Without Losing Customers?
3. Jump up^ Davenport, T.H., Harris, J.G., Kohli, A.K. (2001), "How do they know their customers
so well?", MIT Sloan Management Review, Vol. 42 No.2, pp.63-73.
4. ^ Jump up to:
a

b

c

d
Yun E. Zeng, H. Joseph Wen, David C. Yen, "Customer relationship
management (CRM) in business-to-business (B2B) e-commerce", Emerald 11, (2003).
5. Jump up^ Rebekah Henderson, B2B Insights (2013) How to build a B2B-friendly CRM
6. Jump up^ Piskar F., Faganel A. (2009). A successful CRM Implementation Project in a Service
Company: Case Study. Organizacija, Vol: 42, pp. 199-208
7. Jump up^ TopTen Reviews CRM Software Review
8. Jump up^ Reviewtech Patricia Jones, How B2B CRM Differs From B2C CRM
9. Jump up^ CRM2Web Advantage of SaaS CRM
10. Jump up^ TopTen Review Salesforce
11. Jump up^ BPMonline Why BPMonline CRM?
12. Jump up^ GetApp' Overview of BPMonline CRM
13. Jump up^ amoCRM' Official Web-Page of amoCRM software
14. Jump up^ Oracle Why Oracle CRM On Demand?
15. Jump up^ DestinationCRM.com (2009) Who Owns the Social Customer?
16. Jump up^ Lester, Aaron (2013-04-23). "Seeking treasure from social media tracking? Follow
the customer". SearchBusinessAnalytics. Retrieved 2013-10-01.
17. Jump
up^http://www.accenture.com/SiteCollectionDocuments/PDF/Accenture_Homeless_prenatal_P
RINT_High.pdf
18. Jump up^ Its all about the Customer, Stupid The Importance of Customer Centric Partners
19. Jump up^ Sales and Customer ServicesCRM: Services Overview
20. Jump up^ Customer-centric relationship management system development: A generative
knowledge integration perspective
21. Jump up^ CRM and customer-centric knowledge management: an empirical research
22. Jump up^ Jim Dickie, CSO Insights (2006) Demystifying CRM Adoption Rates
23. Jump up^ Joachim, David. "CRM tools improve access, usability." (cover story). B to B 87, no.
3 (11 March 2002): 1
24. Jump up^ David Sims, TMC.net (2007) CRM Adoption Biggest Problem in 83 Percent of
Cases
25. Jump up^ Hasan, M. R., Rahman, M., And Khan, M. M. (2013). Rural Consumers Adoption of
CRM in a Developing Country Context. International Journal of Business and Management
Invention (IJBMI), 2(9), 121-131. [1]
26. Jump up^ DestinationCRM.com (2009) CRM Market Grows for Fifth Straight Year
27. Jump up^ "Gartner Says Worldwide Customer Relationship Management Market Grew 23
Percent in 2007" (Press release). Gartner, Inc. 12 September 2008. Retrieved 2008-08-15.
28. Jump up^ "Gartner Says Worldwide CRM Market Grew 12.5 Percent in 2008" (Press release).
Gartner, Inc. 15 June 2009. Retrieved 2009-10-27.
29. Jump up^ Cloud CRM to Work PC World: April, 2010
30. Jump up^ Buys Cloud-based Customer Service Company RightNow For $1.5
BillionTechcrunch: 24 October 2011
31. Jump up^ Challenges Oracle With $3.4 Billion SuccessFactors Purchase Bloomberg
Businessweek: 7 December 2011
32. Jump up^ Greenberg, Paul (2009). CRM at the Speed of Light (4th ed.). McGraw Hill. p. 7.
33. Jump up^ "Top 5 CRM Trends for 2013". Enterprise Apps Today. Retrieved 7 June 2013.
34. Jump up^ Destinationcrm.com CRM Magazine: May, 2010
35. Jump up^ [2] The Great Enterprise Balancing Act: Extended Relationship Management (XRM),
Doug Laney, META Group publication, 10 December 2001
36. Jump up^ DeGregor, Dennison (2011). Customer-Transparent Enterprise: Beyond 20th
Century CRM. Motivational Press. ISBN 1-935723-23-5.
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