Acknowledgements

All our well-wishers ..

Flow of information
Introduction.

Objectives

To describe different features. Demonstrate examples where ever possible.

introduction

Introduction

The concepts of customer relationship management have been in the air ever since very long, but CRM as a term gained currency in the mid-1990s. The most common question asked is..

Introduction
"What is CRM?"
Probably because if you ask three CRM experts, you'll get five different answers.

Inroduction
We put the question to a panel of CRM experts the "gurus"
CRM is business strategy to select & manage the most valuable customer relationships. CRM requires a customer-centric business philosophy & culture to support effective marketing, sales, and service processes. CRM applications can enable effective customer relationship management, provided that an enterprise has the right leadership, strategy, and culture.

Customer Centric: The Starting Point CRM at least the successful, useful and profitable kind always starts with a business strategy, which then drives changes in the organization and work processes, which are in turn enabled by information technology. The reverse never works.

Customer Centric: The Starting Point

The reverse never works. Projects that focus on technology first, rather than business objectives, are destined for failure . Business executives have always understood the importance of focusing on customers with the best potential for sales and profits and providing good service so they'll come back again and again.

Customer Centric: The Starting Point Why has CRM bulled its way to a billion-dollar industry? Bottom line: Power has shifted to customers, who stand astride three powerful currents: The failure of enterprise resource (ERP) planning systems to bestow a lasting competitive advantage for companies.
Continued

Customer Centric: The Starting Point The cycle of innovation-to-production-toobsolescence has accelerated, leading to an abundance of options for customers and a shrinking market window for vendors. Internet-surfing customers have far easier time collecting information about competing suppliers, and can switch to another vendor at the click of a mouse.

The Customer Relationship Lifecycle

Business Processes supported by CRM applications Marketing: Targeting prospects and acquiring new customers through data mining, campaign management, and lead distribution. Remember, the emphasis here is on long-term relationship value, not quick hit. Sales: Closing business with effective selling processes using proposal generators, configurators, knowledge management tools, contact managers, and forecasting aids-all without uttering The Eight Words That Kill A Sale: "Let me get back to you on that."

The Customer Relationship Lifecycle E-commerce: In the Internet Agewelcome to it-selling processes should transfer seamlessly into purchasing transactions, done quickly, conveniently, and at the lowest cost. Service: Handling post-sales service and support issues with call center applications or Web-based customer self-service options.

Understanding the Concept of CRM

CRM is a philosophy that puts the customer at the design point, it's getting intimate with the customer. CRM is more as a strategy than a process. It's designed to understand and anticipate the needs of the current and potential customer base a company has. Once you nail that, there's a plethora of technology out there that helps capture customer data and external sources, and consolidate it in a central warehouse to add intelligence to the overall CRM strategy.

Understanding the Concept of CRM

CRM as a customer- centric business strategy, which drives changes in functional roles in the company, which demand re-engineering of work processes, which is supported, not driven, by CRM technology. Translation: First you change your business approach, then you re-engineer the roles in your company to support that new approach, then and only then you start talking to vendors.

Understanding the Concept of CRM CRM is simply a process with the goal of making relationships profitable. To reach this goal, marketing, sales and service must work more as team and share information. Computerized CRM applications make this possible.

CRM : An Overview

Why Climbe the CRM Mountain?

Automate inefficient and expensive work processes: Get the same work for less cost, goose the bottom line, cut staff, fatten up the financial stakeholders. Companies value efficiency over customer satisfaction. Automating and hurrying up customer service calls and providing financial incentives for service representatives to maximize call turns is a sure-fire way to maximize customer turns.

Why Climbe the CRM Mountain?

Use the Internet: Customers are dying to flock to web, where companies can shunt off all low-margin customers and low-margin transactions. Today's buyers use the Internet more selectively than today's sellers like. Lowmargin customers are often high-potential customers and low-margin transactions often come from high-margin customers.

Why Climbe the CRM Mountain?

Fix' sales and marketing: CRM will keep those lazy sales reps away from those 2:30 tee times. Load GPS in their laptops. Get those marketing prima donnas pounding numbers instead of sipping daiquiris while "creating" ads.

Importance of CRM to an Organization

Benefits of CRM are clear: By streamlining processes and providing sales, marketing, and service personnel with better, more complete customer information, CRM enables organizations to establish more profitable customer relationships and decrease operating costs. Sales organizations can shorten the sales cycle and increase key sales-performance metrics such as revenue per sales representative, average order size, and revenue per customer.

Importance of CRM to an Organization

Marketing organizations can increase campaign response rates and marketingdriven revenue while simultaneously decreasing lead-generation and customeracquisition costs. Customer service organizations can increase service-agent productivity and customer retention while decreasing service costs, response times, and request-resolution times.

Importance of CRM to an Organization

Advantages of CRM
Provide better customer service Increase customer revenues Discover new customers Cross sell/Up Sell products more effectively Help sales staff close deals faster Make call centers more efficient Simplify marketing and sales processes

CRM for Banking : An Overview

CRM for Banking : Introduction

The word bank is derived from the Italian banca, which is derived from German and means bench. having its bench physically broken. Money lenders in Northern Italy originally did business in open areas, or big open rooms, with each lender working from his own bench or table. The evolution of banking dates back to the earliest writing, and continues in the present where a bank is a financial institution that provides banking and other financial services.

CRM for Banking : Introduction

Currently the term bank is generally understood as an institution that holds a banking license. Banking licenses are granted by financial supervision authorities and provide rights to conduct the most fundamental banking services such as accepting deposits and making loans.

CRM for Banking : Introduction

There are also financial institutions that provide certain banking services without meeting the legal definition of a bank, a so called non-bank. Banks are a subset of the financial services industry.

CRM for Banking : Introduction

Banking is changing
Technology is being introduced in the sector. A greater amount of disintermediation is taking place in the higher segment of the corporate sector and there is a need for providing better quality customer service. The market is becoming more & more buyer dominated. In Banking, the final result as to who will actually be able to woo customers will depend on their ability to react and respond to the customer requirement. Continued .

CRM for Banking : Introduction

The customer is going to be the real decider of fate of Banks. The Banks want to be a major retail consumer globally. The part of retail Banking goes not only with Credit Card but Debit Cards and Smart Cards as well. The Customer base in banks is increasing because banks such as Swiss Bank, HDFC Bank, ICICI, HSBC, Citibank, American Express are wooing corporate to enter into new fields and giving them extra facilities and services.

CRM for Banking : Introduction

Facilities such as ATM network, which provides visibility and convenience are set near railway station, petrol pump, shopping complexes etc. Internet Banking is available to the customer at his desktop, while the branches may be certain kilometers away. Banks are providing customers with the highest quality services with special emphasis on recognizing customer needs and cross selling (expanding relationship with existing clients to increase range of services delivered to the clients) appropriate bank services.

CRM for Banking : Introduction

The latest trend in banking strategy is clicks & bricks in which customer can debit or credit accounts, check balances and even trade on it. Car loan is other area in which banks are developing relationship with the customer. Various loan structures are designed for various sectors to soothe their personal and business needs which can give approximately 3.5 to 5 percent increase in customers as per the survey taken in 2004. The ideal model of maintaining relationship with the customer focuses on the customer service issues.

The commercial banking structure in India consists of: Scheduled Commercial Banks Unscheduled Banks Banking Regulation Act of India, 1949 defines Banking as "accepting, for the purpose of lending or investment of deposits of money from the public, repayable on demand or otherwise and withdrawal by cheque, draft, order or otherwise." The Software Packages for Banking Applications in India had their beginnings in the middle of 80s, when the Banks spurred on by RBI and the Rangarajan Committee Report, started computerizing the branches in a limited manner. Banks now looking at business process management (BPM) to increase returns on investment, improve customer relationship management (CRM) and employee productivity.

Steps to achieve Banks Annual Revenue Targets Increasing market desirability by offering new products and services. Exploiting the existing customer base to meet specific goals. Acquiring new customer groups. Optimizing sales and service. Reducing administrative tasks. Collaborating with sales and distribution partners.

Understanding Customer Portfolios using Analytical CRM

Managing the customer portfolio is key to successful banking. The composition of the customer portfolio depends on constant inflows and outflows that cannot be predicted. The basic task of customer portfolio management is to segment and profile existing and prospective customers. Customer portfolio management can only be successful if aggregated key figures can be broken down into figures for individual customers.

Understanding Customer Portfolios using Analytical CRM

The sales organization requires up-to-date customer key figures and segments. Important key figures include risk costs, risk adjusted yields, average business volume, and annual income from commission. A qualitative analysis requires a comprehensive, uniform information base. Soft facts invaluable, personal information about customers gained through customer interactions are required in addition to transaction data and contract data.

Understanding Customer Portfolios using Analytical CRM

Optimizing Sales Processes using Operational CRM

Sales processes must be optimized to generate larger profits. This optimization can consist of improving the efficiency of lead and opportunity management and ensuring that workflow can trigger appropriate activities so that deals do not fall through the cracks. Optimization of the sales process increases the effectiveness of relationship managers. For example, by reducing the number of administrative tasks that bank employees have to perform. This involves eliminating redundant data maintenance and integrating activity or business activity management combined with deadline monitoring and alert and event management.

Improving Customer Satisfaction

With proper branding a bank can enjoy: Increased market share as the positive value associated with your products and services and attracts more customers. The ability to charge more for products and services because customers associate trust, reliability, and other positive attributes with companies that have brand-name recognition. The ability to test and launch new products because of the positive effect of brand awareness on customer acceptance.

Enhancing Profitably
To stay competitive, financial institutions must improve profitability. With higher product penetration per customer, it becomes easier to draw a bigger share of the market. As more products are sold, profitability rises. As customers develop a deeper relationship with the company, customer retention increases further expanding market share.

Enhancing Profitably
Banks must also overcome a range of technological hurdles, including systems for data collection that are highly fragmented and redundant. Data may also be decentralized due to changes in company structure, a merger, or an acquisition. the bank faces significant barriers for crossselling, up-selling, and otherwise extending the customer life cycle.

Enhancing Profitably
A well-integrated CRM solution that is truly synchronized with the Internet and enterprise applications, external customers, business partners, and suppliers can facilitate the compilation and analysis of data that empowers a financial institutions sales force, customer support team, and supply chain partners.

UNDERSTANDING CRM FOR BANKING

A survey reveals that only 36% of the CEOs have CRM as one of the top activities in there agenda. The use of new technologies in this sector has provided quick and efficient service, personalized interest and importance to the customer that is the name of the game. Multinational banks are of the opinion that today there banks believe in providing state of the art value added services to their customers.

UNDERSTANDING CRM FOR BANKING

The fact that private banks are coming up with technology based services they are able to maintain here position and be in competition because they go for mass banking i.e. having the smallest and the biggest investor in the chain. This has been accomplished through small tactics like talking to customers in regional areas in their local language, personal attention to them from managers etc. and private banks are practicing CRM so aggressively because they go for class banking and therefore the loss of even a single customer takes a very toll on them and their business.

UNDERSTANDING CRM FOR BANKING

Regulation and technological improvements are responsible for the vast majority of innovations in banking over the past quarter century. Bankers at all points of the CRM spectrum are looking for a way to quantify their return on investment either what it actually is or, if just starting out, what it should be and over what period of time should the value be realized.

UNDERSTANDING CRM FOR BANKING Bankers invested believing that the Internet was a lower-cost delivery channel and a way to increase sales. The primary value of offering Internet banking services lies in the increased retention of highly valued customer segments.

BENEFITS OF DEPLOYING A CRM SUITE

The new wave in retail banking is an enterprise-wide, customer-centric approach where branch-banking; call centers and ebanking converge to provide a "best of breed" approach to customers. The objective is to seamlessly deliver banking services on demand across all channels to create and support a customer's positive experience of the process.

A CRM Fairy Tale

A CRM Fairy Tale

Each and every product on the banks showcase i.e. Saving accounts, loans, credit cards, debit Cards etc. Each product has its own particular pre-defined system. Using CRM, a bank is able to analyze how each client's inherent value to the bank is affected by the type and frequency of events, their balances and their channel usage.

A CRM Fairy Tale

Once upon a time way-too-big bank installed CRM software, rebuilt their processes around it and trained their staff in CRM . An OLAP query into bank s data warehouse asks who can be banks best customers. It s evident that customers with MBAs tend to earn and bank more than an average customer. So, a campaign is designed to entice MBA students to open accounts. Campaign management software shows that e-mail yields the strongest response. An e-mail campaign to a list of MBA students is rolled out. Of which, Jane Gogetter responds to their marketing campaign.

A CRM Fairy Tale

JANE OPENS AN ACCOUNT: Jane gets the e-mail offer for free checking and online banking, she clicks on the URL for more information. She completes an online application, which asks for her preferences on how must the bank communicate to her, in what language should the ATM speak to her, which pin number would she prefer, which of the bank products interests her the most On completing the preferences Jane submits the application. As soon as the form is submitted the data flows from the web interface to the banks front office CRM software and into the operational customer information database.

A CRM Fairy Tale

On doing so a series of workflows are triggered such as sending an email to the customer service instructing them to mail the ATM card, a welcome letter and signature authorization form which must be sent to the customers destination within 24 hours. An account is automatically generated on the customers name in the Back office account system, and has to only be activated upon the arrival of the customers signed authorization form and deposit.

A CRM Fairy Tale

JANE GOES TO THE ATM: Now Jane has received the ATM card and her preferences are stored on her ATM card. When she visits a bank machine, she's welcomed by name in English and asked if she'd like her usual $80 with receipt. She deposits the paycheck from her part-time job; it's read by the ATM's scanner. An image of the check prints on her two-sided receipt; her endorsement appears on the back. Jane is confident that the ATM isn't devouring her checks, and the bank has diverted Jane from expensive teller visits.

A CRM Fairy Tale

JANE LANDS A JOB: An OLAP inquiry picks up the sudden increase in Jane's biweekly deposits and her request for automatic deposits. Her account is flagged as a good prospect for a CD, mutual fund or an IRA. The next time she contacts the bank, regardless of channel, she'll receive an appropriate offer. Jane calls to check her account balance. A pop-up window on the agent's screen indicates that she probably has a new job and may want information on investing. He gives Jane her account balance and asks whether congratulations on a new job are in order. Jane says yes and the agent offers to send her a free financial planning kit and emails a kit request to the fulfillment department.

A CRM Fairy Tale

BUYING A CAR MADE EASY 6 months later Jane's automatic deposits increase by 2% percent to reflect a raise. Other customers at her age have proven likely to spend extra income on new cars, so a marketing analyst reviewing account status changes sends her a personalized e-mail offer for a new car loan. Jane, who has been tempted by thoughts of a new car, responds by clicking on the car loan URL. When she logs on using her password, the site serves up a car-loan application prepopulated with her account data. Jane finances her car through the bank.

A CRM Fairy Tale

JANE GETS A LOAN: Approval of Jane s auto loan triggers return e-mail offering car insurance from the bank s insurance subsidiary. The email links to the insurance subsidiaries web site. Jane s customer data is linked to the insurance web site, so the application is partially filled in. The process of completing the application takes less than 10 minutes. Jane instantly receives quotes from three companies that offer insurance that best fit her profile. Jane chooses one company, and her new car is now insured when she picks it up.

A CRM Fairy Tale

GETTING A MORTGAGE: Jane has found the house of her dreams and needs to get approved for a mortgage quickly. This bank has treated her well, so she doesn't bother to shop. As she fills out an online application, she realizes she wants to borrow extra funds to finance kitchen renovations. She clicks on the "call the agent" button, and within 30 seconds an agent's voice booms through her PC speakers. "Hi Jane, this is Bob. I understand you have a question about your mortgage. How can I help? . The system tells Bob that Jane is a good customer, and qualifies for more than the mortgage amount. He OK s her to apply for an additional 10%. Jane completes the online app. and is promised an answer in 4 hours. Jane receives an e-mail within a half hour telling her she's approved for the full amount.

A CRM Fairy Tale

OOPS JANE GETS DISTRACTED: Jane forgets, and doesn t pay her credit card bill on time for the first time in 5 years. An automatic business rule in the front-office CRM system waives the finance charge applied by the back-office credit card system. It recognizes that is the first time it's happened. And, and her lifetime value projection is above a certain threshold. Jane gets a letter with her next statement saying that because she's a valuable customer, her grace period for payment has been extended by a month without a fee. Jane is impressed and becomes a more loyal customer.

A CRM Fairy Tale

JANE S START-UP GOES PUBLIC: Jane cashes in some stock after the IPO lock-up period, and deposits the proceeds in her account. An OLAP inquiry looking for major account changes, flags an unusually hefty deposit to Jane's account. An analyst looks at the flagged account in the front-office system. The analyst sends an invitation for a free session with a financial counselor. When Jane calls, an agent goes into the front-office system and schedules an appointment with Sarah, the financial planner who covers Jane's area. Jane's credit card is automatically upgraded to platinum status.

A CRM Fairy Tale

JANE S START-UP GOES PUBLIC: The bank s sales force automation (SFA) software notifies Sarah of her appointment with Jane. At their meeting Sarah uses the custom financial counseling option on her SFA application to generate a range of investment scenarios. She shows Jane how modifying her risk profile will affect her long-term investment portfolio. Jane decides to open a stock mutual fund with monthly automatic checking account deductions. Sarah activates the mutual fund account from her laptop.

A CRM Fairy Tale

OTHER MILESTONE TRIGGERS NEW OPPORTUNITIES: If Jane gets married, the bank will want to attract her joint account and her husband's investments. If she becomes a parent, the bank will try to get her to invest in an education fund. A savings account for the baby through which the bank hopes to cultivate a lifetime relationship with the child. Later, the bank will offer Jane help with retirement planning and estate planning. All this triggered by the bank s CRM system

A CRM Fairy Tale

Relationship chart of bank with Jane

Continued .

CRM Vendors

CRM Vendors Selection

Look to vendors offering a full suite of CRM application functions that are seamlessly and architecturally-integrated. Minimum suite functionality should include support for sales automation, customer service automation, and marketing automation. Look for suites of applications that can be acquired all at once or as modules over time. The pre-integration of these modules facilitates this kind of incremental approach.

CRM Vendors Selection

Search for applications that contain the appropriate depth of functionality for your current and reasonably foreseeable future needs. These requirements, of course, can vary greatly from industry to industry and from company to company, so can only really be evaluated on an individual organization basis. Consider the future, but be realistic and don't buy a lot more functionality than you expect. There is often a price to pay in terms of complexity, inflexibility, and maintenance.

CRM Vendors Selection

Look for applications which can be quickly configured and implemented. Rapid implementation shortens the time to value and typically lowers the implementation project costs and risks. Look for applications that are easy-tomaintain. Ease of maintenance has both cost implications and IT resource implications. Web-based architectures and industrystandard components are key.

CRM Vendors Selection

Look for application vendors who have demonstrated an understanding of and a commitment. Look for applications whose scale matches your business. Only consider applications able to support the size of your workforce and the scope of your business both at start-up and for the foreseeable future.

CRM Vendors Selection

Look for application vendors who are stable. It is estimated that fully half of the existing CRM application vendors will exit the market over the next 3 years. Look for vendors who have demonstrated strong leadership, competitive and differentiated products in the markets they target, and are spending appropriately to sustain their positions. Look for applications designed to support ease of application integration to other business applications, such as accounting, order processing, inventory, and human relations.

CRM Vendors Selection

Look for multi-channel application support for self-service, particularly for the sales and customer service functions. Application interfaces should be intuitive and the functionality should be designed to be easy-to-learn and easy-to-use. Ease-of-use plays a significant role in user adoption.

CRM Vendors Selection

Look for light-weight, flexible, and tiered architectures. Look for applications with high degrees of configurability as well customizability so they can be set up to map to an organization's customer facing business processes. The ability to tailor an application with low-cost configuration is highly desirable and preferable to tailoring by custom programming.

The CRM Application Suite Spectrum

Serving as a front end for customer-facing business processes such as order entry, order tracking, billing, and service call generation; Tracking your interactions with customers, on both the sales and service sides; Presenting the customer knowledge that you have gained from your prior interactions to salespersons, call center agents, and other persons who deal directly with your customers (and, increasingly, building this knowledge into self-service applications);

The CRM Application Suite Spectrum

Analyzing your customer data to identify value enhancing opportunities Providing info. needed to evaluate the performance of customer service agents and sales staff; Designing marketing campaigns, and implementing those campaigns within your call centers and other touch points with your customers and Formalizing your customer-facing businesses processes by building them into the computer applications that your personnel use to complete transactions.

ERP Vendors Racing towards CRM

PEOPLESOFT: PeopleSoft (Pleasanton, CA) has taken a different approach, largely driven by the thin-client architecture upon which PeopleSoft's ERP and human resources offerings are based. Though PeopleSoft CRM does offer out-of-the box integration with PeopleSoft's back-office systems, its offerings are a bit more modular than are the CRM packages from SAP and Oracle, which has given them more traction in the standalone CRM market. People- Soft also offers integration with its market-leading HR systems, which makes it an attractive choice for companies with large-scale employee help desks.

ERP Vendors Racing towards CRM

AMDOCS: Amdocs (Boston, MA), which has a strong presence in billing for large telecommunications service providers, and Epicor (Irvine, CA), which provides ERP and supply chain management software to small and mid-size businesses, also fit into this group. Like PeopleSoft CRM, the CRM packages from these two vendors are less back-office oriented than are the Oracle and SAP offerings.

CRM Implementation

Before Implementing: Ready, Set, Stop and Think!

The implementation phase is one of the most critical phases in the CRM implementation life cycle and the success of the banking organization depends on this phase also whether the bank which has been implemented with a CRM software is really profiting from it or not. The basic steps one should look forward to for a successful implementation Ready Set Stop and Think

Before Implementing: Ready, Set, Stop and Think!

READY... Before you implement CRM software in a bank the first thing one should think about is that is the banking institution really ready to implement a customer management strategy using customer relationship management (CRM) technology? In banking sector the main thing is to trap the customers and the customers will be attracted when they will be having a host of facilities at their disposal. Bankers typically perform their due diligence by evaluating what their competition is doing, asking their end users what capabilities they need to solve the current business challenges and talking with industry experts.

Before Implementing: Ready, Set, Stop and Think!

A growing number of new players are today evaluating the advantages that their banks will get with a good and effective CRM system, and their primary motivation is the promise of becoming more competitive and customer centric in banking sector. The benefit of this promise is competitive advantage and increased profits.

Before Implementing: Ready, Set, Stop and Think!

When it comes to implementing new business processes, half-hearted efforts should be avoided at all costs. Before any significant change can happen, the people planning the CRM implementation must demonstrate stalwart courage by honestly assessing the current state of the banks processes that are going on. It is only when the banking institution leaders clearly understand the problems the bank's might face that they can begin to fix them, set expectations for their CRM implementation and identify the commitment needed to ensure the maximum return on their CRM investment.

Before Implementing: Ready, Set, Stop and Think!

SET... Tips which can help increase the probability of a successful CRM initiative in banking sector. Tip 1: One should gain a clear understanding of the current situation. The bank should recognize the unique change-management challenges that it needs to address. It must first learn the required skill sets that are needed to function successfully within the new paradigm and then it should also bridge the skills gap of the personnel.

Before Implementing: Ready, Set, Stop and Think! Tip 2: The bank must clearly document the objectives it has in mind for how it wants its team to perform after the CRM implementation and training takes place. Another "must-do" from the banks point of view is gaining consensus with the key stakeholders who will be using the CRM system.

Before Implementing: Ready, Set, Stop and Think!

Tip 3: The Incharge must communicate the objectives of the CRM system to each member of the team. The banks must outline each department's commitment to the CRM initiative in terms of personnel, time and money required for success (each member should clearly understand the mission of the initiative and why this investment is critical to executing on the new customer management strategy).

Before Implementing: Ready, Set, Stop and Think!

Tip 4: It should define value for its highly visible CRM initiative. Many organizations in the banking sector often miss this step because of the perception that it's difficult to define hard numbers for a CRM initiative. For example, quantifying the value is possible if you look at the challenge from the perspective of the following measurements: sales, including revenue per sales person and sales representative turnover rate; customer service, including call-abandon rates, average time spent handling a call, customer satisfaction and average call value. The actual measurements used will be based on the nature of the business problems faced by the organization

Before Implementing: Ready, Set, Stop and Think!

Tip 5: The banks must closely align bonus programs or incentive compensation to the correct use of a new CRM system. Tip 6: It must compile detailed cost information, including hardware, software, professional services, ongoing application maintenance, training, business process reengineering and ongoing end-user support. Ensure the appropriate infrastructure is in place, including personnel, support process, hardware and networks.

Before Implementing: Ready, Set, Stop and Think!

Tip 7: It must define the actionable insight created for your end users by combining quality data with technology. Tip 8: The business strategy must exhibit simple elegance so that employees, customers, partners and prospects will all benefit from the use of the new CRM system which is going to be implemented and the overall experience it creates.

Before Implementing: Ready, Set, Stop and Think! STOP AND THINK. NOW GO!
CRM starts with a business strategy. This enables the work flow process. This is in turn assisted by IT. The process cannot be reversed. Business strategies cannot be reversed. The deployment should follow a bottom to top approach.

Implementation Roadmap
Phase 1: Technical Basis Review Determine current technical and functional platform and capabilities, including issues of data synchronization, links to ERP systems, and potential system expansion (i.e., the Internet/Web for E-commerce)

Implementation Roadmap
Phase 2: Organization Meet Meet with representatives from sales, field service, marketing and customer service and uses the observations as input for point to point detail investigation and report making for better understanding the implementation of the CRM

Implementation Roadmap
Phase 3: Business Process Review Review the existing business process issues as well as business process requirements. Phase 4: Questionnaire Module Consolidate the findings of the Technical Basis Review, Organization Meet and Business Process Review session and design a questionnaire on the key findings.

Implementation Roadmap
Phase 5: Brainstorming Session To understand the outcome of the questionnaire session and use the input of that session to discuss the possible methodologies. Phase 6: Issue Prioritization Session Based on the organization meet, business process review, questionnaire module and brainstorming session identify the priority aspects to be involved.

Implementation Roadmap
Phase 7: Technical Platform Counsel Take into consideration the business functions and the output of the Technical Basis Review. Based on this decide the software, systems and the CRM package to be deployed also look into the cost scenario. Phase 8: CRM Report Evaluate various packages that suit the requirement and deploy them on a test scenario and appraise the packages based on cost, ease of deployment, support modules available and up gradation adaptability and integration with other systems and legacy systems.

Implementation Roadmap
Phase 9: CRM Delivery Report Involve all functions and departments of your organization while presenting your CRM Report so that the entire organization is aware of the process flow that has gone to suit the requirements. s Phase 10: Deploying CRM Once the CRM package has been finalized on procure the CRM package from the respective vendor and go through the terms. Deploy the CRM solution on a staging period (testing phase). Once the staging period is complete set the solution live for usage and train everyone in your organization to use the CRM solution effectively.

Implementation Roadmap
Phase 11: Maintaining CRM It is not just enough if you have deployed the CRM solution, regular checks on the system should be undertaken to see if the purpose is being served. Try to improvise on existing solution.

Examples
Banks
Bank of America

CRM Strategy
Provide service representatives with 360-degree view of customer relationship for corporate and retail banking Segment customer base into six different groups based on demographics and banking behavior Deploy CRM system across branch network, integrating with central office, link multiple customer databases

Goal
Improve customer experience, retention Attain crosssell revenues, maximum lifetime value Improve customer experience, cross-sell

Fleet Boston

BNP Paribas

Risk Management

Risk Analysis
CRM efforts are frequently large, often expensive, cross-functional, involve considerable change, and are generally longterm. These factors of scope, resources, organization, change, and time all serve to thwart efforts at successful CRM implementation and undermine return on investment. To manage and mitigate risk, we advocate a structured approach to CRM implementation based on a risk management-based foundation.

Risk Analysis
The use of risk management techniques supplies organizations with the means to constructively identify and prioritize actions within that framework. Risk management is a high value, and often overlooked, component of an overall project management approach.

Risk Analysis
By employing this approach, important questions will surface What is my organization s readiness to embark on a CRM implementation? What is the probability of each risk? What is the impact if the risk occurs? What are the trigger conditions? How much time and capital contingency will the CRM implementation require? What is to be done now in order to be successful later?

Structured Risk Management

Structured Risk Management 4 Step Process Risk Risk Risk Risk Identification Quantification Response Development Response Control

Structured Risk Management

Points to Remember

Risk Identification

Grouping Risk

Risk Quantification : Example

As a result of (cause) not allocating training funds to the project, (risk) the need for the implementation team to learn as they go may occur, which would lead to (effect) the project taking longer than originally planned. As a result of (cause) an aggressive solution delivery timeline, it is possible that (risk) the implementation team will have to rush, which may result in (effect) project deliverables of substandard quality. .

Risk Quantification : Example

The 2 risks that come from statements are: The implementation team will have to learn as they go, and The implementation team will have to rush. The 2 effects (or impacts) derived are: The project taking longer than originally planned, and Project deliverables of substandard quality.

Risk Quantification
Cause (from the risk statement) Risk (from the risk statement) Effect (from the risk statement) Probability (Very Low, Low, Medium, High, Very High) Impact (Very Low, Low, Medium, High, Very High) Risk group (project, technical, business) And Campaign Management s topics

Establishing a Risk Threshold

Some risk is acceptable. What is weighed is the chance of the risk occurring and the risk s impact should it occur? By combining these two factors, we are able to decide on what is acceptable to the business and what requires attention and further risk management.

Establishing a Risk Threshold

Shaded area - the combination of probability and impact is considered to be unacceptable risk. Non-shaded area acceptable risk. The boundary line is the risk threshold.

Risk Management Strategies

Avoidance: Seeking to eliminate uncertainty. Examples include: clarifying requirements, obtaining information, improving communication, acquiring expertise, changing the scope of the project to exclude risky elements, and using a proven technology Transfer: Seeking to transfer ownership and/or liability to a third party. Although this appears attractive, its main use is limited to financial risk exposure. Note that risk transfer also involves a change in ownership in a project as well as a shift in liability.

Risk Management Strategies

Mitigate: Seeking to reduce the size of the risk exposure below an acceptable threshold. It is clearly important to define this threshold before embarking on any mitigation, since it forms the target against which response effectiveness can be measured. The size of a risk can be reduced by tackling either its probability to make it less likely, or its impact to make it less severe, or both. Preventative responses are better than curative ones as they are more proactive, and if successful, lead to risk avoidance.

Risk Management Strategies

Accept: Recognizing residual risks and devising responses to control or monitor them. Acceptance is appropriate for minor risks, where any response is not likely to be cost-effective. The project must recognize and proactively accept these risks and develop and adopt responses to them. The most frequent risk acceptance response is contingency planning, where one budgets additional time, money, and/or resources to account for such risks. Although there is no single best response strategy, it is recommended that avoidance strategies be considered first since it is clearly best to remove the risk completely if possible. Transfer should be investigated second, although the scope for this is often limited.

Risk Response Effectiveness

Appropriate: the correct level of response must be determined based on the size of the risk. It is important to not spend too much time or effort developing inappropriate responses to minor risks, nor to spending too little time planning a response to key risks. Affordable: risk responses should be costeffective. Each risk response should have an agreed-upon budget.

Risk Response Effectiveness

Actionable: a timeframe for each risk response is essential. Achievable: risk responses must be realistically achievable or feasible, either technically or within the scope of the respondent s capability and responsibility. Assessed: all proposed responses must work. Assessment is done after the risk response is implemented.

Risk Response Effectiveness

Agreed: the consensus and commitment of stakeholders should be obtained before agreeing on appropriate responses. Allocated and accepted: each response should be owned and accepted to ensure a single point of responsibility and accountability for implementing the response. One would expect that a review with senior management would focus on each of these items for each risk a summary provided by the Project Manager or CRM Director in the form of a table or spreadsheet is usually sufficient.

Risk Development Issues

Fallback planning may be necessary for risks with major impacts. Preparing disaster recovery plans or business continuity plans. Secondary risks take place as a direct result of implementing a primary risk response because the risk profile of the project will change as a consequence of implementing the risk response. Note that if the overall risk exposure increases as a result of implementing a primary risk response, it may be prudent to reconsider the appropriateness of the initial risk response.

Risk Management Maturity

LEVEL 1 AD-HOC, Worship the Hero At this level there is no awareness of the need for management of uncertainties (i.e., risk). Management processes tend to be repetitive and reactive with no structured approach to dealing with uncertainty. Attempts to learn from past projects or prepare for future projects are generally ad-hoc and organizations at this level have a tendency to continue with existing processes even in the face of project failures. Attempts to apply risk management occur only when mandated (e.g., by corporate policy.) Because there is no structured application of risk management, there are no dedicated resources, risk management tools, nor risk analysis performed.

Risk Management Maturity

LEVEL 2 INITIAL, Try It Out Although there is no structured approach in place, organizations are aware of potential benefits of managing risk, but face implementation challenges. Experimentation on selected projects with risk management through a small number of individuals, who may have had little or no formal training, is typically the order of the day.

Risk Management Maturity

LEVEL 3 REPEATABLE, Plan the Work; Work the Plan Management of uncertainty is built into all organizational processes with risk management implemented on almost every project. Upper management requires risk reporting and there are dedicated resources for risk management risk information is accepted. There is an in-house core of expertise, formally trained in basic risk management skills, with routine and consistent application to all projects. Risk metrics are collected both qualitative and quantitative risk analysis methodologies are used, often based on an integrated set of tools and methods.

Risk Management Maturity

LEVEL 4 MANAGED, Measure the Work, Work the Measures The organization has a risk-aware culture with a proactive approach to risk management in all aspects of the business. There is an active use of risk information to improve organizational processes and to gain competitive advantage. There is a top-down commitment to risk management, with leadership by example. Upper management uses risk information in decision-making; proactive risk management is encouraged and rewarded.

A Campaign Management Example

A Campaign Management Example