BY GHCL – SA DIVISION IT DEPARTMENT

Customer Relationship Management in SAP

Contents

Introduction

Definitions of Customer Relationship Management

Customer Development Process

Significance of Customer Relationship Management

CRM Module in SAP

Introduction

In marketing, it is often said that ‘retaining customer is more important than acquiring one’.

Organizations use communication tools to make the consumer aware about their products and brands.

It uses supply chain and human resources to sell its products. All these have a cost to the company and in this competitive world

organizations want to reduce cost. For this organizations develop a database which helps in creating

loyalty programs. Many Indian companies like Infosys, Wipro and others started offering

CRM software to companies. The benefits of CRM software are quicker, better quality, and timely

services to the customers.

Definitions of Customer Relationship Management

Berry defines CRM as “attracting, maintaining and in multi-service

organizations enhancing customer relationships.”

Berry and Parasuraman define CRM as “attracting, developing and

retaining customer relationships.”

In industrial marketing, Jackson defines CRM as “marketing oriented

toward strong, lasting relationships with individual accounts.”

From the above definitions, it is concluded that Customer Relationship

Management refers to all marketing activities directed towards

establishing, developing, and sustaining long lasting, trusting, win-win,

beneficial and successful relational exchanges between the

organization and its stakeholders.

CRM is not a new concept but a very old

practice, which has grown because of the

benefits it offers in the present marketing

scenario.

CRM today is a discipline and also a set of

software and technology which automates

and improves the business process

associated with managing customer

relationships in the area of sales, marketing,

customer service and support.

CRM helps companies understand, start and

develop long-term relationships with clients

as well as help in retaining current customers.

Customer Development Process

1. Suspect: Suspect is everyone who might conceivably buy the product or service.

2. Prospects: Prospects are those people who have a strong potential interest in the product and the ability to pay for it. The company rejects the disqualified prospects because they have poor credit or would be unprofitable.

3. First time customers: The company wants to convert the qualified prospects into first time customers.

4. Repeat customers: The company wants to convert satisfied first time customers into repeat customers. First time and repeat customers may also buy from the competitors.

5. Clients: The company then tries to convert repeat customers into clients. Clients are those people who buy only from the company.

6. Advocates: The next step is to convert the clients into advocates. Advocates are those people who speak good about the company and encourage others to buy from it.

7. Partners: The ultimate goal of the company is to convert advocates into partners. After reaching this stage, the customer and the company work actively together.

Some customers may become inactive or may drop out due to many reasons leading to end of the relationship. The challenge is to re-activate dissatisfied customers through customer win back strategies

Significance of Customer Relationship Management

Reduction in customer recruitment cost. Generation of more and more loyal customers. Expansion of customer base. Reduction in advertisement and other sales promotion

expenses. Increase in the number of profitable customers. Easy introduction of new products. Easy business expansion possibilities. Increase in customer partnering.

Traditional Organizational Chart Vs Modern Customer – Oriented Company Organization Chart

Traditional Chart Modern Chart

CUSTOMER RELATIONSHIP MANAGEMENT IN SAP

SAP CRM

SAP CRM can help an organization to stay connected to customers. This

way organization can achieve customer expectations with the types of

services and products that he or she actually needs.

SAP CRM is a part of SAP business suite. It can implement customized

business processes, integrate to other SAP and non-SAP systems, help

achieve CRM strategies.

It also helps to achieve 'Single face to customer', which means the

customer get regular & actual information independent of channel

through which the he or she is contacting your company.

SAP Business Suite:

SAP CRM – Customer Relationship Management

SAP PLM – Product Lifecycle Management

SAP SCM – Supply Chain Management

SAP SRM –Supplier Relationship Management

SAP ERP – Enterprise Resource Planning

SAP Business Suite is based on SAP Net Weaver. Net Weaver

provides the development and runtime environment for SAP

applications and is used for the custom development and

integration with other applications and systems.

Features of SAP CRM

•It is a part of SAP Business Suite to manage customer

relationship.

•It supports all customer-focused business areas such as

marketing, sales and service.

•It is implemented for different customer interaction channels,

such as Interaction Centre, Internet, and mobile clients (hand-held

devices like laptop, mobile, etc.).

•CRM Analytics, a component of SAP CRM, enables your

organization to gather all relevant information about various key

factors such as a customer and analyze this knowledgebase to

incorporate insights into operational processes and strategic

decision-making.

SAP CRM Marketing

SAP CRM Sales

SAP CRM Service

CRM CHANNELS

Back-office: This is Role based web access. For each relevant task in the service, sales and marketing it represents the single point of entry. All relevant systems are assigned to a Business Role which is assigned to employees. Thus, an employee can get all the relevant systems into a single UI.Field Service or Offline-User: SAP CRM offers several field applications for field service representatives which they can access anywhere, anytime. These applications are developed for handheld devicesInteraction Center: SAP CRM provides the customer care employees with an interface which is comprehensively integrated with different communication channels like phone and E-mails. Also, it includes various features with which the employee can use while in communication with the customer for making note or working on the transaction itself.Web Channel Management: with this SAP CRM enables E-service, E-commerce, and E-marketing platform. These platforms are to provide personalized, reliable and convenient service to the target customers 24x7x365. This enables end customers to access & research data and with that as per requirement purchase services or products anytime, anywhere.PCM – Partner Channel Management: This interface is provided to support collaboration with resellers, dealers, agents etc. It combines the Web Channel Management with regular CRM to provide a complete solution for partner management.

Channel Architecture

SAP CRM Architecture

SAP CRM Sales Overview

Customer-Centric Business The Sales functionality of SAP CRM 7.0. Ensures consistency, effectiveness, and predictability throughout the sales cycle . a) Sales planning and forecasting . b) Territory management . c) Account and contact management d) Activity management including visit planning e) Opportunity management f) Quotation and order management g) Contract management h) Sales analytics Second level

1. SAP CRM 7.0 Sales equips sales organizations with the tools necessary to shorten sales cycles, increase revenues, maximize sales team productivity and optimize all sales channels. Powerful capabilities give organizations the mission-critical capabilities needed to stay ahead of the competition while ensuring closed-loop collaboration with sales, service, customers and partners.

Business Scenario: CRM Sales

Sales planning and forecasting:

a.Flexible planning from the bottom up or top down based on

Organization, product categories, historical or forecast sales figures

b.Conversion of sales strategies into action

c.Allows organization to provide graphical analysis and reporting of

all planning and forecasting information.

•Territory management

a.Precise monitoring and management of your sales force

b.Optimal coverage of your sales territories

c. Allows sales managers to define territories based on size, revenue,

geography, products, product lines, and strategic accounts. Managers

can easily assign sales reps for each territory as well as identify the

prospects and products associated with each territory.

•Account and contact management

a.The key to successful customer relationship management, thanks to

a complete view of your business partners

b.Helps capture, monitor, store, and track all critical information about

customers, prospects, and partners. This information includes detailed

customer profiles, sales activities, and overviews of relationships.

•Activity management

a.Optimal customer service with organization, planning, and

monitoring of all activities

b.Allows reps to schedule and manage simple and complex tasks, for

better time management, lower costs, and increased productivity.

•Visit planning

a.A tool supporting sales reps in planning their customer visits

•Quotation and order management a. Integration of all communication channels and support of the complete document flow, from inquiry and quotation to sales order or contract, including released orders. b.Guaranteed seamless integration into your supply chain

c. Allows sales reps to easily configure, price, and create quotes for customers, and to generate follow-up activities such as sales orders.

•Opportunity management a.Better management of the sales cycle, using a sales methodology based on your best practices to empower your sales force

b.Give sales professionals complete visibility into each sales opportunity, so they can capture, manage, and monitor the business contact and account information of potential opportunities.

c.This includes identifying key decision makers, sales histories, milestones, progress, outbound activities, and internal tasks. Also adapts easily to proprietary or third-party sales methodologies.

•Listings

a.Definition of listings: a set of products defined as valid for a certain

period and related to a customer

b.Listings maintained by key account managers

•Contract management

i.Capability for users to easily and automatically develop, verify,

revise, and submit contracts tailored for each customer, to establish

and maintain a long-term relationship

ii.Allows you to work with customers to develop and revise

customized contracts and long-term purchasing agreements.

•Sales analytics

a.Complete overview of past and present sales performance, simplifying sales force management and decision making

b.Executives can quickly and easily determine the financial status and overall effectiveness of the sales organization. Managers have all the critical data they need to address trends proactively, measure customer retention and revenue shortfalls, and assess future opportunities.

•Pipeline performance management

a. Interactive application to plan quotas and manage pipeline activity. It allows sales professionals to:

i.Analyze their sales pipeline ii.Identify gaps and critical opportunities iii.Identify and monitor opportunity changes in the pipeline iv.Simulate what-if scenarios v.Immediately trigger the right actions to resolve issues and to meet their targets

Company s implemented CRM in India .

1. Asian Paints ltd

2. Nerolac Paints ltd

3. Adani Enterprises ltd

4. Hindustan Lever Limited

5. Procter & Gamble India limited

Financial IMPACT

1. Approx value is Rs. 40,000/- per License & thereafter

the AMC of 25% ( Excluding of Hardware Cost)

2. One time Implementation Cost of Rs. 5 Lakhs.

GHCL –SA IT - DEPT

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