CRM MODULE 3

INTRODUCTION
Over time, companies have used technology to improve Customer Relationship
Management (CRM).
Early leaders - Siebel, Oracle, and SAP
Innovators - Kana and Salesforce (Software-as-a-Service -SaaS)
Social media and open-source software changed how businesses interact
with customers, making feedback crucial. Smartphones and PCs increased
customer mobility, pushing businesses to adapt.
As technology evolves, CRM remains vital for businesses. Companies must align
their strategies with customer needs, using online connectivity and feedback to
improve products and stay competitive.

CONCEPT OF e-CRM
Electronic Customer Relationship Management (e-CRM) refers to the use of
web-based technologies to manage customer relationships. It extends traditional
CRM to online interactions, improving customer service, sales, and marketing
efficiency.

• It involves emails, chatbots, social media, and AI-driven analytics.

• e-CRM enables real-time interaction, personalization, and automation of
customer engagement.
• It integrates various communication channels like websites, mobile apps, and
social media to create a seamless customer experience.
SALIENT FEATURES OF e-CRM

• Powered by a data warehouse that stores customer purchase records.

• Focuses on reaching customers across multiple channels and helps businesses
adapt to market changes.
• It is designed to prioritize profitable, long-term customers.
• Businesses use e-CRM to make investment decisions, allocate resources
effectively, and strengthen customer loyalty.

e-CRM ADVANTAGES
1. Enhanced Customer Experience – Personalization and automation
improve customer satisfaction.
2. Cost-Effectiveness – Reduces operational costs by automating responses
and interactions.
3. 24/7 Availability – AI chatbots and automated systems offer round-the-
clock customer support.
4. Real-Time Data Access – Provides instant insights into customer behavior,
allowing businesses to react quickly.
5. Multi-Channel Integration – Supports communication across email,
mobile, and social media.
6. Scalability – Easily expands as business and customer base grow.
7. Improved Sales & Marketing – AI-driven insights help in targeting the
right customers.
e-CRM DISADVANTAGES
1. Hard to Measure Benefits – The impact of e-CRM is difficult to evaluate
since results are not always tangible.
2. Inconsistent Issue Resolution – Some customer queries may remain
unanswered due to system limitations.
3. Lack of Human Interaction – There is no direct human support for
follow-ups or clarifications.
4. Impersonal Experience – The system does not fully recognize individual
users or their behavior.
5. Low User Acceptance – Many customers may not prefer or trust
automated systems.

e-CRM TECHNOLOGIES
• Websites and Portals: Serve as the primary interface for customer
interactions.
• Email Marketing Tools: Automate personalized email campaigns.
• Social Media Platforms: Facilitate engagement and customer feedback.
Integration with social media platforms for better engagement.
• Chatbots and AI: Provide instant customer support and assistance.
• Analytics Tools: Track customer behavior and preferences.
• Mobile Apps: Enable on-the-go access to services and support.
• Cloud Computing – SaaS-based CRM solutions (e.g., Salesforce,
HubSpot) that are accessible from anywhere.
APPLICATIONS OF e-CRM

1. Customer Interaction Management (CIM) – Uses customer data from

CRM applications to create a more personalized experience. It helps
businesses understand customer behavior across different touchpoints and
improve service.
2. Customer Relationship Website – Provides customers with a platform
to resolve their queries anytime. It records customer interactions, such as
inquiries, searches, and purchases, helping sales teams create better offers.
3. Interactive Relationship Management – Focuses on maintaining strong
customer relationships even after a sale. It includes services like product
maintenance, ensuring customer satisfaction, and increasing business growth.

DIFFERENCE BETWEEN CRM & e-CRM

Aspect CRM (Traditional e-CRM
CRM) (Electronic CRM)
Communication Uses phone, fax, Uses Internet, email,
Channels retail stores for wireless devices and
customer interaction. social media.
Software & Requires users to No download
Accessibility download needed; accessible
applications for web- via cloud and web.
based CRM.
Customer Limited Provides
Interaction & personalization; does personalized views
Personalization not store purchase based on customer
history effectively. purchase history and
preferences.
System Design Designed based on Designed based on
job production and customer needs and
business functions. behavior.
 Implementation Expensive to maintain Less expensive and
Cost & and update. requires less
Maintenance maintenance time.
Automation & Manual processes, Automated, real-
Scalability limited real-time time updates, and
updates. scalable for
businesses.

CRM SOFTWARES

1. Oracle Siebel CRM

• One of the oldest and most comprehensive CRM solutions, originally

developed by Siebel Systems (acquired by Oracle).
• Key Features:
o Strong focus on enterprise CRM with deep industry-specific
solutions.
o Provides on-premise and cloud-based deployment options.
o Advanced analytics, AI-driven automation, and personalized
customer engagement.
• Best For: Large-scale enterprises requiring a highly customizable
CRM with strong integration capabilities.

2. SAP CRM

• Part of SAP’s Customer Experience (CX) suite, providing integrated

e-CRM solutions.
• Key Features:
o AI-powered insights for predictive customer behavior analysis.
o Seamless integration with SAP ERP for end-to-end business
operations.
o Multi-channel engagement (email, social media, chat).
• Best For: Enterprises looking for a CRM tightly integrated with
ERP and supply chain systems.
3. Salesforce CRM

• A cloud-based SaaS CRM, revolutionizing CRM with easy accessibility

and AI-driven automation.
• Key Features:
o Highly scalable & customizable through AppExchange.
o AI-powered automation with Salesforce Einstein.
o Strong third-party integrations and mobile CRM capabilities.
• Best For: Businesses of all sizes needing scalability, automation, and
cloud-based accessibility.

4. Microsoft Dynamics 365 CRM

• A CRM + ERP hybrid that integrates seamlessly with Microsoft’s

ecosystem (e.g., Office 365, Azure).
• Key Features:
o AI-driven sales insights and automation.
o Integration with LinkedIn Sales Navigator for lead
generation.
o Customizable workflows and strong data analytics capabilities.
• Best For: Businesses using Microsoft products, looking for deep
integration and enterprise-level AI features.

5. SugarCRM

• An open-source CRM known for flexibility and cost-effectiveness.

• Key Features:
o Customizable and open-source, allowing companies to modify
features as needed.
o AI-driven automation and predictive analytics.
o Provides on-premise and cloud-based deployment options.
• Best For: SMEs & enterprises looking for a cost-effective, flexible,
and customizable CRM.
SALES FORCE AUTOMATION (SFA):

Purpose: SFA is all about helping sales teams manage their tasks and
interactions with customers.

Focus: It’s primarily used to streamline the sales process, like tracking leads,
managing customer information, and closing deals.

Key Features:

• Managing customer data (like contact info, purchase history).

• Tracking sales opportunities and pipelines.
• Automating tasks like follow-ups, reporting, and forecasting.
• Helping salespeople access real-time information (like inventory or
pricing) while on the go.

Goal: To make sales teams more efficient, improve customer relationships, and
increase sales.

FIELD FORCE AUTOMATION (FFA):

Purpose: FFA is designed to help field service teams (like technicians or repair
workers) manage their tasks and provide better customer service.

Focus: It’s about automating and optimizing service-related processes, like

scheduling repairs, dispatching technicians, and managing warranties.

Key Features:

• Sending dispatch orders to technicians via mobile devices.

• Providing repair instructions, part details, or troubleshooting guides.
• Tracking service requests and ensuring timely resolutions.
• Improving communication between technicians, customers, and the
company.
 Goal: To make field service operations more efficient, reduce response
times, and ensure customer satisfaction with after-sales service.

KEY DIFFERENCE:

- SFA is for sales teams and focuses on selling products or services.

- FFA is for service teams and focuses on maintaining, repairing, or supporting

products after they’ve been sold.

FIELD SERVICES IN AN ORGANIZATION

1. Call Centre: The process starts when a customer contacts the company’s
call centre with a problem or service request.
2. Action of CSR (Customer Service Representative):
o Explain the Customer: The CSR listens to the customer and
understands their issue.
o Diagnose Problem: The CSR tries to identify the root cause of the
problem.
o Request Service: If the issue can’t be resolved over the phone, the
CSR requests a service visit.
o Close Call: The call is concluded, and the service request is logged.
3. Enlist Product Specialist: The CSR assigns the task to a product
specialist or service engineer who has the expertise to handle the issue.
4. Visit of Service Engineer: The assigned service engineer visits the
customer’s location to address the problem.
5. Order Equipment: If needed, the service engineer orders any additional
equipment or parts required for the repair.
6. Repair: The service engineer performs the necessary repairs or maintenance
to resolve the issue.
KEY COMPONENTS OF CRM

Customer Touchpoints

These are the various ways a business interacts with its customers. CRM helps
track and manage these interactions to provide a seamless customer experience.
Common touchpoints include:

• Salesperson Contact: Direct interactions between sales teams and

customers.
• Web Contacts: Interactions through the company’s website or online
platforms.
• Email: Communication via email campaigns or personalized messages.
• Direct Mail: Physical mail sent to customers, such as brochures or
promotional materials.
• Coupons: Discounts or special offers provided to customers.
• Telesales: Phone-based sales and customer service.
• Kiosks: Self-service terminals or interactive displays in physical locations.

CRM Applications

CRM systems are used across various business functions to enhance customer
relationships. Key applications include:

o Sales Management: Tracking sales activities, leads, and customer

interactions.
o Campaign Management: Planning and executing marketing
campaigns.
o Segmentation: Dividing customers into groups based on behavior,
preferences, or demographics for targeted marketing.
o Personalization and Customization: Tailoring products, services,
and communications to individual customer needs.
o Service Functions: Providing support through help desks and customer
care teams.
NEED TO IMPLEMENT CRM

CRM (Customer Relationship Management) is more than just technology—it’s a

strategy to make businesses more customer-focused. Here’s why implementing
CRM is important, explained simply:

1. Changing Customer Expectations: Markets and customer needs

evolve. CRM helps businesses adapt by understanding and anticipating
these changes.
2. Better Business Processes: CRM improves how information flows
within a company, making operations smoother and more efficient.
3. Stronger Customer Relationships: By analyzing customer data,
businesses can make smarter decisions and build stronger connections with
customers.
4. Increased Productivity: CRM helps businesses grow their customer
base and work more effectively in competitive markets.
5. Proactive Approach: CRM allows companies to anticipate customer
needs and address them before issues arise.
6. Customer Loyalty: By analyzing data from various touchpoints (like
emails, sales calls, etc.), businesses can focus on what customers want,
boosting loyalty.
7. Targeted Marketing: CRM helps segment customers and run more
effective, cost-efficient marketing campaigns.
8. 360-Degree Customer View: CRM integrates data from all
departments, giving a complete picture of each customer. This helps align
marketing, sales, and service efforts for better results.

FRAMEWORK FOR IMPLEMENTING CRM

Implementing CRM involves a strategic framework with five key processes, as

outlined by A. Payne and P. Frow. Here’s a simplified explanation:
1. Strategy Formulation:
o Start with a clear business vision and align it with customer needs.
o Analyze customer data to identify the best customer segments to
target.
o Focus on building strong customer relationships for long-term
success.
2. Value Creation:
o Deliver value to customers through products, services, and
relationships.
o Focus on customer lifetime value by balancing acquisition and
retention costs.
o Enhance brand value to create a positive customer experience.
3. Information Management:
o Organize and manage customer data effectively.
o Use technology to integrate data from all customer touchpoints
(e.g., front office, back office).
o Create a centralized data repository for better analysis and decision-
making.
4. Multichannel Integration:
o Offer products and services through multiple channels (physical and
virtual) to meet customer preferences.
o Use a mix of sales force, outlets, telephony, e-commerce, and
mobile commerce.
o Focus on delivering a seamless and cost-effective customer
experience.
5. Performance Assessment:
o Measure and improve performance using customized metrics.
o Focus on reducing costs and enhancing value for employees,
customers, and shareholders.
o Continuously monitor and adjust strategies based on feedback and
results.
CHOOSING THE APPROPRIATE CRM SOLUTION

1. On-Demand vs Onsite CRM:

o On-Demand (Cloud-based): Easier to implement, cost-
effective, and hassle-free. Ideal for small to mid-sized businesses that
don’t want to invest in expensive infrastructure.
o Onsite: Preferred by large organizations with existing IT
infrastructure. Requires higher upfront costs but offers more
control over the system.
2. Scalability:
o Choose a CRM that can grow with your business. Ensure it can
handle increased data and users as your business expands.
3. Price:
o Consider both upfront and long-term costs, including training,
upgrades, and additional equipment. Don’t just focus on the initial
price; think about the total cost of ownership.
4. Clear Business Objectives:
o Define your goals and involve all departments (sales, marketing,
service) in the decision-making process. Create a checklist of must-
have features to ensure the CRM meets your needs.
5. System Integration:
o Ensure the CRM can integrate with your existing systems and adapt
to future changes. This makes the system more cost-effective and
useful in the long run.
6. Vendor Reputation:
o Research the vendor’s reputation, customer reviews, and track
record. A reliable vendor is more likely to provide a quality product
and support.
CHOOSING THE RIGHT CRM VENDOR

1. Customer and Industry Profile:

o Vendor’s experience with clients in your industry.
o Success stories and expertise in niche or horizontal solutions.
2. Experience and Expertise:
o Ensure the vendor has a proven track record in CRM deployments.
o Verify their ability to customize solutions to fit your business needs.
3. Networks and Associations:
o Vendor with strong local partnerships (better support and consulting)
4. Technology Options:
o Vendor offering both on-premise and cloud-based solutions (flexibility)
5. Free Trial/Demo:
o Evaluate its functionality and suitability through demo/free trial.

TOP CRM VENDORS

1. Oracle-Siebel:
o Offers a comprehensive CRM portfolio, including cloud and on-
premise solutions.
2. SAP CRM:
o Provides robust CRM modules for sales, marketing, and service, with
cloud extensions.
3. Salesforce.com:
o A leader in cloud-based CRM with a strong ecosystem of third-party
integrations.
4. Microsoft Dynamics CRM:
o Unique for using the same code base for both on-premise and cloud
solutions, offering great flexibility.
5. Sugar CRM:
o Known for its open-source, user-friendly, and cost-effective CRM
solutions.
OPERATIONAL ISSUES IN IMPLEMENTING CRM

Implementing CRM boosts revenue, client satisfaction, and cost savings, but
challenges arise if key aspects are overlooked.

1. Planning

• Problem: Many CRM implementations fail because organizations focus only

on choosing and deploying software without proper planning or involving
employees.
• Solution:
o Redesign flawed processes before automating them.
o Train employees and involve them in decision-making to ensure
smooth adoption.
o Focus on change management to overcome resistance.

2. Integration

• Problem: Organizations often treat integration as a minor task, improving

only one or two processes (e.g., automating sales). This leads to
misalignment with overall business goals and unsatisfactory user experiences.
• Solution:
o Ensure CRM aligns with the company’s strategies and objectives.
o Consult internal and external stakeholders before adopting new
technology.
o Address both internal (employee) and external (market) factors.

3. Being Solution-Oriented

• Problem: Departments often work in silos, leading to inefficiencies in

client-facing operations.
• Solution:
o Encourage cross-departmental sharing of information (e.g., sales,
marketing, and service).
o Equip sales teams with marketing campaign details and service history
to improve cross-selling.
ISSUES IN CRM ADOPTION

Organizations face several challenges during CRM adoption:

1. People and Processes: Employees may resist integrating new

technology into their workflows.
2. System Usage: Staff may not fully use the CRM due to lack of training or
interest.
3. Limited Functionality: Employees might use only half of the system’s
features.
4. Data Synchronization: Poor data integration can lead to inaccurate or
incomplete information.
5. Time Constraints: Organizations may struggle to find time to evaluate
and fix CRM-related issues.