Crm notes 21.12.2011

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What is a pivot table?
A pivot table is a program tool that allows you to reorganize and summarize selected columns and rows of data in a
spreadsheet or database table to obtain a desired report. A pivot table doesn't actually change the spreadsheet or database
itself. In database lingo, to pivot is to turn the data (see slice and dice) to view it from different perspectives. A pivot table is
especially useful with large amounts of data. For example, a store owner might list monthly sales totals for a large number of
merchandise items in an Excel spreadsheet. If the owner wanted to know which items sold better in a particular financial
quarter, it would be very time-consuming for her to look through pages and pages of figures to find the information. A pivot
table would allow the owner to quickly reorganize the data and create a summary for each item for the quarter in question.
Customer Relationship Management (CRM)
CRM (CRM) is one of the hot topics in marketing and information systems (IS).
 CRM is generally known as a business strategy that provides the enterprise with a complete, dependable, and integrated
view of its customer base.
 A CRM system brings together lots of pieces of information about customers, sales, market trends, marketing
effectiveness and responsiveness.
 CRM has been known to help companies improve the profitability of their interactions with customers while at the
same time making those interactions appear friendlier through individualization.
 CRM's purpose is to enhance customer satisfaction and retention by alignment of customer business processes with
technology integration.
CRM* is a widely implemented strategy for managing a company’s interactions with customers, clients and sales prospects.
It involves using technology to organize, automate, and synchronize business processes—principally sales activities, but also
those for marketing, customer service, and technical support.[1]
The overall goals are to find, attract, and win new clients,
nurture and retain those the company already has, entice former clients back into the fold, and reduce the costs of marketing
and client service.[2]
CRM describes a company-wide business strategy including customer-interface departments as well as
other departments.[3]
Measuring and valuing customer relationships is critical to implementing this strategy.[4]
I. Benefits of CRM
A CRM system may be chosen because it is thought to provide the following advantages:
 Quality and efficiency
 Decrease in overall costs
 Decision support
 Enterprise agility
 Customer Attention.
II. CRM Challenges
Successful development, implementation, use and support of CRM systems can provide a significant advantage to the user,
but often, there are obstacles that obstruct theuser from using the systemto its full potential. Instances of a CRM attempting
to contain a large, complex group of data can become cumbersome and difficult to understand for an ill-trained user.
Additionally, an interface that is difficult to navigate or understand can hinder the CRM’s effectiveness, causing users to
pick and choose which areas of the system to be used, while others may be pushed aside. This fragmented implementation
can cause inherent challenges, as only certain parts are used and the system is not fully functional. The increased use of
CRM software has also led to an industry-wide shift in evaluating the role of the developer in designing and maintaining its
software. Companies are urged to consider the overall impact of a viable CRM software suite and the potential for good or
bad in its use.
A. Complexity
Tools and workflows can be complex, especially for large businesses. Previously these tools were generally limited to simple
CRM solutions which focused on monitoring and recording interactions and communications. Software solutions then
expanded to embrace deal tracking, territories, opportunities, and the sales pipeline itself. Next came the advent of tools for
other client-interface business functions, as described below. These tools have been, and still are, offered as on-premises
software that companies purchase and run on their own IT infrastructure.

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B. Poor usability
One of the largest challenges that CRM systems face is poor usability. With a difficult interface for a user to navigate,
implementation can be fragmented or not entirely complete.
The importance of usability in a system has developed over time.[5]
Customers are likely not as patient to work through
malfunctions or gaps in user safety,[5]
and there is an expectation that the usability of systems should be somewhat intuitive:
“it helps make the machine an extension of the way I think — not how it wants me to think.”
An intuitive design can prove most effective in developing the content and layout of a CRM system.[6]
Two 2008 case
studies show that the layout of a system provides a strong correlation to the ease of use for a system and that it proved more
beneficial for the design to focus on presenting information in a way that reflected the most important goals and tasks of the
user, rather than the structure of the organization.[6]
This “ease of service” is paramount for developing a system that is
usable.[7]
In many cases, the growth of capabilities and complexities of systems has hampered the usability of a CRM system. An
overly complex computer system can result in an equally complex and non-friendly user interface, thus not allowing the
system to work as fully intended.[7]
This bloated software can appear sluggish and/or overwhelming to the user, keeping the
system from full use and potential. A series of 1998 research indicates that each item added to an information display can
significantly affect the overall experience of the user.[8]
C. Fragmentation
Often, poor usability can lead to implementations that are fragmented — isolated initiatives by individual departments to
address their own needs. Systems that start disunited usually stay that way: siloed thinking and decision processes frequently
lead to separate and incompatible systems, and dysfunctional processes.
A fragmented implementation can negate any financial benefit associated with a CRM system, as companies choose not to
use all the associated features factored when justifying the investment.[9]
Instead, it is important that support for the CRM
system is companywide.[9]
The challenge of fragmented implementations may be mitigated with improvements in late-
generation CRM systems.[10]
D. Business reputation
Building and maintaining a strong business reputation has become increasingly challenging. The outcome of internal
fragmentation that is observed and commented upon by customers is now visible to the rest of the world in the era of the
social customer; in the past, only employees or partners were aware of it. Addressing the fragmentation requires a shift in
philosophy and mindset in an organization so that everyone considers the impact to the customer of policy, decisions and
actions. Human response at all levels of the organization can affect the customer experience for good or ill. Even one
unhappy customer can deliver a body blow to a business.[11]
Some developments and shifts have made companies more conscious of the life-cycle of a CRM system.[7]
Companies now
consider the possibility of brand loyalty and persistence of its users to purchase updates, upgrades and future editions of
software.[7]
Additionally, CRM systems face the challenge of producing viable financial profits, with a 2002 study suggesting that less
than half of CRM projects are expected to provide a significant return on investment.[12]
Poor usability and low usage rates
lead many companies to indicate that it was difficult to justify investment in the software without the potential for more
tangible gains.[12]
E. Security concerns
A large challenge faced by developers and users is found in striking a balance between ease of use in the CRM interface and
suitable and acceptable security measures and features. Corporations investing in CRM software do so expecting a relative
ease of use while also requiring that customer and other sensitive data remain secure. This balance can be difficult, as many
believe that improvements in security come at the expense of system usability.[13]
Research and study show the importance of designing and developing technology that balances a positive user interface with
security features that meet industry and corporatestandards.[14]
A 2002 study shows, however, that security and usability can
coexist harmoniously.[13]
In many ways, a secure CRM system can become more usable.
Researchers have argued that, in most cases, security breaches are the result of user-error (such as unintentionally
downloading and executing a computer virus). In these events, the computer system acted as it should in identifying a file
and then, following the user’s orders to execute the file, exposed the computer and network to a harmful virus. Researchers
argue that a more usable system creates less confusion and lessens the amount of potentially harmful errors, in turn creating
a more secure and stable CRM system.[13]

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Technical writers can play a large role in developing CRM systems that are secure and easy to use. A series of 2008 research
shows that CRM systems, among others, need to be more open to flexibility of technical writers, allowing these
professionals to become content builders.[15]
These professionals can then gather information and use it at their preference,
developing a system that allows users to easily access desired information and is secure and trusted by its users.
III. CRM Types/variations
A. Sales force automation
Sales force automation (SFA) involves using software to streamline all phases of the sales process, minimizing the time that
sales representatives need to spend on each phase. This allows a business to use fewer sales representatives to manage their
clients. At the core of SFA is a contact management system for tracking and recording every stage in the sales process for
each prospective client, from initial contact to final disposition. Many SFA applications also include insights int o
opportunities, territories, sales forecasts and workflow automation, quote gen
B. Marketing
CRM systems for marketing help the enterprise identify and target potential clients and generate leads for the sales team. A
key marketing capability is tracking and measuring multichannel campaigns, including email, search, social media,
telephone and direct mail. Metrics monitored include clicks, responses, leads, deals, and revenue. Alternatively, Prospect
Relationship Management (PRM) solutions offer to track customer behaviour and nurture them from first contact to sale,
often cutting out the active sales process altogether.
In a web-focused marketing CRM solution, organizations create and track specific web activities that help develop the client
relationship. These activities may include such activities as free downloads, online video content, and online web
presentations.
C. Customer service and support
CRM software provides a business with the ability to create, assign and manage requests made by customers. An example
would be Call Center software which helps to direct a customer to the agent who can best help them with their current
problem. Recognizing that this type of service is an important factor in attracting and retaining customers, organizations are
increasingly turning to technology to help them improve their clients’ experience while aiming to increase efficiency and
minimize costs.[16]
CRM software can also be used to identify and reward loyal customers which in turn will help customer
retention. Even so, a 2009 study revealed that only 39% of corporate executives believe their employees have the right tools
and authority to solve client problems.[17]
D. Appointment
Creating and scheduling appointments with customers is a central activity of most customer oriented businesses. Sales,
customer support, and service personnel regularly spend a portion of their time getting in touch with customers and prospects
through a variety of means to agree on a time and place for meeting for a sales conversation or to deliver customer service.
Appointment CRM is a relatively new CRM platform category in which an automated system is used to offer a suite of
suitable appointment times to a customer via e-mail or through a web site. An automated process is used to schedule and
confirm the appointment, and place it on the appropriateperson's calendar. Appointment CRM systems can be an origination
point for a sales lead and are generally integrated with sales and marketing CRM systems to captureand store the interaction.
E. Analytics
Relevant analytics capabilities are often interwoven into applications for sales, marketing, and service. These features can be
complemented and augmented with links to separate, purpose-built applications for analytics and business intelligence. Sales
analytics let companies monitor and understand client actions and preferences, through sales forecasting and data quality.
Marketing applications generally come with predictive analytics to improve segmentation and targeting, and features for
measuring the effectiveness of online, offline, and search marketing campaigns. Web analytics have evolved significantly
from their starting point of merely tracking mouse clicks on Web sites. By evaluating “buy signals,” marketers can see which
prospects are most likely to transact and also identify those who are bogged down in a sales process and need assistance.
Marketing and finance personnel also use analytics to assess the value of multi-faceted programs as a whole.
These types of analytics are increasing in popularity as companies demand greater visibility into the performance of call
centers and other service and support channels,[16]
in order to correct problems before they affect satisfaction levels. Support-
focused applications typically include dashboards similar to those for sales, plus capabilities to measure and analyze
response times, service quality, agent performance, and the frequency of various issues.

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F. Integrated/collaborative
Departments within enterprises — especially large enterprises — tend to function with little collaboration.[18]
More recently,
the development and adoption of these tools and services have fostered greater fluidity and cooperation among sales, service,
and marketing. This finds expression in the concept of collaborative systems that use technology to build bridges between
departments. For example, feedback from a technical support center can enlighten marketers about specific services and
product features clients are asking for. Reps, in their turn, want to be able to pursuethese opportunities without theburden of
re-entering records and contact data into a separate SFA system.
G. Small business
For small business, basic client service can be accomplished by a contact manager system: an integrated solution that lets
organizations and individuals efficiently track and record interactions, including emails, documents, jobs, faxes, scheduling,
and more. These tools usually focus on accounts rather than on individual contacts. They also generally include opportunity
insight for tracking sales pipelines plus added functionality for marketing and service. As with larger enterprises, small
businesses are finding value in online solutions, especially for mobile and telecommuting workers.
H. Social media
Social media sites like Twitter, LinkedIn and Facebook are amplifying the voice of people in the marketplace and are having
profound and far-reaching effects on the ways in which people buy. Customers can now research companies online and then
ask for recommendations through social media channels, making their buying decision without contacting the company.
People also use social media to share opinions and experiences on companies, products and services. As social media is not
as widely moderated or censored as mainstream media, individuals can say anything they want about a company or brand,
positive or negative.
Increasingly, companies are looking to gain access to these conversations and take part in the dialogue. More than a few
systems are now integrating to social networking sites. Social media promoters cite a number of business advantages, such
as using online communities as a source of high-quality leads and a vehicle for crowd sourcing solutions to client-support
problems. Companies can also leverage client stated habits and preferences to "Hypertargeting" their sales and marketing
communications.[19]
Some analysts take the view that business-to-business marketers should proceed cautiously when weaving social media into
their business processes. These observers recommend careful market research to determine if and where the phenomenon
can provide measurable benefits for client interactions, sales and support.[20]
It is stated[by whom?]
that people feel their
interactions are peer-to-peer between them and their contacts, and resent company involvement, sometimes responding with
negatives about that company.
I. Non-profit and membership-based
Systems for non-profit and membership-based organizations help track constituents and their involvement in the
organization. Capabilities typically include tracking the following: fund-raising, demographics, membership levels,
membership directories, volunteering and communications with individuals.
Many include tools for identifying potential donors based on previous donations and participation. In light of the growth of
social networking tools, there may be some overlap between social/community driven tools and non-profit/membership
tools.
J. Horizontal Vs. Vertical
Horizontal CRM manufacturers offer the same non-specialized base product across all industries. They tend to be cheaper,
least common denominator solutions.[citation needed]
For example, a bakery would get the same product as a bank. Vertical
CRM manufacturers offer specialized, specific industry or pain-point CRM solutions. In general, horizontal CRM solutions
are less costly up front, and more costly in the future, due to the fact that companies must tailor them for their particular
industry and business model.[citation needed]
On the other hand, Vertical CRM solutions tend to be more costly up front and less
costly down the road because they already incorporate best practices that are specific to an industry and business
model.[citation needed]
Major CRM vendors offer horizontal CRM solutions. In order to tailor a horizontal CRM solution, companies may use
industry templates to overlay some generic best practices by industry on top of the horizontal CRM solution.[citation needed]
Horizontal CRM vendors may also rely on value added reseller networks of systems integrators to build vertical solutions
and sell them as 3rd party add-ons or to come in and customize the solution to fit into a particular scenario.[citation needed]

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Vertical CRM vendors focus on a particular industry. As a general rule of thumb in CRM, it is ten times as costly to build a
vertical solution from a horizontal software program than it is to find a particular vertical solution that is already tailored to
your business model and industry.[citation needed]
K. Strategy
For larger-scale enterprises, a complete and detailed plan is required to obtain the funding, resources, and company -wide
support that can make the initiative of choosing and implementing a system successfully. Benefits must be defined, risks
assessed, and cost quantified in three general areas:
 Processes: Thoughthese systems have manytechnological components, business processeslie at its core. It can be
seenas a more client-centric wayof doingbusiness, enabled by technology that consolidates and intelligently
distributes pertinent informationabout clients, sales, marketing effectiveness, responsiveness, and market trends.
Therefore, a companymust analyze its business workflows andprocesses before choosing a technology platform;
some will likelyneedre-engineering to better serve the overall goal of winning and satisfying clients. Moreover,
planners need to determine the types ofclient information that are most relevant, and how best to emp loy them.[3]
 People: For an initiative to be effective, an organization must convince its staff that the new technology and
workflows will benefit employees as well as clients. Senior executives needto be strongandvisible advocates who can
clearlystate andsupport the case for change. Collaboration, teamwork, and two-way communication should be
encouraged across hierarchical boundaries, especiall y with respect to process improvement.[21]
 Technology: In evaluating technology, keyfactors include alignment withthe company’s business process strategy
and goals, includingthe abilityto deliver the right data to the right employees and sufficient ease ofadoptionanduse.
Platform selectionis best undertaken by a carefully chosen group of executives who understand the business
processes to be automated as well as the software issues. Dependinguponthe size of the company and the breadth
of data, choosing an application can take anywhere from a few weeks to a year or more.[3]
IV. Implementation
A. Implementation issues
Increases in revenue, higher rates of client satisfaction, and significant savings in operating costs are some of the benefits to
an enterprise. Proponents emphasize that technology should be implemented only in the context of careful strategic and
operational planning.[22]
Implementations almost invariably fall short when one or more facets of this p rescription are
ignored:
 Poor planning: Initiatives caneasilyfail whenefforts are limitedto choosinganddeploying software, without an
accompanyingrationale, context, and support for the workforce.[23] In other instances, enterprises simply
automate flawed client-facing processes rather than redesign them according to best practices.
 Poor integration: For manycompanies, integrations are piecemeal initiatives that address a glaring need:
improvinga particular client-facing process or two or automatinga favoredsales or client support channel.[24]
Such “point solutions” offer little or no integrationor alignment witha company’s overall strategy. They offer a
less than complete client view and often lead to unsatisfactory user experiences.
 Toward a solution: overcoming siloedthinking. Experts advise organizations to recognize the immense value of
integratingtheir client-facing operations. Inthis view, internally-focused, department-centric views should be
discardedinfavor of reorienting processes toward information-sharing across marketing, sales, and service. For
example, sales representatives needto know about current issues andrelevant marketing promotions before
attemptingto cross-sell to a specific client. Marketingstaff shouldbe able to leverage client information from
sales andservice to better target campaigns andoffers. And support agents require quick and complete accessto
a client’s sales and service history.[24]
B. Adoption issues
Historically, the landscape is littered with instances of low adoption rates. Many of the challenges listed above offer a
glimpse into some of the obstacles that corporations implementing a CRM suite face; in many cases time, resources and
staffing do not allow for the troubleshooting necessary to tackle an issue and the system is shelved or sidestepped instead.
Why is it so difficult sometimes to get employees up to date on rapidly developing new technology? Essentially, your
employees need to understand how thesystemworks, as well as understand the clients and their needs. No doubt this process
is time consuming, but it is well worth the time and effort, as you will be better able to understand and meet the needs of
your clients. CRM training needs to cover two types of information: relational knowledge and technological knowledge.

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C. Statistics
In 2003, a Gartner report estimated that more than $1 billion had been spent on software that was not being used. More
recent research indicates that the problem, while perhaps less severe, is a long way from being solved. According to CSO
Insights, less than 40 percent of 1,275 participating companies had end-user adoption rates above 90 percent.[25]
Additionally, many corporations only use CRM systems on a partial or fragmented basis, thus missing opportunities for
effective marketing and efficiency.[26]
The amount of time needed for the development and implementation of a CRM system can prove costly to the
implementation as well. Research indicates that implementation timelines that are greater than 90 days in length run an
increased risk in the CRM system failing to yield successful results.[12]
D. Increasing usage and adoption rates
Specialists offer these recommendations[25]
for boosting adoptions rates and coaxing users to blend these tools into their
daily workflow:
Additionally, researchers found the following themes were common in systems that users evaluated favorably. These
positive evaluations led to the increased use and more thorough implementation of the CRM system. Further
recommendations include[28]
 “BreadcrumbTrail”:This offers the user a path,usuallyat the topof a webor CRMpage, to returnto the starting
point ofnavigation. This canprove useful for users whomight findthemselves lost or unsure howtheygot to the
current screen in the CRM.
 Readilyavailable searchengine boxes:Researchshows that users are quickto seekimmediate results through
the use of a search engine box. A CRMthat uses a searchbox will keep assistance andimmediate results quickly
within the reach of a user.
 Help OptionMenu:An outlet for quickassistance or frequentlyasked questions canprovide users witha lifeline
that makesthe CRMsoftware easier to use. Researchers suggest making thisresource a large component of the
CRM during the development stage.
A larger theme is found in that the responsiveness, intuitive design and overall usability of a system can influence the users’
opinions and preferences of systems.[29]
Researchers noted a strong correlation between the design and layout of a user interface and the perceived level of trust from
the user.[30]
The researchers found that users felt more comfortable on a system evaluated as usable and applied that comfort
and trust into increased use and adoption.
E. Help menus
One of the largest issues surrounding the implementation and adoption of a CRM comes in the perceived lack of technical
and user support in using the system. Individual users — and large corporations — find themselves equally stymied by a
system that is not easily understood. Technical support in the form of a qualified and comprehensive help menu can provide
significant improvement in implementation when providing focused, context-specific information.[31]
Data show that CRM users are oftentimes unwilling to consult a help menu if it is not easily accessible and immediate in
providing assistance.[31]
A 1998 case study found that users would consult the help menu for an average of two or three
screens, abandoning the assistance if desired results weren’t found by that time.[31]
Researchers believe that help menus can provide assistance to users through introducing additional screenshots and other
visual and interactive aids.[32]
A 2004 case study concluded that the proper use of screenshots can significantly support a
user’s “developing a mental model of the program” and help in “identifying and locating window elements and objects.”[32]
This research concluded that screen shots allowed users to “learn more, make fewer mistakes, and learn in a shorter time
frame,” which can certainly assist in increasing the time frame for full implementation of a CRM system with limited
technical or human support.[32]
Experts have identified five characteristics to make a help menu effective:[33]
 “context-specific” — the help menu contains onlythe information relevant to the topic that is being discussed or
sought
 “useful“ — inconjunction withbeing context-specific, the helpmenumust be comprehensive inincluding all of
the information that the user seeks
 “obvious to invoke“ — the user must have no trouble inlocating the help menu or how to gain access to its
contents

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 “non-intrusive“ — the help menu must not interfere withthe user’s primarypathof work and must maintain a
distance that allows for its use only when requested
 “easilyavailable“ — the information ofthe help menu must be access ible with little or few steps required
V. Development
Thoughtful and thorough development can avoid many of the challenges and obstacles faced in using and implementing a
CRM system. With shifts in competition and the increasing reliance by corporations to use a CRM system, development of
software has become more important than ever.[34]
Technical communicators can play a significant role in developing
software that is usable and easy to navigate.[35]
A. Clarity
One of the largest issues in developing a usable CRM system comes in the form of clear and concise presentation.
Developers are urged to consider the importance of creating software that is easy to understand and without unnecessary
confusion, thus allowing a user to navigate the system with ease and confidence.
Strong writing skills can prove extremely beneficial for software development and creation. A 1998 case study showed that
software engineering majors who successfully completed a technical writing course created capstone experience projects that
were more mindful of end user design than the projects completed by their peers.[36]
The case study yielded significant
results:
 Students whocompletedthe technical writing course submittedcapstone projects that contained more vivid and
explicit detail inwriting thantheir peers who did not complete the course. Researchers note that the students
appeared to weigh multiple implications onthe potential user, andexplainedtheir decisions more thorou ghly
than their peers.
 Those participating inthe writingcourse sought out test users more frequentlyto add a perspective outside their
own as developer. Students appearedsensitive of the user’s ability to understand the developed software.
 The facultymember overseeingthe capstone submissions felt that students whodidnot enroll in the technical
writingclass were at a significant disadvantage whencomparedto their peers who did register for the course.
In the case study, researchers argue for the inclusion of technical writers in the development process of software systems.
These professionals can offer insight into usability in communication for software projects.[36]
Technical writing can help
build a unified resource for successful documentation, training and execution of CRM systems.[37]
B. Test users
In many circumstances, test users play a significant role in developing software. These users offer software developers an
outside perspective of the project, oftentimes helping developers gain insight into potential areas of trouble that might have
been overlooked or passed over because of familiarity with the system. Test users can also provide feedback from a targeted
audience: a software development team creating a CRM software system for higher education can have a user with a similar
profile explore the technology, offering opportunities to cater the further development of the system. Test users help
developers discover which areas of the software perform well, and which areas require further attention.[38]
Research notes that test users can prove to be most effective in providing developers a structured overview of the software
creation.[38]
These users can provide a fresh perspective that can reflect on the state of the CRM development without the
typically narrow or invested focus of a software developer.
A 2007 study suggests some important steps are needed in creating a quality and effective test environment for software
development.[39]
In this case study, researchers observed a Danish software company in the midst of new creating new
software with usability in mind. The study found these four observations most appropriate:
 The developers must make a conscious effort and commitment to the test user. Researchers note that the company
had dedicated specific research space and staff focused exclusively on usability.
 Usability efforts must carry equal concern in the eyes of developers as other technology-related concerns in the
creation stage. The study found that test users became discouraged when items flagged as needing attention were
marked as lower priority by the software developers.
 Realistic expectations from both test users and software developers help maintain a productive environment.
Researchers note that developers began to limit seeking input from test users after the test users suggested
remedies the developers felt were improbable, leading the developers to believe consulting the test users would
only prove to be more work.
 Developers must make themselves available to test users and colleagues alike throughout the creation process of a
software system.

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The researchers note that some of the best instances of usability adjustments can be made through casual conversation, and
that oftentimes usability is bypassed by developers because these individuals never think to consult test users. Allowing
users to test developing products can have its limits in effectiveness, as the culture of the industry and desired outcomes can
affect the effect on CRM creation,[40]
as a 2008 case study suggests that the responsiveness of test users can vary
dramatically depending on the industry and field of the user. Research suggests that test users can rate the importance or
severity of potential software issues in a significantly different fashion than software developers.[38]
Similarly so, researchers
note the potential for costly delay if developers spend too much time attempting to coerce hesitant test users from
participating.[39]
Additionally, involving too many test users can prove cumbersome and delay the development of a CRM system.[39]
Additional research notes that test users may be able to identify an area that proves challenging in a software system, but
might have difficulty explaining the outcome.
C. Privacy and data security system
One of the primary functions of these tools is to collect information about clients, thus a company must consider the desire
for privacy and data security, as well as the legislative and cultural norms. Some clients prefer assurances that their data will
not be shared with third parties without their prior consent and that safeguards are in place to prevent illegal access by third
parties.
VI. Market structures
This market grew by 12.5 percent in 2008, from revenue of $8.13 billion in 2007 to $9.15 billion in 2008.[41]
The following
table lists the top vendors in 2006-2008 (figures in millions of US dollars) published in Gartner studies.[42][43]
VII. Related trends
Many CRM vendors offer Web-based tools (cloud computing) and software as a service (SaaS), which are accessed via a
secure Internet connection and displayed in a Web browser. These applications are sold as subscriptions, with customers not
needing to invest in purchasing and maintaining IT hardware, and subscription fees are a fraction of the cost of purchasing
software outright.
What is CRM? And what are the real benefits for your company? Building sustainable and successful relationships with a
large customer base is not the easiest thing to do and will have a direct impact on many core operational processes from
product development to debt recovery. It is not purely a technical issue. It is not only about software implementation. And it
is not just about sales. It is about the interactions of the entire business with your customers.
Paul Greenberg, the Author of CRM at the Speed of Light, has his own classic definition about CRM:
"CRM is philosophy and a business strategy, supported by a system and a technology, designed to improve human
interactions in a business environment. It is also a continuing business initiative that demands a dynamic, ongoing strategy of
customer engagement"
Whilst Scott Hornstein, the Principal of Hornstein Associates, defines CRM as:
"CRM is the delivery of customer care as a strategic product, with measurement and reward focused on generating happier
customers that stay longer and buy more".
And many other versions as you can find some in the CRM Definition section of this web site. In summary, CRM (CRM)
covers methods and technologies used by companies to manage their relationships with clients. Information stored on
existing customers (and potential customers) is analyzed and used to this end. Automated CRM processes are often used to
generate automatic personalized marketing based on the customer information stored in the system.
Implementing CRM
CRM is a corporate level strategy, focusing on creating and maintaining relationships with customers. Several commercial
CRM software packages are available which vary in their approach to CRM. However, CRM is not a technology itself, but
rather a holistic approach to an organization’s philosophy, placing the emphasis firmly on the customer.
CRM governs an organization’s philosophy at all levels, including policies and processes, front of house customer service,
employee training, marketing, systems and information management. CRM systems are integrated end-to-end across
Marketing, Sales and Service.
A CRM system should:
 Identify factors important to clients

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 Promote a customer-oriented philosophy
 Adopt customer-based measures
 Develop end-to-end processes to serve customers
 Provide successful customer support
 Handle customer complaints
 Track all aspects of sales
CRM Architecture
There are three fundamental components in CRM:
I. Operational CRM: Automation of Basic Business Processes (Marketing, Sale and Service)
Operational CRM provides automated support to front office business processes (sales, marketing and service). Each
interaction with a customer is generally added to a customer’s history and staff can retrieve information on customers from
the database as necessary.
According to Gartner Group, operational CRM typically involves three general areas:
 Sales Force Automation (SFA)
SFA automates some of a company’s critical sales and sales force management tasks, such as forecasting, sales
administration, tracking customer preferences and demographics, performance management, lead management,
account management, contact management and quote management
 Customer Service and Support (CSS)
CSS automates certain service requests, complaint, product returns and enquiries
 Enterprise Marketing Automation (EMA)
EMA provides information about the business environment, including information on competitors, industry trends
and macro environmental variables. EMA applications are used to improve marketing efficiency.
Integrated CRM software is often known as a “front office solution”, as it deals directly with customers.
Many call centers use CRM software to store customer information. When a call is received, the system displays the
associated customer information (determined from the number of caller). During and following the call, the call center agent
dealing with the customer can add further information.
Some customer services can be fully automated, such as allowing customers to access their bank account details on line or
via a WAP phone.
2. Analytical CRM: Analysis of Customer Data and Behavior using Business Intelligence
Analytical CRM analyzes data (gathered as part of operational CRM, or from other sources) in an attempt to identify means
to enhance a company’s relationship with its clients. The results of an analysis can be used to design targeted marketing
campaigns, for example:
 Acquisition: cross-selling, up-selling
 Retention: retaining existing customers
 Information: providing timely and regular information to customers
Other examples of the applications of analyses include:
 Contact optimization
 Evaluating and improving customer satisfaction
 Optimizing sales coverage
 Fraud detection
 Financial forecasts
 Price optimizations
 Product development
 Program evaluation
 Risk assessment and management
Data collection and analysis is viewed as a continuing and iterative process. Ideally, business decisions are refined over time,
based on feedback from earlier analyses and decisions. Most analytical CRM projects use data warehouse to manage data.

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3. Collaborative CRM: Communicating with Clients
Collaborative CRM focuses on the interaction with customers (personal interaction, letter, fax, phone, internet, email, etc)
Collaborative CRM includes:
 Providing efficient communication with customers across a variety of communication channels
 Providing online services to reduce customer service costs
 Providing access to customer information while interacting with customers
Uses of CRM
In its broadest sense, CRM covers all interaction and business with customers. A good CRM program allows a business to
acquire customers, provide customer services and retain valued customers.
Customer services can be improved by:
 Providing online access to product information and technical assistance around the clock
 Identifying what customers value and devising appropriate service strategies for each customer
 Providing mechanism for managing and scheduling follow-up sales calls
 Tracking all contacts with a customer
 Identifying potential problems before they occur
 Providing a user-friendly mechanism for registering customer complaints
 Providing a mechanism for handling problems and complaints
 Providing a mechanism for correcting service deficiencies
 Storing customer interests in order to target customer selectively
 Providing mechanisms for managing and scheduling maintenance, repair and on-going support
Technical Considerations
The following factors need to be considered:
 Scalability: the system should be highly scalable, as the volume of data stored in the system, grows over time.
 Communication channels: CRM can interface with a variety of different channels (phone, WAP, internet, etc)
 Workflow – a company’s business processes need to be represented by the system with the ability to track the
individual stages and transfer information between steps
 Assignment – the ability to assign requests, such as service requests, to a person or group
 Database – the means of storing customer data and histories (in a data warehouse)
 Customer privacy considerations, such as data encryption and legislation
Improving Customer Relationship
CRM applications often track customer interests and requirements, as well as their buying habits. This information can be
used to target customer selectively. Furthermore, the products a customer have purchased can be tracked throughout the
product’s life cycle, allowing customers to receive information concerning a product or to target customer with information
on alternative products once a product begins to be phased out.
Repeat purchase relies on customer satisfactions, which in turn comes from a deeper understanding of each customer and
individual needs. CRM is an alternative to the "one size fits all" approach. In industrial markets, the technology can be used
to coordinate the conflicting and changing purchase criteria of the sector.
Privacy and Ethical Concerns
The data gathered as part of CRM raises concerns over customer privacy and enables coercive sales techniques. However,
CRM does not necessarily involve gathering new data, but also includes making better use of customer information gathered
as a result of routine customer interaction.The privacy debate generally focuses on the customer information stored in the
centralized database itself, and fears over a company’s handling of this information, especially regarding third parties.
CRM for Non-Profit Organizations
CRM is also important to non-profit organizations, which sometimes use the terms "constituent relationship management",
"contact relationship management" or "community relationship management" to describe their information system for
managing donors, volunteers and other supporters.

Crm notes 21.12.2011

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Crm notes 21.12.2011