8/8/2019 CRM Latest

1/18

UNDERSTANDING SUCCESS AND

FAILURE IN CUSTOMERRELATIONSHIP MANAGEMENT

8/8/2019 CRM Latest

2/18

CRM : Customer Relationship

Management

Approach based on maintaining positive

relationships with customers, increasing customer

loyalty, and expanding customer lifetime value.

Understanding the needs of customers and offering

value-added services are recognized as factors

that determine the success or failure of companies.

8/8/2019 CRM Latest

3/18

CRM : Customer Relationship

Management

Approach based on maintaining positive

relationships with customers, increasing customer

loyalty, and expanding customer lifetime value.

Understanding the needs of customers and offering

value-added services are recognized as factors

that determine the success or failure of companies.

8/8/2019 CRM Latest

4/18

Chaffeys 3-stage model of CRM

First acquire customers via clear communication of a

powerful value proposition.

Second retained via good service.

Third, the relationship extended via the delivery of

tailored products/services to clearly defined

customer segments.

8/8/2019 CRM Latest

5/18

8/8/2019 CRM Latest

6/18

Top Ten ERP CSFs by Somers & Nelson 2001

ERP CSF Mean Score (out of 5)

Top Management Support 4.29

Project Team Competence 4.20

Interdepartmental Cooperation 4.19

Clear Goals & Objectives 4.15

Project Management 4.13

Interdepartmental Communication 4.09

Management of Expectations 4.06

Project Champion 4.03Vendor Support 4.03

Careful Package Selection 3.89

8/8/2019 CRM Latest

7/18

Top Ten CRM CSFs by Sauers Model

CRM CSF

Top Management Support

Communication of CRM Strategy

Knowledge Management Capabilities

Willingness to Share Data

Willingness to Change Processes

Technological Readiness

Culture Change/Customer Orientation

Process Change CapabilitySystems Integration Capability

8/8/2019 CRM Latest

8/18

A conceptual model of CRM innovation

8/8/2019 CRM Latest

9/18

CRM Benefits

8/8/2019 CRM Latest

10/18

Conceptual Model: Simulation

8/8/2019 CRM Latest

11/18

3 Major Dynamic Processes

The CRM project is being undertaken by the project team and userrepresentatives.

As the CRM modules, such as marketing campaign management,

sales force automation and helpdesk support, gradually go livethey begin to be used by the users (the roll out) this can beviewed from the standpoint of diffusion or technology transfer of theCRM innovation across the organization.

Both processes are, to an extent, controlled by the supporterswho

monitor progress and adjust their support according to their ownagendas, previous histories and perceptions of the benefits (ordrawbacks) flowing from the new systems and business processes.

8/8/2019 CRM Latest

12/18

Model Limitations

Project costs are simply a function of the number of

staff employed on the project, and take no account

of software license fees, hardware or training costs

for example.

8/8/2019 CRM Latest

13/18

Approaches to CRM

There are several different approaches to CRM,

with different software packages focusing on

different aspects:

Operational CRM

Analytical CRM

Collaborative CRM

8/8/2019 CRM Latest

14/18

Operational CRM

Gives support to Front Office business process

(e.g. sales, marketing etc).

Any interaction with customers is stored in customers

contact histories, which the staff can retrieve as

necessary.

Gives staff access to important information about

the customer, eliminating need for individuallyobtaining it from the customer.

8/8/2019 CRM Latest

15/18

Analytical CRM

Analytical CRM analyzes customer data for a variety ofpurposes:

Designing and executing targeted marketing campaigns.

Analysing customer behavior in order to make decisionsrelating to products and services (e.g. pricing, productdevelopment).

Management information system (e.g. financial forecastingand customer profitability analysis).

Analytical CRM generally makes heavy use of data mining.

8/8/2019 CRM Latest

16/18

Collaborative CRM

Helps unify information that is collected through

various departments interaction with customers.

Goal is to use information collected by all

departments to reduce costs and improve the

quality of services provided by the company.

8/8/2019 CRM Latest

17/18

Stages In CRM

Stage 1 - Collecting information

Stage 2 - Storing information

Stage 3 - Accessing information Stage 4 - Analyzing customer behavior

Stage 5 - Marketing more effectively

Stage 6 - Enhancing the customer experience

8/8/2019 CRM Latest

18/18

Tata Motors and CRM

Tata Motors was looking for real-time availability of customer and product datafrom its entire dealer network, faster response to customer requests, increasedproductivity and revenue generation, and a system that would give it a 360-degreeview of customers across all possible touch points.

The solution jointly deployed by Oracle, SAP and IBM had been implemented inphases since 2003.

The on-line CRM initiative now supports over 15,000 users, within the company andamong its channel partners in India and abroad, to conduct all customer-facingtransactions.

Besides achieving the above objectives, the CRM package also helped inleveraging data to improve customer interactions and streamline productdevelopment and planning, which has helped Tata motors provide additional value-added services to customers.