crm systems - selection criteria, process - roi - business case
DESCRIPTION
CRM Systems - Selection Criteria, Process - ROI - Business CaseTRANSCRIPT
CRM SYSTEM SELECTION CRITERIASELECTION PROCESSROI
Selection Criteria
CRM System aspects System Business functionality Technical architecture / technical aspects
Vendor qualification Vendor strength Range of services Vendor as a Strategic IT Partner
Partner Ecosystem Cost aspects / TCO User Base / User Groups
CRM System aspects – Functional / User aspects
Breadth and depth of functionality Regulatory requirements Flexibility to configure / meet changing requirements User interface / intuitive interface / ease of use Future requirements Product roadmap
CRM System aspects – Technical Aspects
Technology components Openness of architecture Scalability, Performance Integration / Interfacing / APIs Extensible Ease of integrating with other systems Ease of installation, bug fixing, etc. Ease of Customization Service oriented / Component based Data extraction / Report generators / Data model and structures
CRM System - Other aspects
User and technical documentation Upgrades Support aspects / SLA/SLIs Warranty
Contractual and Legal aspects Terms of use License metrics Indemnity, Liability, Termination, Escrow, et al.
CRM System – Vendor aspects
Vendor’s commitment to CRM Product Overall capability Customer references and installed Customer base; C-Sat Consulting / Implementation services Support services Domain expertise Partner : Network, expertise, range of partner services
Technical Deployment
In-house / Hosted / Hybrid Variations : ASP, SaaS, Hosted Centralized / Distributed / Decentralized Database
CRM SYSTEM SELECTION PROCESS
System Selection Process
Business Case and Approval - BANT System Requirements Document / RFI / RFP Evaluation Criteria, Selection Team RFI / RFP Process Product Demos / Proof of concept / Test case based demo Referrals / Reference site visits / Customer interviews Shortlisted vendors Final Proposal Negotiation / Contracting Order Finalization
CRM BUSINESS CASE
CRM Business Case and Plan
Value Proposition Project Objectives (in alignment with company objectives) Implementation Plan Program Governance model Costing Staffing New System or Technology / Impact on existing systems Risk factors and mitigation plan Success measurement criteria
CRM Project Vision
Current State Analysis Strengths and weaknesses of current processes What needs improvement Where are the pain points / bottlenecks that affect efficiency What competition is doing
Desired State Analysis This establishes project goals Form the basis for measuring project success “Gap” between current and desired state Examples Shorter sales cycle, Increased C-sat, Higher sales per rep., Higher close rate, Higher
margin per sale, Improved forecasting, Improved conversion, Reduced customer attrition, Stronger partner relationship
CRM Project Goals
Measurable, Tangible Goals Example
Accurate Forecasting Improved sales effectiveness Improved customer satisfaction Effective Campaign management Higher employee productivity Enhanced MIS / Analytics for decision support
Business Justification of Investment
First determine the ROI Expectations and ROI Indicators ; Define the goals and measurable objectives
Convert the measurable objectives to monetary terms – cost savings or increased revenue.
Example ROI Equation: Company XYZ automated 20 salespeople with a CRM solution. This Automation reduces salespersons’ non-selling admin time an
average of 4 hours a week. 4 hours X 20 salespeople = 80 extra selling hours/week. That’s equivalent to hiring two additional salespeople without the
overhead. Intangible benefits examples
Enhanced communication , Greater Responsiveness Better-informed employees Better-informed management
Business Plan – Typical Evaluation and Approval Factors
Business Plan – Typical Evaluation and Approval Factors
Business Requirements Gathering
Gathering Requirements From all stakeholders Inter-dependencies
Mapping Requirements to CRM Features
Business Processes
Traditional Customer Facing Process - Example
Business Processes
Traditional Customer Facing Process - Example
¨ Customer Focused Business Process with CRM
Business Process – Customer Focus & Orgn Efficiencies
Key aspects from Customer Perspective Does each interaction demonstrate value to the customer? Does any interaction waste the customer’s time? Does this process improve our ability to see this customer as an individual? Is there an opportunity to impress the customer or personalize the interaction
at discrete customer touchpoints? Can we include exception handling to ensure accurate service and personalize
interactions? Can this process be improved or even eliminated for high-value customers?
What about for the mid-value tier? Key aspects from Company Perspective
For a given customer-facing business process, how many departments are involved?
How many actual staff members touch in each process? What data is transferred between organizations, and how much? Does the information being shared change as it goes through the process? How
often? Do the organizations involved in each business process agree on business rules
and common terminology?
CRM PROJECT – SYSTEM IMPLEMENTATION
CRM Project Planning
Business goals and objectives Team Implementation schedule Budget and financial plan Technical infrastructure Business Process requirements and mapping Staffing Plan
CRM Project Deliverables
Specific business needs that the system should address Example Deliverables:
Classify contacts by type, such as prospect, customer, reseller, supplier, business partner Automatically notify other team members of important plans, events or customer
interactions Run reports automatically and distribute electronically Track customer referrals and lead sources Manage multiple marketing campaigns, projects and activities Create mailing lists and generate targeted direct mailings using fax, e-mail or standard
mail Maintain an online encyclopedia of all marketing and sales materials including slide
presentations, videos, graphics and audio clips Synchronize data changes, additions, deletions and modifications to records with mobile
users
Involve the Right People
Top management Executive Sponsors Business heads End Users
Prioritize
Must have / Critical for launch Nice to have Regulatory / compliance requirements Business value
CRM Project Management Planning Prioritize – Scope Design - Review Install – Build - Configure Test - Pilot - Adjust Launch - Measure Roll out - Support - Grow
CRM Project Implementation Phases
Business Process Management : BRD, BPR, Customizations Build, Testing
IT Architecture :HW and SW,Installation ,System Integration / Interfaces
Core User and End User Training
Application Configuration, Parameterization
User Acceptance Testing, Production assurance testing
Data Migration / data conversion strategy and execution
Parallel Run
Live Cut-over - Pilot
Production Support
Roll-out and ongoing maintenance
CRM Implementation - CSF
Project Governance – Exec sponsor, Steering committee, Project reviews, Risk management
Integrated approach – People, Systems and Processes Organizational change management - Managing People Project management – Scope, quality, expectations and costs