TECHNOLOGY IN CRM

Dr. D. ASHOK
VIT Business School
 CRM - DEFINITION
 Customer relationship management is a corporate
level strategy which focuses on creating and
maintaining lasting relationships with its customers.
 Although there are several commercial CRM
software packages on the market which support
CRM strategy, it is not a technology itself.
 It is a holistic change in an organisation's
philosophy which places emphasis on the
customer.

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Goal of CRM
Gain insight into the behavior of the customers
and the value of those customers
Provide better customer service
Increase business revenues
Discover new customers
Simplify marketing and sales processes
Helps sales staff close deals faster
Make call centers more efficient
Company can get continuous feedback
Cross selling products more effectively
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Need for CRM
No accurate information on who your customers
are and what their needs or desires are or will be
at any given stage in their lives
Losing customers to a competitor, lack of
understanding of your customers
Customers have different characteristics
Having multiple offices and/or mobile workers
and need to share and manage customer
information from all sources

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CRM Strategies
 Customer Acquisition
Gain the greatest number of new “Best” customers as early in
their “lifespan” as possible
 Customer Retention
Retain and expand your business and relationships with your
customers through up-selling, cross-selling and servicing
 Customer Loyalty
Offer programs to ensure that your customers happily buy
what you offer only from you
 Cost Reduction
Reduce costs related to marketing, sales, customer
service and support
 Customer Evangelism
Enable loyal customers to become a volunteer sales
force
 Improve productivity
 Enhance your e-business strategies
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What data do you have on your customers’ ?

Problems, Pains, Fears, Needs, Wants, Likes, Goals,

Influences, Relationships, Affiliations, Alliances,
Experiences, Aspirations, Options, Expectations,
Questions, Knowledge, Skills, Activities, Attention,
Communications, Interactions, Emotions, Memories,
Satisfaction, Perceptions, Beliefs, Admirations, Attitudes,
Opinions, Values, Learning, Ideas, Motivations,
Objections, Priorities, Choices, Behaviors, Personality,
Self-Concepts, Trust, Loyalty, Attention, Recognition,
Time, Energy, Risks, Investments, Rewards, ROI,
Lifestyle, Lifecycle Stage, Social Class, Culture, Sub-
culture, Age, Family, Education, Hobbies, Interests…?
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 CRM Applications

Email Analytics

Web

BackOffic
Customer Call Customer e
s Center
Information

Field

Marketin
g
Partner
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Components of CRM
A successful CRM strategy cannot be
implemented by simply installing and integrating
a software package and will not happen over
night.
 Changes must occur at all levels including
Policies and Processes, Customer service,
employee training, marketing, systems and
information management; all aspects of the
business must be reshaped to be customer
driven.
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A good CRM program needs to
 Identifycustomer success factors
 Create a customer-based culture
 Adopt customer-based measures
 Develop an end-to-end process to serve
customers
 Recommend what questions to ask to help a
customer solve a problem
 Recommend what to tell a customer with a
complaint about a purchase
 Track all aspects of selling to customers and
prospects as well as customer support.
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CRM People
Customer Segments:
Suspects, Visitors, Prospects, Subscribers , Patrons,
Members, Users, Consumers, VIP’s, Volunteers, Annual/
Major Donors, Advisors, Advocates, Legislators,
Strategic Partners, Sponsors
Users:
Management, Employees and Visitors
Suppliers:
Services- Consultants (CRM/ Customer Development)
Products- Technology ( Software, Hardware,
Connectivity)

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CRM Technology Requirements

Integration with other company applications

Focus on the end user’s needs
Support cross company collaboration
Alignment with the specific requirements of
individual industries

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Software Requirement
 ERP : Enterprise Resource Planning
 SAP System application program
 Focus from Satyam : e.g., ITC
 People soft
 Sibel
 Oracle
 Customized softwares available.

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Architecture of CRM
TYPES OF CRM
1. Active CRM: A centralized database for storing
data, which can be used to automate business
processes and common tasks.
2. Operational CRM: The automation or support of
customer processes involving sales or service
representatives
3. Collaborative CRM: Direct communication with
customers not involving sales or service
representatives (‘self service’)
4. Analytical CRM: The analysis of customer data
for a broad range of purposes
Source: Wikipedia
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I. Operational CRM

 Operational CRM means supporting the "

front office" business processes, which include
customer contact (sales, marketing and service).
Tasks resulting from these processes are
forwarded to resources responsible for them, as
well as the information necessary for carrying
out the tasks and interfaces to back-end
applications are being provided and activities
with customers are being documented for further
reference.
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 CRM & IT

Customer Interaction
Letter, Fax, Email, SMS, Phone, Personal Contact, web, XML

IT
Call Center
Operation
Monitor C A
R P
M Help Desk P
L
CRM DB E I
N C
G SFA A
I T
N I
Analyze
ERP O
N
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Operational CRM provides the following
benefits:
 Delivers personalized and efficient marketing,
sales, and service through multi-channel
collaboration
 Enables a 360-degree view of your customer
while you are interacting with them
 Sales people and service engineers can access
complete history of all customer interaction with
your company, regardless of the touch point

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 Three General areas of Business:
The operational Part of CRM
 Business Environment Information
 Competitors, Trends
 Macro Environment Variables
Ent  Business Intelligence
erp
rise
Ma
 Lead/ Account Sal rke
t
Management es F (SFA (EM ing Au
 Contact A) tom
atio
orc
Management n
 Quote
eA

d
Management An
ce
uto

 Forecasting i
)

 Sales e rv
S ort
ma

Administration er p
m up S)
tion

 Customer o S CS
ust (
 Service Requests
Preference C  Complaints
 Performance
Management  Product Returns
 Information Request
 Customer Interaction
Center
 Computer Telephony
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Integration
II. Analytical CRM

 In analytical CRM, data gathered within operational CRM

and/or other sources are analyzed to segment
customers or to identify potential to enhance client
relationship. Customer analysis typically can lead to
targeted campaigns to increase share of customer's
wallet. Examples of Campaigns directed towards
customers are:
 Acquisition: Cross-sell, up-sell
 Retention: Retaining customers who leave due to
maturity or attrition.
 Information: Providing timely and regular information to
customers.
 Modification: Altering details of the transactional nature
of the customers' relationship.
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Types of Analysis Used in Analytical DATA.
 Campaign management and analysis
 Contact channel optimization
 Contact Optimization
 Customer Acquisition / Reactivation / Retention
 Customer Segmentation
 Customer Satisfaction Measurement / Increase
 Sales Coverage Optimization
 Fraud Detection and analysis
 Financial Forecasts
 Pricing Optimization
 Product Development
 Program Evaluation
 Risk Assessment and Management
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Operational CRM Vs
Analytical CRM

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III. Collaborative CRM

 Collaborative CRM facilitates interactions with

customers through all channels (personal, letter,
fax, phone, web, e-mail) and supports co-
ordination of employee teams and channels. It is
a solution that brings people, processes and
data together so companies can better serve
and retain their customers. The data/activities
can be structured, unstructured,conversational,
and/or transactional in nature.

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CRM Implementation Process
Planning
Development
Deployment
Post Deployment

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Implementation Planning
Creating the implementation strategy
Identifying the implementation team
Creating a schedule
Analyzing your business processes
Identifying hardware and software requirements in
addition to current organizational resources and how
any new resources are to be integrated into existing
systems
Determining customization needs and data import
requirements
Identifying reporting requirements
Identifying training and ongoing support
requirements
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Development
Setting up hardware and installing software
Installing CRM in a limited use and test environment
Testing CRM
Importing or migrating data
Customizing the application and the reporting features
Integrating CRM into existing systems
Identify a group of users who can use and evaluate the
product installation
Perform the common activities
Address difficulties during training
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Deployment & Post Deployment

Organization must develop processes and tools that will

add long-term customer value
Initial deployment period will affect productivity in the
beginning
Customer relationships are owned by the organization,
not the individual
Users must see CRM as a tool to help them

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Successful CRM Implementation

Choose your vendor successfully

Develop customer focused strategy before considering
the technology
Break the project into manageable pieces
Make sure the CRM plans include a scalable
architecture framework
Don’t underestimate the amount of data you might
collect for easy expansion of systems in the future
Be thoughtful about what data is collected and stored
Spend time creating the best business processes
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Common Reasons for Failure
 Implementation costs
 Political Friction
 Initiatives driven by technology
 Tendency to push ‘work’ to the customer
 No measures for success or accountability
 Poorly Implemented
 More Reasons ………..like………..
 Lack of communication between everyone in the
customer relationship chain
- Technology being implemented without proper support
- Lack of training to the staff

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