The CRM Journey

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					                                                                                                 W H I T E
                                                                                                 P A P E R
The CRM Journey
From Productivity to Profit

        Executive Summary
        If there is one universal truth in business today, it’s the likelihood that customers,
        prospects, and partners are shopping around—not just to get the most for their time
        and money, but for a product or service provider that is easy to do business with.

        The same truth applies internally. Employees want to invest their efforts with a
        company that does its best to enable their personal success. When your company
        makes it easier for individuals and teams to meet and exceed their quotas—of
        closed sales deals, lead generation campaigns, or resolved support incidents—
        your company eases the path to corporate success, en masse.

        In this business paper, you will read how companies across a vast selection of indus-
        tries are using customer relationship management to converge people, processes,
        and products more efficiently. This convergence makes it easier and more convenient
        for prospects, customers, and partners to do business. And with meaningful insight
        on what these constituents want, companies make smarter business decisions that
        improve the trajectory of their revenues, margins, and customer loyalty.
                    The Universal Paradox:                                                           The CRM Win-Win
                    External Challenges                                                              “We really have two drives in our
                                                                                                     company. We want to be the best place to
                    Building momentum in today’s market is a matter                                  work, and the best place to do business.
                    of solving this challenging paradox: companies are                               Our CRM solution gives our employees
                    tasked to reduce operational costs, yet they must also                           a tool to be exceptionally good with our
                    accommodate an increasing demand for richer, more                                customers—and our customers see those
                    personalized customer-directed interactions. Market                              good works. We win on both sides.”
                    forces are placing intense pressure on companies to                                                       Jack Webster
                    become more efficient, while providing higher levels of                             CEO, Farm Credit Services of America
                    value to all of their key stakeholders.

                    Reconciling the paradox comes down to one thing:
                    getting smarter when it comes to integrating business,
                    data, and people. And doing it now.                            chain; on customers, partners and all the interactions that
                                                                                   govern them; and on the inner workings of a company’s
                                                                                   administrative nerve center.
                       Reconciling the paradox comes down to
                                                                                   Information is every company’s most precious commodity.
                       one thing: getting smarter when it comes                    Employees require a faster connection to higher quality
                       to integrating business, data, and people.                  data in order to do their jobs seamlessly. Customers and
                       And doing it now.                                           prospects demand faster response times, and they want
                                                                                   proof that a company knows them intimately and treats
                                                                                   them uniquely. This degree of business integration is no
                    Herein lies the paradox to success. We know that today’s       longer an added bonus, like a turbo-charger for a car’s
                    business environment grows more intense, more complex          engine. Today, it is as elementary as the tires. You would
                    and more operationally demanding with every quarter. We        not be able to operate without it.
                    also know that providing efficient, personalized, high-value
                    interactions with key stakeholders is critical. So what now?   However, many companies are limited by legacy
                                                                                   technology, or a complete lack of it. Information slips
                    Reconciling the paradox comes down to one thing:               through cracks, and opportunities are lost. Company
                    getting smarter when it comes to integrating people,           leaders recognize this trend, but often are at a loss to
                    processes, and data. And doing it now. Because for             know where (or how) to begin. The last thing they want
                    every organization that leans, with the best of intentions,    to do is disrupt the corporate ‘machine’, no matter
                    towards business as usual (“we just need to get better         how flawed it may be. The expensive and unfortunate
                    at what we do”), there will be another that gets closer        consequence is a gradual breakdown of revenue-
                    to operating at a higher, more sustainable and more            dependent relationships.
                    profitable level (“we just need to get smarter at how we
                    work to achieve our objectives”).                              For those organizations that choose to integrate products,
                                                                                   people, and processes, the necessary business platform
                    Operational complexity is at the heart of what makes it        becomes the Internet. Although paper-based processes
                    difficult to adopt a more streamlined, more integrated         and information may still be the norm for many industries,
                    business model. Across many industries—from                    companies recognize that ‘the norm’ is the source
                    manufacturing and high-tech to healthcare or services—         of the obstacles that jeopardize their most important
                    complexity is caused in part by the sheer volume of            relationships. Customer Relationship Management (CRM)
                    information that is generated. Disparate systems hold vast     has emerged as the Internet-powered tool that clears
                    amounts of data on products, inventory, and the supply         those obstacles.

Pivotal CRM | White Paper   2
The Cost of Doing Business:                                                        Perspective:
Internal Challenges                                                                Generating Leads
We’ve looked at some of the external factors impacting                             “Sophisticated marketing infrastructure
today’s business environment—namely the paradox of an                              enables us to cast the net farther,
                                                                                   reaching more prospects with better-
increasing demand for greater value (highly personalized
                                                                                   targeted messages. It also allows us to
sales, marketing and service) in conjunction with intense                          track the results precisely.
pressure to reduce costs. Now let’s examine the internal
limitations and challenges that impact the day-to-day                              Today, more than 85 percent of our
                                                                                   total leads are generated through
operation of a company.                                                            online offers powered by marketing
                                                                                   automation. We have a much more
Acquiring New Customers – Sales reps need to produce                               detailed understanding of our customers
more proposals faster, with 100% accuracy. It sounds                               and that has boosted lead generation and
like a simple enough directive, however many companies                             conversion rates dramatically.”
suffer from a paper-based workflow or stand-alone
                                                                                                                  Peter Tait
quoting systems which makes it almost impossible to                                     Vice President of eBusiness Strategy,
achieve. Often, the amount of time spent just to properly                                                      Documentum
configure a complex product with an accurate quote
and delivery date results in lost business. With poor
inter-departmental communication and inefficient business
processes, reps are focused on operational tasks rather
than being focused on closing deals. Sales executives            Most often, reps are alerted with the right information
need to do whatever it takes to keep sales people where          too late due to inefficient, labor-intensive processes
they belong—not in the office wrapped up in details, but         on the back-end. The time crunch means gaps are
in the field, selling.                                           opened for the competition, and there is less time to
                                                                 strategically craft the right mix of special rates, incentives
                                                                 or bundle deals that reflect a customer’s preferred status.
                 Guarding the                                    But if sales, marketing, and service teams can keep
                 Revenue Stream                                  customer relationships warm and properly maintained,
                                                                 the foundation is laid for more dependable, expanded
                 “Companies are starting to realize the
                                                                 levels of customer revenue. Given the resulting faster
                 basic point about CRM. When you sell a
                 Cadillac or a Harley or a ticket on a United    sales cycle, sales can focus more on the more intensive
                 Airlines flight, that’s just one event. But     process around earning new business.
                 in fact, the real moneymaking is keeping
                 that person driving a Cadillac, or a Harley,    Collaborating – When teams across an organization do
                 or flying United Airlines for 10 years or       not access and contribute to the same information source,
                 more. It’s that revenue stream that you’re      the entire selling, marketing, and servicing process can
                 trying to guard with CRM. To do that, you       be sluggish to respond to natural fluctuations, customer
                 constantly need to know, ‘What does Jon         demand, and revenue opportunities. Separate processes
                 Anton want? What can make him happier?
                 What can we do to ensure he buys a
                                                                 are often in place for each line of business and market
                 United ticket versus American Airlines          segment, making any degree of efficiency or cross-
                 next time?’ I think that’s the beauty of        departmental communication almost impossible.
                 CRM. Finally at the CEO, CFO, and CIO
                 level, we’re not just driven for the next new   The right technology tools can establish a daily and
                 name account. Now we are just as much           constant connection across the entire front office. The
                 driven by how well are we doing with that       impact is immediate, meaningful and measurable.
                 huge database of existing customers.”
                                           Dr. Jon Anton         Service reps know when a major marketing campaign
                                    Director of Research,        is launched into the customer base, and are prepared
                Purdue Centre for Customer Driven Quality        to encourage response. Marketers are able to track
                                                                 what happens to leads after they go ‘over the fence’ to
                                                                 sales—likewise, sales is able to anticipate spikes or lulls
                                                                 in lead creation, and adapt their workflow, follow-up, and
                                                                 prospecting strategy accordingly.
Up- and Cross-Selling to Existing Customers –
Customers are the ‘low-hanging fruit’ of revenue. A vested       Marketing – The single-most critical task that keeps
interest and warm relationship makes for faster sales            marketers awake at night is proving the worth of their
cycles, and a lower cost of selling. The key is for sales,       teams and activities. This means drawing a quantitative
marketing, and service teams to proactively recognize            line from a campaign to a group of targeted leads,
up- and cross-selling opportunities, and raise the flag          then to a group of high-potential opportunities, and
early enough.

                                                                                                         Pivotal CRM | White Paper   3
                                                                                   status and preferences of the individuals, segments, and
                                     Perspective:                                  geographies within those groups. In order to attract the
                                     Sharing Leads with Partners                   highest possible response rates to a campaign, marketers
                                                                                   need to apply analytics to that information, crafting one-
                                     “We are using the marketing automation        tomany campaigns that appear to individual recipients as
                                     component of CRM to differentiate
                                     ourselves from other manufacturers in a
                                                                                   highly intimate, relevant, and one-to-one.
                                     highly competitive environment.
                                                                                   Partner Relations – For partners, selling, marketing and
                                     It gives us the ability to take the Sharp     servicing customers and prospects can be laborious
                                     LCD product message direct to end users       and frustrating. Outdated product information, limited
                                     and create awareness, preference, and
                                                                                   configuration tools (or none at all), poor access to
                                     demand for our products throughout our
                                     dealer network—an essential strategy to       customer data, and response delays greatly limit how
                                     building long-term relationships.             quickly the partner can turn around the right offer. Since
                                                                                   partners are often not able to address their own needs
                                     We began to see results within three
                                     weeks of using the system. We generated,
                                                                                   and questions in a self-service manner, the customer-
                                     qualified and distributed 96 percent of       facing processes can be difficult.
                                     the entire previous year’s leads to our top
                                     dealers and resellers. We also achieved       Different industries have vastly unique approaches to
                                     nearly a 100 percent follow-up on those       channel selling or any sort of partner relationships.
                                     leads, compared to about a 50 percent         Regardless of the type of partners a company may
                                     rate previously.                              have—agents for a healthcare payer, franchisees for a
                                     This improvement is directly attributable     retail chain, or resellers for a software company—success
                                     to the system, because it requires that       comes down to the same principle that applies with
                                     dealers take action. Now that I have it, I    customers. If you want to grow revenues, lower costs, and
                                     can’t live without it.”                       keep them happy, be easier to do business with. Partners
                                                                 Fred Krazeise     should be able to work how and when they want, with a
                                                  Director, Strategic Marketing,   quick response and no barriers to access.
                                                   LCD Products Group, Sharp
                                                                                   In addition, companies need to know how partners are
                                                                                   performing. Which ones are pulling in the best deals?
                                                                                   Which ones are especially strong in one product area?
                                                                                   Which ones need training?
                    finally, to closed sales deals. Most companies have
                    disparate systems and methods for lead tracking, each
                    of which provides an incomplete (and often inaccurate)                          The Power of Visibility
                    perspective into success. In this case, the time required
                    to bring multiple sources of data together for analysis                         “If you look at sales, marketing, and
                                                                                                    service as the three major buckets
                    is prohibitive.
                                                                                                    of CRM, they comprise acquisition,
                                                                                                    penetration, and retention of customers.
                    Many companies also lack a precise understanding of
                    what customers and prospects want and need, and how                             You want to be able to line those up
                    they prefer to interact with the company. Without this                          and draw conclusions like, ‘Customer
                                                                                                    segment A needs to be larger. Segment
                    understanding, it is a challenge for marketing to identify
                                                                                                    B is doing well and we don’t need more
                    the right mix of offers, products, and target segments.                         there. Segment C doesn’t need more
                    And with a lack of visibility into how many times a product                     customers, but we need to penetrate
                    was quoted or sold and by whom, marketing cannot                                them better.’ Companies definitely
                    formulate a win-loss ratio by campaign, by region, or                           need to figure out how to gain that kind
                    against a specific competitor’s product line.                                   of visibility.”
                                                                                                                                Jeff Halden
                    In order to produce campaigns that are relevant and                                                      Vice President,
                    compelling to the right audiences, marketing needs a                                         Cap Gemini Ernst and Young
                    clear ‘macro’ view of the market, the competition, and
                    the company’s customers and prospect base. However it
                    also needs a highly analytical, ‘micro’ view of the needs,

Pivotal CRM | White Paper   4
The Solution: Customer                                                        The Power of Trust
Relationship Management                                                       “I believe CRM is a way to address
                                                                              trust. This means making promises and
CRM: What it Does                                                             keeping them for your customers, and
                                                                              doing that consistently over time. CRM is
Companies who aspire to operate at a higher, more                             a key enabler to do that. It allows you to
sustainable and more profitable level are those who say,                      remember your promises, act on them,
“We need to get smarter at how we work to achieve our                         and keep them.”
objectives.” Customer Relationship Management (CRM),                                                      Bo Manning
a suite of software applications for integrated sales,                                         CEO, Pivotal Corporation
marketing and service that sits on top of an Internet
business platform, is the necessary ‘get smarter’ tool.
CRM reconciles the paradox of increased demand for
smarter selling, marketing and service, and increased
pressure to reduce costs.                                    CRM: What It Is
                                                             Customer Relationship Management, or ‘CRM’, is a
                                                             category of software applications used by companies
  Customer Relationship Management                           to connect data, people and processes across the
  (CRM) … is the necessary ‘get smarter’                     customer-facing front-office (sales, marketing, service and
                                                             partner management). The simplest essence of CRM’s
  tool that reconciles the paradox of
                                                             mission is to help companies know how their customers
  increased demand for smarter selling,                      like to do business, so that customers keep coming back
  marketing and service, and increased                       to buy more.
  pressure to reduce costs.
                                                             Not all CRM is equal—when qualifying vendors, make
                                                             sure the suite of software applications has good breadth
                                                             of capabilities across all customer-facing functions of your
Where processes are weak, laborious or roundabout,           company. It should be capable of delivering everything
CRM streamlines. Where the wires of important                from assisted selling of complex solutions to online
relationships are crossed, CRM reconnects the right          catalogs, self-service websites, unified knowledge bases,
people sensibly. And where visibility is lacking, CRM        marketing ROI calculation, and more.
brings clarity into the market, sales channel performance,
key stakeholder activity, history and preferences, and       To learn more about what Customer Relationship
overall business trajectory.                                 Management looks like in action, keep reading. This
                                                             paper will provide specific examples of CRM at work in
                                                             the areas of sales, marketing, and service.

                                                                                                     Pivotal CRM | White Paper   5
                    Improvement Points in Today’s Enterprise
                    When CRM is embraced by front-line employees, the operational impact is dramatic. Redundant, laborious processes
                    that once jeopardized the integrity of key relationships are redesigned. Let’s consider some of the most common
                    barriers to efficiency, and look at a CRM-driven approach to smooth the path to a more profitable model of business.

                     RED LIGHT OBSTACLES                              GREEN LIGHT ACTION
                     Sales force is not focused on selling.           Automate sales cycle friction points. Enable online quoting, which allows reps to do
                     Reps process quotes via fax and e-mail,          most of the initial data entry. Allow internal sales to access a single, unified system so
                     and spend time re-keying information.            that all sales activity ‘lives’ in one place.
                     Sales reps are slow to respond to                Automate basic, labor-intensive tasks. Move paper-intensive processes and records
                     opportunities. Significant delays exist to       online, with anytime, anywhere access. Automate lead qualification and delivery.
                     generate proposals, configure products,
                     and verify and deliver quotes.
                     Leads are not strategically managed, and
                     many fall through the cracks.
                     Data exists across multiple fragmented           Unify data to a single platform. Create a single view of all customer-facing data,
                     ‘islands’. Management is unable to report        including product data, into a complete view accessed by all sales reps, marketers,
                     on business performance, analyze team            and service reps in an easy-to-use, integrated format.
                     activities, and proactively react to trends
                     and performance patterns.
                     No integration between co-dependent              Integrate all processes to a single system. Recognize dependencies between
                     sales, marketing, and service                    teams, and verify offers or quotes in real-time. Make all product and configuration
                     processes.                                       data dynamic, so that everything customers or prospects see is always optimized,
                     Employees spend time on duplicate                consistent, and accurate.
                     data entry, resulting in significant errors.
                     Quotes go stale and delivery promises
                     are broken due to a lack of connection
                     to the supply chain.
                     Poor customer and partner loyalty.               Increase agent ease-of-business. Offer instant, 24x7 rates, easy-to-use rapid proposal
                     Slow response time for lead follow-up,           creation tool, and enable convenient self-service.
                     proposals, support assistance, or product
                     information gives the competition a
                     chance to gain ground.
                     Reactive approach to up- and cross-              Proactively keep customer relationships ‘warm’. Automate the flagging of potential
                     selling. Potential customer opportunities        opportunities, and alert the right sales rep. Give service reps the ability to cross-sell
                     are not recognized early enough (or not at       on the spot in multi-function contact centers that engage in outbound marketing
                     all), and are often lost. This results in high   and selling.
                     rates of customer attrition.
                     High demand for partner support.                 Increase partner self-sufficiency. Provide partners with online access to all front-office
                     Partners are unable to access the                systems, such as knowledge bases, marketing collateral, lead management, customer
                     latest information and tools for selling,        history, and status.
                     marketing, and servicing, and have a lack
                     of visibility into accurate customer and
                     product data.

Pivotal CRM | White Paper   6
Mapping the Results of CRM:                                                            Strategic

The Spillover Effect                                                                                             Strategic

                                                                                            I M PA C T
                                Strategic                                                                    Productivity Impact
                            Decision-Making                                             Tactical
     I M PA C T

                                                               Level One Results: Productivity Impact

                                Impact                         Improve the speed, accuracy and efficiency
                                                               of internal processes
                           Productivity Impact                 At the most elementary level, CRM automates the front
 Tactical                                                      office processes that span sales, marketing, and service.
                                                               Employees spend more time servicing, selling, and
                                                               interacting with customers and prospects, and less time
CRM delivers a great deal of functional, process-based         shuffling paper.
tools to help employees and partners be more
productive in selling, marketing, and servicing customers
and prospects.                                                   When users embrace an easy-to-use,
In the next section, we’ll examine how tactical productivity
                                                                 tailored system, companies get
improvements map to increasingly profound impact at              measurably better at the front-office
higher, more strategic levels of business. The first level       tactics that help to market, grow, and
of CRM impact is the improved speed, accuracy, and               service customers effectively.
efficiency of internal processes—or improved productivity of
individuals—in which labor and paper-intensive processes
are streamlined. The second level of impact is measured        With an easy-to-use, tailored system, companies get
when the company becomes easier to do business with,           measurably better at the front-office tactics that help to
both from an customer and partner perspective.                 grow, market, and service customers effectively. The right
                                                               kind of CRM is invaluable to all people and processes
The third and most profound level of impact is when the        who interact with customers and prospects on the front
‘sweet spot’ of optimal business profitability is revealed.    line—and the impact of those productivity improvements
When the right mix of products, markets, sales models,         make a difference to the bottom line.
channels, and partners is identified, you have all the
elements required to make smarter and more strategic           Some of the most apparent bottom-line results include
business decisions. Let’s examine these three levels of        the reduction of administrative overhead through
CRM impact.                                                    automation, shortened sales cycles, and easier
                                                               collaboration and sharing of data. All lead the push
                                                               towards greater profitability.

                                                               Increase Responsiveness – One of the most dramatic
                                                               results from CRM is the improved speed and efficiency
                                                               of internal processes. When front-office activities are
                                                               unified into a single, centralized system, information is
                                                               immediately available, and the paper-chase is eliminated.
                                                               Employee focus moves to having higher quality
                                                               interactions with customers and prospects, rather than on
                                                               limited-value details.

                                                                                                         Pivotal CRM | White Paper   7
                    Create a Unified ‘Corporate Memory’ – One of the              Intensify the Selling Focus – CRM makes the process
                    most valuable corporate assets is data. This includes         of closing business easier. For instance, it accelerates
                    customer history, preferences, and status, sales channel      the issuing of quotes, giving the sales team the ability to
                    performance, quote status, market trends, product             produce a complete proposal package with the click of
                    knowledge bases, and more. Unifying this data to create a     a button. Sales reps spend less time on administrative
                    cohesive corporate memory is vital to demonstrating trust     tasks, and more time working with the prospects and
                    and credibility to all stakeholders, from customers and       customers. Clearly, the customer-facing teams of sales,
                    prospects to partners. CRM grants instant access to data,     marketing and service see dramatic impact from CRM
                    providing revenue-critical people with the tools necessary    at the tactical level. The productivity of individuals will
                    to access the data they need to succeed.                      increase, and labor and paper-intensive processes will
                                                                                  be streamlined. Let’s look at the next level of impact, and
                    Resolve Customer Incidents Faster – A call center is a        see what happens when these operational improvements
                    necessary but expensive requirement. The faster a service     become apparent to customers, prospects and partners.
                    rep can provide a resolution to an issue, the more issues
                    can be resolved in a day. A CRM system puts everything
                    a service rep needs in one unified place, with easily                          Perspective:
                    searchable knowledge bases, chats, and self-service                            A Smarter Sales Cycle
                    options that ease the burden of customer support and
                                                                                                   “We chose to implement CRM to allow
                    increases satisfaction.
                                                                                                   us to get closer to our customers—so we
                                                                                                   could respond to them in a more intimate
                    Increase Face Time with Customers and Prospects
                                                                                                   and knowledgeable manner. We are now
                    – Increasing face time is always an effective sales tactic,                    able to capture all the many interactions
                    whether it’s building new relationships or strengthening                       we have with our customers into a single
                    existing ones. As the CRM system eliminates inefficient                        database, which enables us to take
                    processes, employees can re-allocate time and resources                        a more personalized approach to our
                    towards managing key relationships more proactively and                        sales cycle.
                    more profitably.                                                               “Through our implementation of CRM,
                                                                                                   our sales cycle is more structured and
                    Find Out Why Your Sales Team Wins and Loses Deals                              standardized. For instance, opportunity
                    – CRM precisely tracks the sales pipeline and win-loss                         management capabilities give our sales
                    ratios. Analyze why some deals are more consistently                           managers much greater control over the
                    won, and why others are more likely to stall or be lost,                       sales cycle. Specifically, it provides much
                                                                                                   improved visibility of the sales funnel, and
                    and capture detailed competitive information for each
                                                                                                   provides a way for our reps to manage
                    proposal. Leverage this insight to focus on the areas that                     that opportunity throughout all stages of
                    need improvement, and share the best practices of top                          the lifecycle.
                    performers with others who need the encouragement and
                                                                                                   “We are now in the process of leveraging
                    wisdom the most.
                                                                                                   our CRM system to map our customers’
                                                                                                   buying trends, so that we can position
                    Make it Easier to Replicate Successful Marketing                               ourselves proactively, anticipating and
                    Campaigns – Every marketing campaign consists of                               meeting their needs on a ‘just-in-time’
                    the same series of steps that pull from an array of data                       basis. This is just one example of how
                    sources, content sources, and delivery vehicles. Through                       CRM enables us to capture and act
                    automation, CRM makes it very easy for resource-                               upon much more customer information
                    strapped teams to repeat a successful campaign, or                             than previously possible. For us, it’s
                                                                                                   simply a more customer-centric way
                    hold back a poorly performing campaign mid-stream and
                                                                                                   of doing business.”
                    improve it.
                                                                                                                                   Cliff Wilcox
                                                                                                                     Director, IT Applications,
                                                                                                                    Somera Communications

Pivotal CRM | White Paper   8
                                                                 Partner Productivity Increases – Online portals extend
                         Strategic                               streamlined processes to partners, giving them open
                                           Decision-Making       access what they need to close business. Quotes created
                                                                 by channel reps are immediately fed into the unified

                              I M PA C T
                                                                 ‘home’ system, and automatically trigger downstream

                                                                 processes such as lead distribution or inventory validation.
                                           Productivity Impact
                                                                 Internal staff communicate with partners through more
                                                                 trackable methods than via phone. From the initial quote
                                                                 to order processing, every partner activity is tracked in a
                                                                 unified, automated environment.
Level Two Results: Ease-of-Business Impact
                                                                 Customer Interactions are Simplified – A unified
Improve the customer experience and the                          customer database that stretches across sales,
likelihood of partner success                                    marketing, and service eliminates errors and streamlines
The productivity improvements described previously               every interaction. For instance, if a customer calls a
manifest themselves powerfully from the customer,                support center, that customer’s history is onscreen before
prospect, and partner perspective. Although it’s one of          the rep even answers the call. Rather than answering a
the more qualitative of results from CRM, the smooth,            call with, “You have reached the Acme Support Center.
high-level convergence of people and processes is one of         Please have your receipts and customer number ready,”
the most meaningful. When this convergence occurs, the           your reps greet customers with, “Hello, John—glad to
company demonstrates a new level of efficiency outside           hear from you again. Tell me, how did that adjustment we
the walls of the organization.                                   made last week work for you?”

                                                                 Data Quality Increases – Extending self-service to
  If there is one universal truth in this                        customers and partners allows them to enter their
                                                                 own data. By removing the extra steps of writing down
  industry, it’s the likelihood that prospects,                  information and re-keying it, the quality of data is infinitely
  customers, and partners shop around                            improved. The cost savings of this can be staggering.
  for ease-of-business.                                          Eliminate the retouching of the same data multiple times,
                                                                 and gain the capacity to process far more. Constituents
                                                                 will not mind contributing the right information with an
If there is one universal truth in this industry, it’s the       easy-to-use, intelligent system since they receive a better
likelihood that prospects and customers are shopping             experience—reps deliver faster proposals, and customers
around—not just for cost, but for ease-of-business. A            receive what they need in less time and with fewer errors.
good example of ease-of-business is when companies
provide self-service. CRM-integrated self-service results in
increased efficiency for employees, and convenience for                            Perspective:
prospects and customers. Where there was once friction,                            Anticipating Needs
sluggish response and unmet needs, there is now a                                  “With a good system, you can avoid
sudden abundance of focus, familiarity and consideration.                          asking the same question twice, because
                                                                                   you know your customers very well. Even
Let’s apply the example of self-service to explore how                             with multiple locations like we have, we
CRM creates a more convenient, easier and more                                     still know them regardless of how they
seamless customer and partner experience:                                          engage with us. And they appreciate that.
                                                                                   They want us to know who they are, and
Sales Reps Issue Quotes More Easily – CRM eliminates                               what they expect. And they really like it
                                                                                   when we anticipate their needs. For us,
the delay your reps face in getting a proposal to the
                                                                                   the cost of not anticipating those needs is
customer. Moving the quoting system online means that                              to lose in the marketplace.
direct or channel reps can access a secure portion of your
website to produce proposals in minutes. This efficiency                           “What it comes down to is that we’re a
                                                                                   cooperative. We’re actually owned by our
is clearly noted by the end customer, since they receive                           customers, and so our whole role is to
clear, accurate answers instantly rather than having to wait                       serve and to serve them as best we can.”
hours or even days. Online configurators make it easier
                                                                                                             Jack Webster
to sell the most complex products or services, even those
                                                                                       CEO, Farm Credit Services of America
with intricate supply chain dependencies or technical
specifications. Take away sales cycle friction, and reps
manage accounts more responsively.

                                                                                                          Pivotal CRM | White Paper   9
                    We’ve seen how the second level of CRM impact is when            •	 Why do we win more deals with Group X vs. Group Y?
                    productivity takes root on the receiving end. Prospects,         •	 Should we create more variations of Product Y, or
                    customers, and partners, given more convenient access               should we sell more of the existing configuration?
                    to your company, will notice an extraordinarily seamless
                    experience. Next, let’s examine the third and most               •	 Should we be even trying to sell in this particular target
                    profound level of CRM impact in which companies begin               market / competitive arena?
                    making high-level decisions more intelligently.                  •	 Why is Product X being sold well by our smaller
                                                                                        partners, and ignored by our biggest partners?

                                                                                     •	 What tactics do our top performing reps follow, that our
                                                                   Strategic            lower performers do not?
                                                                                     •	 We have a limited budget for training. Should we invest
                                                  I M PA C T
                                                     CRM        Ease-of-Business        it towards advancement of our top channels, or use it to
                                                                                        help our smaller channels catch-up?
                                                               Productivity Impact

                                                                                                       Getting Ready for the Upturn

                                                                                                       “In a downturn, sales and marketing
                    Level Three Results:                                                               organizations start reducing expectations,
                                                                                                       financial and emotionally. They start
                    Strategic Decision-Making Impact                                                   doing less and less of the top part of
                    Identify the right mix for optimal profitability                                   the pipeline, more and more of trying
                                                                                                       to close the closest deal. When the
                    At the most profound level of impact, your company will
                                                                                                       economy comes back, they are ready to
                    no longer waste effort trying to squash square pegs into                           re-energize, but they have nothing at the
                    round holes in a market that is already crowded and very                           top of the funnel.
                    saturated. Instead, you will move forward based on a clear
                                                                                                       “Sooner or later, this thing is going to
                    understanding of the trajectories of your corporate assets,                        turn around. If you don’t want to get
                    customer demand, and the competitive landscape. With                               left behind, you need to invest in new
                    deep insight into business performance, you will direct                            strategies, systems and approaches that
                    high-level business decisions more intelligently.                                  are going to feed the top of the funnel.
                                                                                                       When the upturn comes around, you’ll be
                    Think of your company as a collection of assets.                                   ready to gain momentum.”
                    Products, services, people, processes. Data, expertise,                                                   Geoffrey Moore
                    relationships. The trick to maintaining momentum in a                                               CEO, The Chasm Group
                    challenging business environment is figuring out the
                    right mix—identifying that point at which all your assets
                    converge ‘just so’ to result in profitability.                   The moment that CRM’s visibility helps a company to
                                                                                     answer the most fundamental ‘what next’ questions is a
                                                                                     breakthrough one, in which a new collective confidence
                       The moment that CRM’s visibility helps a                      is gained. It is that invigorating moment when a company
                       company to answer the most fundamental                        begins directing the strategic path of its assets—its
                       ‘what next’ questions is a breakthrough                       products, services, people, processes, data, expertise,
                                                                                     relationships—from deep insight gained from smart,
                       one, in which a new collective confidence
                                                                                     timely analysis of business performance.
                       is gained.
                                                                                     Identify the right mix of offers, products, tools, and
                                                                                     information, and then take a targeted approach favoring
                    With CRM having delivered improved productivity                  the most valuable employees, customers, and partners.
                    and ease-of-business across the front office, how do             This is the ‘sweet spot’—that point at which all the right
                    companies figure out where to invest the additional              assets intersect for maximum profitability.
                    resources, time, and money that’s been saved? The trick
                    is to quantify operational strengths and weaknesses,
                    so that you can make highly informed decisions that
                    capitalize on the good and minimize the not-so-good.

Pivotal CRM | White Paper   10
                    The Final Word                                                                        KNOW YOUR:
                    In this paper, you’ve learned about CRM as a
                    breakthrough tool to help companies thrive despite                                       Top Producers
                    the increased complexity, operational demands and
                                                                                                             Partner Needs
                    competitive pressures of doing business. But this
                    statement...                                                                             Market Trends
                                                                                                           Customer Needs
                    CRM is a breakthrough tool
                                                                                                           Employee Needs
                    is not complete without making an important edit:                               Most Important Interaction Points

                    CRM can be a breakthrough tool … if your company                              Most Revenue-Impacting Processes
                    chooses, designs, and implements it in a way that
                    makes sense for your goals and your business.

                    CRM is a journey, not a destination. It is not a matter of
                    installing software, and being ‘finished’. By its very nature,         ...THEN IDENTIFY THE RIGHT MIx OF:
                    a CRM system should always have an open door for
                    continued, on-the-fly development and tweaking. Your                                        Training
                    system will never be set in stone—and you shouldn’t want
                    it to be. Through this journey, you’ll learn a great deal
                    about how your employees like to work, where you all                                       Site Visits
                    excel, and what could be done differently. Your business                                  Advertising
                    needs to keep pace with the natural evolution of your
                                                                                                          Sales Commissions
                    people, processes, and products—and that includes your
                    CRM system.                                                                          Marketing Campaigns
                                                                                                        Process Improvements
                                      The Importance of CRM-to-Fit
                                      “We have a unique business model. In
                                      every deal, we need to respond rapidly
                                      and effectively to market change and to
                                      changes in our customers’ circumstances.
                                                                                                       ...TO GROW YOUR:
                                      “As we moved to automate our sales
                                                                                                                Win Rate
                                      process, it was paramount for us to
                                      select a CRM system that could be easily                            Product Penetration
                                      adapted to our way of doing things. For
                                                                                                          Employee Efficiency
                                      instance, we needed to customize the
                                      basis on which sales territories were                              Customer Satisfaction
                                      defined. And most important, we needed
                                                                                                        Level of Responsiveness
                                      to adapt how the system assigned leads
                                      —since we distribute leads not only to                            Partner Value & Loyalty
                                      buyers, but also to sellers.
                                      “If we had chosen a CRM system that
                                      would not easily customize to meet our         This brings us to one simple conclusion: CRM is not a
                                      unique business structure, it would have       software purchase. If it were, it would be relatively easy.
                                      been more an impediment to our workflow        Companies who excel at CRM see it for what it is—a
                                      than it would have been a solution.”           results purchase. This means working with your CRM
                                                                     Cliff Wilcox    vendor to realize and report meaningful business results.
                                                       Director, IT Applications,    Following are some further resources that introduce the
                                                      Somera Communications          ‘making it work’ aspects of CRM, including how to stay
                                                                                     focused on business results, and how to navigate through
                                                                                     two key categories of selection criteria—system suitability,
                                                                                     and vendor suitability.

Pivotal CRM | White Paper   11
Further Resources

  CRM Discovery Kit                                                                                The CIO’s Sensible Guide
                                                                                                   to Delivering the Right CRM
                                                                                                   for your Company (How to
                                                                                                   Keep your System Integrity,
                                                                                                   Budget, Resources and
                                                                                                   Sanity Intact Through CRM)
                                                                             When it comes to CRM, today’s CIO is squarely focused
                                                                             on risk mitigation, resource management and cost
  At Pivotal CRM, we’ve held fast to one simple truth from the               predictability. How easy is this CRM system to buy?
  very beginning. There’s no such thing as ‘one-size-fits-all’               Can we deploy in a predictable timeframe? Will it fit with our
  CRM. When it’s 100% designed to fit your business, CRM                     current and future business IT strategies? In this business
  has impact where it counts. Revenues. Margins. Loyalty.”                   paper, you’ll gain a TCO-oriented framework for choosing
  Part One: How to Choose the Right CRM                                      the right CRM. Find out about:
  Part Two: How to Build Impactful CRM                                       Breadth, Depth and the 80/20 Rule
  Part Three: How to Measure Results from CRM                                Customizability and the Metadata Connection
  To get this paper and access further information, visit                    Scalability, Performance and the User Perspective
                                                                             To get this paper and access further information, visit

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