Customer

Relationship Management

03/14/10 Present by1 :-

Contents
• Introduction
• Why need CRM
• Goals of CRM
• Types of CRM
• Implementation Type of CRM
• Web Based CRM
• Modules of SAP CRM
• Benefits of CRM
• Cost Calculations
• Q&A
• Thank you !!!
• Appendix A - Market Capitalization
• Appendix B – CRM Definition

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Introduction
Customer Relationship Management
(CRM) is the term given to the concepts
that a company employs to manage its
relationship with their customer.

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Why Need CRM
Every company do CRM – one way or other.
Few Facts : why need CRM
Not a single point of contact

Communication Gap

Getting a new customer cost 5 times then

retaining existing customer
1% increase in sale with existing customer
will boost profit by 17% while 3% in other case

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Goals of CRM
The idea behind CRM to gain insight into the behavior of customers and the values of those customers. If it works
as hoped then business can :-

Provide better customer services

Make call center more efficient

Cross sell product more effectively

Helps sales staff close deals faster

Simplify marketing & sales process

Discover new customers

Increase customer revenue

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Types of CRM
• Operational CRM which provides support to front office, business processes
including sales, marketing and service. Operational CRM processes customer
data for a variety of purposes:
• Managing campaigns
• Enterprise Marketing Automation
• Sales Force Automation
• Sales Management System

• Analytical CRM which analyses the customer data for various purposes such
as design and execution of targeted marketing campaigns to optimize
marketing effectiveness, design and execution of specific customer
campaign, analysis of customer behavior to aid product and service decision
making, management decision, prediction of probability of customer
defection.

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Types of CRM
• Consumer Relationship CRM covers aspects of a company's dealing with
customers handled by the Consumer Affairs and Customer Relations
contact centers within a company. Representatives handle in-bound
contact from anonymous consumers and customers.

• Sales Intelligence CRM is similar to Analytical CRM, but is intended as a

more direct sales tool. Features include alerts sent to sales staff regarding:
• Cross-selling/Up-selling/Switch-selling opportunities
• Customer Drift
• Sales performance
• Customer trends
• Customer margins
• Customer alignment

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Types of CRM
• Collaborative CRM covers aspects of a company's dealings with customers
that are handled by various departments within a company, such as sales,
technical support and marketing. Collaborative CRM's ultimate goal is to use
information collected by all departments to improve the quality of services
provided by the company.

• Campaign Management combines elements of Operational and Analytical

CRM. Campaign management functions include:
• Target groups formed from the client base according to selected criteria
• Sending campaign-related material (e.g. on special offers) to selected
recipients using various channels (e.g. e-mail, telephone, SMS, post)
• Tracking, storing, and analyzing campaign statistics, including tracking
responses and analyzing trends

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Implementation type of CRM
Two Category to implement CRM :

REMOTELY HOSTED :- LOCALLY HOSTED :-

Smooth running Complete Control
Free upgrade Customize in our own way
Secure Application
Continuous Support
Technical Support
Possible misuse of
Security concerns Problematic
data
upgrade

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Web Based CRM
Web based CRM are different from traditional CRM in look and feel.

Benefits :-
• Low implementation Cost
• Rapid Development
• Accessibility
• Instant Information Sharing
• Light Weight

Features :-
• Power Dialing
• Voice Messaging
• Fax / email Customization

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SAP – CRM Modules
Web

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Benefits of CRM
improved Improve
Vision Growth customer Sales & Profit
satisfaction Service

• Expand • Increate • By • Single • Long term

the market the knowing Point profitability
& attract number of what communi-
new opportunity customer cation
partners demands With
Customer
•Develop • Customize • Sustainable
additional Knowledge • Email Income
streams of base Marketing
revenue
• Reporting

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Cost Calculations
• CRM Cost Includes :-

Hardware Cost
Software Cost
Professional Services

Approx Cost :- 0.5 M $ or 2.5 Cr Rs

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Q&A

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Thank you !!

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Appendix A – Market Capitalization

Vendor % Share
Oracle 16.3%
SAP 25.3%
Salesforce 8.3%
Amdocs 5.2%
Microsoft 4.1% *Data as
per year
Others….. 40.6% 2006-07

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Appendix B – CRM Definition
• CRM is an IT-enabled business strategy, the outcomes of which
optimize profitability, revenue and customer satisfaction by organizing
around customer segments, fostering customer-satisfying behaviors and
implementing customer-centric processes. - Gartner Group

• “CRM is a business strategy to select and manage customers to

optimize long – term value” –CRMGuru.Com

• "CRM is an enterprise – wide mindset, mantra and set of business

processes and policies that are designed to acquire, retain and service
customers. - Scott Fletcher, VP, i2.

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