CRM Implementation - What you should

know
CRM implementation differs from organization to organization but there are a few
common steps one needs to follow to ensure a successful implementation. There are
many factors that could influence the success of CRM implementation. Some of them
are:

Organization Objectives

Clear cut objectives are essential and they need to be communicated effectively to the
entire organization. Business goals are absolutely essential and need to be clearly defined.
Similarly goals of the CRM implementation and how it supports organization goals
should also be intimated to employees. Let employees know how important CRM success
is to the organization.

Solution to Suit Business Objectives

A business needs to look for a CRM solution that fits its needs, not the other way around.
This step is vitally important and spells success. When choosing a CRM solution every
business organization has to ensure that it chooses a CRM solution that fits into the
organizations requirements. It is wrong to try and adjust organization requirements to the
chosen CRM solution. If this is done organization goals will not be achieved and the
CRM process will have disastrous results.

Focus on All Business Aspects

In most cases the technology will have less to do with the CRM success. Therefore it is
important to focus as much importance on communication training and other aspects as
much as the technology involved.

It is important to involve management at several levels, focus on communication need

and indulge in adequate training of the concerned employees throughout the organization.
If these items receive a level of focus comparable to the technical system, CRM
implementation stands a better chance of succeeding.

Define the Business Problem

A business needs to clearly define the business problem see what benefits it wants to
achieve and adopt the required measures. It is imminently important to clearly identify
the business problem that the company needs to resolve. An organization needs to
absolutely identify the desired benefits and make sure that the expected returns are
generated at every stage. It is important to break down the entire process into smaller
pieces that can be individually handled effectively.
Establishing Proper Metrics

Since companies normally wait for a five year period to see a return on investment. Every
organization has to compulsorily define performance metrics to ensure that it measures
the return on investment adequately.

Business Processes not Technology

In order to succeed at CRM all companies need to understand that it is not about
technology alone but about business processes as well. While CRM changes a company's
business processes technology supports the processes. Most businesses make the mistake
of actually assuming that the CRM is only about technology alone. This hampers
business process development.

Implement Change

Most employees tend to stick with their old ways and are reluctant to adapt to changes, It
needs to be understood that the implementation of CRM involves immense changes and
employees need to adapt themselves to it. From the very beginning of the implementation
employees will have to adopt new attitudes to help deliver the customer experience
properly to customers. Organizations need to make sure that their employees are provided
with sufficient training to ensure that they handle this aspect of the customer experience
adequately and efficiently.

Using Skilled Managers

Organizations need to make sure that they use the most highly skilled and experienced
group of professionals possible. CRM aspects are complex and what is needed most is a
team that has CRM expertise and business knowledge. The team should be adequately
trained and sufficiently equipped both intellectually and technologically to carry out the
CRM implementation successfully.

Choose the Right Methodology

Decide whether to use the classical or modern methodology bearing in mind that ease of
usage, cost effectiveness and efficiency need to be gained. This is an important step in the
CRM implementation as it has a bearing on the entire process.

Choose the Right Vendors

Companies need to know the vendors through looking at them from this perspective
alone. This involves the process of scrutinizing the vendor and seeing whether or not the
vendor can fulfill the requirements of the business. Only if this is possible can the vendor
be selected. You may not find a vendor that basically fulfills every single objective but at
least an organization will be aware of it.

Ease of Usage
The entire objectives of the CRM process are hampered if the CRM choice is difficult to
use. It is highly essential to ensure that the system speaks of ease of usage and the ability
to be easily customizable. Employees implementing CRM and forming a part of the CRM
process range from the mediocre level right to management and to the employee at the
very forefront. It is imperative that the business ensure that the CRM software chosen is
easy to use and implement not only by a few employees but by everyone using the
system. This is a step that needs to be taken at the time of choosing the CRM technology.

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 intraorganizational collaboration can be more
efficient to communicate with customers.[
Contents
[hide]

• 1 From Relationship Marketing to Customer Relationship Marketing

• 2 The essence of CRM
• 3 Differences between CRM and eCRM
• 4 eCRM
o 4.1 eCRM strategy components
o 4.2 Implementing and integrating eCRM work
 4.2.1 non-electronic solution
 4.2.2 electronic solution (eCRM)
 4.2.3 Cloud solution
o 4.3 vCRM
• 5 Different levels of eCRM
• 6 Mobile CRM
• 7 Failures
• 8 Privacy
• 9 See also

• 10 Notes

[edit] From Relationship Marketing to Customer Relationship

Marketing

The concept of relationship marketing was first coined by Leonard Berry[who?] in 1983. He
considered it to consist of attracting, maintaining and enhancing customer relationships
within organizations.[2] In the years 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.[3]

[edit] The essence of CRM

The exact meaning of CRM is still subject of heavy discussions.[4] However, the overall
goal can be seen as effectively managing differentiated relationships with all customers
and communicating with them on an individual basis.[5] 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.[6]
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.[7]

[edit] Differences between CRM and eCRM

Major differences between CRM and eCRM:[8]

Customer contacts

• CRM – Contact with customer made through the retail store, phone, and fax.
• 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.

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.

[edit] 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
mass customization.[9] 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.[10] Together with the creation of Sales Force Automation (SFA), where
electronic methods were used to gather 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:[11]

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 firm’s specific needs to fulfill their
customers.
3. Customer Interaction: According to customer’s 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 and information on the right topic, in the right amount, and at the right
time that fits the customer’s specific needs.[12]

[edit] eCRM strategy components

When enterprises integrate their customer information, there are three eCRM strategy
components[1]:

1. Operational: Because of sharing information, the processes in business should

make customer’s 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.
3. Collaborative: Due to improved communication technology, different departments
in company implement (intraorganizational) or work with business partners
(interorganizational) more efficiently by sharing information.
[edit] Implementing and integrating eCRM work

[edit] 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.[13]

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.

[edit] 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.[14]
Business personalized each of their customer profile unified in entire organization. By
"central repository", customer may communicate with different department staff in the
corporate 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.[15]

• eCRM in B2B market

Traditional B2B customers are usually seeking ways in order to decrease the firm’s
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 reduce collecting cost and time,
and it becomes a long-term relationship eventually. At the same time, more complex
collaboration can be implemented on networking platform.[7] After businesses collaborate
as "supply chain partners", it takes the mutual benefits can give both sides an equal
position to increase co-work confidence [16]
 • eCRM in B2C market

In contrast with B2B, the attitude of B2C individually purchase is decided by the positive
experience and online shopping knowledge. Previous research[17][18] 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.[7]

[edit] Cloud solution

Today, more and more enterprise CRM systems move to cloud computing solution, "up
from 8 percent of the CRM market in 2005 to 20 percent of the market in 2008,
according to Gartner".[19] 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 database immediately.[20]

Some enterprise CRM in cloud systems are web-based customers don’t 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.[21]

There are multifarious cloud CRM services for enterprise to use and here are some hints
to the your right CRMsystem:[22]

1. Assess your company’s needs: some of enterprise CRM systems are featured
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 provider 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.

[edit] 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.
[23]
One of the reasons eCRM is so popular nowadays is that digital channels can create
unique and positive experiences – not just transactions – for customers.[24] 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.[25] Its highly interactive character, which allows companies to respond directly to
any customer’s requests or problems, is another feature of eCRM that helps companies
establish and sustain long-term customer relationships.[26]

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.[27] 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.[28]

[edit] Different levels of eCRM

In defining the scope of eCRM, three different levels can be distinguished:

• Foundational services:

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.[29]

Self-services are becoming increasingly important in CRM activities. 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
Ford’s plan to sell cars directly to customers via its Web Site, which provoked an outcry
among its dealers network.[30] 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.[31]
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 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 [32]

[edit] 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 services processes, and use wireless networks as the medium of
delivery to the customers.[33] 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).[34]

eCRM allows customers to access company services from more and more places, since
the Internet access points are increasing by the 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 CRM system.[35]

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.[36]

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.
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.[37]

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.[38]

[edit] Failures

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.[39] 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.[40]

Failure rates in CRM from 2001-2009:[41]

• 2001- 50% failure rate according to the Gartner group

• 2002- 70% failure rate according to Butler group
• 2003- 69.3% according to Selling Power, CSO Forum
• 2004- 18% according to AMR Research group
 • 2005- 31% according to AMR Research
• 2006- 29% according to AMR Research
• 2007- 56% according to Economist Intelligence Unit
• 2009- 47% according to Forrester Research

Differing measurement criteria and methods of the research groups make it difficult to
compare these rates. Most of these rates were based on customer response pertaining to
questions on the success of CRM implementations.

Customer relationship management (CRM) is a widely-implemented strategy for

managing a company’s 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 [1]. The overall goals are to find, attract, and win new clients, nurture and retain
those the company already has, entice former clients back into the fold, and reduce the
costs of marketing and client service.[2] Customer relationship management describes a
company-wide business strategy including customer-interface departments as well as
other departments.[3]. Measuring and valuing customer relationships is critical to
implementing this strategy [4].
Contents
[hide]

• 1 Benefits of CRM
• 2 Challenges
o 2.1 Complexity
o 2.2 Poor usability
o 2.3 Fragmentation
o 2.4 Business reputation
o 2.5 Security concerns
• 3 Types/variations
o 3.1 Sales force automation
o 3.2 Marketing
o 3.3 Customer service and support
o 3.4 Appointment
o 3.5 Analytics
o 3.6 Integrated/Collaborative
o 3.7 Small business
o 3.8 Social media
o 3.9 Non-profit and membership-based
• 4 Strategy
• 5 Implementation
o 5.1 Implementation issues
o 5.2 Adoption issues
o 5.3 Statistics
o 5.4 Increasing usage and adoption rates
o 5.5 Help menus
• 6 Development
o 6.1 Clarity
o 6.2 Test users
• 7 Privacy and data security system
• 8 Market structures
• 9 Related trends
• 10 See also

• 11 Notes and references

[edit] Benefits of CRM

A CRM system may be chosen because it is thought to provide the following advantages:

• Quality and efficiency

• Decrease in overall costs
• Decision support
 • Enterprise agility
• Customer Attention

[edit] 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. 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 CRM’s
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 role of 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.

[edit] Complexity

Tools and workflows can be complex, especially for large businesses. Previously these
tools were generally limited to contact management: 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.

[edit] 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.

The importance of usability in a system has developed over time.[5] Customers are likely
not as patient to work through malfunctions or gaps in user safety,[6] 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 to me think.”

An intuitive design can prove most effective in developing the content and layout of a
customer relationship management system.[7] Two 2008 case studies show that the layout
of a system provides a strong correlation to the ease of use for a system and that it proved
more beneficial for the design to focus on presenting information in a way that reflected
the most important goals and tasks of the user, rather than the structure of the
organization.[8] This “ease of service” is paramount for developing a system that is usable.
[9]

In many cases, the growth of capabilities and complexities of systems has hampered the
usability of a customer relationship management system. An overly complex computer
system can result in an equally complex and non-friendly user interface, thus not
allowing the system to work as fully intended.[10] This bloated software can appear
sluggish and/or overwhelming to the user, keeping the system from full use and potential.
A series of 1998 research indicates that each item added to an information display can
significantly affect the overall experience the user.[11]

[edit] 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 stay that way: siloed 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.[12] Instead, it is important that
support for the CRM system is companywide.[13] The challenge of fragmented
implementations may be mitigated with improvements in late-generation CRM systems.
[14]

[edit] Business reputation

Business reputation has become a growing challenge. 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 organization can affect the
customer experience for good or ill. Even one unhappy customer can deliver a body blow
to a business.[15]

Some developments and shifts have made companies more conscious of the life-cycle of
a customer relationship management system.[16] Companies now consider the possibility
of brand loyalty and persistence of its users to purchase updates, upgrades and future
editions of software.[17]

Additionally, CRM systems face the challenge of producing viable financial profits, with
a 2002 study suggesting that less than half of CRM projects are expected to provide a
significant return on investment.[18] Poor usability and low usage rates lead many
companies to indicate that it was difficult to justify investment in the software without the
potential for more tangible gains.[19]
[edit] Security concerns

A large challenge faced by developers and users is found in striking a 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.[20]

Research and study show the importance of designing and developing technology that
balances a positive user interface with security features that meet industry and corporate
standards.[21] A 2002 study shows, however, that security and usability can coexist
harmoniously.[22] In many ways, a secure CRM system can become more usable.

Researchers have argued that, in most cases, security breaches are the result of user-error
(such as unintentionally downloading and executing a computer virus). In these events,
the computer system acted as it should in identifying a file and then, following the user’s
orders to execute the file, exposed the computer and network to a harmful virus.
Researchers argue that a more usable system creates less confusion and lessens the
amount of potentially harmful errors, in turn creating a more secure and stable CRM
system.[23]

Technical writers can play a large role in developing customer relationship management
systems that are secure and easy to use. A series of 2008 research shows that CRM
systems, among others, need to be more open to flexibility of technical writers, allowing
these professionals to become content builders.[24] These professionals can then gather
information and use it at their preference, developing a system that allows users to easily
access desired information and is secure and trusted by its users.

[edit] Types/variations
[edit] 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.[2]

[edit] 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 behaviour
and nurture them from first contact to sale, often cutting out the active sales process
altogether.

In a web-focused marketing CRM solution, organizations create and track specific web
activities that help develop the client relationship. These activities may include such
activities as free downloads, online video content, and online web presentations.[citation
needed]

[edit] Customer service and support

Recognizing that service is an important factor in attracting and retaining customers,

organizations are increasingly turning to technology to help them improve their clients’
experience while aiming to increase efficiency and minimize costs.[25] 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.[26]

[edit] 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 a
variety 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 place it 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.

[edit] 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.

Marketing applications generally come with predictive analytics to improve segmentation

and targeting, and features for measuring the effectiveness of online, offline, and search
marketing campaigns. Web analytics have evolved significantly from their starting point
of merely tracking mouse clicks on Web sites. By evaluating “buy signals,” marketers
can see which prospects are most likely to transact and also identify those who are
bogged down in a sales process and need assistance. Marketing and finance personnel
also use analytics to assess the value of multi-faceted programs as a whole.

These types of analytics are increasing in popularity as companies demand greater

visibility into the performance of call centers and other service and support channels,[25]
in order to correct problems before they affect satisfaction levels. Support-focused
applications typically include dashboards similar to those for sales, plus capabilities to
measure and analyze response times, service quality, agent performance, and the
frequency of various issues.

[edit] Integrated/Collaborative

Departments within enterprises — especially large enterprises — tend to function with

little collaboration.[27] 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 pursue these
opportunities without the burden of re-entering records and contact data into a separate
SFA system.

[edit] Small business

For small business, basic client service can be accomplished by a contact manager
system: an integrated solution that lets organizations 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,

[edit] Social media

Social media sites like Twitter, LinkedIn and Facebook are amplifying the voice of
people in the marketplace and are having profound and far-reaching effects on the ways
in which people buy. 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.
Social media 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.[28]

Some analysts take the view that business-to-business marketers should proceed
cautiously when weaving social media into their business processes. These observers
recommend careful market research to determine if and where the phenomenon can
provide measurable benefits for client interactions, sales and support.[29] It is stated[by whom?]
that people feel their interactions are peer-to-peer between them and their contacts, and
resent company involvement, sometimes responding with negatives about that company.

[edit] 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.

[edit] Strategy

For larger-scale enterprises, a complete and detailed plan is required 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 technological components, 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.[3]

• 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.[30]

• Technology: In evaluating technology, key factors include alignment with the

company’s 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.[3]

[edit] Implementation
[edit] 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.[31] 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.[32] 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.[33] Such “point solutions”
offer little or no integration or alignment with a company’s overall strategy. They
offer a less than complete client view and often lead to unsatisfactory user
experiences.
• Toward a solution: overcoming siloed 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. For example, sales representatives need to know about current issues and
relevant marketing promotions before attempting to cross-sell to a specific client.
Marketing staff should be able to leverage client information from sales and
service to better target campaigns and offers. And support agents require quick
and complete access to a client’s sales and service history.[3
B2B and B2C CRM: An overview of the
differences
I'm interested in the subtle difference between a contact and a customer. The real world is
full of people (i.e., contacts) who buy products either as individuals -- business-to-
consumer (B2C) or as representatives of an organization in the business-to-business
(B2B) world. I would view CRM more as a "contact" relationship management. So, that
would entail the workflow process being:

1. Identify and enter contact -- including demographics and categorizations for

marketing strategies.
2. Determine opportunities for that contact.
3. Contact buys product.
4. Contact is now a customer, either an individual for consumer or an account for an
organization.

What is eCRM?
eCRM stands for Electronic Customer Relationship Marketing. eCRM relates all forms of
managing customer relationship with the use of IT (Information Technology). It uses
information technology for integrating the Internal Organization Resources and External
Marketing Strategies to know and satisfy the needs of customers. When eCRM is
compared with CRM, eCRM is very effective for communicating with the customers.

Difference between CRM and eCRM:

• CRM uses phone, fax and retail store for contacting customers while eCRM uses
wireless, PDA technology, internet and email.
• CRM requires the client to definitely download different applications for viewing
Web-Enabled applications while eCRM does not have such requirements.
• The personalized views of CRM are not available while the personalized views of
eCRM are related to purchase preferences and history.
• The design of CRM system is related to job products and functions while the
design of eCRM system is related to customer needs.
• The maintenance of CRM is very expensive while the maintenance of eCRM is
less expensive and requires only less time.

Strategy Components of eCRM:

The eCRM includes three strategic components such as:

 • Analytical: It helps the organization for maintaining long term customer
relationship.
• Operational: It avoids redundant processes.
• Collaborative: It is very effective in sharing the information.

Different Levels of eCRM:

The eCRM can be divided into three different levels, namely:

• Customer Centered Services: It includes Product Configuration, Order

Tracking, Customization, and Security.
• Foundational Services: It includes only minimum services like Website
Responsiveness, Effectiveness, and Order Fulfillment.
• Value Added Services: It includes major services like Online Education &
Training, and Online Auctions.

Advantages of eCRM:

• Less expensive,
• Good Coverage, and
• Supports right technologies.

Disadvantages of eCRM:

• Difficult to measure and value the benefits of intangible.

• Resolution rate are mixed.
• User acceptance is poor.
Eight Steps to Developing a CRM Roadmap
Accenture outlines an eight-step method for your company to determine
its needs in a CRM implementation.
By Alpesh Fadia, Accenture Print Version
Posted May 23, 2001 Comments
(0)
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Is it any wonder that the new mantra in business today is to become a customer-driven organization that deve
a company's overall interaction with customers, what we call CRM, and financial performance. It showed tha
roughly half the inequality in financial performance between top performers and average performers1.

So it is no surprise that companies are investing an enormous amount of effort and money in CRM tech
growing at 35 percent compounded annual growth rate. It is also no surprise that the main concerns of many
to consider a holistic view of their customers. This can be achieved through an innovative approach known as

But how are companies presently responding to this challenge in an environment where customers are much

Some companies are implementing point-to-point technology solutions, but while technology can play an imp
Organizations, therefore, need to consider the broader potential of CRM by viewing the enterprise as a cohes

Constructing a CRM Roadmap that includes a comprehensive customer strategy is the first step in achieving

What is a CRM Roadmap?

A CRM Roadmap is a strategic plan that identifies how an organization can meet and exceed its customers' n

1. gain insight from their customers (e.g. purchase history, desired products/services),
2. produce valuable offerings/products (e.g. personalized product) and
3. provide the ultimate customer experience (e.g. multiple touchpoints, 360 degree view of the customer

The graphic below provides a "line of sight" that links the business strategy to customer expectations. Follow

As illustrated above, developing a CRM Roadmap involves aligning an organization's business strategy with
strategy, and might include:

 Leveraging customer information from the service process (e.g. integrating customer feedback during ser
 Effectively managing product mix (measuring success by campaign), and
 Effectively managing sales channel strategy (eliminating conflict between distribution channels).

So how do organizations know which CRM capabilities they have, and which they need to realize their strate

step 1: Gain Senior Level Sponsorship

The sponsor for a CRM Roadmap effort must have a vested interest in the project and ideally has P&L respo

A Roadmap effort without senior level sponsorship and with little cross-unit influence can diminish the return
reduces the effectiveness of the project, since there is no driving force for implementation.

step 2: Gather Information

It is critical to gain insights of various key stakeholders and decision-makers within the organization. These i
the client.

Examples of questions that help us gauge the health of the client's CRM include:

 How would you define CRM?

 What types of customer information is captured/tracked (acquisition/retention costs, churn, cost to serve,
 What information would you like to know about your customers that you currently do not?

Depending on the scope and effort of the project, these meetings may include not only executives, but also in
communicated to the executive level.

step 3: Assess Current state and Define Future state Gaps

Through these meetings, we gain an understanding of the client's current CRM capabilities and significant op

We use the results to determine how close these organizations are to meeting and exceeding their customers'

We then compare the current state of CRM against best practices within the clients' respective industry and a

step 4: Identify Value Opportunities

Value opportunities represent the potential benefits delivered by being more customer-centric. We identify an
meetings should be held with the executive team to prioritize them.

One example of a "process" value opportunity is improving data capture for all customer contacts across sale
developing a data warehouse.

step 5: Link Value Opportunities to strategic CRM Capabilities

Once we determine where the value opportunities lie, we map each to the 21 world-class CRM capabilities de
projects.

Below is a sample of link between a specific value opportunity and its corresponding strategic CRM capabili

Value Opportunity:

Improve customer understanding

strategic CRM Capability:

• Possess good knowledge of the customer

• Leverage customer information from the service process
• Understand customer profitability and cost-to-serve.

step 6: Define CRM Projects and Requirements

Once value opportunities are prioritized, specific CRM projects need to be developed. Defining and executin

An effective way to define relevant projects is through brainstorming sessions with the client. Samples of the

 Understand customer profitability

 Enhance call center operations by implementing sophisticated touchpoint technologies
 Establish a data warehouse
 Improve sales force training

Once CRM projects are defined, it is critical to go one step further and identify the business and technical req

For "Understanding Customer Profitability," functional requirements might include creating a common defin

 Products, channels, sales staff, customer segments, individual customers

 Ensuring consistency across the enterprise
 Defining components of the formula (acquisition, marketing, servicing costs, etc.)
step 7: Develop Business Case

Once the projects and requirements are defined, it is necessary to develop the business case to support or refu

For example, a typical CRM investment ranges from $10 to $25 million (or more) over a three to five year pe
an enterprise wide data warehouse with links to legacy systems dispersed throughout the organization. In add
category and offer the additional benefit of introducing CRM concepts and execution to an organization on a

The investment cost takes into account number of users, internal and external human resources, training, infra

Each business case should include:

 Details and costs of required resources (people, technology, training, outsourced resources, etc.),
 Projected duration of time of each project and
 Options for completing the project using internal or external resources.

Once the costs are quantified for each project, potential benefits are estimated. This is much more difficult th
(identified in step 5) and thereby complete the most difficult part of the business case. A key requirement is t

Business cases enable a company to prioritize each project's value to the organization. With the creation of a
Similarly, an extended investment plan allows them to quantify the impact of a slower implementation in term

step 8: Develop a Roll-out strategy

Developing a roll-out strategy enables organizations to focus their resources, money and time on the most im

Prioritization and phasing of projects is conducted with the executive team, a process in which they evaluate

Critical Success Factors

In order to successfully develop a CRM Roadmap, there are several critical success factors that must be kept

1. It is vital to have buy-in from top management.

2. A strong sponsor is required (skilled, knowledgeable and politically savvy).
3. It is essential to have buy-in and involvement from all process owners.
4. It is critical to have a strong leader who can hold constructive, productive brainstorming sessions, and
5. Feedback from all affected internal and external parties (customer groups, other inter-dependent inter
6. Do not lose sight of your customer's needs.
7. Installing technology without revisions in supporting processes and people/organizational elements w
8. Lack of communication can be life threatening to a CRM Roadmap project. You cannot over-comm
A Final Thought...

Achieving success in developing intimate and enduring relationships with customers begins with a holistic co
preferences change constantly. The correct strategy can help your organization form deeper relationships with
Article Abstract

Title: Strategic and operational issues in implementing a CRM tool

Author: Sandra Rothenberger
Address: Department of Strategic Management, Marketing and Tourism, Innsbruck
University School of Management, Universitaetsstrasse 15, 6020
Innsbruck, Austria
Journal: International Journal of Business Environment 2007 - Vol. 1, No.4
pp. 462 - 475
Abstract: If recently published articles and opinions can be trusted, Customer
Relationship Management (CRM) is still very popular and important to any
kind of company. As an integrated approach, it helps to identify, acquire
and retain customers and enables organisations to manage and coordinate
customer interactions. CRM therefore supports organisations in their
efforts to maximise the value of every customer interaction and to drive
superior corporate performance. Yet in many cases, the strategic CRM
goals are not reached to the fullest extent and so even fail. Roughly 70% of
all CRM implementations do not live up to the expectations of managers
(Lamberti, 2003). This paper tries therefore to identify the success factors,
as well as the most important thoughts and relations to be taken into
consideration, if CRM is to be successfully implemented as a tool for
enhancing and supporting overall business success and customer
relationship efficiency.
Keywords: customer relationship management; CRM implementation; strategic tools;
success factors; business environment; customer relationship efficiency.