B2B MARKETING

Siebel Systems: Anatomy of a Sale

Aayush Mittal 141101

Aman Jain 141105
Anurag Shukla 141108
Ayush Soni 141112
Ayushi Godha 141113
 What is CRM
 Customer Relationship Management (CRM) is “a
comprehensive approach that provides seamless integration of
every area of business that touches the customer - namely
marketing, sales, customer service and field support - through
the integration of people, processes and technology.”
 Customer relationship management (CRM) is an approach to
managing a company’s interaction with current and
future customers. It often involves using technology to
organize, automate, and
synchronize sales, marketing, customer service,
and technical support
 The 3 phases of CRM
 Acquiring new customers
• Promotion / Advertising
• Better products and superior service
 Enhancing profitability of existing customers
• cross-selling and up-selling (one stop shopping)
• Provision of additional services
• Generally re introducing switching costs
 Retaining most profitable customers
• best customer list
• customer profitability analysis
• make best offer to best customer - personalisation
 Key players
 Microsoft: continues to impress on the CRM front. Known for a competitive pricing
strategy that has made them a definite top-contender in the CRM world, Microsoft
released Marketing-Pilot 15 last year, which added some new and even more ambitious
features to their already extremely popular and cutting edge CRM product.

 SAP: Their mobile user interface saw some especially significant improvements in 2013.
It has been said that they provide a very comprehensive approach to both business-to-
business and business-to-customer enterprises. Of course, Net Suite is definitely a top
contender when it comes to enterprise CSM solutions, as is Suger CRM.

 Sales force continues to be a top contender for enterprise CRM solutions, and for good
reason. They were named “lead vendor in the worldwide customer relationship
management software market” in 2012, when their revenue from software reached a
staggering $2.5 billion. Their platform continues to amaze, and they continue to win
awards and high ratings for their CRM products… especially in terms of enterprise CRM.
Some other players in CRM industry
 Oracle Sales Cloud
 SugarCRM
 Workbooks CRM
 Insightly
 Nimble
 Zoho CRM
 NetSuite CRM
 Veeva CRM
Market share of major players
 Stastistics
 The worldwide SaaS enterprise applications market will grow at a
compound annual growth rate (CAGR) of 17.6% for the five-year forecast
period, reaching $50.8B in 2018.
  The worldwide SaaS CRM applications market will be worth $19.8B by
2018, attaining a CAGR of 19.6% in the forecast period.
 The worldwide CRM enterprise applications market is projected to grow at
a CAGR of 6.9% in the forecast period, increasing from $22.8B in 2013 to
$31.8B in 2018.
 IDC forecasts the SaaS Enterprise Resource Planning (ERP) market will
reach $23.8B in 2018, attaining a 17.2% CAGR in the forecast period.
 The worldwide SaaS operations and manufacturing applications market will
reach $5.8B by 2018, attaining a CAGR of 13.7% in the forecast period.
 The worldwide SaaS supply chain management applications market will
reach $690.9M by 2018, attaining a CAGR of 14.1% by 2018.
 Facts about customer relations
 Cost of selling to a new customer is six times as high as to
existing customer
 Odds of selling to a new customer = 1/7 to an existing
customer = 1/2
 Each dissatisfied customer tells 8 to 10 people
 70% of dissatisfied customers will do business again if
they feel their complains are handled well
 1 extra % of customer retention can boost turnover by as
much as 15%
 Many companies don’t have proper customer support
 CRM = doing things right + actively seeking new business
 SWOT ANALYSIS
Strengths
 1) Focus and finding More Profitable
 2) Keeping and maintaining all information
about customers by gathering their data
 3) Increases sales efficiency
 4) Ensures customer satisfaction
 5) Having knowledge about potential
customers and buyers
Weaknesses

 1) Overload of unnecessary information for

organization:
 2) Cannot succeed with new data entered
 3) Lack of cultural preparation
 4) Insufficiently defined activities
Opportunities

 1) Customer’s satisfaction
 2) Increasing sales base
 3) Making better relationship with customers
 4) Improving customer interaction
Threats

 1) Decreasing in personal interaction

 2) Over automation
 3) Weak combination with back office systems
 4) Raising customer expectations
 5) Inversing customer reaction on CRM
activities
 6) Decreasing revenue
 Regulatory Environment:
 CRM software providers rely on a combination
of patent, copyright, trade secret and trademark
laws, confidentiality procedures and
contractual provisions to protect proprietary
rights. The trends of regulation of software in
general will influence the CRM market.
 Siebel Systems
 Tom Siebel founded it in 1993
 Guiding Goals of the Company
• Building a high tech company focused on customer
satisfaction
• Building a company with enduring core values
 By 2000, it reached the revenue of $2 billion
with approximately 8000 people.
 By 2001, it had become the world leader in
CRM software with a 50% market share.
Product Line & Distribution
 Portfolio of more than 200 products
 Customized product according to customer requirements
 Go-to-market strategy with direct sales force
 Followed a multichannel approach

Alliances
 Integration Alliance Partners include Accenture, Cap Gemini,
Deloitte Consulting, IBM, PWC etc
 Key hardware & software partners include Alcatel, AT&T
Wireless, Avaya,Cisco, Compaq, Microsoft etc

Competitors
 Oracle, SAP, PeopleSoft, Clarify, E*piphany
 Tom Siebel’s Core Values
Customer Satisfaction

Professionalism

Professional Courtesy

Bias for Action

 Carman’s Approach to Selling
 Subtle and personable selling style
 Buying centre
• The Project Team (Carman’s Coach)
• The Senior Management ( Carman’s Executive
Manager)
 Twofold power of methodologies
• By forcing you to answer a number of questions about
the customer
• Not missing any important information that could
potentially affect the sale
 Siebel Meets Quick & Reilly

 Trade Show in New York

 Cathy Ridley, VP of client services with VP of
marketing approached.
 Asked about Oracle.
 Carman’s reply was, “They’re worth looking
at.”
Q. How should Carman respond to the invitation to
tell the Quick and Reilly executives what he
thought of Oracle?

 Response of Carman was apt.

 Comparing the competitor without introducing the client to the
product might not portray a good image.
 By his suggestion, he is trying to help the customer.
Q. What features of this particular interaction
influence your opinion? Would your opinion of the right response
change if the circumstances were different?

 Carman is not sure if Cathy Ridley is Influencer or Decider and degree of power
that she holds in organization.
 Lack of understanding about clients’ needs and budget requirements could
restrain the deal.
 Cathy was not having any prior knowledge of the Siebel systems.

 Yes, the opinion of the right response would change with the circumstances.
 If the meeting would have been arranged beforehand, the agenda would have
been defined.
 Classification of Influencers, deciders, purchasers could have been arranged
prior to meeting hence specific personnel could have been targeted.
Q. How should Carman qualify the prospect?
Should he ask, “What’s your budget?”

 Since Cathy is looking for CRM products in trade show, it

can be inferred that she is a potential customer.
 Asking specific questions would help Carman assess
Cathy’s needs and requirements.
 They shouldn’t ask the budget in starting because Siebel
offers customized their products, so budget part may vary
depending on the specific requirements.
 Often customers mention their budgets when demo is
going on. If the executives look interested and don’t
mention budget part then Carman can ask for it.
Q. Should he suppress his curiosity
and leave it to the prospect to bring up the information
about the size and timing of the opportunity? If he asks for
information, how will he use it?

 Carman shouldn’t suppress his curiosity and should ask for the
opportunity because it will help him to customize and tell
about the product according to their requirements.
 He wants to convert the prospects into final deal and if he
doesn’t ask for opportunity the deal might get lost.
 The information can be used to explain:
• Point of difference of Siebel from competitor
• Right product specification for customer and suggestions about
customization
• Expenses done on the product
Q. Evaluate Carman’s interactions
with the customer up to this point? Is he
doing a good job?

 Focused on building rapport.

 Tried to gain her confidence for sharing more information.
 Refrained himself from speaking anything negative about
the competitor.
 Gave a demo of the product to Cathy.
 Tried to gauge the budget by asking the number of possible
users.
 Therefore, he did a good job.
 How effective is the Siebel Systems approach?
 Siebel used Targeted Account Selling (TAS) Process:
Thank You !!