CRM Customer Relationship Management Rich DuBose, Arnold Kelly, Mellisa Thom and Ben Wylie Outline General elements of CRM Spending and trends CRM ROI Why some company succeed and others fail at CRM Industry uses 12 key applications Top 5 providers of CRM Mini case studies - Square D and Graybar Argosy Gaming case study Don’ts of CRM Best practices CRM Defined “CRM is a technology-enabled business strategy whereby companies leverage increased customer knowledge to build (1) profitable relationships.” CRM is first and foremost a business strategy, not merely a software package. (1) A Strategic Framework for CRM, by Patrick Sue and Paul Morin. February 2001 Functional Elements of CRM Marketing Sales Customer Service • Market Research • Sales Automation and • Customer Inquiry Management • Product Development • Customer product • Customer Profiling support • Market Assessment • Account Management • Customer Information • Market & Customer Management Segmentation • Opportunity Management • Call Center • Product Lifecycle • Product, Price, and Effectiveness Management Contract Negotiation • Trouble Analysis & • Product Pricing and • Sales Alignment and Resolution Profitability Incentives • Billing Customer Relationship Management Solutions • Data Warehouse Management and Decision Support • Integrated Customer Management Systems Marketing Functionality "Half the money I spend on advertising is wasted; the trouble is I don't know which half." John Wanamaker, the department store pioneer, stated in 1886 A CRM can greatly enhance a company’s marketing efforts in the areas of : Market research Price planning Product development Market assessment Customer segmentation Product lifecycle Marketing Functionality Cont... Example: Hewlett-Packard Previously, HP sent out mass emails to update customers on sales offers, new products, technical support, etc. After implementing a CRM, these efforts become much more customers specific 85% of customers said they were satisfied with the content of the emails and additional revenue increase by $15M Sales Functionality Common functions implemented: Provide the sales force with detailed and current information, such as: Buying preferences Pricing Inventory levels Billing information Automate the sales processing activities (SFA). Sales Functionality Cont... Example: Empire Blue Cross and Blue Shield Extremely complex and highly manual sales process 33 redundant audit checks and took approximately 27 days On-line quote system developed Sales processing steps streamlined and automated Service Functionality CRM can be used to capture such things as: Customer’s complaint history Outstanding customer services requests Billing information Customer preferences Tracking unresolved issues Service representatives are much more prepared to service their customers Service Functionality Cont... Example: Marriott International Collect data on customer preferences and spending Data shared by all Marriott Hotels nationwide Once you check in they already know your smoking preference, which floor you prefer, any allergies, complaint history, whether you drink, etc. Enable Enterprise-wide Information Integration Collecting and integrating data from every point in the organization will allow customer relationship, life cycle and event information to be analyzed and driven through the marketing organization to the front-line, enhancing sales and retention. Phone Branch Sales Front line Mobile Sales Force Customer Support Internet Marketing and Sales Support Customer demographic and purchased services data. Marketing campaign tracking and offer development Customer and profitability data matched for service development and pricing Attrition data for retention modeling Customer value and preference information for customized experience. Enable Enterprise-wide Information Integration Collecting and integrating data from every point in the organization will allow customer relationship, life cycle and event information to be analyzed and driven through the marketing organization to the front-line, enhancing sales and retention. Phone Branch Sales Front line Mobile Sales Force Customer Support Internet Back Office Operations Customer relationship information and contact history available for issue resolution Information gathering follow-up or alert messaging to front line Rules development for value-based decisioning for all product support Enable Enterprise-wide Information Integration Collecting and integrating data from every point in the organization will allow customer relationship, life cycle and event information to be analyzed and driven through the marketing organization to the front-line, enhancing sales and retention. Phone Branch Sales Front line Mobile Sales Force Customer Support Internet Customer Touch Points Customer relationship data gathering Delivery of customized service delivery or sales offers Customer value information available for decisions Product information and sales process automation enables effective targeted sales efforts Relationship and contact information allows sales reps “know” each customer Demonstration Worldwide CRM Spending 30,000,000,000 25,000,000,000 20,000,000,000 15,000,000,000 10,000,000,000 5,000,000,000 - 2001 2002 2003 2004 2005 Years Based on report by Aberdeen Group entitled “Worldwide CRM Spending: Forecast and Analysis 2001 - 2005”. Forces Driving Spending “Only 7% of global companies have reached mature CRM deployments, indicating more spending to come.” (1) According to Gartner Group “CRM remains one of the top three, if not number one, business priorities in 2001.” “The average company loses 20% of their customers each year and the number is rising.” (2) (1) Data Warehouse Institute survey. CRM is Anything but Dead CRM Industry. June 2001 (2) Maximizing CRM Performance with Strategic Performance Measurement by James Brewton Forces Driving Spending Cont... “It costs up to 10 times as much to acquire a new customer as it does to keep an existing one.” Reasons growth is not higher: Hard to prove ROI Expensive customization High failure rate Slow economy has force IT budgets to tighten Maximizing CRM Performance with Strategic Performance Measurement by James Brewton Trends in CRM Mobile CRM (mCRM) PalmPilots, web phones, and pagers are becoming less expensive and more widely used Siebel and Sprint recently signed a join venture selling wireless CRM Domestic businesses are expected to spend $74B on wireless service by 2005 Wireless CRM: Strings Attached by Marc Songini Computer World, November 2001 Trends in CRM Cont... Netsourcing - Application Services Providers (ASPs) ASP work better in smaller organizations - less customization CRM applications are the second largest segment of hosting sales, led only by E-commerce applications By 2003, Forrester predicts hosted CRM applications will account for almost $2.5 billion in revenue The Forrester Report by Stacie S. McCullough. December 1999 CRM ROI Source: Swift, “Accelerating Customer Relationships: Using CRM and Relationship Technologies CRM ROI Cont… Possible Returns Up to 10 X’s more costly to generate revenue from new customer than existing customer 5% Increase in retention rate can increase company profits by 60-100% 6 X’s more costly to service customer through a call center than via the internet Loyal customer referrals generate business at little or no cost Source: Swift, “Accelerating Customer Relationships: Using CRM and Relationship Technologies” CRM ROI Cont… Investments Upfront costs Takes time Need to create measuring metrics It is marketing rather than sales Switching from product focus to customer focus Source: Swift, “Accelerating Customer Relationships: Using CRM and Relationship Technologies” Succeeding VS Failing Keys to Success Managing the data Managing the customer Business process before implementation All levels must buy in Flexibility on the company’s side Relationship vs database Source: Rigby, Reichheld and Schefter, “Avoid the Four Perils of CRM” Succeeding VS Failing Cont… CRM Mistakes Implementing CRM before creating a customer strategy Rolling out CRM before changing your organization to match Assuming that more CRM technology is better Stalking, not wooing, customers Source: Rigby, Reichheld and Schefter, “Avoid the Four Perils of CRM” BMC “Learning from Failure” BMC Software Systems-management software provider Based in Texas Failed Two Times Before Succeeding Source: Rigby, Reichheld and Schefter, “Avoid the Four Perils of CRM” BMC’s Failures No research No top-management involvement Software would change culture Source: Rigby, Reichheld and Schefter, “Avoid the Four Perils of CRM” BMC’s Successes Recreated the strategy Communicated benefits across the company Changed the culture not just the process Source: Rigby, Reichheld and Schefter, “Avoid the Four Perils of CRM” Industry Uses Airlines AA Aadvantage Frequent Flyer Program Banks Barclays Realize profitability of customers Car Rental Companies Enterprise ECARS System Source: Swift, “Accelerating Customer Relationships: Using CRM and Relationship Technologies” Enterprise Computer Assisted Rental System (Ecars) - introduced in 1992 now supports 1.4 million transactions logged every hour Locates cars, tracks customer preferences, measures customer satisfaction ratings Uses Enterprise Service Quality Index(ESQI)to measure satisfaction - compensation for management is tied to results Enterprise uses its Automated Rental Management System (ARMS) to allow insurance companies to access rental information Allows agent to book reservations, EFT, and reporting to support claims processing Allows electronic monitoring of repair shop progress (CIO Magazine - Nov 2000) Gartner’s 12 Key Application Components Gartner’s 12 Key Application Components Opportunity Management System (OMS) Sales Configuration System (SCS) Partner Relationship Management (PRM) Interactive Selling Systems(ISS) Gartner Nov 2001 Gartner’s 12 Key Application Components Incentive Compensation Management Content Management E-Service Call Management Gartner Nov 2001 Gartner’s 12 Key Application Components Field Service and Dispatch(FS/D) Personalization Data Mart/Analytical Campaign Management System Gartner Nov 2001 Today, for a B2B CRM application suite, three vendors can deliver features across all 12 key functionality components: Siebel, Oracle and SAP •Gartner Nov 2001 Feature ratings are based on the current shipping versions of the following vendors' CRM suite offerings: •Clarify eFrontOffice v.10 by Amdocs (i.e., an agreement for Amdocs to purchase Clarify CRM products from Nortel E-Business is expected to close by February 2002.) •E.5, release 5.5 by E.piphany •Kana iCARE by Kana •Oracle CRM 11i v.5 by Oracle •PeopleSoft 8 CRM by PeopleSoft •SAP CRM 3.0 by SAP •Siebel 2000 by Siebel Systems The scores in Figure 1 are based on vendors scoring 1 point for a 1/4 circle rating, 2 points for a 1/2 circle, 3 points for a 3/4 circle and 4 points for a full circle with 48 points equal to 100 percent. In the past year, SAP's scores improved the most, followed by Amdocs/Clarify, Siebel, PeopleSoft then Oracle (see Figure 2). Today, Gartner estimates that Siebel still provides almost twice as many features as the next closest competitors; and Siebel remains the only vendor to meet more than 50 percent of the horizontal functionality requirements for a B2B large enterprise CRM application suite. •Gartner Nov 2001 North American CRO Magic Quadrant - Gartner March 1, 2002 CRO stands for customer relationship optimization, and it is the alleged potential new direction for customer relationship management (CRM). "It's no longer about managing your customers," the NRF session description stated. "It's about strategically investing in customer segments that will make the most money." http://www.computerworld.com/itresources/rcs tory/0,4167,STO67518_KEY51,00.html http://www.gartner.com/reprints/ncr/104847.html Key CRM Providers PeopleSoft Siebel SAP Oracle Convergys Leading provider of enterprise applications Headquarters: that tie together customers' back-office Pleasanton, CA operations 2000 revenue: $1.7 billion Software addresses such tasks as accounting, human resources, manufacturing, and supply Customers: 4,600 chain management Employees: 8,000 Services such as consulting, maintenance, and Worldwide training account for about two-thirds of sales Customer relationship management software has rekindled licensing sales growth and helped offset a slowdown in the broader enterprise software market, but it has also exposed PeopleSoft to more direct competition with companies such as Oracle and Siebel Systems. (www.hoovers.com) World's leading provider of eBusiness Founded: 1993 applications software 2001 revenue: $2.05 Provides an integrated family of eBusiness billion applications software, enabling 2001 net income: multichannel sales, marketing, and $255 million customer service systems to be deployed over the Web, in call centers, in the field, Employees: 7,400+ through reseller channels, and across retail and dealer networks Sales and service facilities are located in more than 32 countries. 29 Years in the Business of E-Business 2000 Sales (mil.): $5,881 1-Yr. Sales Growth: 14.3% 10 Million Users, 44,500 Installations, 1,000 Partners, and 21 Industry 2000 Net Inc. (mil.): Solutions. $596 Founded in 1972 - recognized leader in 1-Yr. Net Inc. Growth: providing collaborative e-business (1.6%) solutions 2000 Employees: 24,480 Headquartered in Walldorf, Germany 1-Yr. Employee Growth: 12.8% World's largest inter-enterprise software company, and the world's third-largest independent software supplier overall Employs over 27,800 people in more than 50 countries World's leading supplier of software 2001 Sales (mil.): $10,860 for information management, and the 1-Yr. Sales Growth: 7.2% world's second largest independent software company 2001 Net Inc. (mil.): Headquartered in Redwood Shores, $2,561 California 1-Yr. Net Inc. Growth: First software company to develop and (59.3%) deploy 100 percent Internet-enabled 2001 Employees: 42,927 enterprise software across its entire 1-Yr. Employee Growth: product line: database, server, enterprise business applications, and 3.9% application development, and decision support tools. (CVG) is a provider of Employees: 46,000 outsourced billing and Market Cap (Mil) $ : 5,155.226 customer management Complete Financials: Dec 2001 solutions, which Updated: 04/05/2002 encompass activities Revenues For the FY ended 12/31/01, increased 6% to such as targeting, $2.32B. acquiring, serving and Net income decreased 27% to retaining customers on $138.8M. behalf of its clients. Mini-Case Studies Began in 1902 , is a market-leading supplier of electrical distribution, industrial control and automation products A new safety switch with the company's new logo, a "D" (for Detroit) inside a square became the industry standard and many customers began asking for "the square D switches." The trademark was developed in 1915 and the name Square D Company was formally adopted in 1917. To this day, Square D is one of the few companies ever named by its customers. On May 24, 1991, Square D Company merged with Schneider Electric of Paris, France the world's leading manufacturer of electrical distribution and industrial control and automation products and systems, and the only manufacturer dedicated to the distribution and control of electricity. (www.squared.com) Information Technology Web server-enabled equipment for the plant floor Equipment, including power monitors and PLCs, can automatically alert plant officials to emerging problems by audible alarm or e-mail Built-in server technology allows plant personnel to remotely monitor, diagnose and correct equipment problems and remotely change set points E-Way Online quote and order management system for distributor network Check pricing, stock availability, and obtain shipping information Digest Plus Selector Online product selection with more than 66,000 part numbers Search an electronic version of Square D's catalog based on the electrical characteristics of the application Generates a bill of materials to send to the distributor of choice for pricing and ordering (http://www.controleng.com/archives/news/2000/july/gm0720a.htm) Information Technology An employee Intranet Powered by an Infoseek Corp. search engine. The site includes everything from employee telephone directories to spec-writing tools and news on customer-segment marketing activities. Employees can access the site remotely Customer Information Center Uses sophisticated customer relationship management (CRM) technology to give technicians instant access to a complete customer history, and knowledge management and case management tools to access a database of technical solutions to almost any question Links customer service representatives and technical experts around the country in a virtual technical support center through Soft Phone technology from Lucent. Extended nationwide in late 1999, the CIC now answers more than 13,000 calls each week from customers, distributors and employees. (http://www.controleng.com/archives/news/2000/july/gm0720a.htm) Successful CRM Implementation Began in 1993, after Schneider Electric acquisition Reorganized the company’s three basic business units around customer segments - Industrial, Residential, Construction, and OEM Only after internal systems were refocused on the customer did Square D start using high-tech applications to upgrade its customer-facing processes According to Chris Curtis, VP of US marketing, managers were taken out of their line jobs for months at a time to understand issues involved in implementing the software In 1996, $75 million was invested in an order-management system that let sales engineers create proposals for customers based on what the factory floor could deliver (Harvard Business Review - Feb 2002) •World leader in collaborative (CRM) solutions that increase customer revenue, profitability, and customer loyalty •Transformed how organizations support their customers, partners and associates at more than 500 organizations representing over 100,000 users. •Relavis eBusinessStreams - CRM automation that allows an organization to efficiently and effectively "A tremendous benefit from using interact with their customers, prospects, partners OverQuota is that we are able to use and internal associates existing infrastructure for workflow •Received the 2001 IBM Beacon award for communications. We have been using Lotus Notes in our worldwide "Greatest Business Impact," and the 2001 Lotus operations since 1998," said Lee Beacon Award for "Best eBusiness CRM Solution." Chong Leong, telecommunications Relavis is honored to have won the Beacon Award manager, Asia Pacific, Schneider- seven times Electric. In 2001 Graybar selected the mySAP.com(R) e- business platform to run its business systems applications One of the largest ERP projects in U.S. industry Will deploy the entire suite of mySAP.com solutions including mySAP(TM) Customer Relationship Management mySAP(TM) Supply Chain Management mySAP(TM) Human Resources mySAP(TM)Enterprise Portals mySAP(TM) Business Intelligence Graybar’s new platform will run on IBM hardware DeLoitte Consulting is assisting in implementation A Fortune 500 service provider of wholesale distribution of electrical and comm/data equipment and integrated supply services Serves contractors, industrial plants, telephone companies, power utilities and commercial users One of the largest employee-owned companies in the US, with approximately 9,500 employees and 275 stocking locations In business 131 years Annual sales in 2001 - $4.7 billion Graybar plans to go live with “just a sliver of mySAP CRM,” Graybar VP Beatty D'Alessandro told CRMDaily. “We were advised by our implementation partner, SAP and other companies in our industry that CRM implementations can be a bear.” "We seriously considered both companies," (Siebel) Beatty D'Alessandro, vice president IT strategy for Graybar Electric, told CRMDaily.com. "But in the final analysis we bought the whole mySAP suite." D'alessandro added: "Our feeling was that a completely integrated solution was preferable to a bolt-on (CRM) strategy." Another consideration, he added, was that SAP appeared to be committing a significant amount of corporate resources to its CRM product. "So, in whatever areas there were perceived inequities between SAP and Siebel, it was clear to us that SAP was spending the money to catch up with Siebel," D'Alessandro said. (http://www.crmdaily.com/perl/story/16309.html) Argosy Case Study Company Overview CEO: James Perry Revenue: $595 Million Stock: NYSE Symbol-AGY $40.65 Employees:4,900 Source: www.argosycasinos.com Jeff Poure, MIS Director CIO CEO Current System Player Tracking System Built primarily as accounting/slot system, not marketing Only provide us with transactional data Not customer centric, slot machine is center of universe Not flexible Difficult ad-hoc queries Source: Argosy Marketing Report 2001 CRM Strategy Use knowledge of customers profiles to develop offers and programs which appeal to our most profitable customers Source: Argosy Marketing Report 2001 How Argosy’s Goal was Defined Committee Property Operating Committees Executive Committee Legal Staff Marketing Staff MIS Staff (including IT Supplier Representation) Source: Interview with Jeff Poure, Argosy Gaming Co. MIS Director Argosy Partners with NCR Terradata for CRM Development Why NCR? “Value Added Supplier” Harrahs (1998) Application Server Evaluation Model (ADEM) Evaluates IT Supplier on the basis of Technology, Market Momentum, Best Practice, & Database NCR won Technology & Database, and was second in Best Practices – Overall highest score Source: Interview with Jeff Poure, Argosy Gaming Co. MIS Director CRM Application Scope 7,724 Hours (3+ Man years) Only NCR Applications and Database Developers time Estimated Cost = $849,640 Not including Software Licenses or Servers Two new full time MIS positions Source: Interview with Jeff Poure, Argosy Gaming Co. MIS Director CRM Application Operation Data collection during registration – Data Card Player Data Name Address SSN License No Age And More! Source: Interview with Jeff Poure, Argosy Gaming Co. MIS Director CRM Application Operation Data collection during the visit Wins / Losses Tables vs. Slots Preferences / History Restaurants Smoking vs. Non-Smoking Magazines Source: Interview with Jeff Poure, Argosy Gaming Co. MIS Director CRM Application Operation •Prior to CRM Application •Archaic Marketing campaigns based on recent nature of ones visit Group A(280+) Group B(200-279) Group C(130-199) Number of Patrons Mailed To 5,821 4,144 8,205 Number of Patron Coupons 1,973 1,140 1,511 Mail Response Rate 34% 28% 18% Slot Patrons 1,537 979 1,301 Table Patrons 419 177 202 Total Patrons 1,956 1,156 1,503 Casino Revenue $736,376 $218,550 $205,715 Win Per Patron $373 $192 $136 Source: Argosy Marketing Report 2001 CRM Application Operation •Allows a more granular view at customers •Greater Market Segmentation to identify most profitable customers •Redirect Resources away from marginal customers Female Unknown Male Female Unknown Total Total Age Total Male Female Unknown Male Slot Slot Slot Table Table Table Slot Table 21-24 835 405 417 13 179 311 7 226 106 6 497 338 25-29 852 423 409 20 191 277 6 232 112 14 494 358 30-34 934 449 467 18 219 326 12 230 141 6 557 377 35-39 966 448 496 22 261 377 15 187 119 7 653 313 40-44 1,043 446 561 36 290 438 20 156 123 16 748 295 45-49 1,004 403 573 28 254 446 18 149 127 10 718 286 50-54 958 391 540 27 261 395 20 130 145 7 676 283 55-59 708 285 403 20 174 298 18 111 105 6 486 222 60-64 520 216 291 13 137 215 20 79 76 3 362 158 65+ 1,060 399 624 37 209 321 14 190 303 9 558 502 TOTAL 8880 3865 4781 234 2175 3404 150 1690 1357 84 5749 3132 Source: Argosy Marketing Report 2001 CRM Application Operation Better understanding of Customers and Revenue Sources Customer Lifetime Value = CONFIDENTIAL Identification of most profitable customers 40 to 50 + Years Old with disposable income and time – retirement age Average player spends $25-$30 a time and comes frequently, at least once a week…seeking social setting 80 percent of Argosy’s Revenue comes from slot machines Source: Argosy Marketing Report 2001 CRM Application Operation Rewards Programs Customized for individual market segments Right Offer, Right Customer, Right Time, Right Decision Targeted mailings Based of points Incentive Programs Source: Argosy Marketing Report 2001 Implementation Argosy is implementing CRM Package in two phases Phase I – June 4, 2001 to October 4, 2001 Phase II – October 5, 2001 – June 8, 2002 Source: Interview with Jeff Poure, Argosy Gaming Co. MIS Director Property Implementation Timeline Phase I October 2001, February 2002, March 2002, Lawrenceburg, IN Sioux City, IA Alton, IL December 2001, March 2002, Riverside, KS Baton Rouge, LA Source: Interview with Jeff Poure, Argosy Gaming Co. MIS Director Implementation Phase I Criteria for Success Have increased ability to view, analyze and act upon detail player data down to the transaction level by individual player, player segments or groupings. Develop and agree to a methodology and calculation for the “Lifetime Value” of a player. Have the ability to analyze and evaluate Argosy customers’ hotel, restaurant, entertainment, and offer preferences at the customer level. Source: Interview with Jeff Poure, Argosy Gaming Co. MIS Director Implementation Phase I Criteria for Success - cont. Capture and maintain customers’ needs and preferences for the purpose of determining offers/programs, which will appeal to out most profitable customers. Increase analytical capabilities to drive more complex segmentation and communication strategies for the purpose of increasing customer trips/rate-of-pay, frequency of visits, and for finding new/profitable opportunities. Ability to have a unified/consistent customer reward program across the enterprise. Source: Interview with Jeff Poure, Argosy Gaming Co. MIS Director Is Phase I a Success? “Yes, this phase has been considered a success. It(the CRM package) has given us the ability to more efficiently identify our key customers, anticipate their needs and respond to them quickly.” “…the application has allowed us to better serve our customers” “…give us the ability to improve customer retention” -Jeff Poure, MIS Director Don’ts of CRM Data is ignored Politics rule IS organization and business users do not work together No plan exists CRM is implemented for the enterprise, not the customer Source: Gartner, “Seven Key Reasons Why CRM Fails – And How to Avoid Them” Don’ts of CRM Cont… Flawed process is automated No attention is paid to skill sets Source: Gartner, “Seven Key Reasons Why CRM Fails – And How to Avoid Them” CRM Best Practices CRM Best Practices consists of the following: Customer Involvement Involve the correct sources early to develop CRM Strategy Understanding of Information Technologies place CRM Organizational Culture Incremental Implementation CRM Best Practice Customer Involvement Focus Groups Prior to, during, and after CRM implementation Customer Survey If Feedback being passed to Top Management is being acted on, then change will happen Concentrate on your customer Lifecycle value Which Customers repay investment? Which Customers just take up resources and should be considered competitors? Segmentation Analysis Source: www.CRM-forum.com CRM Best Practices Involve the “Right” People Marketing Provide means of determining our customers? Business Strategists What are our organizational goals (i.e. growth)? Source: www.CRM-forum.com CRM Best Practices Involve the “Right” People “Value-Added” IT Suppliers (If required) Practical experience in CRM CRM experience in same/similar industry Can provide knowledge of CRM application(s) to allow Marketing and Business strategists to evaluate the opportunities To often companies allow technology vendors to dictate the manner they manage customers because the vendor has implemented CRM CRM is to be customized, not for software but for strategy Source: “Avoid the Four Perils of CRM,” Darrell K. Rigby, Frederick F. Reichheld, Phil Schefter; Harvard Business Review, Feb 2002 CRM Best Practices Involve the “Right” People Involve TOP MANAGEMENT from the start For CRM to be successful, Top Management must… Clearly communicate a vision for the future of the organization that indicates the benefits of CRM The will power to make CRM work across functional boundaries Without Top Management participation or a Strong Top Management A common result is that a strong-willed committee member will shape the final implementation that will address their desires and not the organizations as a whole Source: “Avoid the Four Perils of CRM,” Darrell K. Rigby, Frederick F. Reichheld, Phil Schefter; Harvard Business Review, Feb 2002 CRM Best Practices Implementation Should not expect to be able to implement CRM in one major undertaking Implement CRM in increments Each Increment should have… • Its own business case • Measures of success • Evaluation of how customers perceive the results of this step Source: www.CRM-forum.com CRM Best Practices While Top Management successful within ones organization, employees make CRM successful with your customers Companies serious about CRM tie employee incentives to customer indicators such as retention and satisfaction. The more serious a firm is about CRM, the sooner they will adjust the compensation plan. No less than 100 percent user buy in is acceptable.. Source: www.CRM-forum.com Conclusion What must we understand? Expect a continuing evolution of CRM As it evolves, customers will become more and more familiar with what it can do for them If we an organization adopts CRM they must understand that the strategy will not be delivered by IT alone The primary CRM objective is to improve the interface between an organization and its’ clients. In doing so, for a CRM initiative to be successful substantial re-organization of the organization dealing with customers may occur Source: www.CRM-forum.com QUESTIONS ???
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