The document provides a comprehensive overview of Customer Relationship Management (CRM), defining its purpose, goals, benefits, and how it differs from SAP R/3. It discusses operational aspects, data collection methods, and integration with ERP systems, emphasizing that CRM strategies are essential for retaining and acquiring customers in a competitive market. Additionally, it outlines the importance of managing customer information effectively to enhance business success.

1. SAP CRM Interview Questions and
Answers
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2. 1. What is Customer Relationship Management
(CRM)?
CRM 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.

3. 2. What is the difference between CRM and R/3 ?
The difference between CRM and R/3 is R/3 is an
integration of different application suits; it has its own
architecture and way of functioning. Coming to CRM it is
all about maintaining the relationship with a customer. It is
supposed to enhance the profit of the company or
organization since the ultimate goal of any company is
profit. Therefore CRM is one step ahead for their goal
achievements.
Whereas SAP R/3 is a 3 tier based on client or
server based application. One layer is presentation layer i.e
Client which interfaces with the end user. Second layer is
application layer for all business-specific requirements i.e
program, and third is database which contains all
information and records about the system, including
transactional and configuration data. SAP R/3 has been
developed in its own language called ABAP (Advanced
Business Application Programming).

4. 3. What is the use 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.

5. 4. What is the goal of CRM?
The 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.
5. What is an automating operation?
The 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.

6. 6. What are the Benefits of customer
relationship management?
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The Benefits of Customer Relationship Management are:
a. Sell additional products and services
b. Develop new products
c. Increase product utilization
d. Reduce marketing costs
e. Identify and retain profitable customers
f. Optimize service delivery costs
g. Retain high lifetime value customers
h. Enable personal and relevant communications
i. Improve customer loyalty
j. Improve response rates to direct mail
k. Increase product profitability
l. Respond quickly to market opportunities
m. Acquire new, profitable customers

7. 7. How the data was collected in CRM projects?
There are different types to collect data from
CRM projects:
 1. Responses to Campaigns.
 2. Sales and purchase data.
 3. Web registration data.
 4. Shipping and fulfillment dates.
 5. Account Information.
 6. Service and support records.
 7. Demographic data.
 8. Web sales data.

8. 8. How 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 wellconceived CRM project depends on the complexity of the
project and its components
9. Can CRM and ITS server maintained in one
system?
CRM and ITS servers can be maintained in one system, but
it is technically possible and whereas it is not recommended
since it would not allow for good security if both are
implemented in one server.

9. 10. What is the importance of Customer
Relationship Management?
The 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 competition.
11. What is the action profile in sap CRM? How to
use complaints and returns life cycle in service
process?
Action Profile is a Post Processing Frame work (PPF) which
gives some output (like as smart form, fax, document) on
given conditions. And this is used in every place in SAP
CRM where we define the Conditions for the successful
implementation of the activity. Like in Opportunity
Management, Monitoring the Activity of the enterprise
employees etc.

10. 12. What is master data in sap CRM?
Master Data is org & CP basic data which are mandatory for
creating org & CP in CRM system.
EX: Org Name & address details & Contact details and CP
related Names and contact details.
13. Is there any provision directly with CRM to
buffer the data or is there any other means?
The provision directly with CRM to buffer the data is by
CRM stores, all orders, products, and prices etc, used in the
Internet sales Scenario. It would have R/3 integration and
then the order will be forwarded to R/3, but it is also kept
in CRM database.

11. 14. How to integrate R/3 with CRM?
 To exchange data between ECC ( R3 ) and CRM systems we
need to maintain connectivity for both systems. They are
 Maintain Logical Systems in both systems and link with
respective clients.
 Maintain RFC destinations in both systems pointing to each
other system.
 Maintain Number ranges as mirror images in both systems.
 Ex: Maintain same number range in ECC as Internal and in
 Below are the steps for the integration between R 3 & CRM :
SAP ECC :
1) Define logical system for ECC ( Name )
2) Define logical system for CRM ( To establish the cross
connection )
SAP CRM :
1) Define logical system for CRM
2) Define logical system for ECC

12. 15. What is the Use of R/3 condition in CRM?
We are trying to replicate SAP R/3 pricing conditions to
CRM. Initial download of pricing customizing has been
done. R/3 pricing conditions are displayed in CRM
customizing well (pricing, rebates and free goods).
Though when I go in customizing (in CRM) to use these
R/3 conditions in condition maintenance under
“marketing planning and campaign management”, I can
see my rebates conditions, the free goods conditions but
not the other conditions applying directly in the sales
order. I have checked the configuration for the conditions
not shown. They are categorized in: Application = CRM;
Usage ‘PR’ for pricing; Source R/3. Conditions created in
R/3 and replicated to CRM can only be maintained in R/3.
If your middleware is set properly, any changes (VK11,
VK12) will replicate to CRM. - 7 - Only conditions created
in CRM are maintained in CRM (most likely documents
that do not replicate back to R/3, if that scenario exists for
you).

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