Concepts and definitions

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

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
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Transactional Data
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Business Partners Products Organizational Management Conditions Partner/Product Ranges Installed Base Management

Activities Leads Opportunities Quotations Order objects Invoices

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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.


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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.


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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 installedbase 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-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-tocash 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

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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 autosuggest. 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
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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
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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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