Business Process Implementation Using CRM

Objectives

In this session, you will learn to:

Identify the need for a CRM system
Identify the fundamentals of a CRM system
Identify the CRM system implementation life cycle

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Business Process Implementation Using CRM
Identifying the Need for a CRM System

CRM systems:
Enable organizations to survive the tough market competition.
Help organizations to increase profits by improving employee
productivity and relationships with customers.

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Business Process Implementation Using CRM
Identifying the Need for a CRM System (Contd.)

Case Study:
BlueGear bank is a leading bank in the United States headed
by the Director, Geoff Thompson. In the year 2000, the bank
introduced its products and services to the customers in the
United States. The bank handles three verticals: Retail Banking
(including phone-banking and Internet banking), Loans, and
Credit/Debit Cards. The bank has three departments that
interact with customers: Sales, Marketing, and Customer
Services.

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Business Process Implementation Using CRM
Identifying the Need for a CRM System (Contd.)

The following figure depicts the products and services offered

to the customers by BlueGear bank.

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Business Process Implementation Using CRM
Identifying the Need for a CRM System (Contd.)

The following figure depicts the organizational structure of

BlueGear bank.

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Business Process Implementation Using CRM
Identifying the Need for a CRM System (Contd.)

The bank provides products and services to more than 1.5

million customers spread across 10 cities in the United States.
The low interest rates on home loans, better banking facilities
as compared to contemporary banks, and lucrative schemes
on credit cards led to the success of the bank. The customer
base of the bank soared over the years since 2000-01.

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Business Process Implementation Using CRM
Identifying the Need for a CRM System (Contd.)

The following graph depicts the growth in the customer base

over the years.

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Business Process Implementation Using CRM
Identifying the Need for a CRM System (Contd.)

The bank boasts about its growth rate and increasing market
share in the banking domain. However, a survey and analysis
conducted in the year 2007-08 revealed that the customer
base is not increasing and not all the customers are satisfied
with the bank’s query handling process. The Director, Geoff
Thompson, asked the heads of all the departments to identify
the reasons for this scenario. The department heads called a
meeting with the business analysts and asked them to prepare
a detailed report regarding the issue.

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Business Process Implementation Using CRM
Identifying the Need for a CRM System (Contd.)

The Challenge:
During the annual meet of 2007-08, the business analysts of
BlueGear bank submitted a detailed report to the management.
The report cited the important issues and challenges the bank is
facing. The core reason behind the issues was the inability of the
bank to maintain good relationships with the customers. This led
to dissatisfaction of the customers.

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Business Process Implementation Using CRM
Identifying the Need for a CRM System (Contd.)

The analysts identified the following reasons for dissatisfaction of

customers:
The current information system is unable to handle the huge volume of
queries and issues raised by the customers.
Query solving takes a lot of time.
The current information system does not maintain the history of the
customer’s interaction regarding the customer’s issues.
The data maintained by one department is not readily available to other
departments.
The CSRs are not well equipped with detailed information about the
new products and services offered by the bank.
The bank does not have a strong mechanism for absorbing and
implementing timely feedback from customers.

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Business Process Implementation Using CRM
Identifying the Fundamentals of a CRM System

A CRM system enables an organization to handle

customers and to provide quality customer service in real
time by automating all the activities involved in the CRM
processes.
To implement a CRM system in an organization, you should
know the fundamentals of the CRM system.

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Business Process Implementation Using CRM
Architecture of a CRM System

The following figure represents the architecture of a CRM

system.

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Business Process Implementation Using CRM
Working of the CRM System

The following figure represents the working of a CRM

system.

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Business Process Implementation Using CRM
Features of a CRM System

The features provided by a CRM system can be categorized

under three sub systems. These sub systems are:
Sales automation
Marketing automation
Customer services automation

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Business Process Implementation Using CRM
Features of a CRM System (Contd.)

Sales automation:
Enables the sales team to effectively manage all the phases of
the sales process.
Enables the sales team to close the deals quickly by providing
instant access to vital customer data.
Enables the sales team to automate activities such as
follow-up calls and letters, and converting leads into
opportunities.

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Business Process Implementation Using CRM
Features of a CRM System (Contd.)

The following Data Flow Diagram (DFD) shows the functioning

of the sales automation process.

JPEG Image

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Business Process Implementation Using CRM
Features of a CRM System (Contd.)

Marketing automation:
Enables the marketing team to analyze and automate the
marketing activities.
Reduces the workload on marketing managers by providing
market analysis and forecasting tool.
Provides quality inputs on the designing of the marketing
process and related management activities.
Enables the marketing team to analyze the product features
and the target customer preferences, and provide plans for
marketing campaigns.
Helps collect all the data regarding the marketing campaigns,
and processes them to generate a report.

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Business Process Implementation Using CRM
Features of a CRM System (Contd.)

The following DFD shows the functioning of the marketing

automation process.

JPEG Image

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Business Process Implementation Using CRM
Features of a CRM System (Contd.)

Customer services automation:

Ensures that the organization addresses each customer query
at the right time.
Enables the organization to generate reports that help the
organization to determine the satisfaction level of the
customers.

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Business Process Implementation Using CRM
Features of a CRM System (Contd.)

The following DFD shows the functioning of the customer

services automation process.

JPEG Image

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Business Process Implementation Using CRM
Benefits of a CRM system

A CRM system provides the following benefits:

It eliminates manual tasks by providing automation of the
sales, marketing, and customer services processes.
It helps in shortening the sales and marketing cycles and
retaining the customers.
It analyzes the sales and marketing data.
It provides useful reports, such as report on current sales
trends and customer behavior, to the management.
It expands the business globally by connecting various
business operations through the Internet.
It provides instant results and customer feedback about the
sales and marketing operations carried out by the organization
over the Internet.

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Business Process Implementation Using CRM
Identifying the CRM System Implementation Life Cycle

The various phases involved in the CRM system

implementation life cycle are:
Adoption Phase
Acquisition Phase
Implementation Phase
Use and Maintenance Phase
Evolution Phase

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Business Process Implementation Using CRM
Adoption Phase

Adoption phase:
It is the first phase of the CRM system implementation life
cycle.
In this phase, executives, managers, and sponsors analyze
critical business challenges and goals of the organization.
The requirements of implementing a CRM system are also
defined in this phase.
The following stages are included in this phase:
Analysis of the enterprise needs and requirements for adopting a
CRM system
Analysis of the expected costs of, and benefits from, the CRM
system implementation
Feasibility analysis of the CRM system implementation

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Business Process Implementation Using CRM
Acquisition Phase

Acquisition phase:
In this phase, the project team, after consulting with the
organization, evaluates, and selects a CRM product.
The various stages included in this phase are:
Vendor and product evaluation
Implementation consultant evaluation
Analysis of the organization’s current technology
Detailed impact analysis of introducing the CRM system

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Business Process Implementation Using CRM
Implementation Phase

Implementation phase:
In this phase, the selected CRM product is implemented in the
organization.
The various stages included in this phase are:
Implementation plan
Organizational alignment
Risk identification and management
Implementation process management

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Business Process Implementation Using CRM
Use and Maintenance Phase

Use and Maintenance phase:

In this phase, a track is maintained so that the effect of
implementing the CRM system can be analyzed.
The various stages included in this phase are:
User training
Implementation evaluation
User satisfaction and user intention
Return on investment
System maintenance

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Business Process Implementation Using CRM
Evolution Phase

Evolution phase:
In this phase, some more capabilities are integrated into the
CRM system.
The various stages included in this phase are:
Integration with other enterprise systems
Migration

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Business Process Implementation Using CRM
Summary

In this session, you learned that:

CRM systems provide sales automation, marketing
automation, and customer service automation.
Front office operations include all customer-related services
and contacts, such as sales, marketing, and service.
Back office operations include processing the customer
information to analyze the customer behavior.
Sales automation enables an organization to automate
sales-related tasks.
Marketing automation enables an organization to analyze and
automate the marketing activities.
Customer services automation enables an organization to
retain customers by providing timely solutions to their queries.

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Business Process Implementation Using CRM
Summary (Contd.)

In addition to shortening the sales and marketing cycles and

retaining the customers, a CRM system helps to:
Analyze the sales and marketing data.
Provide useful reports, such as report on current sales trends and
customer behavior, to the management.
Expand the business globally by connecting various business
operations through the Internet.
Provide instant results and customer feedback about the sales and
marketing operations carried out by the organization over the Internet.
The various phases of the of the CRM system implementation life
cycle are:
Adoption Phase
Acquisition Phase
Implementation Phase
Use and Maintenance Phase
Evolution Phase

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