A CRM implementation requires change management because almost all aspects of a business viz. goals. orientation. . Defining a CRM strategy involves not only the top management but also the enterprise as a whole with all functional areas. processes.Š Š Š CRM is a enterprise-wide initiative as it aims at integrating the front end customer facing system with the back end system that actually deliver the product & value to the system. performance & effectiveness metrics are subject to change.. focus technology.

Š Š Š Usually. . an implementation team is formed that has representation from all the functional areas of the enterprise. The different stages of a CRM implementation road map are shown as in the next slide. CRM implementation road map helps a firm to develop a positive cultural acceptance of CRM.

Scenario Analysis Purpose & objective Business Planning Process Design Technology & vendor selection Solution Development Implementation Measurement .

There are five interrelated areas that are subject to changes. These include:Business Focus Organizational Structure Business Metrics Marketing focus Technology      .Š Š The planning phase includes documentation of high level CRM business goals in the form of business document that becomes the focal point for strategy development.

Communication is extremely critical & vital during this stage. .Š Š In this stage firms should take a hard look at the changes liable to happen & prepare for it.

Most organizations usually adopt a requirements driven approach towards identifying the relevant solution. Š Specify the functionality to meet the specified requirements. This may mean identifying the relevant processes that need to be revamped using technology as the driver. Š Define the business problem & determine what need to be done to solve the problem. Š Define the products that support the identified functionality. Also requires to identify different aspects off the customer focused processes that need to be supported with technology. .

A single CRM product can not provide the corefunctionalities required by the firm.Although there are many firms offering CRM solutions in the marketplace. However many firms are offering products for small & medium-sized firms. The firm wants a unique product that the competitors can not use & vendors can not refer to develop such other products . 3. 4. Off the shelf packages might be perceived as too expensive. a firm might also look at developing their own CRM systems under the following situations:1. 2. They require core CRM capabilities that can not be provided by products that exists in the market at that moment.

Š Š Š Š Š Š Š Š Š Š Functionality Flexibility to incorporate changes Customization Scalability Fit with existing architecture(Legacy systems) Fit with global best practices Upgradability Commercial impact (Lifetime cost of CRM package) Compatibility with other CRM solutions Degree of integration (with back end data warehouse) .

life history etc. client list. The vendor's understanding of the firm·s business problems & pressing needs. .Š Š Š Š Š Š CRM expertise Implementation experience Focus of the vendor on CRM Credentials of the vendor including financials. Preferred implementation partners if the vendor is not able to provide the service.

Š Š Š Š Š Š Š Š Cost & time Any surprises that may come up during implementation Promised features as against the actual features Vendor involvement during implementation Quality of the end user training Quality of customization Post implementation support Experience with the product. .

Š Š Š Š Relationship marketing Internal Marketing Customer Defection Customer Retention Plans .

customer retaining mix & reorganization for customer retention. .Š Firms can profit from their current customers through customer portfolio analysis.

An optimal customer portfolio consists of a balance of new and repeat customers yielding target sales & profits . a firm need to know the purchasing history of a product or firm·s customers.Before developing customer plans or reward programs. A customer portfolio is a combination of customer types for each product that generate sales & resulting profit.

The design of a portfolio begins by seeking meaningful customer classifications based on Market research of actual purchase patterns. . number of purchases. demographic & psycho graphic profiles & contribution to sales & profits. The portfolio segments can be measured in terms of number of customers.

Customer Categories First time customers Repeat customers Switched away. then returned Last time(Defectors) Total Actual Sales (2004) 28% 40% 10% 22% 100% Target Sales (2005) 25% 60% 5% 10% 100% .

An important factor that frequently contributes to the loss of customers is the lack of Organizational control & coordination. . An insufficient linkage between the marketing function & the operations group. Lack of sensitivity to customer turnover rate 2. This problem takes two forms 1.

Š Š Š Š Š Product Extra Reinforcing Promotions Sales Force Connections Specialized Distribution Post Purchase communication .