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A case for crm   team 11 - beacon hill version 1.1 ppt A case for crm team 11 - beacon hill version 1.1 ppt Presentation Transcript

  • "Successful CRM is a major business initiative, not a technology initiative"
  • Are you looking for an integrated sales,marketing and service driven processes? Is your organization looking for an IT enabler which will help your cross-functional team-members understand and appreciate the different strengths and skills that each member brings to teams? Are you looking for an approach which effectively manages customer relationships? CRM is the answer.
  • IT for Business Managers, Module B, MBA, 2010 Professor Jim SlusserCustomer Relationship Management SystemA business strategy to acquire and maintain more loyal customersFinal Presentation March 2011 Team 11, Beacon Hill Anastasia Elpida Kokkota Ato Mensah Junhee Han Manish Murarka Ricardo Moraes
  • IT for Business Managers, Module B, MBA, 2010 Customer Relationship Management SystemProfessor Jim Slusser Final Presentation, March 2011
  • CONTENTS 01 Executive Summary 02 Introduction C ustomer 03 Current Usage of CRM R 04 Current Trend in CRM elationship 05 Benefit of CRM M anagement 06 Risk Involved 07 Measures to Overcome Risk 08 ROI of CRM 09 Implementation of CRM 10 Future of CRM 11 Conclusion
  • 01 Executive Summary - Sales of Customer Relationship Management (CRM) software have grown from $800 million to over $14 billion annually. - Adoption of CRM has grown from 53 percent in 2003 to 75 percent in 2010. - CRM is a management strategy that enables an organization to become customer-focused and develop stronger relationships with its clientele. - Analysts predicts that by 2015, 33% of CRM spending will be on hosted on-demand services. IT for Business Managers, Module B, MBA, 2010 Customer Relationship Management System Professor Jim Slusser Final Presentation, March 2011 1
  • 02 Introduction 1. Definition of CRM - CRM is the ability to collect data Relation Analysis / from customer facing mediums, and Management Reporting integrate data into meaningful information for CRM stakeholders and business processes. Sales - Stakeholders within an organization Service Marketing typically include executives, marketing, customer service (operations), finance and various Finance / ERP groups within the organization. IT for Business Managers, Module B, MBA, 2010 Customer Relationship Management System Professor Jim Slusser Final Presentation, March 2011 2
  • 02 Introduction 2. History of CRM - Build a marketing database to satisfy individual customers - Improve service to key clients - Collect surveys from smaller clients - Give incentives, gifts, and loyalty programs to customers - Increase sales - Advanced CRM solutions that could dynamically use information. - Understanding customer needs and behaviors - Customize features for specific customer groups - Break down of information to evaluate concrete statistics & the reactions of customers IT for Business Managers, Module B, MBA, 2010 Customer Relationship Management System Professor Jim Slusser Final Presentation, March 2011 3
  • 02 Introduction 3. Three Major Perspectives of CRM Business Strategy Perspective 3 Major Customer Life Technological Perspective Cycle Perspective Perspective IT for Business Managers, Module B, MBA, 2010 Customer Relationship Management System Professor Jim Slusser Final Presentation, March 2011 4
  • 02 Introduction 4. CRM Strategy CRM Strategy is executed in the form of a program and projects Begins with a Business Strategy STRATEGY Leads to a CRM program CRM PROGRAM CUSTOMER MARKETING SALES Program made up of a series of project PROJECT + + SERVICE PROJECT PROJECT IT for Business Managers, Module B, MBA, 2010 Customer Relationship Management System Professor Jim Slusser Final Presentation, March 2011 5
  • 03 Current Usage of CRM 1. Industry Small Financial Services Companies 38% Large companies 62% Telecommunication $12 Billion Sales Annually Insurance IT for Business Managers, Module B, MBA, 2010 Customer Relationship Management System Professor Jim Slusser Final Presentation, March 2011 6
  • 03 Current Usage of CRM 2. Vendors of CRM • Salesforce.com • Oracle ERP vendors with • SAP CRM solutions • NetSuite • Epicor • Infor • Cegidim Dendrite • Amdocs Pure CRM solution • Aspect companies include • Verint Witness • Microsoft Dynamics • SugarCRM • SplendidCRM Top open source • ConcourseConnect options include • Hipergate • Compiere IT for Business Managers, Module B, MBA, 2010 Customer Relationship Management System Professor Jim Slusser Final Presentation, March 2011 7
  • 03 Current Usage of CRM 3. Different Countries Example India CRM Application Rate North America 58% - Between 2009 and 2014, CRM in India is projected to grow at a European Union 24% compound annual growth rate Asia Pacific 13% (CAGR) of 16% to 19% Latin America 3% - One of the fasted growing CRM Middle Asia 2% countries in the world. 0 10 20 30 40 50 60 70 IT for Business Managers, Module B, MBA, 2010 Customer Relationship Management System Professor Jim Slusser Final Presentation, March 2011 8
  • 04 Current Trend in CRM 1. Fundamental changes in Customer behavior Uses new online channels and new communication tools Trusts in advices Seeks support to made by online connect with like- acquaintances mined peers and strangers Reads and creates product Trends to buy reviews, product Customer more online than rankings and offline blog posts Wants to provide Expects better feedback about customer the product and experience customer service IT for Business Managers, Module B, MBA, 2010 Customer Relationship Management System Professor Jim Slusser Final Presentation, March 2011 9
  • 04 Current Trend in CRM 2. Paradigm Shift in CRM Targeting Acquisition Establishing Decision Need VS Sharing Experience Expansion Retention Impressions Customer Support Processes Marketing Sales Value Service Operating Processes - Customer processes developed from the company - Company processes developed from the customer standpoint (Customer Life Cycle for the company) standpoint (Company Life Cycle for the customer) - Process Centric : Adapt and optimize processes to - Conversation Centric : Include the conversation factor to support better customer interaction establish brand community, enable idea capturing and - Focused on CRM processes better segmentation - Focused on the evolution of CRM processes and resulting impacts in the value chain IT for Business Managers, Module B, MBA, 2010 Customer Relationship Management System Professor Jim Slusser Final Presentation, March 2011 10
  • 04 Current Trend in CRM 3. Conceptual Extensibility in CRM Monitoring / Interconnecting Tools Conversation Tools Customer Data Owned Mining Data Process Support Process Support RSS Forums Account Management Account Management Contact Management Contact Management Activity Management Activity Management Lead / Opp Management VS Blogs Lead / Opp Management Widgets Campaign Management Campaign Management Sales Management APIs Sales Management Open ID Service Management Service Management … … Wikis Podcast Social Networks Cloud Brand Monitoring Computing Service- CRM Solutions focused in automating and supporting - CRM Solutions focused in community creation internally internal business processes and externally IT for Business Managers, Module B, MBA, 2010 Customer Relationship Management System Professor Jim Slusser Final Presentation, March 2011 11
  • 05 Benefit of CRM 1. Benefit of CRM Typical Benefits Claimed Increased - Up Sell / Close Sell Revenue - Attract New Customer Improved Efficiency 61% - Improve Customer Retention Improved Effectiveness 55%Increased Competitive Advantage 35% - Automate Tasks Decreased - Improve Campaign Efficiency Cost - Improve Forecast Accuracy Lowered Costs 29% and Timeline Other 28% - Marketplace Differentiation - Increase Knowledge Retention Increased Revenue 23% - Increase Customer Satisfaction Intangibles - Improve Product Pricing Model*Garner Survey of December 2003, 150 respondents 0 10 20 30 40 50 60 70 - Increase your Understanding of your Customer IT for Business Managers, Module B, MBA, 2010 Customer Relationship Management System Professor Jim Slusser Final Presentation, March 2011 12
  • 05 Benefit of CRM 2. Business Facts of CRM Company Business Benefits of CRM - 8% reduction in call abandon rate Mitsubishi Motors NA - Able to handle 75% increase in call volume with similar level of staffing - Customer satisfaction rose from 92.3% to 98.1 % Honeywell Industrial Control - 15% reduction in call center personal costs SKF - 25% increase in service related revenues - Increased the number of products sold per customer from 4.6 to 6.2 FleetBoston - 200% return on technology investment through cost reductions Telstra - Threefold gain in employee productivity Novell - Achieved 99% forecasting accuracy Quick & Reilly - 10% increase in customer retention IT for Business Managers, Module B, MBA, 2010 Customer Relationship Management System Professor Jim Slusser Final Presentation, March 2011 13
  • 06 Risk Involved 1. Risk of CRM “A customer service system affects the culture of the organization” – Paul Doughty, VP of sales consulting, KANA software - Organizational -- Company’s own ability to Vendor Risks - Stability and maturity of Risks undertake the project the vendor -- Users acceptance - Long-term commitment Technological -- Current vs. New -- Lose sight of the end goal. Market Risks - Uncertain times Risks -- Too much focus on the - Consolidation of the industry technological aspect IT for Business Managers, Module B, MBA, 2010 Customer Relationship Management System Professor Jim Slusser Final Presentation, March 2011 14
  • 07 Measures to Overcome Risk 1. Critical Success Factor CEO Involvement Executive Commitment Risk Management Minimize Risk Expose Data Integrity Common across the Enterprise Security Management Control the Data One Collects Culture Shift From Product Centric to Customer Centric Performance Metrics Determine Metrics / Establish Baseline Software and Legacy System Integration Avoid Data Pockets Business Process Change More Important than Technology Change IT for Business Managers, Module B, MBA, 2010 Customer Relationship Management System Professor Jim Slusser Final Presentation, March 2011 15
  • 07 Measures to Overcome Risk 2. Overcoming Risk - Create a customer focused environment. - State clear objectives. - Focus less on technology, make sure business and IT are both responsible for implementation. - Roll out CRM in phases if the company is large. - Do not take a whole vender solution, because it seems comprehensive. IT for Business Managers, Module B, MBA, 2010 Customer Relationship Management System Professor Jim Slusser Final Presentation, March 2011 16
  • 08 ROI of CRM 1. CRM Industry Expenses CRM Spending by Categoty Software Licenses Other 16% 19% Software Maintenance 6% Hardware Internal Staff 7% 16% Telecommunication Software Vendor 5% Professional Service 4% System Intergrators 27% *Garner Survey of December 2003, 64 respondents IT for Business Managers, Module B, MBA, 2010 Customer Relationship Management System Professor Jim Slusser Final Presentation, March 2011 17
  • 08 ROI of CRM 2. ROI Metrics Common ROI Methodologies for CRM ROI Metrics Net Present Value 29.8% As reported in Garner Survey, the most Internal Rate of Return 24.6% common financial measures are NPV, Payback Period 22.8% IRR, Payback Period, Benefit-Cost Ratio and Economic Value Add (EVA) Benfit-Cost Ratio 10.5% Other 8.8% Economic Value Added 3.5% 0 5 10 15 20 25 30 35 *Garner Survey of December 2003, 57 respondents IT for Business Managers, Module B, MBA, 2010 Customer Relationship Management System Professor Jim Slusser Final Presentation, March 2011 18
  • 09 Implementation of CRM 2011 2012 Life Cycle Phase 04 05 06 07 08 09 10 11 12 01 02 03 04 05 06 07 08 INVESTMENT APPRAISAL Business Case Objective ; Get project buy-in, approval and funding Business Case Role ; Inform and convince, develop collective ownership Key Persons and Groups Involved ; Executive sponsor project owner, investment committee PROJECT EXECUTION Business Case Objective ; Keep project on track Business Case Role ; Baseline reference for scope decisions Key Persons and Groups Involved ; Project manage, project steering committee BENEFIT HARVESTING Business Case Objective ; Achieve project payoff Business Case Role ; Measurement yardstick for auditing Key Persons and Groups Involved ; Business unit management, auditors IT for Business Managers, Module B, MBA, 2010 Customer Relationship Management System Professor Jim Slusser Final Presentation, March 2011 19
  • 10 Future of CRM • Corporate Performance Management (CPM) • Customer Interaction Management (CIM) • On-demand, less integrations on site. • Software as a service (SaaS) CRM, managed in the Cloud Compounding • The rise of social CRM IT for Business Managers, Module B, MBA, 2010 Customer Relationship Management System Professor Jim Slusser Final Presentation, March 2011 20
  • 11 Conclusion CRM is an IT enabler • Identify High-Value customers • Build Customer Loyalty to grow Revenues • Reduce Costs through Micromarketing • Create a Customer-Focused Organization IT can Help…But there are Non-IT Hurdles… IT for Business Managers, Module B, MBA, 2010 Customer Relationship Management System Professor Jim Slusser Final Presentation, March 2011 21
  • 11 Conclusion Non IT Hurdles for CRM • Getting the right data • Organizational Resistance • Performance Management and • Reward Systems IT for Business Managers, Module B, MBA, 2010 Customer Relationship Management System Professor Jim Slusser Final Presentation, March 2011 22
  • “How you gather, manage, and use customer information will determine your organization success or failure" - Beacon Hill Team 11 -