Customer Relationship Management(CRM).ppt

1
Customer Relationship
Management

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Presented By:
 John Sept
 Paul Hauser
 Chutchat Kidkul
 Jeffrey Allen
 Shannon Curran

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Objectives
 What is the Promise of CRM
 Why it is Important
 CRM Models
 Real Life Scenarios
 Web Based vs Intranet

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What is CRM
 Processes that help form better
relationships with customers to improve
customer satisfaction and provide the
highest level of customer service.

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What is CRM
 Overall, the methodologies and tools
that help businesses manage customer
relationships in an organized way
Source: http://www.crmcommunity.com

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CRM Example
Customer: Avalion
Worldwide
Supplier: EPIC
Computers
Mail
E-Mail
Web
Phone
Mobile
Susan Wang, Chicago Office Jan Lee, Customer Support
Sandra Cook,
IS Mgr
Kyle Jackson, Acct Exec
Jere Von Olst,
Shipping Mgr
Charles La Pointe,
Telesales
Bill Marshal,
Acct. Exec
Source: Institute for Internet Technologies and Applications

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Another CRM Example
Executives
Sales Team
Sales Management
Business strategy/
Process Change
Summary Customer
Analysis
Customer/Opportunity
Information Forecasts
Management Input
Business Process Change
Detailed Customer
Information
Management Input
Source: Smart Sales, ProSoft Technologies

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Do GM’s know what CRM is?
51% of respondents, whose
companies have formal CRM
programs, say CRM means
using IT tools that achieve
incremental business
improvements
65% define CRM as moving
from product centric to
customer centric
41% define CRM as making
integrated customer-contact
personal
?
?

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How Much is Spent on CRM
 META Group estimates that
within the next two years,
global 2000 companies will
each be spending $250
million annually on CRM
Source: “Don’t Confuse CRM with Technology”, Adhanda Enterprises

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How Much is Spent on CRM
• Gartner Study showed that
Worldwide spending on
CRM went from 2.1 billion
in 1999, to 3.7 billion in
2002
 Australia spends 60 million
a year on CRM
Source: “The CRM Backlash”, Brad Howarth

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Are Customers Really that
Important
 A recent study on the cellular phone
industry showed that for every 1 % of
customers lost, the company looses an
average of $500,000
 A typical $1 billion business could add
$40 million in profit by enhancing CRM
capabilities by 10%
Source: Silvon Software, Customer Relationship Analytics White Paper

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Impact of Initiatives on the
Bottom Line (for a $1 Billion
Company)
INTIATIVE AVGERAGE RETURN
Motivating/Rewarding 13 million
Customer Service 13 million
Turning Cust Info into Insight 12 million
Attracting and Retaining
Employees
10 million
Building Selling and Service
Skills
9.5 million
ECRM 8 million
Source: http://www.crmcommunity (Silvron Software)

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How Successful is CRM
Though?
 Failure to meet expected ROI from CRM
is 40-50 percent
 Study showed that 45% of CIOs failed
to meet their objectives on ROI
 80% of companies that have introduced
CRM systems have not measured their
effectiveness

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5 Dominant CRM Business
Models (Basic Transactor)
 BASIC TRANSACTORS
- limited recognition of individual
customers or preferences
- Emphasize a quality service or
product, not a lifetime customer
experience
- Use mass marketing technique
Source: http://www.crmcommunity.com

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Models (Basic Connectors)
 BASIC CONNECTORS
-limited recongnition of individual
customers or preferences
-provides undifferentiated service levels
to all customers
-technology and infrastructure in place
is departmental and focused on
efficiency

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Models (Pleasant Transactors)
PLEASANT TRANSACTORS
-Recognize needs and preferences of
individual customers
-Emphasize customer satisfaction
-Lack infrastructure to provide
consistent delivery across enterprise

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Models (Customer Satisfiers)
 CUSTOMER SATISFIERS
-Satisfy customers to ensure continued
revenue streams
-Limited focus on individual customer
profitability or lifetime value across
enterprise
-some real-time recognition of customer
status across touchpoints

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Models (Relationship
Optimizers)
 RELATIONSHIP OPTIMIZERS
- Vary treatment of each customer,
based on lifetime value, across the
enterprise
-capture complete history of customer
actively across channels and products
-collaborate with customers on product
design and delivery

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Marketing Stages
 Mass marketing
 Target marketing
 Relationship marketing
 Customer relationship marketing

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The Targets of any CRM
Initiative ...
 Building a single or a few CRM
applications
 Building an infrastructure for CRM
 Bringing about organizational
transformation through CRM

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Sherwin-Williams
 The leading developer, manufacturer, and
distributor of architectural coatings and related
products
 Manages 130,000 products, 300 brands, 36
plants, and 14 distribution centers across the
U.S., Canada, and Latin America
 28 acquisitions between 1990-2000
 Disparate systems made it difficult to present
“one face” to customers

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Sherwin-Williams
 Acquisitions had resulted in fragmented
data infrastructure
 SW was supporting 7 different major
order systems
 Needed a single, integrated view of the
entire business
 Wanted to present “one face” to
customers

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Sherwin-Williams CRM Path
 Began with a Business Requirements
Assessment
 Worked with a consultant to identify
requirements for an integrated, customer-
centric data store
 Recognized that the ultimate goal would be a
Data Warehouse to store integrated company
information

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 Champions of the CRM effort believed a
project focusing only on infrastructure would
fail
 The concept of CRM (new at Sherwin
Williams) needed to be proved through real,
delivered value

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 Incrementally implemented data marts to
support specific CRM initiatives
 The sales mart was followed by a raw
materials mart ….
 Used repeatable design and implementation
processes for new marts
 Over time, an enterprise data warehouse is
emerging

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Characteristics of Individual
Applications
 Often local in scope, with departmental
sponsorship
 Data integration may be easy
 Impact on jobs and job skills is local
 Can provide “quick hit” benefits at the
departmental level
 Can provide a “proof of concept” for a
more comprehensive CRM initiative

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Characteristics of
Infrastructure
 Often sponsored by IT
 It is often difficult to integrate the data from
disparate source systems
 Consultants may be hired to help IT
 Users must learn to work with the new
decision support environment
 Normally developed with applications in mind

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Characteristics of
Infrastructure
 Infrastructure is costly to develop
 Departments must give up control of their
data
 May be cost savings from infrastructure
consolidation
 Possible “quick hit” returns from follow-on
CRM applications

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Characteristics of Organizational
Transformation
 Must be initiated by senior management and
supported by business units and IT
 Requires a major shift in organizational
culture and business practices to become
“customer centric”
 Requires the building of CRM infrastructure
 Jobs and job skills are changed throughout
the organization

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Characteristics of Organizational
Transformation
 An expensive, risky undertaking, but with the
potential for great increases in revenues and
profits

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Lesson #1
 Sponsorship may vary across targets

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Lesson #2
 The incremental approach is always
best: move as quickly as possible to
deliver benefits

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Lesson #3
 Prepare to get your hands dirty when
working with CRM data, especially when
building enterprise-wide CRM
infrastructure

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Lesson #4
 Ensure that the CRM architecture will
scale to future needs

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Lesson #5
 You can teach an old dog new tricks…
sometimes

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Lesson #6
 Make sure to plan for knowledge
transfer

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Lesson #7
 Effective and perceptive communication
between IS and the business side of the
organization is critical

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Concluding Points
 Developing applications is easier than building
infrastructure which is easier than
organizational transformation
 Any CRM initiative requires hitting all three
targets to some extent
 CRM targets are temporal in nature

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References
 H.J. Watson, B.H. Wixom, J.D. Buonamici, and J.R. Revak, “Sherwin-Williams
Data Mart Strategy: Creating Intelligence Across the Supply Chain“,
Communications of AIS, Volume 5, Article 9 (May 2001).
 Eckerson, W. and H.J. Watson, “Harnessing Customer Information for Strategic
Advantage: Technical Challenges and Business Solutions,” (Seattle: The Data
Warehousing Institute, 2000).
 Goodhue, D.L., B.H. Wixom, and H.J. Watson, “Realizing Business Benefits
through CRM: Hitting the Right Target the Right Way,” under review at MISQ
Executive. (http://terry.uga.edu/~hwatson/MISQE_CRM.doc)
 Watson, H.J., B.H. Wixom, J.D Buonamica, and J.R. Revak, “Sherwin-Williams'
Data Mart Strategy: Creating Intelligence Across the Supply Chain,”
Communications of ACIS, (April 2001).
 Watson, H.J., D.L. Goodhue, and B.J. Wixom, “The Benefits of Data
Warehousing: Why Some Companies Realize Exceptional Payoffs,” Information
and Management, (May 2002).
 Watson, H.J., D.L. Goodhue, and B.H Wixom, “Data Warehousing: The 3M
Experience,” in Organizational Data Mining: Leveraging Enterprise Data
Resources for Optimal Performance, H. Nemati (ed.), Idea Group Publishing,
Herhsey, PA, (forthcoming).

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Why Auto Retailing?
 Dealerships are coming kicking and screaming
into the new world and this time of change
provides interesting forum for analysis
 “Used car guy” stereotype—need CRM

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Why Auto Retailing?
 Clear real-time channel
to customers
 Manufacturers have
realized that managing
the brand is only half the
battle
 Average Customer value
 $350K spent by an
individual in their lifetime
 Real time information
exchange can benefit
both parties

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Misunderstanding CRM…
 Over-riding philosophy
of auto industry and
many other
manufacturing
organizations… “If you
don’t sell it or weld it,
you are expendable”

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Lack of IT Strategy
 CRM for the wrong reasons
 Do you believe that buying a vehicle is like
buying a CD or sweater?
 Are you willing to bet your dealership on it?

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CRM = Higher Gross
 “Only as good as your last month
mentality”
 Long-Term is easily forgotten as many
employees are in it for “today”
 CRM seen as soft sell…Higher gross
 CRM is putting a “process” to good
business habits

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Providing Clear Channels of
Information
 Consumer Side—Smarter Customers
 CRM as a Competitive Advantage
 Universal Computer Systems…Internet
Business Connection
 Service and Parts Integration

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CRM Is Not Technology
 This misconception is the main reason
why many initial initiatives failed…
 “The belief is, if you give the problem
away, the third party will be able to
magically make it disappear. This tactic
doesn’t succeed because the client hasn’t
invested the time to address the underlying
business processes”—Jerry Cooperman, VP
of Gartner Group
Source: Global Information Technology Outsourcing Search for Business Advantage

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Real Questions on CRM
 “Can’t I just buy a
software package to do
CRM for us?”
 If all you want is a letter
writing program and some
pretty reports-yes.
 An expensive, customized
processes control
application poorly
implemented will do this
as well.

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 “My managers don’t want a CRM
package…can I put one in around them?”
 If your managers don’t want it, they’ll make sure
it fails.
 Often times, GM’s don’t want it because it will
expose poor controls, lack policies, laziness, or put
a quantifiable measure of accountability on them.
 These individuals do little if any coaching or have
loosely structured environments.

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 “Isn’t CRM just a fad?”
 Maybe for your organization
improving customer
interaction and maximizing
every opportunity is a “fad”.
 “CRM by any other
name…”
Source:IOMA Report on Customer Relationship Management ”12 More Ways to Determine ROI for Your CRM Program”, June 2002

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“Human Landscape
Readiness”
 Sponsor commitments
 Target resistance
 Corporate culture
 Remaining adaptation
capability
 Implementation
 Set measurable goals!
Source: Beyond Technology: The Human Role in CRM Success, Sept. 2002; Jack Sumner

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Gillman Honda, “Inspect What
You Expect”
Kept goals simple…
 Sell more vehicles to those
individuals that have already
taken the time to enter our
lot
 Rule of thirds (1/3, 1/3, &
1/3)
 “Daily Work Plan”
 Organized
 Daily Plan
 Process
Source: Universal Computer Systems, Inc.

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Contact Timetable
1day 2day 3day 4day 5day 30day 60day 3mo 6Mo 12Mo 24Mo 36mo
Prospect
Mailed next day
from Sales Person
Customer
Mailed 2 days
after delivery
F&I Letter
Last Chance
Extended Warr
Service
Intro with
1st Appointment
Service Reminder
3mo - 3k miles
Service No Show
180day w/o service
Service Lost
Came in but stopped
Repeat Buyer
180 prior to Lease
90 prior to balloon
Predictive
Out of warranty
36 month not paid off
Parts
Vendor stopped
buying
Parts Vendor
Elite Vendor
Email
Internet Leads
New Rebates
Email
Thank You
CSI
Email
Service Welcome
Reservation
RO Status
RO Done

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On-line Daily Work-plan

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Follow-up on Delivery

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Follow-up Detail

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“Household Record”

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Gillman Metrics
0
500
1000
1500
2000
2500
3000
3500
4000
1995 1996 1997 1998
New Vehicle Sales
 “Since implementing
(CRM applications)…
new vehicle sales have
increased by more than
70%…”
 “Gillman Honda is now
enjoying its status as
one of the the top ten
Honda dealerships in
the United States.”

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Gillman Summary
 Kept it simple and didn’t
just throw technology at
issue
 Technology was secondary
 Culture shift did not occur
 Provide CRM tool that
simplified what they were
already supposed to be
doing
Source: Beyond Technology: The Human Role in CRM Success, Sept. 2002; Jack Sumner

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 Salesforce.com
 the worldwide leader in the rapidly expanding market for online
customer relationship management (CRM).
 founded in 1999 by former Oracle executive Marc Benioff, who
pioneered the concept of using a simple Web site to deliver
enterprise applications.
 Based in San Francisco, the company delivers integrated and
scalable enterprise applications for companies of all sizes.
 Has a client list of more than 5,000 companies worldwide,
including: Daiwa Securities, USA Today, AutoDesk, Dow Jones
Newswires, Siemens PT&D, Textron Fastening Systems, Time
Warner Cable, The Weather Channel, Kikkoman, Le Meridien
Hotels and Ericsson Microelectronics.
Source: http://www.salesforce.com/us/company/, viewed 11/01/02
Web-based CRM Solutions

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 Awards and Recognitions
 Gartner Group dubbed the company, “The
Future of Software”.
 InfoWorld named salesforce.com the 2001
CRM Technology of the Year
 PC Magazine rated salesforce.com's service
worthy of five out of five stars
 Fortune Magazine named it a "Cool
Company" of 2001
 The Aberdeen Group honored salesforce.com
with a Top 10 CRM Implementation award
for 2001 and 2002
 Morgan Stanley named salesforce.com as
the fastest growing CRM company

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Fall 1999 2000 Feb. 2002 Late 2002
Introduced its first
Web Service
(sales force
automation)
First full online CRM
service including
customer support and
marketing automation
Introduced its
Enterprise Edition
designed specifically
to meet the needs of
larger, more complex
organizations
Will launch an offline
edition and an e-
business suite with full
back office integration
capabilities
2001

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 In the past year, Salesforce.com has added
more CRM customers than Siebel,
PeopleSoft, Oracle and SAP combined, and
now has more CRM customers than any of
these vendors.
 Enterprise CRM software, such as offerings
from Siebel, PeopleSoft, and SAP, fail to meet
expectations more than 50 percent of the
time, resulting in countless abandoned
software implementations.
 A growing number of companies have left
traditional client-server software for
salesforce.com's online, pay-as-you-go model
in order to see immediate ROI and a lower
total cost of ownership.
Source: http://news.cnet.com/investor/news/newsitem/0-9900-1028-20372025-0.html,
viewed 11/01/02
Why Web-based CRM?

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 Salesforce is by far the most successful pioneer of a
model many believe will be big in the future-the
delivery of software functionality as a service over the
Internet.
 Salesforce is one of the few dot-coms, indeed one of
the few technology companies of any type, whose
sales continue to rise steadily in this miserable
economy.
 "In an industry where there's not a lot new
happening, Salesforce.com represents a radical new
way of delivering the value of software."
 Goldman Sachs software analyst Rick Sherlund
Source: http://www.fortune.com/indexw.jhtml?channel=artcol.jhtml&doc_id=208052,
viewed 11/01/02
Why Web-based CRM?

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Web-based Vs. Traditional
 Surviving in the Shadow of Siebel
 Salesforce.com is doing well in a market niche -- small to medium-
size companies -- that Siebel's software is too complex to
dominate.
 Michigan-based Textron Fastening Systems (TXT), a $1.7 billion
supplier of screws and rivets, is an ideal Salesforce.com customer.
 Textron had 150 salespeople typing order forecasts into a single
Excel spreadsheet. It took a week to roll up the data. With
Salesforce.com's system, it now happens online and in real time.
 While Siebel software can do the same thing -- and lots of other
things -- it can be more trouble than it's worth for small
companies.
 “Siebel requires a big implementation, more money, and a lot
more forethought than Salesforce.com. We didn't want to get
into that.” - Denis Hanna, Textron's sales director
Source: http://www.business2.com/articles/mag/print/0,1643,40337,FF.html, viewed
11/01/02

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Siebel vs. Salesforce.com
Siebel Salesforce.com
REVENUE 2001 $2 billion $23.1 million
REVENUE Q1 2002 $478 million $10.5 million
NUMBER OF EMPLOYEES 7,400 200
NUMBER OF CUSTOMERS More than 3,000 More than 5,000
AVG. COST PER SEAT $3,500 $75
INSTALLATION COST $710,000
average
$56,000 or less
Source: http://www.business2.com/articles/mag/0,1640,40337,FF.html, viewed 11/01/02

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 While the SME market has proven to be a successful
test bed for Salesforce's utility-based approach, most
commentators agree that it needs to gain the trust of
larger companies.
 Autodesk, with 500 users; Adobe-400; one division of
Textron, 500; Japan's Kikkoman, 500, and Le Meridien
Hotels has 250 employees using it at 130 different
locations.
 "Our goal is to be up and running with everything SAP
has within three years." - Salesforce CEO Marc Benioff
Source: http://www.fortune.com/indexw.jhtml?channel=artcol.jhtml&doc_id=208052,
viewed 11/01/02

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Customer’s Testimonials
Source: http://www.salesforce.com/us/customers/, viewed 11/11/02
"At Dow Jones Newswires, we live and die by real-time
information. Salesforce.com has given us a powerful, cost-
effective means of ensuring that the most updated customer
information is always available to our sales and support teams so
that we can continue to reduce response times and improve
service quality."
-Bob Simon
Executive Director of Business Development & Operations
Dow Jones Newswires
"Salesforce.com offers us a single global view of our customers.
We are now able to access information and reports in real time
from any of our account teams around the world-a critical
element to providing enhanced customer service."
- Bob Daw
Senior Director of Major Accounts
Autodesk, Inc.

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Customer’s Testimonials
Source: http://www.salesforce.com/us/customers/, viewed 11/11/02
"Having the ability to track customer
information from the time a sale is made
to the time that information is needed to
answer a customer's questions is essential
for any growing business. Salesforce.com
gave us that solution.“
- Sean Kern
Vice President, New Business
Development
Time Warner Cable
"Salesforce.com's CRM solution
strengthens our partner and customer
relationships, and enables us to
collectively focus on delivering
significantly more value to customers at
all points in the distribution chain.“
- Lorne Wilson
Vice President of Channel Sales &
Marketing
Fujitsu Computer Products of America,
Inc.

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Case Study: Ericsson Electronics
 Challenge
 No CRM system in place
 Receiving e-mailed monthly reports in
Microsoft Word documents
 Information was not consistent
 Data was not up to date or fully accurate
Source: http://www.salesforce.com/us/pdf/casestudies/ericsson.pdf, viewed 11/11/02

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 Solution
 Enterprise class Customer
Relationship Management
software for a low monthly
subscription per user
 Salesforce.com eliminates the
need to buy, install or maintain
hardware, software or networks

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 Results
 Boost Customer Responsiveness
and Speed to Market
 Salesforce.com's multi-language
facility means that different people
in different countries can view the
same customer report in their own
language and currency

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 An Immediate CRM Solution
 Salesforce.com's online CRM gets you up and running ten times faster than
any conventional CRM product. There's no software to install. No hardware
to purchase. You keep your mind on business, not technology.
 A Proven Solution
 Salesforce.com is currently ranked the #1 Online CRM solution provider and
the #2 overall provider of CRM Solutions. More than 5,000 companies
worldwide rely on salesforce.com to grow revenues, reduce expenses, and
increase customer satisfaction.
 Immediate Results
 Salesforce.com delivers a profitable ROI ten times faster than any
competitor. Most customers achieve significant ROI results within two
months — not the years required by conventional CRM packages.
 Affordable Solution Without Sacrificing Functionality
 Salesforce.com's total cost of ownership is so cost effective, it's ten times
less than that of competitors. No multimillion dollar upfront investment.
You'll never be shocked by hidden implementation, systems integration, or
training costs.
Source: http://www.salesforce.com/us/products/why.jsp, viewed 11/01/02
Salesforce.com

74
 Product Demo
 https://www.salesforce.com/login

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CRM Users
 Everyone uses CRM
 Insurance Industry
 Banking Industry
 Cessna
 TidalWire Distributors

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Insurance Industry
 Insurance Carriers
 Improve business
processes
 Access to real-time
information at any
time
 Know which
customers to target
for which services
 Use customer
analytics
 Insurance Buyers
 More options in
buying insurance
 More ways to
interact with
suppliers
 Multiple channels
 Anytime service
Ingold, Christine. “CRM Software Evolving for All Users” National Underwriter. 3/18/02.

77
Banking Industry
 Cross-Selling
 Turning services into sales opportunities
 Provide real-time transaction updates to
service staff
 Workforce management technology
 Use customer information to properly staff
the banks
1
2
1 “Cross-Selling Drives CRM Growth in Banking” Call Center Magazine. June 2002.
2 Berfosky, Joe. “Banks Start to Embrace Workforce Technology” Bank Systems and Technology. August 2002.
1
1

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Cessna Aircraft Company
 Wanted to extract information about
customers and individual airplanes
 Make the information quickly and easily
available to global sales force
 Customized the data models to do this
Songini, Marc L. “Extending CRM” Computerworld. 11/5/01.

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Cessna Aircraft Company
 Result: a success
“(The salespeople) look up (the information)
in Zimbabwe as the plane rolls up the ramp
and look in the database and find out who is
the chief pilot, who owns it, and who
operates it.”
- Dave Turner, Manager of Network Systems

80
TidalWire Inc.
 Needed customized CRM for e-business
web-site
 Used a customized Siebel product
 Wanted to make customer navigation
easier on web-site

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TidalWire Inc.
 Result:
 “A single product catalog that serves the sales
force, operations group, and web site.”
 “Web requests for price quotes and orders are
automatically directed to the right salesperson and
can be tracked along with the sales data”

82
Deciding to Outsource
Crucial to business?
Which outsourcing
option to use?
Automation vs Interaction
Consider advantages and
disadvantages
Factors

83
Crucial to Business?
 Outsourcing CRM is more crucial for certain
types of organizations
 Example: E-tailers
 Need CRM for order taking, customer service, etc.
 2/3 of transactions abandoned due to bad CRM
 Insufficient resources to launch in-house CRM
packages
 24/7 service
 Need call centers, service representatives, and
software
Pudles, Gary. “Outsource your e-tail services”. Discount Store News. 1/3/00.

84
Which outsourcing
option to use?
disadvantages
Factors

85
Outsourcing CRM
Service Agencies
Carriers
Application
Service Providers
Kopf, David. “CRM: Who ya gonna call?” Business Communications Review. Dec 2000.
Options for
Outsourcing

86
Choosing an Outsourcing
Option
 Depends on company’s needs
 Staffing, programming, entire company,
one division
 The enterprise must have oversight
 ASP’s data security and disaster recovery
Kopf, David. “CRM: Who ya gonna call?” Business Communications Review. Dec 2000.

87
Which outsourcing
option to use?
disadvantages
Factors

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 Automation ensures that customers get the
best service in the least amount of time
 Self-service FAQs and automated chat agents
 Human interaction is needed in the right
quantity at the right time
 Complex issues
Ledford, Jerri L. “What’s the Best Way to Outsource CRM?” BPO Outsourcing Journal. Outsourcing Center
10/13/02.

89
The Right
Mix
The Customer
Difficulty of
questions during
customer
interaction
Company
offerings and
business processes
Ledford, Jerri L. “What’s the Best Way to Outsource CRM?” BPO Outsourcing Journal. Outsourcing
Center 10/13/02.

90
Which outsourcing
option to use?
disadvantages
Factors

91
Advantages of Outsourcing
 Cost reduction
 Increased customer
satisfaction
 Increased sales support
 Fast deployment
 Low infrastructure costs
Howle, Amber. “CRM Panel Addresses Outsourcing” Computer Reseller News. March 27, 2002.
Biggs, Maggie. “ASPs offer inexpensive, quick road to CRM”. InfoWorld. April 16, 2001.

92
Advantages of Outsourcing
 Manageable monthly
fees
 Easy upgrading
 Easy implementation
 Less in-house
technical knowledge
needed
Howle, Amber. “CRM Panel Addresses Outsourcing” Computer Reseller News. March 27, 2002.

93
Disadvantages of Outsourcing
 Indirect control of data
 Dependence on provider reliability
 Vendor stability concerns

94
What to Outsource?
18%
16%
16%
16%
14%
20%
CRM Training
CRM
Consulting
CRM Support
CRM
Implementation
None
Other
Biggs, Maggie. “ASPs offer inexpensive, quick road to CRM” Infoworld. 4/16/01.

95
The Common Mistakes of CRM
 Over Customization
 Delivering Everything at Once
 Failure to Change
 Limited Product Vision
 Sacred Processes

Customer Relationship Management(CRM).ppt

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