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Title: CUSTOMER RELATIONSHIP MANAGEMENT (CRM)


1
CUSTOMER RELATIONSHIPMANAGEMENT (CRM)
  • Holly Pund
  • Jamia Seifert
  • Nakia Sharp
  • Olga Skiridova

2
  • CRM is the process of predicting customer
    behavior and selecting actions to influence that
    behavior to benefit the company usually
    leveraging on information technology and
    database-related tools.

Koh Hian Chye Chan Kin Leong Gerry, Data
mining and customer relationship marketing in the
banking industry. Singapore Management Review,
Vol. 24, Issue 2, 2002, pp. 1-27.
3
Benefits of CRM
  • 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
  • It costs 10 times more to get a new customer
    than it does to keep an existing one. Moreover,
    evidence suggests that companies focused on their
    customers are achieving higher growth rates than
    competitors who aren't.

What is CRM? Ehttp//www.cio.com/research/crm/ed
it/crmabc.html. Keeping Customers is Smart and
Profitable http//www.businessweeek.com/adsection
s/care/relationship/crm_keeping.htm. Viewed April
12, 2003 Chettayar, Krishna Using customer
information effectively. Financial Executive,
Morristown, Vol. 18, May 2002, pp.42-43.
4
5 Elements Required to Implement CRM
  • Strategy
  • Channel Marketing
  • Branding Advertising
  • Pricing
  • Segmentation
  • Technology
  • Process
  • Organization

Brown, Stanley A. Customer Relationship
Management A Strategic Imperative in the World
of e-Business. Toronto, New York John Wiley
Sons, 2000.
5
Defining Needs of CRM
  • Define customer strategy
  • Create a channel and product strategy
  • Understand the importance of an integrated
    infrastructure strategy
  • The key is for the CRM effort to move beyond
    sales, marketing, customer services and assisting
    customers to include operations and the "Office
    of the CEO" or strategic planning. It's critical,
    for example, to integrate sales-force automation
    with demand planning efforts that then feed
    supply-chain systems.
  • - Larry Yu

Brown, Stanley A. Customer Relationship
Management A Strategic Imperative in the World
of e-Business. Toronto, New York John Wiley
Sons, 2000. Yu, Larry. Successful
customer-relationship management. MIT Sloan
Management Review, Cambridge, Vol. 42, Issue 4,
2001, pp.18-19.
6
Corporate Structure Before CRM
What is CRM? A White Paper by TBC Reasearch. IT
Toollbox http//crm.ittoolbox.com/browse.asp?cCRM
PeerPublishingrhttp3A2F2Fwww2Esabresys2Ecom
2Fpdf2FWhat5Fis5FCRM2Epdf. Viewed April 18,
2003
7
Corporate Structure After CRM
What is CRM? A White Paper by TBC Reasearch. IT
Toollbox http//crm.ittoolbox.com/browse.asp?cCRM
PeerPublishingrhttp3A2F2Fwww2Esabresys2Ecom
2Fpdf2FWhat5Fis5FCRM2Epdf. Viewed April 18,
2003
8
  • Founded in 1993
  • 2002 Revenue Over 1.6B
  • Industry-specific best practices, CRM
    applications, and business processes
  • Founded in 1998
  • 2002 Revenue Over 2.3B
  • Customer care and billing software and services
    that add value to the relationships between
    clients and customers

Siebel web page. http//www.siebel.com/about/index
.shtm. Convergys web page.http//www.convergys.co
m/company_overview.html Viewed April 22, 2003
9
  • Founded in 1977
  • 2001 Revenue Over 10.8B
  • Internet-enabled enterprise software
  • New software license sales were down 23 in 2002
  • Oracle is the first software company to develop
    and deploy 100 percent Internet-enabled
    enterprise software across its entire product
    line database, server, enterprise business
    applications, and application development and
    decision support tools.
  • - Oracle 2001 Annual Report

Oracle Annual Report, http//www.oracle.com/corpor
ate/annual_report/2001/index.html?intro.html.
Viewed April 22, 2003. Seewald, Nancy D'Amico,
Esther. CRM and SCM vendors post mixed results.
Chemical Week, New York, New York, October 2002,
Vol. 164, Issue 43, pp. 23-24.
10
So What is the Cost of CRM?
  • Despite dropping by 5.4 in 2002, the CRM market
    is expected to expand from a projected 42.8
    billion in 2002 to 73.8 billion by 2007.
  • -Forrester Research
  • CRM is expected to grow more than 20 billion by
    2004
  • -AMR Research

Siebel web page, http//www.siebel.com/about/index
.shtm. Veiwed April 22, 2003 CRM Overview
http//www.ittoolbox.com/help/crmoverview.asp.
Viewed March 20, 2003 Customer Relationship
Management http//advisor.aol.com/what_you_can_d
o_online/goals/main.adp?articlecrm. Viewed April
12, 2003Anonymous, CRM bounces back. Chicago,
Illinois Marketing Management, Vol. 11, Issue 5,
Sept/Oct 2002, p. 4. Patron, Mark, If database
marketing was so good, why is CRM so bad?Journal
of Database Marketing, London, Vol. 10, Issue 2,
December 2002, pp. 102-104.
11
So What is the Cost of CRM?
  • Spending on CRM applications and services, which
    totaled 23 billion in 2000, are projected to
    grow at a compound annual growth rate of 27 and
    exceed 75 billion in 2005.
  • CRM services revenue will increase 15 in 2002.
    The market is forecast to nearly double and reach
    47B by 2006.
  • Worldwide, organizations spent nearly 25 billion
    on CRM software in 2002 Of that total, only 3.7
    billion, or about 15, was spent on packaged CRM
    applications.
  • -Gartner Group

Almquist, Eric Carla, Heaton. Making CRM make
money. Marketing Management, Vol. 11, Issue 3,
May/Jun 2002, Chicago Illinois, pp. 16-21.
Anonymous, CRM bounces back. Chicago, Illinois
Marketing Management, Vol. 11, Issue 5, Sept/Oct
2002, p. 4.
12
CRM Success Failure Rates
  • 45 of the CRM projects are successes that are
    producing definite paybacks
  • 35 are likely to fail
  • 20 are generating some ROI but not in a timely
    fashion

Panker, Jon, Research finds CRM failure rate
lower than widely reported News Editor12 Dec
2002, SearchCRM.com http//searchcrm.techtarget.co
m/originalContent/0,289142,sid11_gci868891,00.html
. Viewed April 22, 2003
13
(No Transcript)
14
Overview
  • Travelocity.com was launched in 1996 as part of
    Sabre Holdings On April 11, 2002, Travelocity
    became a wholly owned company of Sabre Holdings.
  •  
  • For 2002
  • Travelocitys revenue was 308 million, an
    increase of 2.2 percent compared to 302 million
    for 2001
  • Travelocitys gross bookings reached 3.5
    billion, an increase of 11.8 percent compared to
    3.1 billion for 2001
  • Since Travelocity is no longer a publicly traded
    company, information concerning ITs budget was
    not available

http//www.sabre.com/, viewed March 23 2003
15
Overview
  • Worlds leading travel internet site providing
    consumers with reservation and information
    access
  • 700 airlines
  • 55,000 hotels
  • 50 car rental companies
  • 6,500 cruise and vacation packages
  • Over 35 million members
  • 1,000 customer service representatives
  • Web site in 7 languages across 4 continents

TDWI conference keynote speakers Caroline Smith,
Director of Data Warehousing at Travelocity.com
Chris Warwick, Director of Relationship Marketing
at Travelocity.com February 20th, 2003,
interviewed in person by Jamia Seifert
16
Travelocitys Business Objective
  • Develop long-term profitable relationships by
    providing exceptional service and highly relevant
    Travel offerings
  • Increase customer conversion
  • Increase customer retention
  • Increase revenue per member

TDWI conference keynote speakers Caroline Smith,
Director of Data Warehousing at Travelocity.com
Chris Warwick, Director of Relationship Marketing
at Travelocity.com February 20th, 2003,
interviewed in person by Jamia Seifert
17
CRM Focus at Travelocity
  • Develop a single view of the customer
  • The most important focus of the CRM project
  • Travelocity chose Teradata, a division of NCR, to
    assist with the CRM initiative
  • To achieve this vision requires having a single
    view of the customer - from when they begin
    looking to when they take their trip, and
    afterward. This requires segmenting customers by
    type (business, leisure, college, bereavement,
    etc.)
  • - Mamie Millard, Senior VP of
    Technology at Travelocity

http//www.sabre.com/, viewed March 23 2003
18
Travelocitys CRM Conversion
  • Six months conversion The maximum recommended
    time
  • Three people dedicated
  • Mapped a middle or metadata layer into their data
    warehouse for the CRM equation
  • Common problem of underestimated the amount of
    time required to cleanse the data during transfer
  • Duplicate records
  • The big OOPS!

Williams C.C. Just the Ticket Travelocity.com
books Teradata for virtually instant
answers.http//www.teradatamagazine.com/articles/
archive/2Q_2001/just_the_ticket.htm, July 5th,
2001. Viewed March 23, 2003 Woodcock, Neil
Starkey, Michael. I wouldn't start from here'
Finding a way in CRM projects. Journal of
Database Marketing, London, Vol. 9, Issue 1,
2001, pp.61-74.
19
Seven Steps to Implementation
  • Important
  • Selection of a specific business process that can
    be measured
  • The use of a system that did not require a
    re-build along the way
  • Step 1 Created a team
  • Consisted of members from Travelocity and
    Teradata
  • Travelocity (from Marketing IT)
  • Data warehouse developers
  • Marketing Director
  • Marketing Analysis
  • Marketing Managers
  • Teradata
  • Data Modeler
  • CRM Developer
  • Project Manager

The private sectors CRM-ROI formula can work in
agencies too.http//www.gcn.com/research_results/
crmgmt4.html Friday March 28, 2003. Viewed March
23, 2003
20
Seven Steps to Implementation
  • Step 2 Prepared the data warehouse
  • Created new logical and physical data model
    (customer centric)
  • Focused on data quality
  • Added demographic data
  • Step 3 Identified unique members
  • Customers with multiple accounts are now
    identified as one unique customer

TDWI conference keynote speakers Caroline Smith,
Director of Data Warehousing at Travelocity.com
Chris Warwick, Director of Relationship Marketing
at Travelocity.com February 20th, 2003,
interviewed in person by Jamia Seifert
21
Seven Steps to Implementation
  • Step 4 Developed Customer Segments
  • Travelocity Member Groups
  • New Members
  • Active Lookers
  • Short-time Inactive Members
  • 1st Time Booker
  • 2 Booker
  • Best Customers
  • Long Term Inactive Members

TDWI conference keynote speakers Caroline Smith,
Director of Data Warehousing at Travelocity.com
Chris Warwick, Director of Relationship Marketing
at Travelocity.com February 20th, 2003,
interviewed in person by Jamia Seifert
22
Seven Steps to Implementation
  • Step 5 Activated Channels
  • Aggregated data from all customer touch-points
  • Web interactions
  • Inbound email
  • Call center interactions
  • Offline bookings
  • Activated customer touch-points to drive service
    levels and generate sales
  • Targeted offers on the web site
  • Outbound targeted email
  • Cross sell/upsell opportunities at customer
    service

TDWI conference keynote speakers Caroline Smith,
Director of Data Warehousing at Travelocity.com
Chris Warwick, Director of Relationship Marketing
at Travelocity.com February 20th, 2003,
interviewed in person by Jamia Seifert
23
Seven Steps to Implementation
  • Step 6 Implemented CRM Tool
  • Utilized Teradatas CRM solution for campaign
    management
  • New member conversion
  • Post booking cross sell
  • Pre-trip Bon Voyage message
  • Frequent looker
  • Toll-free reservation line message
  • Step 7 Analyze Campaigns
  • Analysis and reporting processes are in place to
    measure campaign performance

TDWI conference keynote speakers Caroline Smith,
Director of Data Warehousing at Travelocity.com
Chris Warwick, Director of Relationship Marketing
at Travelocity.com February 20th, 2003,
interviewed in person by Jamia Seifert
24
Delivering Incremental Value
  • CRM campaigns will be added incrementally, then
    measured for effectiveness
  • Key drivers are
  • Customer segment needs
  • Merchandising plan
  • Revenue management requirements
  • Presently creating a position in Marketing
  • Manage CRM initiatives
  • Link the IT and Marketing groups

TDWI conference keynote speakers Caroline Smith,
Director of Data Warehousing at Travelocity.com
Chris Warwick, Director of Relationship Marketing
at Travelocity.com February 20th, 2003,
interviewed in person by Jamia Seifert
25
Travelocitys Business IT Partnership
  • Let each area focus on their expertise
  • Data Warehouse group and Marketing partnered on
    major projects
  • Selection of Teradata
  • Selection of Cognos tools for DB management
  • CRM initialization
  • The project budget and timeline was not available

TDWI conference keynote speakers Caroline Smith,
Director of Data Warehousing at Travelocity.com
Chris Warwick, Director of Relationship Marketing
at Travelocity.com February 20th, 2003,
interviewed in person by Jamia Seifert
26
 The Effects of CRM at Travelocity
  • 500,000 automated communications sent monthly
  • New member welcome/conversion series
  • Post booking cross sell
  • Bon voyage pre-trip
  • 20,000,000 targeted promotional emails sent
    monthly
  • 8,000,000 personalized newsletters sent weekly
  • Travelocitys ROI for the CRM project
  • The CRM efforts contribute a minimum of 2
    million per month to Travelocitys revenues

TDWI conference keynote speakers Caroline Smith,
Director of Data Warehousing at Travelocity.com
Chris Warwick, Director of Relationship Marketing
at Travelocity.com February 20th, 2003,
interviewed in person by Jamia Seifert
27
 CRM Lessons Learned
  • Build the foundation first, then add the bells
    and whistles
  • Set scope of project and stick to it
  • Dedicate resources to the project
  • Set internal expectations and provide frequent
    updates
  • CRM projects take more time than initially
    anticipated

TDWI conference keynote speakers Caroline Smith,
Director of Data Warehousing at Travelocity.com
Chris Warwick, Director of Relationship Marketing
at Travelocity.com February 20th, 2003,
interviewed in person by Jamia Seifert
28
CRM Lessons Learned
  • CRM is never finished
  • Focus on data quality first
  • Determine agreement on service levels between
    different groups
  • Talk to other companies utilizing CRM

Williams C.C. Just the Ticket Travelocity.com
books Teradata for virtually instant
answers.http//www.teradatamagazine.com/articles/
archive/2Q_2001/just_the_ticket.htm, July 5th,
2001. Viewed March 23, 2003
29
Six Key Success Factors
  • Corporate Buy-in
  • Travelocitys CRM had significant senior
    management support, a factor agency IT and
    business managers also know to be critical to any
    e-commerce effort.
  • - Caroline Smith, Director of Business
    Intelligence - Travelocity
  • A robust data warehouse
  • Obtain the single view of the customer

TDWI conference keynote speakers Caroline Smith,
Director of Data Warehousing at Travelocity.com
Chris Warwick, Director of Relationship Marketing
at Travelocity.com February 20th, 2003,
interviewed in person by Jamia Seifert
30
Six Key Success Factors
  • Flexible and scalable CRM tools
  • Define event and wait for it to occur
  • Event triggers a reaction
  • Record event in data warehouse
  • Employ good communication channels
  • Ongoing analysis and improvement
  • Establish control groups
  • Continuously monitor campaign performance
  • Maintain contact history
  • Develop and apply data modeling to improve
    customer targeting

TDWI conference keynote speakers Caroline Smith,
Director of Data Warehousing at Travelocity.com
Chris Warwick, Director of Relationship Marketing
at Travelocity.com February 20th, 2003,
interviewed in person by Jamia Seifert
31
Greatest CRM Challenge
  • Constantly implementing new features and
    functionality into the Web site
  • New sources of data
  • Web site traffic keeps increasing
  • Creates greater volumes of data

Williams C.C. Just the Ticket Travelocity.com
books Teradata for virtually instant
answers.http//www.teradatamagazine.com/articles/
archive/2Q_2001/just_the_ticket.htm, July 5th,
2001. Viewed March 23, 2003
32
Best Practices Leadership Award - 2002
  • TDWI determent Travelocitys CRM initiatives as
    innovative and unique because
  • Travelocity is able to perform analyses and
    execute automated, personalized marketing
    campaigns.
  • Before their CRM initiative, customer
    information was available to only a few end users
    and that information was scattered. Now, all
    information for all travel categoriesair, car,
    hotel, and cruiseis in one location and is
    available to anyone with a need to view the
    information.
  • - TDWI recognition statement

Best Practices and Leadership in Data
Warehousing Award Winners 2002. January
2003 http//www.dw-institute.com/research/display.
asp?id6511. Viewed March 23, 2003
33
(No Transcript)
34
  • Oracle Company Background
  • Founded 26 years ago by Larry Ellison, Bob
    Miner, and Ed Oates
  • First software company to develop and deploy
    100 internet able enterprise software
  • The World leader in supplier software for
    information management
  • The World second largest independent software
    company
  • Producer of the Worlds greatest database-Oracle
    9i

http//www.oracle.com/corporate. Viewed February
2, 2003
35
  • Oracle Company Profile
  • Headquarters Location Redford Shores,
    California
  • Employees 40,000
  • Revenues for 2001 10.8 billion

http//www.oracle.com/corporate. Viewed February
2, 2003
36
  • Oracle Company Areas of CRM
  • Marketing
  • Sales
  • Service
  • Contracts

http//www.oracle.com/applications/customermgmt/in
dex.html?theme.html. Viewed February 5, 2003
37
  • Oracle Marketing Solutions
  • Problem Company makes marketing decisions by
    instinct rather than by solid facts from data.
  • Solution Oracle offers Oracle Marketing. A
    system that automates the entire marketing
    function and process.
  • Products
  • Oracle Marketing
  • Oracle Trade Management

http//www.oracle.com/applications/customermgmt/in
dex.html?theme.html. Viewed February 8, 2003
38
  • Oracle Sales Solutions
  • Problem Ill preparation of a companys sales
    staff leading to its inability to hit sales
    targets, reduce costs, and reduce sales cycles.
  • Solution Oracle provides the company with an
    automated business process for all sales and
    customer interactions.
  • Products
  • Telesales Sales Online
  • Sales Offline Incentive Compensation
  • iStore Quoting
  • Configuration iPayment

http//www.oracle.com/applications/customermgmt/in
dex.html?theme.html. Viewed February 23, 2003
39
  • Oracle Service Solutions
  • Problem A companys inefficiency due to gaps in
    communication between service, field service and
    maintenance.
  • Solution Oracles automated and centralized
    process of tracking requests and dispatching.
  • Products
  • iSupport
  • Mobile Field Service
  • Advanced Scheduler
  • Field Service
  • Wireless Option for Service
  • Depot Repair

http//www.oracle.com/applications/customermgmt/in
dex.html?theme.html. Viewed February 23, 2003
40
  • Oracle Contract Solutions
  • Problem A companys use of manual contracts
    leads to omissions of important information which
    later results in a loss of revenue.
  • Solution Oracles complete automation of
    multiple style contracts
  • Products
  • Service Contracts
  • Project Contracts
  • Lease Management

http//www.oracle.com/applications/customermgmt/in
dex.html?theme.html. Viewed March 13, 2003
41
  • The Oracle Strategy of Implementing CRM
  • Oracles focus of implementing CRM to their
    existing customers database
  • Single database instance
  • Suite of integrated applications
  • Software configuration, not customization

http//www.oracle.com/applications/customermgmt/in
dex.html?theme.html. Viewed March 13, 2003
42
Oracle Case Studies
Case Study 1 McData Corporation
43
McData Corporation
McDATA Corporation was founded in 1982. McDATA
(Nasdaq MCDT/MCDTA) is a global leader in open
storage networking solutions and provides high
performance enterprise directors and Storage Area
Networks (SANs). The company manufactures and
markets high-performance switching solutions
Fibre Channel for open systems environments and
ESCON for IBM data centers.
http//www.mcdata.com/about/profile/index.html.
Viewed March 5, 203
44
  • Company Profile
  • Headquarters Location Broomfield, CO
  • Industry High technology
  • Annual income 101 million to 500 million
  • Employees 501 to 1999
  • CRM Outsourcing Company Oracle

http//www.oracle.com/customers/profiles/PROFILE34
41.HTML.. Viewed March 5, 2003
45
Oracle Products Services
  • Discrete Manufacturing
  • eMail Center
  • Incentive Compensation
  • Mobile Field Service
  • iLearning
  • TeleService
  • Sales Online
  • Depot Repair
  • Oracle Support
  • iSupplier Portal

http//www.oracle.com/customers/profiles/PROFILE34
41.HTML. Viewed March 5, 2003
46
Project Goals for CRM
  • Implement a scaleable solution to support growth
  • Create a 360 degree view of the customer
  • Streamline processes
  • Lower total cost of ownership

http//www.oracle.com/customers/profiles/PROFILE34
41.HTML. Viewed March 5, 2003Crafton, Thomas W.
Do you really know your customers? Strategic
Finance, Vol. 84, Issue 4, October 2002, pp.
55-57.
47
  • Outcome from CRM Implementation
  • Avoided 5 million in cost in one year and saved
    1 million
  • Reduced days of sales outstanding from 80 days
    to 50 days
  • Reduced quarterly close days from 21 days to 4
    days
  • Inventory was reduced from 68 million to 43
    million
  • Product quality was improved by 22
  • On-time shipments were increased from 79 to 97
  • Time necessary to create reports reduced by 95

http//www.oracle.com/customers/profiles/PROFILE34
41.HTML. Viewed March 5, 2003
48
Oracle Case Study
Case Study 2 Gevity HR
49
Gevity HR
  • As the nation's leading provider of outsourced HR
    solutions, Gevity HR helps businesses
  • Find the right people
  • Manage the paperwork
  • Develop and manage your people
  • Protect your business
  • Retain your best employees   
  • Gevity HR services are provided through specific
    offerings, such as recruiting assistance,
    training, benefits administration, payroll
    processing and related paperwork management, and
    legal compliance.


www.gevityhr.com. Viewed March 10, 2003
50
Customer Profile Headquarters Location
Bradenton, FL Industry Professional
Services Annual Income More than 1.001
Billion Employees 501 to 1999
http//www.oracle.com/customers/profiles/PROFILE33
89.HTML. Viewed March 10, 2003
51
Oracle Products Services
  • Scripting
  • Oracle9iAS Portal
  • HR Intelligence
  • Self Service HR
  • Human Resources
  • Financials
  • Training Administration
  • Oracle Consulting Services

http//www.oracle.com/customers/profiles/PROFILE33
89.HTML. Viewed March 10, 2003
52
  • Project Goals for CRM
  • Create core service transactions related to HR
    and payroll administration
  • Implement Oracle TeleService and CTI
    applications


http//www.oracle.com/customers/profiles/PROFILE33
89.HTML. Viewed March 10, 2003
53
  • Outcome from CRM Implementation
  • Reduced total work time for transactions by 27
  • Doubled payroll staff productivity in 18 months,
    which resulted in 3 million savings in personnel
    cost
  • No new clients terminated for service related
    reasons in first half of 2001
  • Integrated 24 hour access to customer data in 41
    field offices


http//www.oracle.com/customers/profiles/PROFILE33
89.HTML. Viewed March 10, 2003
54
Best Practices for CRM
55
  • A New CRM System Alone Will Not Bring Improvements

New Technology Old Organization Expensive Old Organization
One thing that doesnt work is going out and
buying a single package to solve all your CRM
problems. Without a business case, without
business buy-in, without executive sponsorship
the package will not solve the problem. The
problem is not the technology its the culture
change.There is no silver bullet. Liz Shahnam
Roche, Meta Group Vice President, interviewed by
CRMDaily.com, December 22, 2002
Andersen, Henrik, and Per Jacobsen. Implementing
CRM 20 Steps to Success. In Stanley Brown, ed.
Customer Relationship Management A Strategic
Imperative in the World of E-Business, 269.
Toronto, New York John Wiley Sons,
2000.Raymond, Ed. Sorting Out CRM Best
Practices. http//www.crmdaily.com/perl/story/203
04.html, viewed April 15, 2003.
56
Development of Customer Centric Business Strategy
  • Object to find win-win opportunities with
    customers
  • Plan around customer wants, not company goals
  • Focus on listening to customers, rather than
    forcing them to listen to you
  • Avoid promotional marketing communication stick
    to informed and informational dialog with
    customers

important focus of the CRM project - to
develop a single view of the customer
Lee, Dick. Four Steps to Success with CRM.
http//www.crmguru.com/content/features/lee02.html
, viewed April 15, 2003.
57
4 Ps of CRM Success
  • Planning
  • People
  • Process
  • Platform

Gerson, Richard. Secrets of CRM Success.
http//www.crmguru.com/content/features/gerson/200
1_02_08.html, viewed April 15, 2003.
58
Planning
  • 1 - - Develop a comprehensive plan for your CRM
    efforts lay out what you want your program to
    accomplish (how you want to capture and use the
    data)

Gerson, Richard. Secrets of CRM Success.
http//www.crmguru.com/content/features/gerson/200
1_02_08.html, viewed April 15, 2003.
59
Planning Example
  • Planned CRM Activity to capture consequently
    three types of customer data from a corporate
    website

Type of Data
customers e-mail address and name
customers physical address and phone numbers
customers purchase preferences
Usage of the Data
To capture 80 of the visitors to the site
To turn 90 of those first-time visitors into customers
To capture purchase preferences to personalize their future visits to send hard copy direct mail to influence future repeat purchases
Look towards a software solution that will allow you to perform this activity
choice of Teradata
Gerson, Richard. Secrets of CRM Success.
http//www.crmguru.com/content/features/gerson/200
1_02_08.html, viewed April 15, 2003.
60
Planning
  • 2 - - Carefully select the initial (pilot)
    implementation areas within the organization that
    will bring the greatest benefits and quick wins

Andersen, Henrik, and Per Jacobsen. Implementing
CRM 20 Steps to Success. In Stanley Brown, ed.
Customer Relationship Management A Strategic
Imperative in the World of E-Business. 268-283.
Toronto, New York John Wiley Sons, 2000.
61
People
  • Get employees and partners involved and on-board
    with your CRM effort generate a new company
    culture!
  • Restructure employee compensation to reinforce
    CRM priorities
  • e.g. tie employee incentives to customer-oriented
    indicators (customer retention and satisfaction)

Gerson, Richard. Secrets of CRM Success.
http//www.crmguru.com/content/features/gerson/200
1_02_08.htmlgt, viewed April 15, 2003.Sims, David.
Principles Make the Best Practices.
lthttp//www.crmguru.com/content/features/gerson/20
01_02_08.htmlgt viewed April 15, 2003.
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People
  • Establish two training protocols
  • 1 - Communication the culture-change and
    associated soft skills
  • 2 - Technical training

Gerson, Richard. Secrets of CRM Success.
lthttp//www.crmguru.com/content/features/gerson/20
01_02_08.htmlgt, viewed April 15, 2003.
63
People
  • Best CRM Practices Proportion for Training and
    Infrastructure Budgets
  • - acquisition of software and hardware
  • - training and change management

1
3-15
Ramesan, Kevin. CRM Application Users are Key to
Project Success. lthttp//www.technologyevaluation
.com/Research/ResearchHighlights/Crm/2003/01.htmlgt
, viewed January 27, 2003
64
Process
  • Re-engineering of work processes involves
  • 1 - change of departmental roles and
    responsibilities
  • 2 - adoption of new work processes creation
    of a service map, including
  • How a customer contacts the company
  • How you will capture the information
  • How you will process the information
  • Methodology of repeated contact with a customer
  • Consolidation of info from all customer
    touch-points

Gerson, Richard. Secrets of CRM Success.
lthttp//www.crmguru.com/content/features/gerson/20
01_02_08.htmlgt, viewed April 15, 2003.
65
You have Set your CRM program goals Involved
your people Charted the processNow you are
ready for technology!
66
Platform
  • CRM software comes in all shapes, sizes and
    functions it should support, but not drive new
    work processes
  • Span of Focal Points
  • Identify your focal point and compare it to the
    focal point of every software you are considering

Marketing Automation
Sales Automation
Call Center Sales
Call Center Service
Field Service
Lee, Dick. Four Steps to Success with CRM.
http//www.crmguru.com/content/features/lee02.html
, viewed April 15, 2003.
67
Implementation Perspective of CRM Success
  • 3 inter-related activities of successful
    implementation


Leadership (10)
Program Management (10)
Change Management (10)
In brackets percentage relative to each sections
contribution to overall success of the project
Petersen, Glen. CRM Best Practices The Framework
For An Industry Renaissance. GSP Associates,
Inc, 2002.
68
Implementation Perspective of CRM Success
Leadership
Find a sponsor in top management they have
influence to find necessary sources and
accelerate decision-making process
 Hansotia, Behram, Gearing up for CRM
Antecedents to successful implementation.
Journal of Database Marketing, London, December
2002, Vol. 10, Issue 2.
69
Implementation Perspective of CRM Success
Program Management
The effort must be well-coordinated and follow a
defined schedule with checkpoints
70
Implementation Perspective of CRM Success
Change Management
A change in culture and practice must shadow your
CRM initiative communication and training play
an integral role in the implementation process
Mullin, Rick, CRM Show us the payback.
Chemical Week, New York, New York, October, 2001,
Vol. 163, Issue 40, pp.28-29.
71
Summary of Best Practices
  • Develop a customer-centric strategy in you
    company
  • Set precise goals
  • Get employees and partners involved with your CRM
    effort
  • Re-engineer work processes
  • Select the CRM platform adequate to your goals

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