SYMBIOSIS INSTITUTE OF MANAGEMENT STUDIES
CUSTOMER RELATIONSHIP MANAGEMENT (CRM)
ASSIGNMENT NO. 1
NAME : Praveen Manchal COURSE: EX- PGDM (Marketing) ROLL NO: 10020468033 Submitted to: Mr. Amit Waghmare
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1.“The new interactive technologies are 1.“The ar e not enough to cement a relationship, because companies need to change their behavior toward a customer and not just their communication.” Explain what this statement means. Do you agree or disagree? Customer relationship management (CRM) Making managerial decisions with the end goal of increasing the value of the customer base through better relationshipswith customers, usually on an individual basis.
The Learning Relationship works like this: If you’re my customer and I get you to talk to me, and I remember what you tell me, then I get smarter and smarter about you. I know something about you my competitors don’t know. So I can do things for you my competitors can’t do, because they don’t know you as well as I do. Before long, you can get something from me you can’t get anywhere else, for any price. At the very least, you’d have to start all over somewhere else, but starting over is more costly than staying with me, so long as you like me and trust me to look out for your best interests.
No compan y can succeed without customers. If you don’t have customers, you don’t have a business. You have a hobby .- Don Peppers and Martha Rogers
If you don't deliver service your customer’s value, someone else will. Access to informat inf ormation ion is the foundation of customer satisfaction and retention. Here's how one organization determined that the efficiencies of a document-to-data information management system could pay for itself in the first year. In today's highly competitive managed care arena, providing better-t better-than-average han-average customer only good enough for staying abreast of the pack.
service is
Becoming the front-runner requires extraordinary measures, particularly in the understanding and management of information, the cornerstone of any customer transaction. Satisfying customers -- or, better yet, delighting them -- is all about responding by building business capabilities which allow quick, effective access to information. Page 2 of 14
2. If retention is so much more profitable than acquisition, why have companies
persisted for so long in spending s pending more on getting new customers customers than keeping the ones they have? It costs six times more to acquire a new customer than keep an old one. The odds of selling a product to a new customer are 15%, while the odds of selling it to an existing customer are 50%. One dissatisfied customer typically tells eight to ten people about his or her experience. 70% of complaining customers will do business with the company again if it quickly takes care of a service snafu. More than 90% of existing companies do not have the necessary integration of sales and service processes and systems to support e-commerce. A company can boost its profits 85% by increasing its annual customer retention by only 5%!
Customer retention is the number of customers doing business with a firm at the end of a fi-nancial year, expressed as percentage of those who were active customers at the beginning of the year. How many times have you heard that it costs X times more to acquire a customer than to retain one? The most recent incident for me was in an article in CRM magazine. “according to Gartner it costs eight to ten times more to acquire customers that it does to retain them.” It’s time to eliminate this urban legend from our repertoire. Here are just a few of the reasons why the claim that acquisition is so much more costly than retention is pure fiction. The costs of acquisition and retention: 1) Vary by industry, by product, and company strategy. Don’t tell me that the ratio is eight or ten to one across every product and industry. The automotive industry probably has a fifty (or hundred) to one acquisition to retention ratio. Car dealers, as far as I can tell, don’t spend a dime on customer retention. In the world of financial services, though, I’d bet that HSBC and Emigrant Savings have effectively acquired savings account customers online with above-average industry rates. Retaining — and, as importantly, cross-selling — those customers could not have been as easy (i.e., cheap).
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2) Ebb and flow with economic cycles. Lenders found it a whole lot cheaper to acquire new mortgage and home equity loan applicants a few years ago than they do today. And why would anybody assume that retaining those borrowers from a few years ago was a piece of cake that didn’t require much investment? Hogwash. 3) Are incalculable. Let me put it this way: You have no idea how much it’s costing you to retain customers. Do you include all the costs associated with providing customer service to customers in your retention calculations? After all, if you don’t service them, you will have less chance of retaining them. Do you allocate all IT application maintenance and enhancements to your retention calculations? If you don’t continually improve your transaction and interaction service capabilities, your ability to retain customers diminishes, you know.
No, the fact of the matter is that you don’t have the slightest clue what it costs to retain a customer, because no one has really defined a standard for what costs to include and which ones to exclude Customer Relationship Management (CRM)
In the B2B arena, CRM is helping define how we give selected clients that extra bit of attention, and those unexpected but valued ideas and initiatives that help the customer run their business better. CRM is an important strategy that needs to be owned in the boardroom. For this to be successful it needs to be treated as a key business process, with customer-defined deliverables, interlinking and clearly defined process steps, measures of performance and accountabilities. For many people this means a sophisticated technology system. True, but that's the enabler only. CRM is not about technology, but technology helps enable the way we collect, store and share relevant client information that helps us do this. For B2B clients I often recommend as a first step that they undertake an in-depthKey Customer Relationship Review that gives them a snapshot and improvement platform for their most important customers, following the 80/20 rule. Most customers leave because they are unhappy, and sixty-seven percent of clients leave because of a perceived feeling of indifference. Managers and supervisors need to coach their inside sales team to keep in front of their customers. Look at who you have not talked to in the past year and who you have not contacted in the past 30 days and make sure to send them an e-mail or phone call to let them know that you are still interested in them. Ask customers how the product you sold them is working out or if they need anything else. This way, you are letting your customers know that you value them.
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3. SWOT analysis of top 5 CRM software product vendors. “Fueled by renewed interest in customer experience management,” notes the report, “heightened accountability and heavy development investments from the vendors, the CRM acronym has become fashionable again.” Vendors’2009 CRM revenue totaled more than US$14 billion, which was an “impressive” 12 percent growth rate over 2008, according to the report. “This represents the strongest year -over-year -over-year growth rate for the segment since 2005, when the customer management market was still in hyper-growth,” write the analysts.
1.
RIGHTNOW TECHNOLOGIES: Right Now Technologies NASDAQ: RNOW is a U.S. software company that develops customer
relationship management (CRM) software
for enterprise enterpr ise organizations. or ganizations. It is incorporated incorp orated
in Delaware and headquartered in Bozeman, Montana. The company was founded in 1997 by Greg Gianforte in Bozeman, Montana Additional offices have opened in California, New York, New Jersey, Massachusetts, Massachusett s, Texas, Illinois, Washington
DC, Colorado,
Canada, Europe, Australia and Asia. Right Now is primarily known for its business model of offering its software as a hosted service in the cloud. As of November 2009, the company has nearly 2000 customers, including Australia Post, British Airways, and Iomega Continental Tire.
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2. SAP CRM SAP has a low presence in public sector and currently generates only 9% of its revenue from the public sector. SAP’s software revenues from the public sector declined by 6.6% to $341m (R271m) in 2006. By contrast, Microsoft’s ERP division has more than 7,800 public sector customers worldwide who use its ERP (Enterprise Resource Planning) and Customer Relationship Management (CRM) products. Oracle has also strengthened its presence in the public sector through its acquisition of PeopleSoft...” The global software market value will reach $272 billion in2011, representing a five-year CAGR of 7.5%. • Microsoft remains the software market leader with a 21.8%market share, followed by IBM with 8.9% share. • Major acquisitions in 2007 included SAP acquiring Business Objects for $6.8 billion, IBM acquiring Cognos for $5 billion and the $3 billion acquisition of Hyperion by Oracle. • New and stricter government regulations are creating opportunities for vendors with specific strengths in security and data protection technologies such as EMC and Symantec.
With SAP CRM, marketers gain the essential business insights needed to make intelligent decisions, sharpen their focus on customers to drive demand and increase customer retention, and better manage marketing resources to do more with less. Key SAP CRM marketing capabilities include:
Marketing resource and brand management Campaign management Segmentation and list management Real-time offer management Loyalty management E-marketing
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Key Marketing Benefits of SAP Customer Relationship Management
SAP CRM enables you to:
3.
Align marketing resources to support organizational objectives Understand the returns on your marketing spend Accelerate marketing processes with increased visibility and control Drive customer demand with targeted marketing messages Identify and retain high-value customers with customer loyalty programs Establish a standard, streamlined marketing process with a central marketing platform
ORACLE CRM:
The world's most complete customer relationship management (CRM). Oracle offers the broadest and deepest portfolio of CRM solutions that address all customer touch-points and provide rich functionality to support the specific business needs for organizations of every size to deliver a superior customer experience. Only Oracle Provides Complete CRM:
Innovation — Industry Industry recognized leader in CRM Over 20 industry tailored solutions Industry — Over Insight — — Embedded Embedded real-time business intelligence Integration — End-to-end End-to-end business processes Infrastructure — Broadest Broadest choice of deployment options
Oracle CRM is a Customer Relationship Management system developed by Oracle Corporation. Oracle CRM includes Oracle and PeopleSoft products but leads with Siebel CRM and CRM on Demand.
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4. MICROSOFT CRM: Microsoft Dynamics CRM is a multi-lingual Customer Relationship Management software package developed by Microsoft. Out of the box, the product focuses mainly on Sales, Marketing, and Service (help desk) sectors, but Microsoft has been marketing Dynamics CRM as an XRM platform and has been encouraging partners to use its proprietary framework to customize it to meet many different demands.
Dynamics CRM is a server-client application, which, like Microsoft SharePoint, is primarily an IIS-based web application which also supports extensive web services interfaces. Clients access Dynamics CRM either by using Microsoft Internet Explorer 6 or later web browser or by a thick client plug-in to Microsoft Outlook While other browsers can be used to access Dynamics, results can be mixed and are not supported by Microsoft.
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5. Salesforce.com:
Salesforce.com is an enterprise cloud computing company headquartered in San Francisco, USA that distributes business software on a subscription basis. Salesforce.com hosts the applications offsite It is best known for its Customer Relationship Management (CRM) products and, through acquisition, has expanded into the "social enterprise arena.
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4. What role you will perform, if you are selected by one of the top CRM service provider and what will be your value addition ? Data Management
1. Minimizing Duplications and data quality 2. Enforcing Data Entry Standards 3. Maintaining the Data Conversion Rules from disparate systems
Sales Professional
1. Understand Sales processes, that is, what is involved in winning new business, preferably with an in depth understanding of known Sales processes such as SPIN, Miller Heinemann, Solution Selling, etc. 2. Great Presentation skills, as they will be required to sell new ideas and processes internally to management and staff 3. To be able to sell the idea that CRM is not a IT solution, but a tool to help an organization to better understand what their customers want and need
Change Manager
1. Plan for Change Management 2. Design incentives for people to change the way that they perform their jobs, as CRM always involves change and will be one of the greatest challenges — sells 3. Motivator — sells the benefits of CRM to the users and management, so they will change Senior Business Architect
1. Setting the process and performance framework for business transformation for a CRM implementation i.e. business and process analysis and then designing the CRM application so it meets the business requirements of the organization 2. Analysis of what information is required from other applications, ERP, etc Business Analyst
1. Analysis of any problems, 2. Errors
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3. What information users will have access to, what information will help them perform their jobs more effectively Data Modeler
1. Creation of list views for marketing mail outs 2. Creation of other list views that will help users such as Territory Management, Opportunities, customers, etc 3. Creation of Business Objects Reports Application Administrator 1. Creation & Maintenance of Teams, 2. Maintenance of existing Users 3. Creation of new Users 4. Creation of Users Synchronization Rules 5. Territory Realignment 6. Applying any new Customization 7. Testing new processes and customization
Performance Measurement 1. of Users 2. Data 3. Customer Information 4. Marketing Campaigns 5. System Effectiveness Portfolio Manager
1. Building Relationships with Portfolio stakeholders such as CEO, Sales Director, Marketing Director, Customer Service Director, etc 2. Evaluating and prioritizing CRM initiatives based on discussions with above 3. Planning, Release Scheduling: Roll Outs to different divisions, departments, etc Page 11 of 14
4. Planning the application upgrades 5. Maintain Relationship with CRM application vendor 6. Build and maintain relationship with IT department
5. While most organizations are moving towards customer centric philosophy, there is one organization, HCL that boldly says “Employee First, Customer Second”. Do D o you agree with such strategy? Justify your stand Sounds typical HR speak? Maybe yes, ….but in a country whose IT prowess/future hinges on the ability to service external clients, this looks like a fairly bold statement to make. Can’t but help recall Mahatma Gandhi’s famous quote commonly found plastered across shops & establishments all over India “A customer is the most important visitor on our premises, he is not dependent on us. We are dependent on him. He is not an interruption in our work. He is the purpose of it. He is not an outsider in our business. He is part of it. We are not doing him a favor by serving him. He is doing us a favor by giving us an opportunity to do so.”
The initiatives that are part of the policy look well intentioned, though not necessary first of its kind. What looks first of its kind is an organisation of this size, in a county like India, in an industry like client servicing oriented IT services making this a policy statement. And while this initiative predates it, the Satyam scandal makes this pitch even more intriguing for an Indian IT major. Strategy used to be about protecting existing competitive advantage. Today, it is about finding the next advantage; every strategy starts to decay the day it is created. Our research addresses how established corporations can execute breakthrough strategies to address tomorrow's business realities. Actions belong in one of three POINTS. 1: manage the present; 2: selectively abandon the past; and 3: create the future. 1 is about improving the current business. 2 and 3 are about breakout performance and growth. Strategy cannot be just about 1, securing profits for the next year. Strategy must encompass 2 and 3. It must be about what a company needs to do to sustain leadership for the next 10 years. In fact, managers' central task is to balance managing the present with creating the future. For example, Apple must continue to excel at producing personal computers that delight its core customers (1). But it must also secure its future by launching high-growth-potential, transformative businesses like iPod and iTunes (2 and 3). Organizations that operate with a short timeframe assume that their industries are stable and static. But it takes years for large organizations to change direction. By comparison, change in the industry environment is rapid and nonlinear. For instance, nanotechnology and genetic engineering are revolutionizing the pharmaceutical and semiconductor industries. Globalization is opening doors to emerging economies with Page 12 of 14
billions of customers who have vast unmet needs. Once-distinct industries, such as entertainment, telephony, and computing, are converging. And rapidly escalating concerns about security and the environment are creating unforeseen markets. Because these forces create nonlinear change, old assumptions are no longer valid. Because strategies are quickly imitated, they need almost constant reinvention. The only way to stay ahead---the only way to capture emerging opportunities---is to innovate. Senior managers must maximize profits from existing businesses. 1 is tremendously important, but responsible leaders must build for a future beyond that life. Too many companies ignore 2 and 3 until it is too late, as vividly illustrated by the problems experienced by Sears and Kmart in retailing and by Kodak in photography. How can other companies avoid similar declines? How can large, established corporations build breakthrough new businesses? Below are some feedback provided by ex-HCLite I’ve worked there there for 12+ Years and quit recently. THIS IS ANOTHER MARKETING TACTICS TO PROMOTE THE COMPANY TO HCLITES AND OTHERS. MANY TIMES I’ve heard my manager saying “We have no other option than giving the customer what/when he wants; even if i t takes the entire team to work 24×7″. FYI, HR team was unable to tell us what Employee First means. I’m not sure how the rating firms (Gartner, Forrester etc) are able to believe this story and HCL i s getting awards for this. This marketing line “Employee First, Customer Second” looks to be stolen from Dr. Stephen Covey’s “Principle Centered Leadership” which was published long ago.
------ Ex_HCLite
Do you think this policy is in real implementaion in HCL? This just sucks! I can show tens of teams with in my clear visibility that just say Yes Yes Yes to client. Damn to the employees, whatever whatever is the attrition rate, HCL never cares. This just sucks you know! I am going to put papers next week. This is just a marketing strategy. HCL first of all does not have good internet connectivity, good systems to work on (Ball mice, Old HCL monitors, Pentium 4 still, 1 GB RAM, very old shivering keys of keyboard). I hate this company to my throat. ----- Ex_HCLite
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Ha ha ha ha ha…………seems like an absolute joke to me….it should rather be “customer first employee second”……..it’s nothing more than a marketing agenda…….HCL has an internal forum, where the ceo answers to the queries of employees…..if you happen to read that, you will come to know about vineet nayar…..he is the number one fak e in HCL and a bias b ias too……..HCL is good for people who who are in their 40′s and 50′s and i am sure people who are advocating for hcl are one of those…….it is a company of managers, for the managers and by the managers……….they managers……….the y market themselves “a $5 billion company” and al so boast that they are earning good revenues…..it is one of those organizations which has a high number of projects to work on, as compared to their peers ……on the contrary, analyze the appraisals they have given to their employees, sucks totally……..employee first, customer second- insane statement….this company company is i s governed by the dictatorship of managers and people who are good at ASS licking, get everything they desire for……@#%^* for……@#%^* off HCL…….. ----- Ex_HCLite
We should note that th at Employee First, Customer Second is neither devised by Nayar nor actually implemented by Nayar. It is ONLY in the PAPER (server, internal websites etc) but NOT in the SPRIT. ---- Ex_HCLite
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