customer relationship managemen sbi

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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]


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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.


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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


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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


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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


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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,


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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


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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


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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.


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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


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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


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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


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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


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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.


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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.


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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


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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.


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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


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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.


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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.


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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.


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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.


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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.


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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.


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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


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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.


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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.


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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


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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


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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


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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


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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.


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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,


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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


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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


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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.


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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.


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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


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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.


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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.


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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


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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


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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


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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:


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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


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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


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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.


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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


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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


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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


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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


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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.


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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


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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


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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


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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.


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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


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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:


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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


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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


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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


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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


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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

customer relationship managemen sbi

Documents