crm term paper
TRANSCRIPT
1
Table of Contents 1.0 Introduction ...................................................................................................................................... 2
1.1 Origin of the report ............................................................................................................................ 2
1.2 Objective of the study ........................................................................................................................ 3
1.3 Methodology ..................................................................................................................................... 3
1.4 Limitation of the study ....................................................................................................................... 3
2.0 Findings of the report ........................................................................................................................ 4
2.1 Evaluating CRM software ................................................................................................................... 4
2.2 Criteria for evaluating CRM software ................................................................................................. 4
2.3 Company objectives in CRM system ................................................................................................... 5
2.4 Success factors of CRM system implementation ................................................................................ 6
2.5 Suggested action plan for implementing a CRM system ..................................................................... 9
2.6 Recent CRM related software and their function ............................................................................. 10
3.0 Conclusion ....................................................................................................................................... 14
2
1.0 Introduction
According to Wilson (2002) CRM is a concept that enables an organization to tailor specific
products or services to each individual customer according to his or her need. In the most
advanced scenario, CRM may be used to create a personalized, customized, one-to-one
experience that will give the individual customer a sense of being cared for, thus opening up
new marketing opportunities based on the preferences, previous behavior and history of the
customer. Fayerman (2002) said that CRM as a customer-focused business strategy that aims to
increase customer satisfaction and customer loyalty by offering a more responsive and
customized services to each customer
Using information technology in CRM can help your business enhance the way it interacts with
and services customers through multiple channels and divisions. With a CRM suite, you can
deploy company-wide best practices, implementing consistent, effective, and efficient processes
across departments and business units, to ensure a positive end-to-end experience for your
customer.
1.1 Origin of the report
The report entitled “CRM information technology” originated from the partial fulfillment of the
Customer relationship management (MKT-531) course. The main purpose of the preparation of
the report is due to the partial fulfillment of the course of the EMBA Program conducted by the
Faculty of Business Studies, Dhaka University.
During the course, I was under the supervision and guidance of Md. Razib Alam, assistant
Professor, Department of Marketing, Faculty of Business studies, Dhaka University.
3
1.2 Objective of the study
Broad objective
To describe CRM information technology
Specific objective
To evaluate CRM software.
To find out the criteria for evaluation of CRM software.
To find out company objectives in CRM system.
To find out success factors of CRM system implementation.
To suggest an action plan for implementing a CRM system.
TO provide a list of recent CRM software and their function.
1.3 Methodology
Data source:
Mainly secondary source were involved to develop this report. Here I have tried to use details
and important information on this report. Secondary information collected from book, internet and
other sources.
1.4 Limitation of the study
The study on “CRM information technology” is a very comprehensive and extensive task.
During the time of preparing this report we have been faced many problem. These are follows:
The time frame fixed for preparing the report was really hard to be met. As a result,
sufficient concentration could not be given which was needed for much better study.
We are very much sorry not provide enough information due to lack of information.
4
2.0 Findings of the report
The stunning advances in information technology have been a major force in advancing
customer relationship management into the forefront of corporate strategic thinking during the
late 1990s.CRM software market comes from two directions: the front office and the back office.
2.1 Evaluating CRM software
Before applying CRM software a manager has to read about sales automation, been mailed by
the vendors and heard some of his colleagues, or perhaps competitors, discussing its merits.
Manager has also recognized areas of sales operation that could be improved by the application
of the technology and have considered commitment. He needs to evaluate the software properly.
Customer relationship management currently means different things to different people.
Moreover, the definition of CRM will evolve and change over time.
2.2 Criteria for evaluating CRM software
Nonetheless, CRM software will usually consist of the following 11 components. Initial CRM
system will consist of one or more of these components, and is likely to grow over time to
include additional components from this list and new components will emerge as the CRM
industry matures.
1. Sales: Contact management profiles and history, account management including
activities, order entry, proposal generation.
2. Sales management: Pipeline analysis (forecasting, sales cycle analysis, territory
alignment and assignment, roll-up and drill-down reporting).
3. Telemarketing/telesales: Call list assembly, auto-dialing, scripting, order taking.
4. Time management: Single user and group calendar/scheduling (this likely to be
Microsoft Outlook), e-mail.
5
5. Customer service and support: Incident assignment/escalation/tracking/reporting,
problem management /resolution, order management/promising, warranty/contact
management.
6. Marketing: Campaign management, opportunity management, web-based encyclopedia,
configurator, market segmentation, lead generations/enhancement/tracking.
7. Executive information: Extensive and easy-to-use reporting.
8. ERP integration: Legacy systems, the Web, third-party external information.
9. Data synchronization: Mobile synchronization with multiple field devices, enterprise
synchronization with multiple database/application servers.
10. E-commerce: Manage procurement through EDI link and Web server, and include
business-to-business as well as business-to-consumer application.
11. Field service support: Work orders, dispatching, real-time information transfer to field
personnel via mobile technologies.
2.3 Company objectives in CRM system
It is important to understand the benefit of CRM for most companies. These generally fall into
three categories: cost savings, revenue enhancement, and strategic impact. Based on successful
CRM implementations, the following benefit objectives seem reasonable.
1. Increased sales revenues: An increase of ten percent per annum per rep during the first
three years of the project is reasonable. Increased sales results from spending more time
with customers which results from spending less time running around chasing needed
information ( i.e., productivity improvement);
2. Increased win rates: An increase of five percent per annum during the first three years
of the project is reasonable. Win rates improve since you withdraw from unlikely or bad
deals earlier on in the sales process.
6
3. Increased margins: An increase of one percent per deal during the first three years of
the project is reasonable. Increased margins result from knowing your customer better,
providing a value-sell, and discounting price less.
4. Improved customer satisfaction ratings: An increase of three percent per year during
the first three years of the project is reasonable. This increase occurs because customers
find your company to be more responsive and better in touch with their specific needs.
5. Decreased general sales and marketing administrative costs: A decrease of ten
percent per year during the first three years of the project is reasonable. This decrease
occurs since you have specified your target segment customers, you know their needs
better, and thus you are not wasting money and time on, for example, mailing
information to all customers in all existing and potential target segments.
2.4 Success factors of CRM system implementation
To take the advantage of the benefits of a CRM system, a company must undertake a structured
process that ensures the automation venture does not become the automation adventure. There
are ten critical success factors that are essential for the success of any CRM system.
1. Determine the functions to automate: Effective automation at a company starts with
CRM automation audit, which identifies the business functions that need to be automated
and lists the technical features that are required in the automation system. While there are
several different audit methodologies available, the usual approach uses questionnaires,
face-to-face interviews, visits with the sales reps in the field, quantitative matrices and a
final report with recommendations. If the audit is not performed properly, you will most
likely to be unable to implement an effective CRM automation system.
2. Automate what needs automating: Automating an inefficient business process can be a
costly mistake. To ensure that you automate what needs to be automated, your CRM
automation audit should address a ‘wish list’ of how sales people, marketing personnel,
customer support staff and management would like to improve their work process.
Remember that the people doing the job know ways to do it better. Take time to work
with them and you will learn what needs automating.
7
3. Gain top management support and commitment: Companies who successfully
automate CRM functions view CRM automation system more as a business tool than as a
technological tool. Keep this in mind as you approach top management for support. Top
management commitment can be secured by demonstrating that:
Automation supports the business strategy ( i.e., automation delivers the
information required to make the key decisions that enable business
strategy to be realized);
Automation measurably impacts upon and improves results (e.g.,
improved with raters, improves margins, higher sales revenues, and higher
customer satisfaction ratings );
Automation significantly reduces costs (e.g., lower general sales costs)
and thereby pays for itself over a specified time period. Document your
case for automation based on business impact.
4. Employ technology smartly: Select information technology and systems that utilize
open architecture, thereby making it easy to enhance and enlarge the system over time.
Look for software applications which are modularized and can be easily integrated into,
or interconnected with, your existing information databases. Ensure that the technology
you select complies with international standards.
For firms conducting business between the field and regions or headquarters, or across
regions, select software applications that are network compatible and that permit easy
data synchronization between information held on field computer and information held
on regional or headquarter computers. To accommodate future changes, be sure the
technology you select can easily be customized as well as modified. In other words, let
the technology help you to grow. As an example, Mobil first implemented a standard
computing environment on a worldwide basis and then implemented specific CRM
automation software applications.
5. Secure user ownership: Get users involved early to make sure that your CRM
automation system addresses their needs. A large information technology manufacturer
automated their sales force using the recommendations of a corporate headquarter sales
and marketing automation task force. Unfortunately users were not sufficiently
represented on this task force and ended up revolting against the system which they felt
was yet another ‘big brother’ idea. Users have a vested interest in making ‘their’ system
work in practice. Don’t be afraid to hand over ‘ownership’ of the system to the users.
6. Prototype the system: Prototyping your CRM automation system facilitates the phasing
in of new technology, allow experimentation on a smaller and less costly scale, test the
system’s functionality, highlights required changes in organizational procedure and most
8
importantly, demonstrate that automation objectives can by met. Emerging rapid
prototyping software development tools reinforce the importance of ‘testing before you
leap’.
7. Train users: Training includes, for example: demonstrating to users how to access and
utilize needed information, ensuring that users are provide with understandable user
documentation and that this documentation is frequently updated, offering online
tutorials, which can be customized for each user, providing a telephone helpline to
support your user, and training the ‘trainers’ to ensure that new users can quickly be up
and running on the system.
8. Motivate personnel: CRM automation succeeds when users are motivated by the
system’s ability to help them obtain their objectives, and when users understand the
strategic importance of CRM automation from improved user productivity to the impact
on the company’s bottom-line. Trends come and go within an organization and it is
critical that you determine ways to maintain individual motivation and commitment
towards the CRM automation system. Show users their importance and their impact. This
may mean launching an internal marketing campaign including an intranet site for sales
and marketing automation effort.
9. Administer the system: One person/department must be held responsible for overseeing
the welfare of the CRM automation system. This person/department includes an
information ‘gate keeper’ who is responsible for ensuring the information is timely,
relevant, easy to access and is positively impacting on users’ decision-making needs.
It is a strong demotivator to be out in the field and use your sales and marketing
automation system only to find out-of date or incorrect data. Be disciplined and pay
careful attention to information and systems details.
10. Keep management committed: Set up a committee that includes senior staff and users
as well as the information system department. This committee should brief senior
management quarterly on the status of the CRM automation project.
9
2.5 Suggested action plan for implementing a CRM system
Providing automated support for the customer relationship management (CRM) functions of
your business can be an expensive decision not just in terms of software and consultancy costs,
but also in the time and commitment needed from your staff. It will affect the working practices
of the customer-facing employee in your organization- the very people you rely upon to get new
and repeat business. To implement CRM successfully you will need solid support from the
management team. With this support you can review the board business processes you need, the
role of CRM automation in the whole scheme and the objectives you expect to achieve when
your system is operational. Objectives might include:
Increasing new customer business
Decreasing customer losses
Reducing the elapsed time for the sales cycle
Improving-lead qualification
Introducing new channels to market
By putting these objectives in order of priority and quantifying them where possible, you will
have the road map for your system selection activities.
Company need to know what they need and their priorities. Such as –
Decide which CRM features they need.
Decide what they don’t need.
Define constrains.
Define priorities.
Make a system shortlist:
There is no single tool for CRM- but there is a best tool for you. Having gone through the
process above company should be able to produce a list of vendors who have a tool that suits
your requirements.
What to look for in CRM software for the front office:
Relationship management
Sales, marketing and service
Productivity
10
Universal access
Customization and integration
Selecting the vendors:
Vendors have different strength and weakness in meeting the requirements of CRM software for
the front office. There are not many vendors that provide consistency and the full range of
access. To assess consistency, look at the extent to which the core customer-facing functions of
sales, marketing and customer services are provide on a consistent technology platform using the
same data model. To assess universal access, look at the extent to which the products support
different channels and how well these are supported.
2.6 Recent CRM related software and their function
In this part I have provided some recent and most used CRM software and their function.
1. Sales Force:
The TopTenREVIEWS Gold Award winner for customer relationship management is
Sales force. Overall we were thrilled with the options, the features and the tools that we
were able to utilize with Sales force. This CRM software is definitely deserving of the
praise that it has received from various users and companies. We highly recommend
Sales force to small and large businesses in need of a CRM system. Sales force has the
tools for company to become more efficient and to strengthen your customer
relationships, increasing sales and revenue.
Features:
Sales force Chatter is unique feature that provides real-time alerts and
collaboration between manager and his coworkers.
Each user within your company is set up with a user profile, and employees have
the opportunity to view another colleague’s profile and learn their job
responsibilities and strengths.
Status updates are another feature unique to Salesforce.com CRM software.
In addition to receiving real-time alerts regarding your own account activity, you
will receive real-time alerts regarding account activity for every user connected to
your network.
2. Oncontact:
Oncontact has received the TopTenREVIEWS Silver Award for CRM software. This
CRM software doesn’t have quite the amount of unique features our top choice provides;
however, it provides more options and tools than all the other CRM systems.
Features:
11
Oncontact will provide with a split-window view makes it possible for you to pull
up a company or customer and view their name, status and contact information on
the top of the screen and view the in-depth details on the bottom.
It assists employees in making them more efficient by having more information
viewable in a single window.
3. Sage ACT:
Sage ACT is the winner of the TopTenREVIEWS Bronze Award in CRM software. Most
users quickly feel confident as they open the application and can immediately began
utilizing its features and tools.
Features:
Sage ACT! Will allow you to integrate your email with the application, so you
can open and manage all of your messages from within the CRM software.
Keeping track of your meetings, phone calls and daily activities is all an important
aspect of managing and keeping customer relationships strong.
Sage ACT! also provides the ability for you to make a running to-do list so that
you can jot something down as soon as it comes to mind, and never worry about
losing it.
4. AIMcrm:
Applications of AIMcrm excels in terms of Sales & Marketing tools and has more
options than many of the other applications. It mainly assists the sales & marketing
department.
Features:
AIMcrm can track campaigns and route incoming phone calls to the appropriate
department and person.
AIMcrm has the ability to merge with email clients so that you can access
your customer information and emails within the same application.
This CRM software also allows calendar integration, so when you schedule a
meeting, phone call or any other appointment, it will block out the meeting
time on your calendar.
The CRM software also analyzes your campaigns to see how many people are
inquiring about a certain campaign and which campaign brings in the most
revenue.
5. Prophet:
Avidian Prophet CRM software is a customer relationship management option that
works closely with Microsoft Outlook. It is easy to use and has a large amount of
features and tools.
Features:
12
Prophet customer relationship management software offers email and calendar
integration. With this feature you can check your email and schedule
appointments on your calendar all in one convenient location.
Prophet also has an area where users can create a daily to-do list or schedule to
make sure that they stay organized and efficient.
Prophet CRM software offers a web-hosted solution as well as on on-premise
solution. The hosted solution is beneficial because it can be accessed via a mobile
phone with internet access.
You also receive real-time alerts when a new message is received in your account.
The Sales & Marketing tools are simple to take advantage of, and you have the
ability to customize every detail according to your specifications
6. FieldOne:
With solid support, robust functionality and tons of time-saving features, FieldOne is a
viable choice for service companies of all sizes.
Features:
Synchronize a company's process, from the initial client call to service to
invoicing and payments.
FieldOne handles both the daily operations of a business, like scheduling
technicians or keeping track of inventory.
It's suitable for dozens of industries, including HVAC, agriculture, construction,
maintenance, property management, pest control and utilities.
Field and office staff can work anywhere there is Internet access, and FieldOne
has no limit on the number of users that can be logged on at the same time -
locally or remotely.
7. Microsoft Dynamics CRM:
Microsoft Dynamics CRM is a customer relationship management (CRM) solution for
mid-market and enterprise organizations. It offers industry-specific solutions that meet
the needs of various industries, including government, financial services, manufacturing,
healthcare, retail, and education, to name a few.
Features:
Microsoft Dynamics CRM offers strong capabilities in sales force automation,
customer data management, marketing automation, customer service, and
analytics.
It operates on the .NET framework, allowing developers to integrate other
applications using web services technologies.
This increases interaction between front and back office applications, resulting in
an overall boost in productivity.
13
The Microsoft Dynamics Marketplace provides a single location for developers to
create and publish their products developed on the .NET and enhance the solution.
8. Chaos Intellect:
Chaos Intellect is one of today’s 10 best customer relationship management software
choices. Customer relationship management software, also known as CRM software, is
fast becoming a must-have in every office, and Chaos Intellect is making its appearance
in a number of those.
Features:
Chaos Intellect offers an excellent feature set with email integration, calendar
options, task lists, mobile access and built-in dialing capabilities.
This contact management software has a very clean interface and provides users
with a clear navigation. There are several different screen options that will allow
you to view a number of features from the application at a single time, which is a
huge benefit to those who need to multitask – and that's almost everyone these
days.
Also shown along the bottom of the application are all tasks you have set and
appointments for the day.
9. SAP CRM:
The latest version of SAP CRM Software is the mySAP CRM. Industry specific solution
and web enabled user interface are the main features of the software and the modules
cover each and every area of sales and marketing including the business users to provide
end to end solution.
Features:
The software offers a central marketing platform which helps in making
intelligent business decisions and provides end-to-end marketing solutions.
Sales planning can be done using various functionalities such as forecasting,
accounts, contacts, quotations, pricing, contracts etc.
One can get improved customer satisfaction as the software has integrated
modules to handle customer service, field service management, warranty, claim
management, maintenance, service analysts, call centers, e-service which can
provide online service immediately to the customer
The software enhances interaction with customers through the interaction centers
which helps in maximizing customer loyalty, increasing revenue and building a
client base. The activities such as telesales, multifunctional shared service, and
online customer interaction are provided under the module.
The feature of business communication enables the company to immediately send
emails, fax, text message etc to the right person who helps in preventing delays
14
and all the features are provided without making extra expense on communication
systems.
10. InTouch CRM:
Managing customer data is a critical element of today's business, where information is
the key to the existence of any business today. InTouch CRM helps you maintain records
of each and every customer interaction from the lead stage till their repeat sales.
Importantly, the application helps you retrieve information regarding the client, conduct
targeted marketing activities, and monitor each and every activity through smart reports.
Features:
Conduct targeted email and SMS based campaigns that can be directed at new
prospects to get them into your clientele. The campaign can also be selectively
targeted at a group derived from your existing customer, for goodwill
communication, product upgrades, and even cross selling them some of your
other product.
Gather responses generated through the campaign, and respond immediately to
the same.
Maintain records of each and every interaction for all customers big and small in
the system.
Generate reports that can help management take quick decision about the
effectiveness of marketing efforts, and fine tune it further
3.0 Conclusion
The overall benefits of CRM software include extending the company's value across the firm
through data integration, increasing customer retention and loyalty, and responding effectively to
competition in the marketplace. Finding the right CRM software that matches companies'
strategies and objectives allows management to develop a plan for increasing sales and profits
for the long term.
A CRM solution used by a trained staff with the company's goals in mind will promote shorter
sales cycles, reduce administrative costs, require less time to track down information, improve
reporting and give quicker issue turnaround time, increase sales closing rates and improve
customer retention.
15
References
1. www.wikipedia.com
2. www.crmsoftwarereview.com
3. www.smallbizcrm.com
4. www.crmreviews.com
5. www.crmcaffe.com