CRM Implementation: A Case Study

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CRM Implementation A Case
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CRM Business and Technical Views

 Business View
 What is CRM?
 Uses of CRM
 Avoiding the Pitfalls
 Today’s Requirements
 The Future

 Technical View
 Hardware
 Application Software
 Database(s)
 The Data
 The Process

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CRM Some Definitions

 CRM, Customer Relationship Management, usually

refers to a strategic solution that helps
businesses identify the most profitable
customers, customer needs and buying habits, and
helps pinpoint problems in the sales and
fulfillment cycle. In short, CRM is designed to
build and maintain relationships with customers.
 CRM is the Strategic use of information,
processes, technology, and people to manage the
customers relationship with your company across
the whole customer lifecycle.
 Single View of a Customer Customer Centric
Approach

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Direct Mail Targeting
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CRM Software Uses and Reasons

 CRM software packages (solutions) are made to

solve business problems. The business problem
usually isn't a lack of informationbut the
inability to take action that is based on that
information.
 There is not one single software package that can
force business to take action on the information
that they have gathered
 Software is there to facilitate that action and
allow for the information to be used in
meaningful and actionable programs, that
establishes and builds customer relationships.
  Who should implement CRM?
 Any business that needs to do the following
should implement CRM
 understand their customers
 respond to their customer needs
 apply sales and retention dollars to the right
places
 offer products and services that are valuable to
their customers

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Why Did CRM Not Live up to its Hype?

 Lack of Planning
 Some companies fall for a hard sales pitch and
buy packages that do not include features they
really need
 Lack of understanding
 Others buy systems and features that are more
complex than what they were led to believe these
applications would be
 Implementation Issues
 Skills
 Not having right skills in IT and marketing

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Why Did CRM Not Live up to its Hype?

 Company Culture and Philosophy

 Product Centric vs. Customer Centric
 Desire for quick results
 Search for silver bullet
 Cost
 High cost of CRM implementation (if you buy
everything)
 Longer ROI
 Complexity
 Systems are too flexible, therefore, are
complicated at same time

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How to Avoid the Trap?

 The best method is simply to assess the firm's

needs realistically
 Let business needs drive technology, not the
other way around
 Ask questions before making a decision
 Hire experts to evaluate the needs and recommend
right solution
 Compare those needs with the features of the CRM
application being considered
 Dont let sales team dictate business solution
  Dont let internal IT decide features that they
think are important
 Check references and consult with them
 Dont buy more than you can handle

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Whats Important Today

 In terms of features
 Applications' ease of use by business users
 Advanced analytics
 Ability to support a centralized master customer
data system

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Current CRM at Pep Boys

 Campaign Management
 About 7 million pieces of mail
 Ongoing direct mail using single or two stage
segmentation
 Ad-hoc direct mail
 Campaign Reporting
 Tracking responses
 Developing data for analysis
 Learning from doing it

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Future of CRM at Pep Boys

 Smarter Customer Segmentation

 Target better - Get more from less
 Use analytics to learn about customers
 Use campaign management to take action
 Advanced Analytics
 Develop customer profiles
 Develop tracking of customer behavior
 Update campaigns based on analytics
 Loyalty Programs
 Reward customers who improve and change behavior
 Reward customers who maintain spending

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CRM Software Bundle

 Siebel eMarketing 7.5.2

 Siebel Analytics 7.5
 Informatica (ETL Tool) 5.1
 SPSS Predictive Analytics Bundle
 Data Cleansing Service
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Project Management Challenges for the Out of the
Box Solution

 Will the software work in my environment?

 Multiple Platforms
 Multiple Vendors
 What are the hardware requirements?
 How much data do we need to keep?
 How can I get all these vendors on the same page?
 How can I satisfy all requirements in the
allotted time within my budget?

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CRM Data Flow
Data Sources
Data Warehouse
Data Cleansing (Contacts)
Orders Line Items Vehicles
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CRM
Data Mining
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Application Architecture Logical View
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Application Architecture Physical View
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OLTP Database Organization
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Data Quality and Enhancement

 Goal Deliver Message to the Correct Person


 Obstacles
 Deficient safeguards lead to incomplete /
incorrect addresses
 Lack of Centralized Data Source Leads to
Duplication and fragmented customer history
 In-house Data Only tells part of the story

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Incomplete / Incorrect Addresses
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Duplication
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Merging Contacts
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Data Relating to the Customer
External Data
Collected at POC

 Annual Income 1,000,000

 Marital Status Single
 Presence of Children None
 Closest PBY Marlton
 Distance to PBY 5 Miles
  Age 29 (Again)
 Sex Male

 Jeff Salvage
 123 South St.
 Anyplace, NJ
 08054
 Had Oil Change
 Purchased Alternator
 Owns 03 BMW

Derived Data

 Last Trip to PBY 3 days ago

 Visits to PBY per year 4
 Amount spent per visit 50.00
 Likely to respond to direct Ad
 Recommend Selling Camping Travel Gear

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Future Technical Initiatives

 Stay Current / Upgrade

 Real-Time Cleansing
 Mining the Data
 Centralized Data Source

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Lessons Learned
Lesson
Impact

 Engage all stakeholders at beginning

 Know Your Partners(Low Cost not best)
 Start Small, Learn, Then Grow
 No Substitute for Experience
 Have a Technical and Business Plan
 Know Your Data

 No Store, Service input


 Inexperience, mistakes delays
 No quick hits, I.e. No quick Returns
 No In-House CRM Expertise
 Technology in Place how do we use it?
 Campaigns yielding unexpected results

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QA