customer relationship managemen sbi
TRANSCRIPT
-
8/2/2019 Customer Relationship Managemen Sbi
1/71
A PROJECT REPORT ON MANAGEMENT INBANKING SECTOR
BACHLOR OF COMMERCEBANKING AND INSURANCESEMISTER V
[ACADEMIC YEAR]2011-2012
SUBMITTED BYNILIMA KOTKAR
TYB&I 23
PROJECT GUIDE
MR. MAHESH PATIL
MANISHA EDUCATION TRUSTSSMT JANAKIBAI RAMA SALVI
DEGREE COLLEGE OF ARTS, COMMERCE &SCIENCE
MANISHA NAGAR KALWA [THANE]
-
8/2/2019 Customer Relationship Managemen Sbi
2/71
DECLARATION BY STUDENT
I hear by declare that this project Report titled CUSTOMER
RELATIONSHIP MANAGEMENT submitted by me to the
department of management studies, Smt. Janakibai Rama Salvi
Degree College Of Arts, Commerce & Science , is a bonafide
work undertaken by me and it is not submitted to any other
University or institution for the award to any degree/diploma/
certificate or published any time before.
-
8/2/2019 Customer Relationship Managemen Sbi
3/71
PROJECT ABSTRACT
In India banking sector plays a major role in savings of a
person. There are many players in life banking sector, and SBI isleading as it has roots in India from more than 50 years. To
purchase anything in this world the customer / a/c holder has his/her
own choice of preferences according to those preferences only, one
can purchase the require product. The project study of SBI linked
with CRM (CUSTOMER RELATIONSHIP MANAGEMENT).
The aim of study to examine and make the bank enable to the
track customer / a/c holder sell the appropriate product
understanding their needs and wants and to insure a long term
retention of customer / a/c holders through the application of CRM
in a comprehensive manner monitoring the performance of CRM to
take corrective actions necessary to assure the results match the
plan projections.
Coming to SBI in India its making effort to attract
customer / a/c holders and tap the banking market. So this study is
also intended to find customer / a/c holders and the retention value
through the application of CRM in SBI.
The sample survey is conducted on 100 customer / a/c holders
belonging to different categories. Commercial Banks are unable to
create enough brand value and trust in customer / a/c holders.
The current study explores the association between deployment of
customer relationship management (CRM) best practices and
loyalty of profitable customers in Indian retail banking sector. The
-
8/2/2019 Customer Relationship Managemen Sbi
4/71
study comprises two parts. The first part called the CRM best
practices survey involves the use of descriptive research design.
The second part viz. case study research involves the use of
embedded customer loyalty survey. The hypothesis testing based on
literal and theoretical replication is done using the concept of
pattern matching. The findings reveal that there is no perfect bank,
as yet, across the three bank types, which has deployed all the 29
CRM best practices to the fullest extent. The results of literal and
theoretical replication done by using pattern matching technique
indicates no strong association between deployment of CRM best practices in scheduled commercial banks and loyalty levels of both
high and medium relationship value retail customers. The study
develops a list of 29 CRM best practices, which may be helpful to
the organizations toward achieving comprehensive CRM
deployment. The results also imply that going for CRM deployment
may not be a profitable strategy for retail banks, particularly in theIndian context.
ACKNOWLEDGEMENT
-
8/2/2019 Customer Relationship Managemen Sbi
5/71
The presentation of the report in the way required has been made
possible by the way of contribution of various people. The
completion of this project Report titled VETURE CAPITAL
brings to express thanks to one & all of those who helped along
the way. I am very thankful to PROF. RENU PRASAD MADAM,
my college Project guide for guiding me to conduct my project
report.
I would also like express my gratitude to Mr. Raj Kumar Kolhe Sir,
Principal of the college for giving his support and guidance
throughout this project.
CONTENTS
-
8/2/2019 Customer Relationship Managemen Sbi
6/71
INTRODUCTION & NEED OF CRM.01-14
CHALLENGES...15-17
TYPES & VARIATIONS...18-34
ECRM..35-43
VCRM..44-46
MOBILE CRM...47-52
FEATURES OF CRM53-56
RETURN ON INVESTMENT..57-59
COMPONENTS.60-63
RESEARCH METHODOLOGY.64-65
LIMITATIONS OF STUDY..66
QUESTIONNIRE..67-68
CONCLUSIONS &RECOMMENDATIONS...............................69-71
BIBLOGRAPHY72INTRODUCTION OF CUSTOMER RELATIONSHIP MANAGEMENT
Several commercial CRM banking packages are available whichvary in their approach to CRM. However, as mentioned above,
-
8/2/2019 Customer Relationship Managemen Sbi
7/71
CRM is not just a technology, but rather a comprehensive
customer / a/c holder-centric approach to the banks philosophy in
dealing with its customer / a/c holders. This includes policies and
process, front-of-house customer / a/c holder service, employee
training, marketing systems and information management. Hence it
is important that any CRM implementation considerations stretch
beyond technology, towards the broader organizational
requirements.
The objectives of a CRM strategy most consider a banksspecific situation and its customer / a/c holders needs and
expectations. Information gained through CRM initiatives can
support the development of marketing strategy by developing the
organizations knowledge in areas such as identifying customer /
a/c holder segments, improving customer / a/c holder retention,
improving product offerings (by better understanding customer / a/cholder needs), and by identifying the organizations most profitable
customer / a/c holders.
CRM strategies can vary in size, complexity and scope. Some
banks consider a CRM strategy to only focus on the management of
a team of sales people. However, other CRM strategy can cover
customer / a/c holder interaction across the entire organization.
Many commercial CRM banking packages that are available
provide features that serve sales, marketing event management, and
project management and finance.
Managing the customer / a/c holder experience, maintaining a
more reliable data base, improving service operations, fostering
-
8/2/2019 Customer Relationship Managemen Sbi
8/71
customer / a/c holder loyalty, and embracing the characteristics of
high performance marketing and other related subjects.
Making such a pivot in CRM to create customer / a/c holder
interactions that produce optimal experiences and LONG TERM
relationships must be the top mission. Above all, those experiences
must be consistent with a banks brand promise.
FINANCIAL SECTOR OVERVIEW INDIA
The financial institutions are playing a vital role for
providing financial assistance, these should be fulfilling by the
financial institutions. Generally the financial services, contains
banking services, mutual funds, chits, financial institutions and
banking etc.
The people are attracted towards banking because of their
attractive benefits like high interest rates and which provide
maximum security to their property (important papers, jewelry
cash) like locker system Due to these reasons maximum number of
persons are diverting or preferring or attracting towards banking
sector. By observing this reason most of the organizations areentering into the banking sector. It is not possible for every
organization to rule the market or to become market leader .To
compete with the competitors or to be stable in the market or to
become a market leader we have to concentrate on consumer
,because customer / a/c holder is the ultimate person who gets the
benefits provided by the bank. For that, those organizations (co-operative banks or commercial banks) who prepare the plans
-
8/2/2019 Customer Relationship Managemen Sbi
9/71
according to the minds or attitudes of the consumer /a/c holders by
providing attractive benefits will get more success.
Banking helps to protect the financial security of your
property in the event of your saving. This is especially important
when you are the primary wage earner. The owner of the bank
account kept some part of his earning for future profits.
RBI RESERVE BANK OF INDIA
Reforms in the banking sector were initiated with the
passage by passing RBI act 1934 w. e. f. from 1 st April 1935. The
RBI since (nationalized) incorporation as a statutory body from 1 st
January 1949 has fastidiously stuck to its schedule of framing
regulations and registering the co-operative and commercial
banking sector banks.
As an apex institution, the RBI has been guarding, monitory,
regulating, controlling & promoting the Indian financial system.
The RBI functions within framework of mixed economy planning
in which it perform number of functions like Note issuing authority,
government banker, bankers bank, exchange management &
control, supervising authority, credit control, export finance etc.
Since being set up an independent statutory body the RBI
has put in a frame work of globally compatible regulations in the
Co.-operative as well as commercial banking sector, bank
registration procedure.
-
8/2/2019 Customer Relationship Managemen Sbi
10/71
By passing of the banking regulation act 1949, the banking
sector has been opened up for commercial banks to carry on
banking business.
WHAT ARE BANKS MAIN FUNCTIONS?
Essentially, banking sector operates with different types of functions:
Accepting deposits
Lending money
Financial & other services like leasing, making availability of
mutual funds, money transfer, factoring, providing housing
finance etc.,
1.1. Indian Banking
The structure of schedule banks in India in shown in figure 1 the
total number of public sector banks (PSBs) stands at 28. In the
category of private banks (PBs), there are 16 banks classified as old
private banks (OPBs) which were existing prior to the liberalization
of the banking sector. The new private banks (NPBs) were born
after 1991-92 with the opening up of this sector to private players.The total number of NPBs, as of 1st May, 2007, is 8. Plus, there are
29 foreign banks (FBs), most of which are limited to the
metropolitan cities (RBI, 2006). In all, the total number of
scheduled commercial banks as of 1 st May, 2007 is 81.
1.2. Retail Banking
-
8/2/2019 Customer Relationship Managemen Sbi
11/71
Retail banking refers to the dealing of commercial banks with
individual customers, both on liabilities and assets sides of the
balance sheet (Gopinath, 2005b). Similarly, Sood (2003) defines
retail banking as catering to the multiple banking requirements of
individuals relating to deposits, advances and associated services
(p. 9).
Figure 1: Structure of Scheduled Banks in India
Literature Review
CRM has been a part of marketing literature since more than a
decade. Interestingly, there is still much debate over what exactly
constitutes CRM. According to Parvatiyar and Sheth (2001), some
-
8/2/2019 Customer Relationship Managemen Sbi
12/71
of the themes represent a narrow functional marketing perspective
while others offer a perspective that is broad and paradigmatic in
approach and orientation. One example of a narrow perspective is
to view CRM as database marketing emphasizing promotional
aspects of marketing by leveraging customer databases. Other
examples of a narrow approach include electronic marketing and
after marketing. Electronic marketing encompasses all marketing
efforts supported by information technology while after marketing
efforts focus on customer bonding after the sale is made on a
broader level, CRM may mean customer retention or partnering. Inorder to develop a comprehensive list of CRM practices, it is
essential to identify the key constructs of CRM. In this direction,
Sin (2005) has proposed that CRM comprises the following four
constructs: Key customer focus, CRM organization, Knowledge
management and Technology-based CRM. Each of these is
discussed as follows.
Key customer focus
This is all about developing a strong customer focus and
continuously delivering superior value to selected key customers
through personalized/ customized offerings.
CRM organization
It implies organizing the whole organization around CRM, which
will lead to considerations like organizational structure,
commitment of resources and human resources management.
Knowledge management
Key facets of this construct include learning about customer needs
and wants, dissemination and sharing of this knowledge and action.
Technology-based CRM
-
8/2/2019 Customer Relationship Managemen Sbi
13/71
Technology plays the role of enabler in CRM deployment and
allows firms to achieve greater customization and better service at
lower cost. A review of academic and practitioners literature was
done to develop a comprehensive list of CRM practices.
CRM defines the process of the bank are fully occupied with
acquiring customer / a/c holders, selling the product to the customer
/ a/c holders, and maintaining a LONG TERM RELATIONSHIP
to a customer / a/c holder.
Customer relationship management (CRM) is a widely-implemented strategy for managing a companys interactions with
customers, clients and sales prospects. It involves using technology
to organize, automate, and synchronize business processes
principally sales activities, but also those for marketing, customer
service, and technical support. [ The overall goals are to find, attract,
and win new clients, nurture and retain those the company alreadyhas, entice former clients back into the fold, and reduce the costs of
marketing and client service. Customer relationship management
describes a company-wide business strategy including customer-
interface departments as well as other departments. Measuring and
valuing customer relationships is critical to implementing this
strategy.
Benefits of CRM
A CRM system may be chosen because it is thought to provide the
following advantages: Quality and efficiency
-
8/2/2019 Customer Relationship Managemen Sbi
14/71
Decrease in overall costs
Decision support
Enterprise agility
Customer Attention
Challenges
Successful development, implementation, use and support of
customer relationship management systems can provide a
significant advantage to the user, but often, there are obstacles that
obstruct the user from using the system to its full potential.
-
8/2/2019 Customer Relationship Managemen Sbi
15/71
Instances of a CRM attempting to contain a large, complex group of
data can become cumbersome and difficult to understand for an ill-
trained user.
Additionally, an interface that is difficult to navigate or understand
can hinder the CRMs effectiveness, causing users to pick and
choose which areas of the system to be used, while others may be
pushed aside. This fragmented implementation can cause inherent
challenges, as only certain parts are used and the system is not fully
functional. The increased use of customer relationship management
software has also led to an industry-wide shift in evaluating the roleof the developer in designing and maintaining its software.
Companies are urged to consider the overall impact of a viable
CRM software suite and the potential for good or harm in its use.
Complexity
Tools and workflows can be complex, especially for large businesses. Previously these tools were generally limited to simple
CRM solutions which focused on monitoring and recording
interactions and communications. Software solutions then expanded
to embrace deal tracking, territories, opportunities, and the sales
pipeline itself. Next came the advent of tools for other client-
interface business functions, as described below. These tools have
been, and still are, offered as on-premises software that companies
purchase and run on their own IT infrastructure.
Poor usability
One of the largest challenges that customer relationship
management systems face is poor usability. With a difficult
interface for a user to navigate, implementation can be fragmented
or not entirely complete.
-
8/2/2019 Customer Relationship Managemen Sbi
16/71
The importance of usability in a system has developed over time.
Customers are likely not as patient to work through malfunctions or
gaps in user safety, and there is an expectation that the usability of
systems should be somewhat intuitive: it helps make the machine
an extension of the way I think not how it wants me to think.
Fragmentation
Often, poor usability can lead to implementations that are
fragmented isolated initiatives by individual departments to
address their own needs. Systems that start disunited usually staythat way: soloed thinking and decision processes frequently lead to
separate and incompatible systems, and dysfunctional processes.
A fragmented implementation can negate any financial benefit
associated with a customer relationship management system, as
companies choose not to use all the associated features factored
when justifying the investment. Instead, it is important that supportfor the CRM system is companywide. The challenge of fragmented
implementations may be mitigated with improvements in late-
generation CRM systems.
Business reputation
Building and maintaining a strong business reputation has become
increasingly challenging. The outcome of internal fragmentation
that is observed and commented upon by customers is now visible
to the rest of the world in the era of the social customer; in the past,
only employees or partners were aware of it. Addressing the
fragmentation requires a shift in philosophy and mindset in an
organization so that everyone considers the impact to the customer
of policy, decisions and actions. Human response at all levels of the
-
8/2/2019 Customer Relationship Managemen Sbi
17/71
organization can affect the customer experience for good or ill.
Even one unhappy customer can deliver a body blow to a business.
Some developments and shifts have made companies more
conscious of the life-cycle of a customer relationship management
system. Companies now consider the possibility of brand loyalty
and persistence of its users to purchase updates, upgrades and future
editions of software.
Security concerns
A large challenge faced by developers and users is found in strikinga balance between ease of use in the CRM interface and suitable
and acceptable security measures and features. Corporations
investing in CRM software do so expecting a relative ease of use
while also requiring that customer and other sensitive data remain
secure. This balance can be difficult, as many believe that
improvements in security come at the expense of system usability.
-
8/2/2019 Customer Relationship Managemen Sbi
18/71
Types/variations
Sales force automation
Sales force automation (SFA) involves using software to streamline
all phases of the sales process, minimizing the time that sales
representatives need to spend on each phase. This allows a business
to use fewer sales representatives to manage their clients. At the
heart of SFA is a contact management system for tracking and
recording every stage in the sales process for each prospective
client, from initial contact to final disposition. Many SFA
applications also include insights into opportunities, territories,
sales forecasts and workflow automation, quote generation, and
product knowledge. Modules for Web 2.0 e-commerce and pricing
are new, emerging interests in SFA.
Marketing
CRM systems for marketing help the enterprise identify and target
potential clients and generate leads for the sales team. A key
marketing capability is tracking and measuring multichannel
campaigns, including email, search, social media, telephone and
direct mail. Metrics monitored include clicks, responses, leads,
deals, and revenue. Alternatively, Prospect Relationship
Management (PRM) solutions offer to track customer behavior andnurture them from first contact to sale, often cutting out the active
sales process altogether.
Customer service and support
Recognizing that service is an important factor in attracting and
retaining customers, organizations are increasingly turning totechnology to help them improve their clients experience while
-
8/2/2019 Customer Relationship Managemen Sbi
19/71
aiming to increase efficiency and minimize costs. Even so, a 2009
study revealed that only 39% of corporate executives believe their
employees have the right tools and authority to solve client
problems.
Appointment
Creating and scheduling appointments with customers is a central
activity of most customer oriented businesses. Sales, customer
support, and service personnel regularly spend a portion of their
time getting in touch with customers and prospects through avariety of means to agree on a time and place for meeting for a
sales conversation or to deliver customer service. Appointment
CRM is a relatively new CRM platform category in which an
automated system is used to offer a suite of suitable appointment
times to a customer via e-mail or through a web site. An automated
process is used to schedule and confirm the appointment, and placeit on the appropriate person's calendar. Appointment CRM systems
can be an origination point for a sales lead and are generally
integrated with sales and marketing CRM systems to capture and
store the interaction.
Analytics
Relevant analytics capabilities are often interwoven into
applications for sales, marketing, and service. These features can be
complemented and augmented with links to separate, purpose-built
applications for analytics and business intelligence. Sales analytics
let companies monitor and understand client actions and
preferences, through sales forecasting and data quality.
-
8/2/2019 Customer Relationship Managemen Sbi
20/71
Integrated/Collaborative
Departments within enterprises especially large enterprises
tend to function with little collaboration. More recently, the
development and adoption of these tools and services have fostered
greater fluidity and cooperation among sales, service, and
marketing. This finds expression in the concept of collaborative
systems that use technology to build bridges between departments.
For example, feedback from a technical support center can
enlighten marketers about specific services and product features
clients are asking for. Reps, in their turn, want to be able to pursuethese opportunities without the burden of re-entering records and
contact data into a separate SFA system.
Small business
For small business, basic client service can be accomplished by a
contact manager system: an integrated solution that letsorganizations and individuals efficiently track and record
interactions, including emails, documents, jobs, faxes, scheduling,
and more. These tools usually focus on accounts rather than on
individual contacts. They also generally include opportunity insight
for tracking sales pipelines plus added functionality for marketing
and service. As with larger enterprises, small businesses are finding
value in online solutions, especially for mobile and telecommuting
workers.
Social media
Social media sites like Twitter, LinkedIn and Face book are
amplifying the voice of people in the marketplace and are having
profound and far-reaching effects on the ways in which people buy.
-
8/2/2019 Customer Relationship Managemen Sbi
21/71
Customers can now research companies online and then ask for
recommendations through social media channels, making their
buying decision without contacting the company.
People also use social media to share opinions and experiences on
companies, products and services. As social media is not as widely
moderated or censored as mainstream media, individuals can say
anything they want about a company or brand, positive or negative.
Increasingly, companies are looking to gain access to these
conversations and take part in the dialogue. More than a few
systems are now integrating to social networking sites. Socialmedia promoters cite a number of business advantages, such as
using online communities as a source of high-quality leads and a
vehicle for crowd sourcing solutions to client-support problems.
Companies can also leverage client stated habits and preferences to
"hyper-target" their sales and marketing communications.
Non-profit and membership-based
Systems for non-profit and membership-based organizations help
track constituents and their involvement in the organization.
Capabilities typically include tracking the following: fund-raising,
demographics, membership levels, membership directories,
volunteering and communications with individuals.
Many include tools for identifying potential donors based on
previous donations and participation. In light of the growth of social
networking tools, there may be some overlap between
social/community driven tools and non-profit/membership tools.
-
8/2/2019 Customer Relationship Managemen Sbi
22/71
Custom CRM
Custom CRM software is developed specifically for one client. The
advantage of Custom CRM software is that it will have all required
functionality, exactly as a client needs it to be. With Custom CRM
software, modifications will not be needed. Pre-written software
sometimes has missing functionality, causing companies to use
multiple software systems.
Strategy
For larger-scale enterprises, a complete and detailed plan isrequired to obtain the funding, resources, and company-wide
support that can make the initiative of choosing and implementing a
system successfully. Benefits must be defined, risks assessed, and
cost quantified in three general areas:
Processes: Though these systems have many technologicalcomponents, business processes lie at its core. It can be seen
as a more client-centric way of doing business, enabled by
technology that consolidates and intelligently distributes
pertinent information about clients, sales, marketing
effectiveness, responsiveness, and market trends. Therefore,
a company must analyze its business workflows and
processes before choosing a technology platform; some will
likely need re-engineering to better serve the overall goal of
winning and satisfying clients. Moreover, planners need to
determine the types of client information that are most
relevant, and how best to employ them.
-
8/2/2019 Customer Relationship Managemen Sbi
23/71
People: For an initiative to be effective, an organization must
convince its staff that the new technology and workflows will
benefit employees as well as clients. Senior executives need
to be strong and visible advocates who can clearly state and
support the case for change. Collaboration, teamwork, and
two-way communication should be encouraged across
hierarchical boundaries, especially with respect to process
improvement.
Technology: In evaluating technology, key factors include
alignment with the companys business process strategy and
goals, including the ability to deliver the right data to the
right employees and sufficient ease of adoption and use.
Platform selection is best undertaken by a carefully chosen
group of executives who understand the business processes to
be automated as well as the software issues. Depending upon
the size of the company and the breadth of data, choosing an
application can take anywhere from a few weeks to a year or
more.
-
8/2/2019 Customer Relationship Managemen Sbi
24/71
Implementation
Implementation issues
Increases in revenue, higher rates of client satisfaction, and
significant savings in operating costs are some of the benefits to an
enterprise. Proponents emphasize that technology should be
implemented only in the context of careful strategic and operational
planning. Implementations almost invariably fall short when one or
more facets of this prescription are ignored:
Poor planning: Initiatives can easily fail when efforts are
limited to choosing and deploying software, without an
accompanying rationale, context, and support for the
workforce. In other instances, enterprises simply automate
flawed client-facing processes rather than redesign them
according to best practices.
Poor integration: For many companies, integrations are
piecemeal initiatives that address a glaring need: improving a
particular client-facing process or two or automating a
favored sales or client support channel. Such point
solutions offer little or no integration or alignment with a
companys overall strategy. They offer a less than complete
client view and often lead to unsatisfactory user experiences.
Toward a solution: overcoming soloed thinking. Experts
advise organizations to recognize the immense value of
integrating their client-facing operations. In this view,
internally-focused, department-centric views should be
discarded in favor of reorienting processes toward
information-sharing across marketing, sales, and service.
-
8/2/2019 Customer Relationship Managemen Sbi
25/71
Adoption issues
Historically, the landscape is littered with instances of low adoption
rates. Many of the challenges listed above offer a glimpse into some
of the obstacles that corporations implementing a CRM suite face;
in many cases time, resources and staffing do not allow for the
troubleshooting necessary to tackle an issue and the system is
shelved or sidestepped instead.
Why is it so difficult sometimes to get employees up to date on
rapidly developing new technology? Essentially, your employees
need to understand how the system works, as well as understand theclients and their needs. No doubt this process is time consuming,
but it is well worth the time and effort, as you will be better able to
understand and meet the needs of your clients. CRM training needs
to cover two types of information: relational knowledge and
technological knowledge.
Statistics
In 2003, a Gartner report estimated that more than $1 billion had
been spent on software that was not being used. More recent
research indicates that the problem, while perhaps less severe, is a
long way from being solved. According to CSO Insights , less than
40 percent of 1,275 participating companies had end-user adoption
rates above 90 percent. Additionally, many corporations only use
CRM systems on a partial or fragmented basis, thus missing
opportunities for effective marketing and efficiency.
In a 2007 survey from the U.K., four-fifths of senior executives
reported that their biggest challenge is getting their staff to use the
systems they had installed. Further, 43 percent of respondents said
they use less than half the functionality of their existing system; 72
-
8/2/2019 Customer Relationship Managemen Sbi
26/71
percent indicated they would trade functionality for ease of use; 51
percent cited data synchronization as a major issue; and 67 percent
said that finding time to evaluate systems was a major problem.
With expenditures expected to exceed $11 billion in 2010,
enterprises need to address and overcome persistent adoption
challenges.
The amount of time needed for the development and
implementation of a customer relationship management system can
prove costly to the implementation as well. Research indicates that
implementation timelines that are greater than 90 days in length runan increased risk in the CRM system failing to yield successful
results.
Increasing usage and adoption rates
Specialists offer these recommendations for boosting adoptions
rates and coaxing users to blend these tools into their dailyworkflow:
Additionally, researchers found the following themes were common
in systems that users evaluated favorably. These positive
evaluations led to the increased use and more thorough
implementation of the CRM system. Further recommendations
include
Breadcrumb Trail: This offers the user a path, usually at
the top of a web or CRM page, to return to the starting point
of navigation. This can prove useful for users who might find
themselves lost or unsure how they got to the current screen
in the CRM.
-
8/2/2019 Customer Relationship Managemen Sbi
27/71
Readily available search engine boxes: Research shows
that users are quick to seek immediate results through the use
of a search engine box. A CRM that uses a search box will
keep assistance and immediate results quickly within the
reach of a user.
Help Option Menu: An outlet for quick assistance or
frequently asked questions can provide users with a lifeline
that makes the customer relationship management software
easier to use. Researchers suggest making this resource a
large component of the CRM during the development stage.
A larger theme is found in that the responsiveness, intuitive design
and overall usability of a system can influence the users opinions
and preferences of systems. Researchers noted a strong correlation
between the design and layout of a user interface and the perceived
level of trust from the user. The researchers found that users felt
more comfortable on a system evaluated as usable and applied that
comfort and trust into increased use and adoption.
Help menus
One of the largest issues surrounding the implementation and
adoption of a CRM comes in the perceived lack of technical and
user support in using the system. Individual users and large
corporations find themselves equally stymied by a system that is
not easily understood. Technical support in the form of a qualified
and comprehensive help menu can provide significant improvement
in implementation when providing focused, context-specific
information.
-
8/2/2019 Customer Relationship Managemen Sbi
28/71
Data show that CRM users are oftentimes unwilling to consult a
help menu if it is not easily accessible and immediate in providing
assistance. A 1998 case study found that users would consult the
help menu for an average of two or three screens, abandoning the
assistance if desired results werent found by that time.
Researchers believe that help menus can provide assistance to users
through introducing additional screenshots and other visual and
interactive aids. A 2004 case study concluded that the proper use of
screenshots can significantly support a users developing a mental
model of the program and help in identifying and locatingwindow elements and objects. This research concluded that screen
shots allowed users to learn more, make fewer mistakes, and learn
in a shorter time frame, which can certainly assist in increasing the
time frame for full implementation of a CRM system with limited
technical or human support.
Experts have identified five characteristics to make a help menueffective:
context-specific the help menu contains only the
information relevant to the topic that is being discussed or
sought
useful in conjunction with being context-specific, the
help menu must be comprehensive in including all of theinformation that the user seeks
Obvious to invoke the user must have no trouble in
locating the help menu or how to gain access to its content.
non-intrusive the help menu must not interfere with
the users primary path of work and must maintain a distancethat allows for its use only when requested
-
8/2/2019 Customer Relationship Managemen Sbi
29/71
easily available the information of the help menu must
be accessible with little or few steps required
Development
Thoughtful and thorough development can avoid many of the
challenges and obstacles faced in using and implementing a
customer relationship management system. With shifts in
competition and the increasing reliance by corporations to use a
CRM system, development of software has become more important
than ever. Technical communicators can play a significant role in
developing software that is usable and easy to navigate.
Clarity
One of the largest issues in developing a usable customer
relationship management system comes in the form of clear and
concise presentation. Developers are urged to consider the
importance of creating software that is easy to understand and
without unnecessary confusion, thus allowing a user to navigate the
system with ease and confidence.
Strong writing skills can prove extremely beneficial for software
development and creation. A 1998 case study showed that software
engineering majors who successfully completed a technical writing
course created capstone experience projects that were more mindfulof end user design than the projects completed by their peers. The
case study yielded significant results:
Students who completed the technical writing course
submitted capstone projects that contained more vivid and
explicit detail in writing than their peers who did not
complete the course. Researchers note that the studentsappeared to weigh multiple implications on the potential
-
8/2/2019 Customer Relationship Managemen Sbi
30/71
user, and explained their decisions more thoroughly than
their peers.
Those participating in the writing course sought out test users
more frequently to add a perspective outside their own as
developer. Students appeared sensitive of the users ability to
understand the developed software.
The faculty member overseeing the capstone submissions felt
that students who did not enroll in the technical writing class
were at a significant disadvantage when compared to their peers who did register for the course.
In the case study, researchers argue for the inclusion of technical
writers in the development process of software systems. These
professionals can offer insight into usability in communication for
software projects. Technical writing can help build a unified
resource for successful documentation, training and execution of customer relationship management systems.
Test users
In many circumstances, test users play a significant role in
developing software. These users offer software developers an
outside perspective of the project, oftentimes helping developersgain insight into potential areas of trouble that might have been
overlooked or passed over because of familiarity with the system.
Test users can also provide feedback from a targeted audience: a
software development team creating a customer relationship
management software system for higher education can have a user
with a similar profile explore the technology, offering opportunitiesto cater the further development of the system. Test users help
-
8/2/2019 Customer Relationship Managemen Sbi
31/71
developers discover which areas of the software perform well, and
which areas require further attention.
A 2007 study suggests some important steps are needed in creating
a quality and effective test environment for software development.
In this case study, researchers observed a Danish software company
in the midst of new creating new software with usability in mind.
The study found these four observations most appropriate: The developers must make a conscious effort and
commitment to the test user. Researchers note that the
company had dedicated specific research space and staff focused exclusively on usability.
Usability efforts must carry equal concern in the eyes of
developers as other technology-related concerns in the
creation stage. The study found that test users became
discouraged when items flagged as needing attention were
marked as lower priority by the software developers.
Realistic expectations from both test users and software
developers help maintain a productive environment.
Researchers note that developers began to limit seeking input
from test users after the test users suggested remedies the
developers felt were improbable, leading the developers to
believe consulting the test users would only prove to be more
work.
Developers must make themselves available to test users and
colleagues alike throughout the creation process of a software
system.
Additionally, involving too many test users can prove cumbersome
and delay the development of a CRM system. Additional research
-
8/2/2019 Customer Relationship Managemen Sbi
32/71
notes that test users may be able to identify an area that proves
challenging in a software system, but might have difficulty
explaining the outcome. A related 2007 case study noted that test
users were able to describe roughly a third of the usability
problems. Further, the language used by test users in many
circumstances proves to be quite general and lacking the specific
nature needed by developers to enact real change.
Privacy and data security system
One of the primary functions of these tools is to collect information
about clients, thus a company must consider the desire for privacy
and data security, as well as the legislative and cultural norms.
Some clients prefer assurances that their data will not be shared
with third parties without their prior consent and that safeguards are
in place to prevent illegal access by third parties.
Market structures
This market grew by 12.5 percent in 2008, from revenue of $8.13
billion in 2007 to $9.15 billion in 2008. The following table lists the
top vendors in 2006-2008 (figures in millions of US dollars)
published in Gartner studies.
-
8/2/2019 Customer Relationship Managemen Sbi
33/71
Vendor 2008
Revenue
2008 Share
(%)
2007
Revenue
2007
Share (%)
2006
Revenue
2006 Share
(%)
SAP 2,055 22.5(-2.8)
2,050.8 25.3 1,681.7 26.6
Oracle 1,475 16.1 1,319.8 16.3 1,016.8 15.5
Salesforce.com 965 10.6 676.5 8.3 451.7 6.9
Microsoft 581 6.4 332.1 4.1 176.1 2.7
Amdocs 451 4.9 421.0 5.2 365.9 5.65
Others 3,620 39.6 3,289.1 40.6 2,881.6 43.7
Total 9,147 100 8,089.3 100 6,573.8 100
Related trends
Many CRM vendors offer Web-based tools (cloud computing) and
software as a service (SaaS), which are accessed via a secure
Internet connection and displayed in a Web browser. These
applications are sold as subscriptions, with customers not needingto invest in purchasing and maintaining IT hardware, and
subscription fees are a fraction of the cost of purchasing software
outright.
The era of the "social customer" refers to the use of social media
(Twitter, Face book, LinkedIn, Yelp, customer reviews in Amazon
etc.) by customers in ways that allow other potential customers to
glimpse real world experience of current customers with the seller's
products and services. This shift increases the power of customers
to make purchase decisions that are informed by other parties
sometimes outside of the control of the seller or seller's network. In
response, CRM philosophy and strategy has shifted to encompass
social networks and user communities, podcasting, and
personalization in addition to internally generated marketing,
-
8/2/2019 Customer Relationship Managemen Sbi
34/71
advertising and webpage design. With the spread of self-initiated
customer reviews, the user experience of a product or service
requires increased attention to design and simplicity, as customer
expectations have raised. CRM as a philosophy and strategy is
growing to encompass these broader components of the customer
relationship, so that businesses may anticipate and innovate to
better serve customers, referred to as "Social CRM".
Another related development is Vendor Relationship Management,
or VRM, which is the customer-side counterpart of CRM: tools and
services that equip customers to be both independent of vendorsand better able to engage with them. VRM development has grown
out of efforts by Project VRM at Harvard's Berkman Center for
Internet & Society and Identity Commons' Internet Identity
Workshops, as well as by a growing number of startups and
established companies. VRM was the subject of a cover story in the
May 2010 issue of CRM Magazine.In a 2001 research note, META Group (now Gartner) analyst Doug
Laney first proposed, defined and coined the term Extended
Relationship Management (XRM). He defined XRM as the
principle and practice of applying CRM disciplines and
technologies to other core enterprise constituents, primarily
partners, employees and suppliers... as well as other secondary
allies including government, press, and industry consortia.
Microsoft markets its Dynamics CRM as "XRM" for its
extensibility for potential XRM-issues beyond customer data.
ECRM
-
8/2/2019 Customer Relationship Managemen Sbi
35/71
ECRM This concept is derived from E-commerce. It also uses net
environment i.e., intranet, extranet and internet. Electronic CRM
concerns all forms of managing relationships with customers
making use of Information Technology (IT). ECRM is enterprises
using IT to integrate internal organization resources and external
marketing strategies to understand and fulfill their customers
needs. Comparing with traditional CRM, the integrated information
for ECRM intra organizational collaboration can be more efficient
to communicate with customers .
From Relationship Marketing to Customer Relationship
Marketing
The concept of relationship marketing was first coined by Leonard
Berry in 1983. He considered it to consist of attracting, maintaining
and enhancing customer relationships within organizations. In theyears that followed, companies were engaging more and more in a
meaningful dialogue with individual customers. In doing so, new
organizational forms as well as technologies were used, eventually
resulting in what we know as Customer Relationship Management
(CRM).
The main difference between RM and CRM is that the first does not
acknowledge the use of technology, where the latter uses
Information Technology (IT) in implementing RM strategies
The essence of CRM
-
8/2/2019 Customer Relationship Managemen Sbi
36/71
The exact meaning of CRM is still subject of heavy discussions.
However, the overall goal can be seen as effectively managing
differentiated relationships with all customers and communicating
with them on an individual basis. Underlying thought is that
companies realize that they can supercharge profits by
acknowledging that different groups of customers vary widely in
their behavior, desires, and responsiveness to marketing.
Loyal customers can not only give operational companies sustained
revenue but also advertise for new marketers. To reinforce the
reliance of customers and create additional customer sources, firms
utilize CRM to maintain the relationship as the general two
categories B2B (Business-to-Business) and B2C(Business-to-
Customer or Business-to-Consumer). Because of the needs and
behaviors are different between B2B and B2C, so that the
implementation of CRM should come from respective viewpoints.
Differences between CRM and ECRMMajor differences between CRM and ECRM:
Customer contacts
CRM Contact with customer made through the retail store,
phone, and fax.
-
8/2/2019 Customer Relationship Managemen Sbi
37/71
ECRM All of the traditional methods are used in addition
to Internet, email, wireless, and PDA technologies.
System interface
CRM Implements the use of ERP systems, emphasis is on
the back-end.
ECRM Geared more toward front end, which interacts with
the back-end through use of ERP systems, data warehouses,
and data marts.
System overhead (client computers)
CRM The client must download various applications to
view the web-enabled applications. They would have to be
rewritten for different platform.
ECRM Does not have these requirements because the client
uses the browser.
Customization and personalization of information
CRM Views differ based on the audience, and personalized
views are not available. Individual personalization requires
program changes.
ECRM Personalized individual views based on purchase
history and preferences. Individual has ability to customize
view.
-
8/2/2019 Customer Relationship Managemen Sbi
38/71
System focus
CRM System (created for internal use) designed based on
job function and products. Web applications designed for a
single department or business unit.
ECRM System (created for external use) designed based on
customer needs. Web application designed for enterprise-
wide use.
System maintenance and modification
CRM More time involved in implementation and
maintenance is more expensive because the system exists at
different locations and on various servers.
ECRM Reduction in time and cost. Implementation and
maintenance can take place at one location and on one server.
ECRM
As the internet is becoming more and more important in business
life, many companies consider it as an opportunity to reduce
customer-service costs, tighten customer relationships and most
important, further personalize marketing messages and enable masscustomization. ECRM is being adopted by companies because it
increases customer loyalty and customer retention by improving
customer satisfaction, one of the objectives of ECRM. E-loyalty
results in long-term profits for online retailers because they incur
less costs of recruiting new customers, plus they have an increase in
customer retention. Together with the creation of Sales Force
Automation (SFA), where electronic methods were used to gather
-
8/2/2019 Customer Relationship Managemen Sbi
39/71
data and analyze customer information, the trend of the upcoming
Internet can be seen as the foundation of what we know as ECRM
today.
As we implement ECRM process, there are three steps life
cycle:
1. Data Collection: About customers preference information
for actively (answer knowledge) and passively (surfing
record) ways via website, email, questionnaire.
2. Data Aggregation: Filter and analysis for firms specific
needs to fulfill their customers.
3. Customer Interaction: According to customers need,
company provide the proper feedback them.
We can define ECRM as activities to manage customer
relationships by using the Internet, web browsers or other electronic
touch points. The challenge hereby is to offer communication andinformation on the right topic, in the right amount, and at the right
time that fits the customers specific needs.
ECRM strategy components
When enterprises integrate their customer information, there are
three ECRM strategy components:
1. Operational: Because of sharing information, the processes
in business should make customers need as first and
seamlessly implement. This avoids multiple times to bother
customers and redundant process.
2. Analytical: Analysis helps company maintain a long-term
relationship with customers.
-
8/2/2019 Customer Relationship Managemen Sbi
40/71
3. Collaborative: Due to improved communication technology,
different departments in company implement (intra
organizational) or work with business partners (inter
organizational) more efficiently by sharing information.
Implementing and integrating ECRM work
Non-electronic solution
Several CRM software packages exist that can help companies in
deploying CRM activities. Besides choosing one of these packages,companies can also choose to design and build their own solutions.
In order to implement CRM in an effective way, one needs to
consider the following factors: Create a customer-focused culture in the organization.
Adopt customer-based managers to assess satisfaction.
Develop an end-to-end process to serve customers.
Recommend questions to be asked to help a customer solve a
problem.
Track all aspects of selling to customers, as well as prospects.
Furthermore, CRM solutions are more effective once they are being
implemented in other information systems used by the company.
Examples are Transaction Processing System (TPS) to process data
real-time, which can then be sent to the sales and finance
departments in order to recalculate inventory and financial position
quick and accurately. Once this information is transferred back to
the CRM software and services it could prevent customers from
placing an order in the belief that an item is in stock while it is not.
-
8/2/2019 Customer Relationship Managemen Sbi
41/71
Electronic solution (ECRM)
Contrast with traditional CRM being implemented under ERP
(Enterprise Resource Planning) interface communicating in firms
and with their customers, ECRM optimizes the customized
environment via web browser. This provides beneficial for effective
communication not only enterprises to external customers and
internal departments. Business personalized each of their customer
profile unified in entire organization. By "central repository",
customer may communicate with different department staff in thecorporate via Internet (or phone call). And firms are able to use the
marketing analysis for customer more mature services. As each
department integrates customers information, they can focus on
individual operational duty more efficiently, so that firm may
reduce execution cost.
ECRM in B2B market
Traditional B2B customers are usually seeking ways in order to
decrease the firms expense. Customizing the specific product and
reducing the repeated routine cost products for them can expense
least. Due to information technology developing, websites
information has been becoming an important medium to reducecollecting cost and time, and it becomes a long-term relationship
eventually. At the same time, more complex collaboration can be
implemented on networking platform. After businesses collaborate
as "supply chain partners", it takes the mutual benefits can give
both sides an equal position to increase co-work confidence.
ECRM in B2C market
-
8/2/2019 Customer Relationship Managemen Sbi
42/71
In contrast with B2B, the attitude of B2C individually purchase is
decided by the positive experience and online shopping knowledge.
Previous research found B2C enjoy the shopping online is quick to
transact, convenient to return, save energy to retailer, and fun to
browse. Thus, the marketing investigating, customers
communicating, and information obtaining are important factors to
maintain customer services.
Cloud solution
Today, more and more enterprise CRM systems move to cloudcomputing solution, " up from 8 percent of the CRM market in 2005
to 20 percent of the market in 2008, according to Gartner ". Moving
managing system into cloud, companies can cost efficiently as pay-
per-use on manage, maintain, and upgrade etc. system and connect
with their customers streamlined in the cloud. In cloud based CRM
system, transaction can be recorded via CRM databaseimmediately.
Some enterprises CRM in cloud systems are web-based customers
dont need to install an additional interface and the activities with
businesses can be updated real-time. People may communication on
mobile devices to get the efficient services. Furthermore,
customer/case experience and the interaction feedbacks are another
way of CRM collaboration and integration information in corporate
organization to improve businesses services.
There are multifarious cloud CRM services for enterprise to use and
here are some hints to the your right CRM system:
1. Assess your companys needs: some of enterprise CRM
systems are featured
-
8/2/2019 Customer Relationship Managemen Sbi
43/71
2. Take advantage of free trials: comparison and familiarization
each of the optional.
3. Do the math: estimate the customer strategy for company
budget.
4. Consider mobile options: some system like Salesforce.com
can be combined with other mobile device application.
5. Ask about security: consider whether the cloud CRM
providers give enough protect as your own.
6. Make sure the sales team is on board: as the frontline of
enterprise, the launched CRM system should be the help for
sales.
7. Know your exit strategy: understand the exit mechanism to
keep flexibility.
VCRM
Channels, through which companies can communicate with its
customers, are growing by the day, and as a result, getting their time and attention has turned into a major challenge. One of the
-
8/2/2019 Customer Relationship Managemen Sbi
44/71
reasons ECRM is so popular nowadays is that digital channels can
create unique and positive experiences not just transactions for
customers. An extreme, but ever growing in popularity, example of
the creation of experiences in order to establish customer service is
the use of Virtual Worlds, such as Second Life. Through this so-
called VCRM, companies are able to create synergies between
virtual and physical channels and reaching a very wide consumer
base. However, given the newness of the technology, most
companies are still struggling to identify effective entries in Virtual
Worlds. Its highly interactive character, which allows companies torespond directly to any customers requests or problems, is another
feature of ECRM that helps companies establish and sustain long-
term customer relationships.
Furthermore, Information Technology has helped companies to
even further differentiate between customers and address a personal
message or service. Some examples of tools used in ECRM: Personalized Web Pages where customers are recognized and
their preferences are shown.
Customized products or services.
CRM programs should be directed towards customer value that
competitors cannot match. However, in a world where almost every
company is connected to the Internet, ECRM has become a
requirement for survival, not just a competitive advantage.
Different levels of ECRM
In defining the scope of ECRM, three different levels can be
distinguished:
Foundational services:
-
8/2/2019 Customer Relationship Managemen Sbi
45/71
This includes the minimum necessary services such as web site
effectiveness and responsiveness as well as order fulfillment.
Customer-centered services:
These services include order tracking, product configuration and
customization as well as security/trust. Value-added services:
These are extra services such as online auctions and online training
and education.
Self-services are becoming increasingly important in CRMactivities. The rise of the Internet and ECRM has boosted the
options for self-service activities. A critical success factor is the
integration of such activities into traditional channels. An example
was Fords plan to sell cars directly to customers via its Web Site,
which provoked an outcry among its dealers network. CRM
activities are mainly of two different types. Reactive service is
where the customer has a problem and contacts the company.
Proactive service is where the manager has decided not to wait for
the customer to contact the firm, but to be aggressive and contact
the customer himself in order to establish a dialogue and solve
problems.
Steps to ECRM Success
Many factors play a part in ensuring that the implementation any
level of ECRM is successful. One obvious way it could be
measured is by the ability for the system to add value to the existing
-
8/2/2019 Customer Relationship Managemen Sbi
46/71
business. There are four suggested implementation steps that affect
the viability of a project like this:
1. Developing customer-centric strategies
2. Redesigning workflow management systems
3. Re-engineering work processes
4. Supporting with the right technologies
MOBILE CRM
One subset of Electronic CRM is Mobile CRM (MCRM). This is
defined as "services that aim at nurturing customer relationships,acquiring or maintaining customers, support marketing, sales or
-
8/2/2019 Customer Relationship Managemen Sbi
47/71
services processes, and use wireless networks as the medium of
delivery to the customers. However, since communications is the
central aspect of customer relations activities, many opt for the
following definition of MCRM: "communication, either one-way or
interactive, which is related to sales, marketing and customer
service activities conducted through mobile medium for the purpose
of building and maintaining customer relationships between a
company and its customer(s).
ECRM allows customers to access company services from more
and more places, since the Internet access points are increasing bythe day. MCRM however, takes this one step further and allows
customers or managers to access the systems for instance from a
mobile phone or PDA with internet access, resulting in high
flexibility.
Since MCRM is not able to provide a complete range of customer
relationship activities it should be integrated in the complete CRMsystem.
There are three main reasons that mobile CRM is becoming so
popular. The first is that the devices consumers use are improving
in multiple ways that allow for this advancement. Displays are
larger and clearer and access times on networks are improving
overall. Secondly, the users are also becoming more sophisticated.
The technology to them is nothing new so it is easy to adapt. Lastly,
the software being developed for these applications has become
worthwhile and useful to end users.
There are four basic steps that a company should follow to
implement a mobile CRM system. By following these and also
keeping the IT department, the end users and management in
agreement, the outcome can be beneficial for all.
-
8/2/2019 Customer Relationship Managemen Sbi
48/71
Step 1 - Needs analysis phase: This is the point to take your times
and understand all the technical needs and desires for each of the
users and stakeholders. It also has to be kept in mind that the
mobile CRM system must be able to grow and change with the
business.
Step 2 Mobile design phase: This is the next critical phase that
will show all the technical concerns that need to be addressed. A
few main things to consider are screen size, device storage and
security.Step 3 Mobile application testing phase: This step is mostly to
ensure that the users and stakeholders all approve of the new
system.
Step 4 Rollout phase: This is when the new system is
implemented but also when training on the final product is done
with all users.
Advantages of mobile CRM:
1. The mobile channel creates a more personal direct connection
with customers.
2. It is continuously active and allows necessary individuals to take
action quickly using the information.
3. Typically it is an opt-in only channel which allows for high and
quality responsiveness.
4. Overall it supports loyalty between the customer and company,
which improves and strengthens relationships.
Failures
-
8/2/2019 Customer Relationship Managemen Sbi
49/71
Designing, creating and implementing IT projects has always been
risky. Not only because of the amount of money that is involved,
but also because of the high chances of failure. However, a positive
trend can be seen, indicating that CRM failures dropped from a
failure rate of 80% in 1998, to about 40% in 2003. Some of the
major issues relating to CRM failure are the following: Difficulty in measuring and valuing intangible benefits.
Failure to identify and focus on specific business problems.
Lack of active senior management sponsorship. Poor user acceptance.
Trying to automate a poorly defined process.
Privacy
The effective and efficient employment of CRM activities cannot
go without the remarks of safety and privacy. Privacy policies can
be ineffective in relaying to customers how much of their
information is being used. In a recent study by The University of
Pennsylvania and University of California, it was revealed that over
half the respondents have an incorrect understanding of how their
information is being used. They believe that, if a company has a
privacy policy, they will not share the customer's information with
third party companies without the customer's express consent.
Therefore, if marketers want to use consumer information for
advertising purposes, they must clearly illustrate the ways in which
they will use the customer's information and present the benefits of
this in order to acquire the customer's consent. Privacy concerns are being addressed more and more. Legislation is being proposed that
-
8/2/2019 Customer Relationship Managemen Sbi
50/71
regulates the use of personal data. Also, Internet policy officials are
calling for more performance measures of privacy policies.
Statistics on privacy: 38% of retailers don't talk about privacy in their sign up or
welcome email
About 50% of major online retailers discuss privacy concerns
during the email subscription process
As the use of the Internet, electronic CRM solutions, and even the
existence
of e-business are rising, so are the efforts to further develop the systems being used and to increase their safety for
customers, in order to further reap the benefits of their use.
Role of CRM in improving your Business
all businesses are there to support its clients for it to achieve
success. The focus of all the companies should be on their clients.
In order to know the customer preferences, you will have to collect,
group and analyze customer details, a tool that aids you in doing all
these process is called as CRM Tool (Customer Relationship
Management Tool). By knowing the likings and disliking of your
customer will help you build a strong bond with existing clients and
also to attract many more new clients. This strategy not only applies
to conventional multinational companies even to small businesses
that entail dealing directly with clients like cleaning franchises. The
customer data and information will be stored in a central site, and
with the help of CRM tools you can access these details, manipulate
them and make your decision from anyplace in the world at all
times. The customer targeted scheme will help companies build a
strong link with their customers and thus increasing its stronghold
-
8/2/2019 Customer Relationship Managemen Sbi
51/71
with its customer, giving a profitable Return of Investments thru the
business.
Managing different types are business activates are made easy
because of these CRM tools.
Billing and Expense
Sales and Marketing
Human Resources
Project Management
The Perfect CRM Solution
A perfect CRM solution is a one that is going to make the existing
customers as lifelong customers and potential customers into new
customers. The CRM methodology sounds simple, but actually it isnot. You must show more concern while hiring a CRM solution
provider or the actual purpose of having a CRM will never be
accomplished.
There is several number of CRM service providers available out
there in the market place. Most of the service providers concentrate
only on corporate businesses, whereas the rest of the service providers have their attention on small or medium sized businesses.
Choosing the CRM solution only on the basis of price is a worse
thing to, you must also follow these steps to choose the best one.
Tips for selecting a CRM solution for your business
Selecting a best CRM solution is a complex job. You had to look
for a CRM solution that aids you in analyzing and understanding
-
8/2/2019 Customer Relationship Managemen Sbi
52/71
-
8/2/2019 Customer Relationship Managemen Sbi
53/71
Collaborative CRM Having a direct communication with the
clients without any interference from service or sales
representatives.
Analytical CRM Investigating Customer Data with a huge
volume of functions and reasons, as a perspective .
Operational CRM Offering full front end support for marketing,
sales and other related service.
CRM - Who leads the pack?
With the wide variety of CRM software available in the market one
wonders who to choose. There will always be those who excel in
any field. The CRM field as well boasts of its major players- those
who have surpassed expectations and met with customer needs,
thereby inducing customer satisfaction.
Here's a look at the CRM Industry Leaders:
Oracle
Oracle provides CRM solutions for sales, service, marketing,
contracts, E-Commerce etc. Oracle CRM boasts of excellent
storage and usage of customer information besides an amazing
ability to streamline processes and the ability to improve the quality
of data as well. Accurate information is Oracle CRM's best offer.
One other noteworthy feature in Oracle CRM is its functionality. It
provides for the best kind of support for partners, customers, agents,
call centers etc. Oracle's CRM solutions also vehemently support
back office operations like supply chain, finance, personnel etc.
-
8/2/2019 Customer Relationship Managemen Sbi
54/71
Sales force
Sales forces CRM options are based on customers' needs and offer
excellent integration with all non CRM business applications. Some
of them for instance provide for data sharing that helps to support
sales. This in turn provides additional access to partners, suppliers,
and customers. Appforce OS for example is an on-demand CRM
option that allows organizations to share CRM applications all
within a single environment. Sales forces CRM solutions are
extremely flexible, adaptable and can be changed to suit
organization needs. Sales force achieves an integrated, holisticapproach to CRM.
Right Now
Right Now CRM solutions are built on experience in customer
service that accounts for their excellent customer approach. Right
Now main achievement is an ability to increase customer loyalty. Itmanages to do this while cutting down costs as well. Profitability
increases greatly with use of their on-demand solutions. They offer
customer service software, sales automation software and
marketing automation software. These are crucial for providing
business information and increasing overall productivity. Right
Now CRM software serves to utilize complete customer data and
achieves a shorter time frame for results.
Siebel
Siebel boasts of both on premise CRM and as hosted solutions.
These solutions can be used for large and small industries. Siebel
solutions boast of shorter implementation time. They are
customized to fit industry needs. Siebel solutions provide
-
8/2/2019 Customer Relationship Managemen Sbi
55/71
employees and customers with accurate, relevant and up-to-date
information. Simplicity and functionality are the keywords when
dealing with Siebel's CRM solutions. Since your customers deserve
the best Siebel offers customer centric options suited precisely for
them. Siebel's solutions improve agent productivity as well.
SAP
SAP offers a vast range of solutions from the traditional to the more
offbeat ones most of them encompassing a huge range of functions
and applications. My SAP CRM for example offers a variety of devices ranging from laptops, PDAs etc. SAP's CRM solutions
serve to maximize sales efficiency and improve sales productivity.
SAP's sales offerings for instance transcend to sales forecasting,
task management, quotes, sales orders etc. Customer interactions
are improved vastly as SAP's solutions can be customized to the
organization to suit needs and size. The solutions are easy to useand provide the opportunity to increase revenue more effectively.
Choice of CRM Software depends entirely on the organization. In
choosing a CRM solution it is imperative to take into consideration
the fact that there are vendors like the above who offer the
advantage of both experience plus the ability to meet organization
needs. This additional experience can go a long way in alleviating
CRM pitfalls and organizations should try their best to avail of it.
Aplicor
Aplicor Enterprise is a subscription-based and hosted CRM and
ERP web-based software solution designed for high growth, mid-
market and enterprise organizations. The company's business
applications distinguish themselves by providing unique and
-
8/2/2019 Customer Relationship Managemen Sbi
56/71
fundamental shifts from data management to process automation,
from reporting to Business Intelligence (BI), and from a one-size-
fits-all shared hosting platform to an isolated tenancy hosting
model. Aplicor is the most independently awarded hosted solution,
has achieved the highest average user count in the hosting industry
and is the only CRM&ERP hosting provider with a 100% uptime
history.
RETURN ON INVESTMENT
The return on investment (ROI) from CRM implementation isessential and needs to be measured as it provides a yardstick for
success. CRM ROI can be termed as any of the following: cost reductions or efficiencies created by the CRM
implementation
customer retention or customer loyalty
-
8/2/2019 Customer Relationship Managemen Sbi
57/71
possible customer value in the future that has been created
due to CRM implementation
Most organizations have varied opinions about the measurement of
CRM ROI. However it is often not as assumed. ROI is not as
fluctuating or unpredictable as expected. Following the right
guidelines and ensuring that the utmost effort is made to ensure that
it is implemented the right way, will go a long way in stabilizing
ROI and ensuring that it meets with the expected results. It is
absolutely essential to measure ROI and organizations should have
established their own measurement criteria. The analysis of ROI in
the call center or distribution system benefits is simple. However in
analytical CRM, ROI measurement is harder. Despite the fact that
some companies are not used to the metrics involved, measuring
ROI is a perquisite.
What can Industries expect in terms of ROI?
There are always different opinions. Some analysts state that the
return on investment (ROI) from CRM implementations is bad with
almost 70% of the CRM projects failing. This is again vehemently
contradicted by those who feel that almost 70% of project succeeds.
Why is there such a huge disparity in the results? The answer lies in
the wrong measurement or sometimes even failure of organizations
to adequately measure ROI. Aside from this of course low ROI is
generally the resultant of poor CRM implementation and wrong
CRM strategy. The staggering statistics show that less than 30% of
companies actually measure ROI the right way. Metrics should be
established and companies should use yard sticks -starting off with
a business plan to avoid CRM failure.
-
8/2/2019 Customer Relationship Managemen Sbi
58/71
Let's look at the positive side - According to surveys above 80% of
companies have found that CRM is profitable, has met with their
benchmark estimations and overall satisfied them. Aside from
costing them less than what they had estimated in the first place the
time taken for the implementation was also less and resulted in
promoting customer retention and loyalty. This shows that a
positive and relatively high ROI can be expected if implementation
and measurement is carried out the right way.
What you should know about CRM ROI:
Benchmark estimates need to be twice the total cost of CRMimplementation
Implementation should be kicked off within 7 months after conception to get positive ROI results. If this is not possiblethen phased implementation is the next step.
ROI should start showing evidence within a year of implementation, failing which implementation processesneed to be scrutinized
Pre-project and post-project ROI analysis should becompulsorily undertaken
Step Stones to Achieving Higher CRM ROI
Establishing a business plan
Establishing clear cut CRM objectives
Correct estimation of costs involved
Proposed financial metrics that are going to be used to
measure ROI etc are to be set out
-
8/2/2019 Customer Relationship Managemen Sbi
59/71
The time allotted for the return on investment (ROI) should
be stated - which should not exceed a year.
Costs of implementation need to be half of the amount of
ROI expected
Non monetary and intangible benefits should also have a
benchmark for success
An allowance for risk should also be made and the measures
that will be adopted in case risks should befall the company
should be laid out
If the above steps are followed organizations can ensure that their
return on investment will meet expectations. Pre-estimation of
CRM ROI as well as its post implementation measurement should
be compulsorily adhered to for organization success.
Components
Why are they essential?
CRM comprises several components absolutely essential to the
organization. Each of them offers something different yet its
importance cannot be undermined. Recent trends have enabled
users to combine two or more components for better success. The
Components of CRM are:
-
8/2/2019 Customer Relationship Managemen Sbi
60/71
1. People Management
2. Lead Management
3. Sales Force Automation
4. Customer Service
5. Marketing
6. Workflow Automation
7. Business Reporting
8. Analytics
People Management
People Management is nothing but the effective use of people in the
right place at the right time. It is imperative to adopt the right
measures to ensure that the people skills match their job profiles.
This is every large corporate requirement as well as small and
medium industries. According to People Management an effective
people strategy is first adopted, then the workforce is studied, skills
and development analyzed and finally the required strategy needed
for development and change is set down and implemented.
Lead ManagementLead Management basically involves the tracking and distribution
of sales leads. This benefits the sales, call centre and marketing
industries as well. The work involves managing market campaigns,
making customized forms, mailing lists etc. All this is done with a
view to capture as many sales leads as possible so that sales
benefits. This is achieved through a comprehensive study of
-
8/2/2019 Customer Relationship Managemen Sbi
61/71
customer purchase patterns and the identification of potential sales
leads.
Sales Force Automation
Sales Force Automation is by far one of the most essential
components of customer relationship management and also one of
the first. Used by almost all organizations it is nothing but a
software solution that includes forecasting, tracking potential
interactions and processing of sales. The reason this is adopted as
part of a CRM solution is because of the need to identify revenue possibilities.
Customer Service
The customer service component in CRM is essential. This is
because CRM focuses on collation of customer data, gathering
information about their purchase patterns and provides thisinformation to every department that requires it. Therefore vital
departments like sales, marketing and personnel stand to gain in
their knowledge of the customer. This enables the organization to
provide suitable solutions to every customer and thus enhances
customer retention and loyalty.
Marketing
Marketing is nothing but the promotional activities that are
involved in promoting a product either to a general public or to a
specific group. Marketing is different from sales and advertising in
that one refers to act of selling itself while the other refers to the
strategy involved. Customer Relationship Management facilitates
-
8/2/2019 Customer Relationship Managemen Sbi
62/71
the marketing function in that it increases the effectiveness of
marketing by studying the potential targeted customers.
Work Flow Automation
Work flow processes include cutting costs and streamlining
processes. It basically saves several people from doing the same job
again and again. It reduces work and relieves work force of
unnecessary tasks. It also includes things like routing out
paperwork and filling out of forms that are essential. It also
includes the integration of people and processes so that they work together in harmony towards a common objective without any loss
of time, money or effort.
Business Reporting
This is nothing but being able to identify the exact position of your
company at any given point of time. CRM plays a pivotal role inthat it provides reports on the business. The advantages of this
component include the ability to have this information at your
instant access at any time. Accurate reports are also ensured .While
forecasting is yet another feature it is also possible to actually
export these reports to other systems. Historical data can also be
saved to use for comparisons later on.
Analytics
Analytics involve the study of data so that information can be used
to study market trends. A complete trend study is made possible
due to the ability to create charts, figures and diagrams using both
historical and current data. For information like charts tables, log
INS etc dashboards can also be used for increased visibility. This is
-
8/2/2019 Customer Relationship Managemen Sbi
63/71
an essential and pivotal part of CRM as it enables a study of data
that is needed to make an estimate of the business condition at any
given point. The latest trend involving CRM components is the use
of web services which enables organizations to take various
components from different industries and basically use them
together in a manner that suits their business needs. CRM reviews
will give the required information pertaining to what solution
provides which functional component.
CASE STUDY
RESEARCH METHODOLOGY
The methodology followed at HDFC bank for the fulfillment of the
above-mentioned goals is as follows:
SOURCE OF DATA
-
8/2/2019 Customer Relationship Managemen Sbi
64/71
There are basically two sources of data: A) Primary data.
B) Secondary data.
PRIMARY DATA: It is not recorded data. It is collected
personally interviewing the