we enter the 21st century, technology, business, the economy,
and society as a whole are changing more rapidly than at
any point in history. Technology is woven into our personal
lives and our businesses due to the combined forces of technology
advances and dropping costs. At the core of this change
is a fundamental shift in business philosophy that is based
on strong, trusting relationships with individual customers.
The opportunity, and the challenge, for information technologists
is to design, develop, and deploy the right technology to
support this dramatic change in a timely manner with optimal
return on investment. More than any other business technology
opportunity in history, our ability to meet this challenge
has a direct impact on the bottom line of the enterprise.
Important is Customer Relationship Management
past decade has seen concentrated efforts at integrating
enterprise relationship planning (ERP) systems at the same
time that organizations eliminated Year 2000 concerns. Now,
an increasing number of companies are turning to customer
relationship management (CRM) strategies to retain and acquire
customers in a worldwide marketplace characterized by heightened
2001, the worldwide CRM market is estimated by AMR Research
of Boston to be around $11.2 billion. Whether your organization's
customers are consumers or other businesses, all expect
instantaneous service, and full knowledge of their concerns
and issues. These are capabilities that CRM provides.
implementing CRM have reduced customer response times from
48 hours to instantaneous response. Many are on the way
to achieving a "360-degree" view of each customer
relationship — whether the company employee engaged with
the customer is in sales, service, marketing or accounting.
In some industries, customers demand specific response timeframes
to issues — and will go elsewhere if these timeframes cannot
of industry, new Web-based technology now makes it possible
for both businesses and consumers to access goods and services
from any geographical location, and at any time. These customers'
expectations of the companies they do business with have
the future, customer expectations are likely to expand even
further, as both businesses and those they serve enter into
one-on-one marketing that anticipates and tailors specific
product and service offerings to clients — even before they
Customer Relationship Management
is defined as aligning business strategy, corporate
culture and organization, customer information, and supporting
information technology so that all customer interactions
promote a mutually beneficial relationship between each
customer and the enterprise. Primarily, customer relationship
management is a business strategy, but it is a business
strategy enabled by advances in technology. Widespread implementation
of customer information, Enterprise Resource Planning (ERP)
systems, sales force automation, and integrated point-of-sale
systems have made customer information readily available
in large volumes. Reduced costs and higher levels of performance
for database management platforms enable us to gain access
to this customer information and gain new insights into
our customers and their behavior through a variety of analysis
methods. Advances in contact management technology and supporting
infrastructure allow us to take advantage of this information
in increasingly cost-effective and innovative ways. Perhaps
most significant, the Internet provides a completely new
way for an enterprise to interact with its customer-the
electronic channel, or the e-channel. With consumers buying
everything from groceries to automobiles on the Internet
and businesses beginning to shift their purchasing activities
to industry-oriented virtual marketspaces, the characteristics
of customer interaction are forever changed.
support the enterprise's transition to a customer-focused
approach to doing business, individuals throughout the enterprise
must have access to a set of capabilities necessary to plan
and manage customer interactions, or customer touches. These
capabilities can be categorized in two ways:
>Operational, Tactical, or Strategic capabilities
to the Enterprise
Acquisition, Retention, and Expansion of a
two categories represent the business perspective of the
capability and how the capability relates to the customer.
speaking, operational capabilities are supported by the
Business Operations component of the Corporate Information
Factory, with some operational CRM capabilities spilling
over into Business Management, where tactical capabilities
reside. Strategic capabilities are supported by the Business
Intelligence component of the Corporate Information Factory.
it is probably more useful to look at capabilities from
the customer's perspective. After all, the purpose of these
capabilities is to gather customer information and use this
information to modify customer behavior in a mutually beneficial
way. To look at these capabilities from the perspective
of the customer, it is useful to see how the customer interacts
with the enterprise over time as the enterprise:
Acquires the initial customer relationship
Works to earn the customer's ongoing loyalty
Expands the relationship to gain a greater
share of each customer's purchasing potential
activities represent a cyclical process of interactions
between each customer and the enterprise represented as
the Customer Life Cycle (Figure 2). Using the Customer Life
Cycle as a tool, we can see how each CRM capability affects
customer interactions at various points in the life cycle.
Capabilities and the Customer Life Cycle
Customer acquisition consists of the business processes in
the Customer Life Cycle leading up to the customer moment,
when consumers become customers...or not. This includes needs
development, awareness generation, knowledge transfer, consideration,
pre-sales, and evaluation. Example capabilities include consumer
surveys in business operations, tracking enterprise-wide customer
interactions in business management, and market basket analysis
in business intelligence. The enterprise clearly requires
customer acquisition to maintain and expand revenues and profits.
A business without new customer acquisition will shrink and
eventually fail. But compared to customer retention and expanding
"share of customer," customer acquisition can be
expensive. One easily measurable example of this expense is
an online brokerage's promotion adding $75 to the balance
of newly opened accounts as an incentive for initiating a
relationship. Even this is small compared to the millions
that some enterprises may spend to acquire a large business
is the definition of CRM?
CRM stands for Customer Relationship Management.
It is a strategy used to learn more about customers' needs
and behaviors in order to develop stronger relationships
with them. After all, good customer relationships are at
the heart of business success. There are many technological
components to CRM, but thinking about CRM in primarily technological
terms is a mistake. The more useful way to think about CRM
is as a process that will help bring together lots of pieces
of information about customers, sales, marketing effectiveness,
responsiveness and market trends.
is the goal of CRM?
The idea of CRM is that it helps businesses use technology
and human resources to gain insight into the behavior of
customers and the value of those customers. If it works
as hoped, a business can:
provide better customer service
make call centers more efficient
cross sell products more effectively
help sales staff close deals faster
simplify marketing and sales processes
discover new customers
increase customer revenues
sounds rosy. How does it happen?
It doesn't happen by simply buying software and installing
it. For CRM to be truly effective, an organization must
first decide what kind of customer information it is looking
for and it must decide what it intends to do with that information.
For example, many financial institutions keep track of customers'
life stages in order to market appropriate banking products
like mortgages or IRAs to them at the right time to fit
the organization must look into all of the different ways
information about customers comes into a business, where
and how this data is stored and how it is currently used.
One company, for instance, may interact with customers in
a myriad of different ways including mail campaigns, Web
sites, brick-and-mortar stores, call centers, mobile sales
force staff and marketing and advertising efforts. Solid
CRM systems link up each of these points. This collected
data flows between operational systems (like sales and inventory
systems) and analytical systems that can help sort through
these records for patterns. Company analysts can then comb
through the data to obtain a holistic view of each customer
and pinpoint areas where better services are needed. For
example, if someone has a mortgage, a business loan, an
IRA and a large commercial checking account with one bank,
it behooves the bank to treat this person well each time
it has any contact with him or her.
Benefits of customer relationship
Sell additional products and services
Develop new products
Increase product utilization
Reduce marketing costs
Identify and retain profitable customers
Optimize service delivery costs
Retain high lifetime value customers
Enable personal and relevant communications
Improve customer loyalty
Improve response rates to direct mail
Increase product profitability
Respond quickly to market opportunities
Acquire new, profitable customers
Questions and Answers on CRM:
there any indications of the need for a CRM project?
Not really. But one way to assess the need for a CRM project
is to count the channels a customer can use to access the
company. The more channels you have, the greater need there
is for the type of single centralized customer view a CRM
system can provide.
long will it take to get CRM in place?
A bit longer than many software salespeople will lead you
to think. Some vendors even claim their CRM "solutions"
can be installed and working in less than a week. Packages
like those are not very helpful in the long run because
they don't provide the cross-divisional and holistic customer
view needed. The time it takes to put together a well-conceived
CRM project depends on the complexity of the project and
much does CRM cost?
A recent (2001) survey of more than 1,600 business and IT
professionals, conducted by The Data Warehousing Institute
found that close to 50% had CRM project budgets of less
than $500,000. That would appear to indicate that CRM doesn't
have to be a budget-buster. However, the same survey showed
a handful of respondents with CRM project budgets of over
What are some examples of the types of data CRM projects should be collecting?
Responses to campaigns
Shipping and fulfillment dates
Sales and purchase data
Web registration data
Service and support records
Web sales data
What are the keys to successful CRM implementation?
Break your CRM project down into manageable
pieces by setting up pilot programs and short-term milestones.
Starting with a pilot project that incorporates all the
necessary departments and groups that gets projects rolling
quickly but is small enough and flexible enough to allow
tinkering along the way.
Make sure your CRM plans include a scalable
Don't underestimate how much data you might
collect (there will be LOTS) and make sure that if you need
to expand systems you'll be able to.
Be thoughtful about what data is collected
and stored. The impulse will be to grab and then store EVERY
piece of data you can, but there is often no reason to store
data. Storing useless data wastes time and money.
Recognize the individuality of customers and
respond appropriately. A CRM system should, for example,
have built-in pricing flexibility.
division should run the CRM project?
The biggest returns come from aligning business, CRM and
IT strategies across all departments and not just leaving
it for one group to run.
causes CRM projects to fail?
Many things. From the beginning, lack of a communication
between everyone in the customer relationship chain can
lead to an incomplete picture of the customer. Poor communication
can lead to technology being implemented without proper
support or buy-in from users. For example, if the sales
force isn't completely sold on the system's benefits, they
may not input the kind of demographic data that is essential
to the program's success. One Fortune 500 company is on
its fourth try at a CRM implementation, primarily because
its sale force resisted all the previous efforts to share
industries are leading the way in CRM implementations?
As in most leading-edge technology implementations, the
financial services and telecommunications industries set
the pace in CRM. Other industries are on the CRM bandwagon
include consumer goods makers and retailers and high tech
industry is behind the curve?
relationship management revolves around three key technology
areas: the Internet, the customer call center and a data
warehouse of customer-related information.
these three technological reference points, there are also
offshoots into emerging technology areas such as wireless
technology, for facilitated remote access by customers and
company field representatives; workforce management software,
for streamlined backoffice operations that are organized
around the CRM business model; and Web-based customer interaction
first mission of CRM is to capture vital customer information
that will give the organization the advantage of knowing
more about the customer. A repository of customer information
gives the organization the ability to build a long-lasting
and revenue-enhancing relationship with the customer.
information is captured through the transactions that the
customer completes with the company through the company
call center, the Internet, and other communications channels
(such as sales or service visits that result in documented
call reports). It is this customer information, together
with information that flows into the CRM data repository
from corporate legacy systems, that begins to establish
a "360-degree" picture of the customer that anyone
throughout the organization can access when working with
total information composite on a given customer allows everyone
who is a customer contact point to completely deal with
the customer, since every element of the customer relationship
is known. The desired result is improved customer sales
second technological component of CRM is the data warehouse
— a separate database from the transaction database that
records day to day commercial activity on orders, invoicing,
data warehouse is populated with transaction data from daily
production systems, which is then enhanced with customer-centric
information such as sales and service call activity, key
customer contacts, and specific products purchased. This
warehouse of information is tapped into by sales, service
and call center personnel when they work with the customer.
At the same time that the information is accessed, representatives
working with the data warehouse also add new information
third technology "leg" of the CRM pyramid is the
Internet. On the Web, both company employees and the customers
themselves are able to access customer data such as pending
orders and service requests.
some cases, customers can "self-serve" themselves
by inquiring into order and service request status online.
In other cases, they can instantaneously order a product
or request a service call online, without the need to make
a telephone call. In turn, the customers receive confirmation
receipts and followup correspondence online in a 24-by-7
environment that saves the customer followup calls.
the end, the goal of CRM is to give everyone a total picture
of the company-customer relationship, whether the participants
are service representatives, salespersons, call center personnel,
company accountants — or the end customers themselves.
theory of CRM is that if you build solid and long-lasting
relationships with your customers, they will develop loyalty
and appreciation for high service levels that will render
factors like pricing less significant. Customer retention
will be strengthened. The botto
m line result will be increased revenue for the organization.
first step in making a CRM strategy work in your organization
is to understand that CRM requires a commitment from within
the company before it can be delivered to company end clients
or customers. This commitment has to begin at the top of
the organization, because CRM requires that business rules
for backoffice and front office operations are rewritten
for a customer-centric focus. For many organizations, this
means the same amount of internal "growing pains"
as an ERP or other far-reaching system integration project.
successfully secure long-term internal commitment to the
CRM project, the goal of a CRM implementation needs to be
clearly defined upfront. This is important because different
organizations have different goals for their CRM. Some wish
to improve backoffice operations such as customer service,
and integration with accounting systems — while others are
more interested in front line sales and marketing capabilities.
Still other organizations want an "across the board"
implementation of CRM that brings all marketing, sales,
service and other backoffice systems into one customer-centric
system environment. Regardless of the choice of goal, the
goal needs to be clearly defined so that everyone who will
be involved understands what the desired end result is.
second requirement is for strong communications across the
organization on the CRM project as it is being defined and
implemented. Both users and IT need to get involved to determine
the best ways to structure CRM to meet stated business goals.
This most likely means re-engineering business and system
processes, testing these new processes to ensure that they
work, making adjustments where necessary, and developing
effective training plans for the new system screens and
reports that users will be working with.
the process, communications must flow continuously. For
example, the IT staff of a California-based network products
company that recently implemented CRM continues to meet
weekly with users to review system results, along with suggested
modifications that would further enhance the system.
as vital is a clear understanding of the value that your
company is trying to bring to the customer as a result of
CRM. For some companies, this might be a reduction of response
time waits. For others, CRM might be a means of providing
customers with self-sufficiency since they can place their
own sales and service requests online, at any time.
the end, the key value-added capability that CRM is designed
to bring to an organization is improved customer relationships
which in turn produce enhanced revenue streams. If customer
satisfaction goals are not met with a new CRM implementation,
the CRM initiative fails.
there are numerous CRM solutions available in the marketplace.
It is imperative to select a CRM partner that can provide
you with all of the resources you are likely to need. Because
many companies do not have resident expertise in CRM, a
business partner who is able to bring consulting and implementation
skills, as well as hardware and software solutions, is an
world over have come to appreciate the business value of
adopting one-to-one technologies, in the form of Web personalization,
targeted marketing automation, customer-facing sales automation,
integrated customer service, data mining, and enterprise
resource planning (ERP) systems supporting mass customization.
There is an associated increase in the fervor for understanding
technologies, which enable one-to-one marketing and personalization.
for various reasons, the customer relationship management
(CRM) implementation efforts of most enterprises typify
a stove piped approach to application deployment. There
has been little thought given to the CRM ecosystem of operational,
analytical, and collaborative components and even less to
integrating front-office processes (i.e., marketing, sales,
service) with those of the back-office and supply chain
(e.g., supply/demand planning, sourcing/procurement, finance,
alleviate the fear, uncertainty and doubt associated with
implementation of CRM projects, it is essential to understand
the IT and application architectural considerations of deploying
the CRM eco-system and integrating the same with the back-office
and supply chain.
CRM architectural framework: A three-legged stool
Enterprise CRM strategies ideally need to focus on the automation
of horizontally integrated business processes to provide end-to-end
coordination among sales, marketing, customer service, field
support and other vital customer points of interface. It is
meant to integrate people, process and technology to optimize
relationship management across a myriad range of entities
— including consumers, business partners, and other distribution
channels. To ensure that the above objectives are met, it
is imperative that the CRM application architectures combine
operational, analytical and collaborative technologies. A
balanced CRM approach that involves implementing all three
aspects of the framework leads an enterprise to develop what
may be termed as a CRM backbone.
operational side of the CRM equation consists of "customer
facing" applications integrated across the front, back,
and mobile offices which includes sales automation (SA),
enterprise marketing automation (EMA), customer service/support,
and miscellaneous components.
the operational transactions
Data created on the operational side of the equation needs
to be analyzed for the purpose of business performance management.
This side of the architecture is inextricably tied to data
warehouse architecture, and is most often manifested in
analytical applications that leverage data marts. Most analytical
applications currently available are oriented towards EMA
(e.g., campaign management). DW and EMA (and outsourced
database marketing) initiatives are typically at odds from
an IT architectural perspective, as these marketing applications
may come with their own embedded proprietary database and
data model. The IT organization needs to take on the responsibility
of facilitating architectural convergence of the enterprise
DW - not just with marketing applications, but with all
types of packaged analytical data mart application products,
including financial, manufacturing, retail, and vertical
(e.g., healthcare) "data marts in a box".
Collaborating with customers
CRM is the communication and coordination model across the
ETFS life cycle between channels and customer touch points.
It includes establishing cooperative partner networks (e.g.,
affiliates, portals), management of customer interactions
(e.g., e-mail, Web, CIC) and channel alignment strategies
that enable consistent collaboration between customers and
with enterprise business applications
Ideally, channel-independent CRM transactions should create
upstream supply chain pull, resulting in a seamless lead-to-customer-to-order-to-source/build-to-delivery
cycle. In reality, single-function/channel (e.g., sales
automation for a field sales force) CRM deployments are
the norm as cultural issues, vendor product limitations,
and integration challenges impede realizing the ideal.
imminent competitive pressures are driving organizations
today to automate/integrate individual, intra-enterprise
customer-facing processes with back-office/supply chain
functions (e.g., quote-to-order), where value justification
is demonstrable and efficient customer-centric fulfillment
is required. The growing footprints of CRM, SCM and enterprise
resource management application suites, as well as maturing
enterprise application integration frameworks and XML-based
messaging standards will facilitate 360 degrees, cross-functional
front to back-office supply chain integration efforts across
multiple channels. In the near future, vendor consolidation/solution
expansion, collaborative supply chain network evolution,
and CRM infusion within these organizations will enable
upstream demand-driven pull to replace downstream supply-driven
push as the modus operandi of demand fulfillment.
achieve competitive advantage (or, at a minimum, maintain
parity), organizations therefore must deploy an enterprise
CRM backbone. This can be done by mapping their CRM strategies
in marketing, sales, and service to a CRM ecosystem comprising
of operational, analytical and collaborative information
systems and linking them on appropriately to companion back-office/supply
in the Internet Era:
any business owner knows, customer relationships are your
single most important competitive advantage. The in-depth
knowledge of your customers' business requirements, expectations,
and contacts, built consistently and carefully over time,
is an asset that cannot be easily traded or commoditized.
Therefore, customer relationship management—collecting and
using data about your customers' buying histories, service
histories, profitability, and so forth, to offer an exceptional
customer experience—should be a strategic priority in any
organization. The goal is to use the information to meet
customer needs better, build customer loyalty, and increase
business efficiency, as through informed call centers and
relationships become even more important in today's Internet
marketplace. The Internet has enabled a dramatic reduction
in the cost of transactions and interactions among people
and businesses, which in turn has created a new set of expectations
among customers. Online customers expect shorter sales cycles,
personalized information, quicker resolution of service
issues, and added value at each stage of the transaction.
To maintain positive customer relationships, your business
needs to meet and exceed these expectations. Ironically,
the Internet is both the cause of and the solution to this
relationship management, therefore, must be a well-integrated
effort, using the Internet to shrink time and distance across
the supply chain and to your customers, creating new levels
of speed and efficiency in your business. I believe companies
that do this successfully will be those that adopt crm as
a philosophy and way of doing business, rather than just
as a technology that automates a piece of their business.
Within Dell, for example, a third of our technical-support
activities, about 75 percent of order status transactions,
and almost 50 percent of sales are enabled by the Web. We
are moving these transactions online because customers told
us they want faster, more efficient support for routine
interactions. Over the phone, these transactions cost between
$3 and $10 each, but the Internet lowers the cost to zero
in most cases. More importantly, the entire process is more
efficient for customers and enables us to extend cost savings
to them, resulting in winners all the way around.
leads me to the golden rule of Internet customer relationships:
The online experience must be better than the experience
in the physical world. Some situations will not and cannot
translate to a superior online experience.
shows that a positive customer experience drives more e-loyalty
than traditional attributes like product selection or price.
In traditional channels, you can lose customers if they
walk into a physical location and are disappointed in the
store appearance, have an unsatisfactory experience with
a salesperson, or can't find what they want. The Internet
environment is no different: You must not only excel in
your market but do so in a convenient, helpful, and reliable
ultimate goal is to deepen relationships by adding convenience,
efficiency, cost savings, and a wider array of services.
Doing business online is about more than processing Web-based
transactions. It is about using the Internet to develop,
maintain, and manage positive relationships with customers,
partners, and suppliers. The result is long-term relationships,
repeat sales, business efficiency, and increased profitability.
I believe companies that put a strategic focus on customers
and leverage the capabilities of the Internet to enhance
those relationships will survive and thrive in the Internet
SAP & CRM:
the new, New Economy, customer relationships are playing
an increasingly important role, with the main focus on long-term
considerations. With its Customer
Engagement Model (CEM), SAP has developed a solution
for cultivating customer relationships throughout the entire
life cycle, creating a lasting increase in added value for
Customer Engagement Model (CEM)
Customer Engagement Model (CEM) is redefining the company's
relationships with its customers. CEM's tools, services,
and processes give customers a competitive advantage, with
long-term considerations playing a crucial role.
The Internet is turning the world of business on its head.
Although it is companies' business processes that most need
to adapt to the changed conditions, the transformation also
affects the technology on which these processes are based,
as well as companies' relationships with their customers.
But there are some things that the New Economy hasn't changed:
Business models, sales revenues, and profits still top the
list of priorities.
improve their chances of success, companies need to concentrate
on five essential areas:
Focusing increasingly on the value chain. What's needed
here is a cross-company exchange of information through
collaborative forecasting, e-business accounting, and shared
analytical services. SAP's solutions for this are mySAP
Marketplace, mySAP Business Intelligence (mySAP BI), mySAP
Financials, mySAP Customer Relationship Management (mySAP
CRM), and mySAP Supply Chain Management (mySAP
management: Building up role-based organizations that
give priority to information exchange and knowledge sharing
(e-learning and e-tuning). SAP has also developed effective
solutions for change management, in the shape of mySAP Workplace,
mySAP Product Lifecycle Management (mySAP PLM), and mySAP
Human Resources (mySAP HR).
line: Achieving higher customer satisfaction using analytical
and collaborative customer relationship management (CRM).
Analytical CRM focuses on evaluating customer data and habits
to improve customer loyalty. With collaborative CRM, the
main priorities are supply chain optimization and improving
suppliers' reliability with the help of portals (available-to-promise
solutions). SAP's main solutions for this are mySAP CRM,
mySAP SCM, and private exchanges.
line: The key words here are division-to-division (D2D)
integration and business-to-business (B2B) collaboration.
D2D integration involves implementing processes across department
and country boundaries (with mySAP.com or SAP R/3 for instance).
This means adapting specific requirements and developing
global templates, such as Best Practices.
Comprehensive service and support plus diversified consulting
offerings encourage sustainability in the new type of customer
relationship. SAP offers customers a range of solutions,
such as the E-Business Case Builder, Collaborative Business
Maps, Business Consulting Sets, and Best Practices for mySAP.com.
1999, SAP developed the Customer Engagement Model (CEM)
to provide a consistent solution model for e-business alongside
its extensive Internet offering. The purpose of CEM is to
create added value for customers in the e-business environment
based on the five business essentials described above and
to strengthen customer relationships throughout the entire
life cycle. The four pillars of CEM are Customer Segmentation,
the Customer Engagement Life Cycle (CEL), Partner Value
Net (SAP's global partner network), and Corporate Governance
(SAP's internal management).
are countless examples of the model's customer orientation.
The Coca Cola Company uses SAP Business Information Warehouse
(SAP BW) and SAP Strategic Enterprise Management (SAP SEM)
to speed up accounting processes and to improve planning
on both the operational and strategic level. This gives
Coca Cola more time to analyze information, which helps
it to recognize new business opportunities. SAP solutions
also help with change management, as shown by the example
of GMAC-RFC, an international leader in mortgage- and asset-backed
securities . GMAC-RFC is using the Role Library from SAP
Best Practices, mySAP Workplace, and mySAP HR to build up
a role-based organization and to enable, for example, the
direct processing of orders. Its employees' productivity
has already increased by up to 50%.
customer is always right
Companies need detailed knowledge about their customers’
buying habits and needs. Customer relationship management
(CRM) tools help build and track that knowledge to create
Customer orientation is a business philosophy that optimizes
the realization of customer potential. It is the one model
that can provide companies with the foundation for success
in global, deregulated, saturated markets in which products
and product-related services are hard to differentiate.
customer relationship management (CRM) tools makes customer
orientation easier. Optimizing the customer’s life cycle
allows you to fully exploit your customer base. This includes
identifying customers, tracking their growth, and retaining
them. CRM also helps to lower the cost of servicing customers
by recognizing the profitable customers as quickly as possible,
and by deploying best services to best customers only. Further
on in the customer life cycle, increasing customer wallet
share plays an important role. The right up-selling and
cross-selling measures boost trade with customers. Finally,
comprehensive and customer-specific sales, marketing, and
service activities consolidate the ties with customers in
the long term - by making it expensive to switch providers,
orientation, therefore, requires a holistic approach, taking
into account the following:
integration: Building and operating a virtual, process-oriented
enterprise by using an e-business platform to integrate
the back office, the front office, and the mobile office
CRM: Automating the front office and the mobile office
CRM: Controlling, monitoring, and measuring the performance
of customer-centric business processes, using data warehouses,
online analytical processing (OLAP), and data mining. The
basis for this is a uniform, comprehensive data model that
provides a 360-degree view of customers.
CRM: Formalizing and automating collaboration on the
sales side. In other words, continuing business processes
beyond the boundaries of the company, with customers serving
themselves using all the available channels.
than operational CRM
manage customer relationships across a complete range of
business applications, mySAP CRM offers a complete spectrum
of integrated approaches:
Operational CRM facilitates empowerment and
personalization through role-based relationship management
workplaces, enables seamless real-time integration of front-office
interaction and back-office fulfillment, and synchronizes
customer interactions across all channels.
Analytical CRM supports discovery and understanding
of customer behaviors, and it improves and optimizes operational
processes to drive customer retention and acquisition.
Collaborative CRM combines new ways of interacting
with customers to create additional value within the ecosystem,
and it facilitates participation within a marketplace community
of customers and business partners.
CRM provides solutions through all phases of the customer
relationship life cycle:
Marketing planning and campaign management
Telemarketing and lead generation
Sales activity and contact management
Customer segmentation, product and service
Internet pricing and configuration
One-step buying and selling
Complete order life-cycle process
Real-time availability checks
Contract, billing, and financials management
Fulfillment visibility and order tracking
Internet customer self-service
Field service – mobil e service
Field service - dispatch
next generation of Customer Relationship Management
Internet is strengthening the position of the customer and
pushing customer relationship management into the strategic
focus of enterprises. With mySAP CRM, SAP offers a comprehensive,
Internet-based, software solution that helps you plan, establish,
and develop lucrative customer relationships.
In the customer-driven Internet economy, customers are better
informed about the products and services available in the
global market, and they can make decisions more flexibly.
Customers change their requirements quickly and demand solutions
tailored to their needs, with extensive services included.
Enterprises must be able to recognize trends in customer
behavior early on, rapidly adapt their products and services
to take advantage of those trends, and adopt a customer-focused
presents many diverse challenges because it involves people,
processes, and software solutions. It means that the Internet
changes how business transactions are initiated and carried
out. Innovative software solutions enable and support new
business models and more efficient processes that then have
to be brought to life by the people involved.
CRM doesn't Work sometime?
people claimed customer satisfaction study helped improve
customer satisfaction levels and increase customer loyalty.
Yet, my many years of experience on customer satisfaction
study have proved these claims false.Some people claim that
one-to-one marketing is the only solution to business success.
They have provided many one-to-one marketing success stories
to demonstrate that. However, after I pointed out that they
had no evidence of their success, they told me that we could
not see evidence of successful one-to-one marketing because
it is too new a marketing theory (even after 10 years?!)
and that the companies that succeeded in one-to-one marketing
tried to keep their success secret!
year, a "leading" research company predicted that
in 12 months more than 90% of the Web sites were going to
adopt personalization. Some company even forced us to make
a choice "to personalize or to perish"? As Web
marketers, we all know the result today. How many of us
have perished because we did not personalize our Web sites?Technically,
CRM should be better than all other marketing hype because
it follows the basic marketing principles (market segmentation
and segment targeting); however, CRM systems have experienced
a very high failure rate.
have attributed the failures of CRM to the lack of understanding
of the CRM process and the lack of management support. In
my observation, the real reason is that current CRM systems
do not start from customer relationship and, therefore,
are unable to manage it. Two cases illustrate this point.
first case regards a financial company conducting a customer
satisfaction study. This company targets a niche market:
It lends money to those who have poor credit records and
cannot get money from other financial institutions.The company
charges sky-high interest on its loans. Consequently, many
of its customers are unable to pay their debt on time. Thus,
it has to hire a strong team to chase its customers to get
its money back. Imagine its customer relationship. When
it learned that a customer satisfaction study could help
improve its customer satisfaction level, it spent millions
of dollars to conduct a customer satisfaction study. When
its customers were asked why they were unhappy with the
company, they pointed out that, had the company not harassed
them by calling them at midnight or arriving during dinner,
they would have been much happier!
company uses harassment to collect its debts while using
customer satisfaction study to improve its customer relationship!
Didn't the company know that its customers became unhappy
when it sent its agents to harass them before it conducted
a customer satisfaction study? Then, why did the company
do it? Would it change its harassing practice since the
customer satisfaction study?
story is about AT&T. We have frequently used this company
as an example in our monopoly price and customer loyalty
discussions. Recently, this company (and other U.S. long
distance companies) tried to make the FCC believe that if
the local telephone companies lowered their long distance
connection charges, they would pass the benefits to their
consumers. Well, right after the FCC reduced the long distance
connection charges, AT&T planed to increase its long
distance price! When this plan leaked, it quickly became
headline news nationwide, forcing the company to cancel
(or delay?) this very unpopular plan.
ignore how unwise this price increase plan is. (We have
witnessed how AT&T lost its market share and allowed
its competitors to grow by charging higher prices in the
past.) Suppose AT&T installed many CRM systems, do you
think those systems could repair the damage to its customer
relationship caused by this very unpopular plan?
you don't have your customers in your heart and don't design
your CRM system to improve customer relationship, the CRM
system will be unable to help you manage this relationship!
someone could argue that if a CRM system recommended a product
the customer liked, the system would make the customer happier,
improving the company's relationship with the customer.
Yes, I agree with this argument when all those "ifs"
are true. In fact, any effort to improve your Web business
could make your customers happier. Do we call all these
efforts CRM? For example, redesigning your Web site to be
more customer-friendly would certainly make your visitors
happier than a product recommendation system (a CRM system).
Nevertheless, do we call the Web designer a CRM specialist?
people have been using "natural" logic to imagine
how CRM (or personalization or one-to-one marketing) improves
customer relationship. If you make your customers a little
happier, they are more likely to remain loyal. However,
if we put ourselves into our customers' shoes, we know this
is not true. The American auto industry was the first to
implement customer satisfaction study. Many very nice models
have been developed since, such as how dealer loyalty contributes
to manufacturer loyalty. Yet, when we visit a car dealer,
how many CRM systems could make us believe the dealer is
really thinking about our benefit over his bottom line?
you really think your customer relationship is important
to your company? Do you really want to improve your customer
relationship? If your answers to these questions are "yes,"
then you should ask yourself whether you have your customer
relationship in your heart.
CRM system based on customer relationship is DIFFERENT from
CRM systems based on marketing functions. If you don't desing
a CRM based on your customers' needs, it is unlikely to
improve your customer relationship.
businesses that compete in environments where CRM is being
effectively deployed, some type of CRM strategy must be
engaged in order to remain competitive. If you are a Unisys
site, Unisys has formed strategic alliances with CRM solutions
providers such as Siebel, and can offer a total solution.
As well, there are numerous CRM software solutions that
are specifically targeted to small- to mid-sized organizations,
with price points that are within reach of IT budgets.
only your organization can define what your specific CRM
business objectives are. This business commitment begins
with the company CEO, and is perpetuated throughout a CRM
implementation with reinforcement and commitment that is
combined with constant and free-flowing communications between
IT, the end-user groups involved in CRM — and even the end
has already been written about the prime CRM objective of
building better, more long-lasting relationships between
companies and their customers for competitive advantage.
The end theory is that these long-lived relationships will
"naturally" produce more revenue for the company.
no organization should go into a CRM strategy without some
predefined revenue-enhancing or cost-reducing goals. Some
organizations look to reduce service request response times
and to create online service centers that create new lines
of business — such as service contracts that their customers
pay annually for. Others use CRM to get product and product
promotions to market quicker — resulting in greater sales.
Still others have implemented sales and order-taking to
the degree that their cost of sales (i.e. the need for large
external sales forces) has diminished. Without an identified
"payout," automated CRM is difficult to justify.
and from various web site.