6.
Planning & Implementing
CRM
Customer Relationship Management
Planning Your CRM
• It can be simple – by doing meetings and giving
point solutions
OR
complex – having big project running through
months & years, changing organization process
etc.
• Question is “What business value do we expect
from CRM?”, “Will it generate profits?”
Oracle suggestions for choosing CRM
• Six Questions Every Buyer of CRM Products
Should Ask
1. What business problem(s) am I trying to solve?
2. How much can I spend?
3. How deep are my IT resources and expertise?
4. How comprehensive do I need it to be?
5. How much control/privacy do I need?
6. How do I want to be served?
- Consultant of CRM Implementation
Planning your CRM
• Defining CRM Success
• From operational to Enterprise
• Determine CRM Complexity
• Evaluate your company against CRM critical
success factors
• Preparing CRM Business Plan
• Defining CRM Requirements
• Cost-Justifying CRM
• Understanding Business Process
• Modeling Customer Interactions
• Analyzing Business Process
Defining CRM Success
• One of the difficult task – defining success metrics
• Needs –Unified CRM Vision – from executives to
programmers.
• Realise the “single version of the customer truth”
and use it to increase customer profitability.
Defining CRM Success
• Factors for CRM Success
• Sponsorships
• Objective definition
• Solution selection
• Operating environment
• User community
• Efficiencies
• Measurement
An Implementation Scenario
• CRM can evolve from a point solution to a corporate-wide program
ORGANISATION
CRM 1 : CALL CENTER
OBJECTIVE: DATA
•CUSTOMER SATISFACTION •TROUBLE TICKETS
MONITORING •CUSTOMER NAME/ADDRESS
•SELF-SERVICE EFFICIENCIES •CUSTOMER SATISFACTION
•FASTER TROUBLE TICKET SCORES
RESOULUTION •RUDIMENTARY WEB ACCESS
DETAILS
THE CALL CENTER ADOPTS CRM
An Implementation Scenario
• CRM can evolve from a point solution to a corporate-wide program
ORGANISATION
OBJECTIVE: DATA
• MORE INTEGRATED MAILINGS • CUSTOMER SEGMENTS
•CUSTOMER SATISFACTION BY • MAILING HISTORY
SEGMENT ANALYSIS • RESPONSE RATES
•REFINED MARKETING
CAMPAIGNS
CRM 2 : MARKETING
CRM 1 : CALL CENTER
MARKETING ADOPTS CRM
An Implementation Scenario
• CRM can evolve from a point solution to a corporate-wide program
ORGANISATION
OBJECTIVE: DATA
• STREAMLINE SALES PROCESS • SALES ACTIVITIES
• QUALITY PROSPECTS BASED • ORDERS
ON PAST SUCCESS • CONTACTS
• TRACK CONTACT HISTORY CRM 3 : SALES • PROSPECTS
SALES ADOPTS CRM
CRM 2 : MARKETING
CRM 1 : CALL CENTER
An Implementation Scenario
• CRM can evolve from a point solution to a corporate-wide program
ORGANISATION
OBJECTIVE: DATA
• TRACK INSTALLATIONS • EQUIPMENT OUTAGE
• TRACK REPAIR STATUS CRM 4: • ORDER AND REPAIR DATA
FIELD (DATA, STATUS, LOCATION ETC.)
SERVICES
ENTERPRISE CRM CRM 3 : SALES
CRM 2 : MARKETING
CRM 1 : CALL CENTER
Determining CRM Complexity
• CRM initiative’s complexity relies on two main
metrics
1. Quantity of functions: customer profiling,
campaign mgmt., SFA etc.
2. Range of Usage: the number of departments
Determining CRM Complexity
Business
Many Corporate
process
asset focus
support
Quantity of
functions
Business
Single Application
function
Department Enterprise
Range of usage
CRM Readiness Evaluation Metrics
• Targeted business users display an understanding
of CRM and accompanying benefits
• Management displays an understanding of CRM
and accompanying benefits
• CRM application opportunities identifiable.
• Client has expressed a need for market
differentiation
• Stated opportunities can be improved with
customer related data
• Business units and IT staff agree on CRM
ownership boundaries
CRM Readiness Evaluation Metrics
• Commitment to funding and requires ongoing
budget
• Client agrees to modify business process
• Willingness to reorganization or staffing
• Management willing to empower key customer-
facing staffs
• Consensus that CRM is a process and not a one-
time-only activity
Defining CRM Requirements
• “What need, pain, or problem can CRM help us
address?”
• Typical CRM Approval factors:
• Program’s long term value
• Adherence to companies objectives
• Ability to deliver key business objectives
• Its cost
• Its boundaries
• Staffing requirements
• Risk assessment
Defining CRM Requirements
REQUIREMENTS
Defining the business
“need, pain, or problem”
FUNCTIONALITY
Defining the functionality
needed to meet the
requirements.
PRODUCTS
Defining the products that
support the identified
REQUIREMENTS DRIVING TECHNOLOGY functionality.
DEFINING CRM FUNCTIONALITY
• Requirements define the “what”,
• Functionality defines the “How”
• And also the business process.
• The best way to identify your functionality is
to map out your business process and identify
the functions within it.
• Each function should map back to a business
requirement.
• Find the products that offer your required
functionality.
Cost-Justifying CRM
• Three possible financial outcome:
1. Increased profits
2. Break-even
3. Lost revenue
• CRM can result in revenue or cost savings via:
• More efficient customer-focused business
process
• Decreased Customer attrition
• Increased sales
Business Process
• Every successful CRM program involves a process
improvement of some kind.
• Is your process documented? Are they already
customer focused?
• Not documented? Required Reengineering?
• Need more customer data?
Business Process
Customer
calls toll-free CSR checks room
for room availability
booking
CSR makes
Yes reservation, gives
customer
confirmation
Room available at number
requested hotel? Yes Customer wait-
listed
CSR asks customer
No if he would like to
be placed on
priority wait list
Customer thanked
No
Business Process
Customer calls
Customer fax
Access Website
CSR makes
Yes
reservation, gives
SMS customer
confirmation
Room available at
number
requested hotel? Yes Room unblocked
& reserved
Agents checks for
No blocked rooms
Agents checks for
nearby hotels
No
Available Unavailable
…. ….
Partner hotels
CRM Failures
• Some data:
• 32% CRM projects succeeded
• 68% CRM projects failed
• A study
• 31% - Significant improvement in RoI
• 37% - minor improvement in RoI
• 32% - no noticeable improvement
• Kale (2004) study
• CRM projects failing range is 60-80%
CRM Failures
• Main Causes in all
• Lack of business focus
• Instead of driven by marketing, sales &
services
• Seven deadly sins in CRM implementation
(Kale,2004)
1. Viewing CRM initiative as a technology
initiative
2. Lack of customer centric vision
3. Insufficient appreciation of CLV
CRM Failures
4. Inadequate support from top management.
5. Underestimating the importance of change
management.
6. Failing to re-engineer business processes.
7. Underestimating the difficulties involved in
data mining & data integration
Various approaches to CRM
implementation
Woodcock & Starkey (2001) advocated:
• “steady progress” instead of “Big Bang”
approach
• “Big Bang” approach is possible in newly built
company and all systems can be integrated in
one go.
• Having decided the objectives of CRM –
progress in steady manner.
Various approaches to CRM
implementation
Payne & Frow (2005) done research with regard
to CRM
• Benefits Dependency Network framework
• Works backwards from the project’s
objectives & ensures that the necessary
processes are put in place.
• Necessary preparations and planning
should be done to ensure that the project
is implemented properly using a suitable
approach.
Various approaches to CRM implementation
• Siebel offers a list of best practices for successful
CRM implementation:
• Establish measurable business objectives
• Align the organization to CRM strategy.
• Define best practices and map them to
application function.
• Use a phased implementation plan.
• Staff trained, experienced consultants.
• Train, reinforce and reward 100% user
adoption
• Monitor progress and measure results.
Various approaches to CRM implementation
• Gartner CRM Excellence Criteria
• The eight building blocks of CRM
1. CRM Vision – Well defined positioning, &
propositions
2. CRM strategies – Proper delivery of customer
value
3. Valued customer experience – Ensuring value
to customers & the company.
4. Organisational collaboration – change
management, culture & structures.
Various approaches to CRM implementation
5. Processes – Managing customer life cycle.
6. Information – Right data to the right people
at the right time.
7. Technology – Data & IT infrastructure.
8. Metrics – Defining CRM success metrics.
A CRM Implementation Roadmap
Time
Phases
Planning Construction Deployment
Business Architecture Technology Develop- Measure-
Steps Delivery
Planning Design selection ment ment
Vendor
Project prioritization evaluation Customization/
CRM Strategy Deployment
Staff planning Technology development
CRM Business plan Documentation Evaluate
Pre-implementation alignment Process integration
Process planning User training metrics
checklist Product Prototyping
RoI (Optional) Internal PR
installation Database design
Tasks
