CUSTOMER RELATIONSHIP MANAGEMENT

Aniket K. Chauhan

WHY CRM TOOLS

What is CRM Tool?
Customer Relationship Management Or a CRM Tool is an application designed to assist a business in organizing all the data associated with a client - from marketing, to the initial lead, to the sale and any ongoing follow up or support.

Benefits of CRM Tools

Promote Better Customer Understanding - Success of any business can be measured only through the satisfaction of the customers, and CRM tools help bring the two together Organized Administration - Day-to-day activities such as meetings, sending emails, inquiries and accounts can be managed very easily using the software's mechanisms. This gives management tools to better organize the work flow. Accessible decision-driving information - When the CRM software solution contains a competitor tracking function, management and the sales team can access these reports to identify trends, measure and forecast sales, track sales processes, and evaluate their own business performance

Aniket Chauhan | SICSR | CRM

7/20/2013

BENEFITS OF CRM TOOLS(CONTD..)

Marketing Management - CRM tools provide efficient ways to market a product or service. They can compare sales percentages over several months, analyze marketing strategies and competition in the market and determine areas within the market that need to be targeted with efficient marketing campaigns Sales Force Automation - Integrated Sales Force Automation Management Tool allows your staff to accurately track all opportunities as they move through the sales pipeline from cold to hot and finally closed Customer Service & Support Management - CRM tools provide important customer details quickly and communicate effectively with those customers when they need assistance with their services or products Increased cross-selling and up-selling opportunities for existing customers Cross-selling is offering customers complimentary products based on their previous purchases and Up-selling is offering customers premium products in the same category Increased revenue and profits -- Finding the right CRM software that matches companies' strategies and objectives allows management to develop a plan for increasing sales and profits for the long term.

Aniket Chauhan | SICSR | CRM

7/20/2013

TOP CRM TOOLS

Tools SAP Oracle SalesForce.com Microsoft Amdocs Others Market Share(%) 22.5 16.1 10.6 6.4 4.9 39.6

Source: Gartner Studies 2010

Aniket Chauhan | SICSR | CRM

7/20/2013

CRM MODULES
CRM : Its all about managing the relationships you have with your customers. CRM combines business processes, people, and technology to achieve this single goal: getting and keeping satisfied customers. CRM has following three modules :

Operational
It is part of CRM that deals with actual interaction with customers, typically in the form of call centers, websites, direct marketing and direct sales.

Analytical
It is part of CRM that aims at capturing, analyzing and applying the knowledge about customers and ways to approach them, typically using databases, statistical tools, data mining, machine learning, business intelligence and reporting methodologies.

Collaborative
It is highly effective method of communication as it covers direct interaction with customers including feedback and issue reporting. Interaction can take place through web pages, email and Automated Voice Response, letter, fax, phone, Internet, e-mail etc.

It focuses on interaction of a business and its customers. Using operational CRM , businesses can effectively provide customers with a reliable stream of contact.
Aniket Chauhan | SICSR | CRM

It focuses on the assessment of data a business obtains from a customer . By recording , documenting etc., a business can learn a lot about its customers and adjust accordingly.

It also addresses the internal synchronization component of a business. It makes customer information available across all departments or sectors.
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ARCHITECTURE OF A GENERAL CRM SYSTEM

In case of a CRM system, the system will adapt the business processes of a service provider to the individual attributes of a customer. And the architecture comprising all the module will be :

The collaborative analysis constitutes the interface of service provider to his customers. The various communication channels are shown adaptively to the customers end device. The interface is realized in Internet and also for access via a customers mobile end device with a portal.

The operative CRM subsystem adapts the business processes to the individual customers by having access to the data collected about the customers and controlling the information flow of the customer data for the business processes concerned. It contains functions for automating sales, marketing activities, and for customer service

The task of the analytical CRM subsystem is the analysis of the collected customer data with regard to a customer-oriented business processes. The central element thereby is the customer database which is used by a service provider to manage all customer data, which he has received through a data collection with the operative CRM subsystem or from external data sources.

Aniket Chauhan | SICSR | CRM

7/20/2013

CRM MODULES
Companies Module
The Companies Module delivers a true 360 view of your customer relationships, providing you with: access to full address and contact information; details of the various individuals associated with that company; all activity notes and interactions between your organization and the customer's; important documents and files etc. Contact Module

Using the Contacts Module you can record specific information about individual contacts, whether or not they belong to a company or organization. It is from within this module that you can send personalized emails to groups of contacts, print envelopes and labels, and perform mail merges. Opportunities Module CRM delivers a structured approach to managing your sales opportunities. Once you have defined the stages in your sales process, your sales team can easily keep a record of each contact they have with a prospect and where they are in the sales cycle. This will then enable you to monitor current sales opportunities by sales rep, sales territory, product category and at every phase of the sales process. And by using the 'Analysis' button you can quickly produce a variety of graphs to highlight trends.
Aniket Chauhan | SICSR | CRM
7/20/2013

 Campaign Module

CRM MODULES(CONTD..)

CRM delivers a practical system to manage marketing events and campaigns and measure the results. With this module you can define the type of campaign, when it starts and ends, the budgeted cost and estimated revenue. You can also link Tasks and Appointments to the campaign and record notes. Calendar Module With this module, everyone in the organization is informed on what is happening today, this week, next week and next month. A separate color code is associated with every user, making it easy to identify which appointments belong to which staff member. Tasks can also be created within the Calendar Module and assigned to others. Customer Service Module The Customer Service module enables you to track customer service issues, from initial contact all the way through to resolution. The staff will be able to quickly access and share customer service knowledge in a central location, meaning customers will get the same dependable service every time they contact your company. Direct Marketing Module It is a set of promotional activities in which direct contact is made with the target customer. It allows companies to identify target customers for particular promotional criteria, generate direct mails, analyze response from target customers.
Aniket Chauhan | SICSR | CRM
7/20/2013

CRM MODULES (CONTD..)

Sales Force Automation Streamline and automate your sales processes and enable sales people to create a single view of the customer to help ensure a shorter sales cycle, higher close rates, and improved customer retention Marketing Automation Provide marketing professionals with robust data cleansing and segmentation tools, leading campaign management features, and insightful marketing analytics to increase the effectiveness of marketing programs, improve efficiencies and better track key metrics. Project and Team Management Enables organizations to manage project lifecycle and project team, from project kickoff and role definition to personnel assignment, project execution and completion; all of these based on user-definable rules and workflow. Email Response Management

Ensures management of incoming emails from customers with automatic guided-through questionnaires and outbound emails combined with customer's data. It includes rule-based routing with reporting capabilities
Aniket Chauhan | SICSR | CRM
7/20/2013

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CRM IMPLEMENTATION
CRM Implementation Alternatives:
On Premise CRM:
Traditional deployment model wherein customer buy/lease infrastructure including system, OS, database and installs a packaged system in their data centre. Still constitute 90% of CRM Sales hardware,

More Prevalent in mid-large companies

On Demand CRM (Hosted CRM):

Solution accessible over the internet and paid by monthly subscription charges Software-as-a-service(SaaS) Best suited for small businesses to get started with CRM
Aniket Chauhan | SICSR | CRM
7/20/2013

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ON PREMISE CRM
Advantages
Greater control of the system
Easier Integration

More secure
No monthly fees Total ownership of the solution Ease of configuration Unlimited customisation potential

Disadvantages
High set-up investment Dedicated IT Personnel High Total Cost of Ownership(TCO)

Lack of Flexibility
Managing Software updates
Aniket Chauhan | SICSR | CRM
7/20/2013

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ON DEMAND CRM
Advantages
Quick to set-up

Low initial set-up costs

Low maintenance required

Easy Customization
Painless upgrades

Mobility (Anytime, anywhere data)

Disadvantages
Data Security Dependency on Network

Aniket Chauhan | SICSR | CRM

7/20/2013

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KEY DECISION FACTORS

Organizations business processes
Functions within your business that need to be part of the customer interaction systems.

Integration
Customer data or processes need to be linked to other systems and departments

Importance of customer processes

How important are customer processes to driving competitive advantage?

Total cost of ownership Conclusion:

CRM is a long term investment, so thoroughly think and make a smart choice. A correctly implemented solution will deliver significant benefits to your organization

Aniket Chauhan | SICSR | CRM

7/20/2013

HOW DOES CRM TOOLS SAVES COST

The concept of "seller's customer" has rotated 180 degrees to become "customer's seller"

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CUSTOMER STATISTICS
The cost to sell to a new customer is six times greater as compared to an existing customer. A disappointed customer will notify 8-10 people further decreasing our customer base. With an increase of 5% customer retention rate, profits could increase by 85% Probability of selling to fresh customers is 15% against selling to existing customers which amounts to 50% 70% of the complaining customers will remain faithful if problem is resolved

Aniket Chauhan | SICSR | CRM

7/20/2013

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CRM TOOLS SAVES COSTS

Centralized database - Reduces the time and cost required to fetch the data by
storing it in a central repository Improves receivables collection. Comprehensive view of each customers-life with the organization. Robust reporting . Maintaining customer profile which will help reduce cost investing in other software. Data available at right time to the right person in the right format.

Aniket Chauhan | SICSR | CRM

7/20/2013

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CRM TOOLS SAVES COSTS

Improves customer relationship which helps increase business by reducing response time Helps find out potential leads

Reduces time wasted by employee in manually maintaining contacts of customer It helps in business plan targeted marketing campaigns
by using some of the analytical tools on a good CRM program a business can save money by creating targeted marketing campaigns.

Standardized sales process

eliminates excess time and cost required to execute a new campaign. contributes to meeting stringent regulatory requirements .
Aniket Chauhan | SICSR | CRM
7/20/2013

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PRICING MODEL
PRICING MODEL

HOSTED

ON DEMAND

OPEN SOURCE

ON PREMISE

Subscription Based Is Per User Per Month and generally beneficial for Small organizations below 100 users approx.

Ownership based Project Cost( including server and license cost).Suitable for organizations having more than 100 users

Subscription Based Is Per User Per Month and generally beneficial for Small organizations below 100 users approx.

Pricing based on Consulting , Training, Implementation, Support and Customization.

Subscription Based Is Per User Per Month and generally beneficial for Small organizations below 100 users approx.

Ownership based
Project Cost( including server and license cost).Suitable for organizations having more than 100 users

Aniket Chauhan | SICSR | CRM

7/20/2013

PRICE COMPARISON
Vendor Product/Solution Deployment Price

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SalesForce.com Inc
SalesBoom Sage Software RightNow Technologies Inc Oracle

SalesForce Enterprise Edition

OnDemand CRM, Enterprise Edition SageCRM.com RightNow CRM, Enterprise Edition Oracle CRM On Demand

Hosted
Hosted Hosted Hosted Hosted

$125 per user per month

$75 per user per month Starting at $69 per user per month $100 per user per month Starting at $70 per user per month

NetSuite Inc.
Zoho

NetSuite CRM
Zoho CRM

Hosted
Hosted

$79 per user per month

$12 per user per month for the professional edition. $25 per user per month for the Enterprise edition.

Microsoft Corp.
Sugar CRM

Dynamics CRM online

Sugar Professional, Sugar Enterprise

Hosted
Hosted

$44 0r $59 per ser per month

Starting at $40 per user per month for professional edition. Starting at $75 per user per month for Enterprise edition
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Aniket Chauhan | SICSR | CRM

PRICE COMPARISON CONTD.

Vendor SugarCRM Inc Product/Solution Sugar Professional, Sugar Enterprise Deployment OnPremise Price Professional : $275 per user per year Enterprise :$499 per user per year

20

Microsoft

Dynamics CRM 4.0

OnPremise

Full CAL(Client Access License) : $995 for up to 49 users Read Only CAL:$305 for up to 49 users. Professional Server:$2010 Enterprise Server:$5100 With CAL(Client Access License) : $795 per user Server:$2995 24*7 Support:20% of total per year

Sage Software Inc

Sales Logix

OnPremise

Maximizer Software Inc. Surado Solutions Inc

Maximizer CRM Surado CRM

OnPremise OnPremise

$499+ per user $700 per user for up to 50 concurrent users. $600 per user for up to 100 concurrent users. 12% of license cost for support. $350 to $8,500 for popular add on modules

Aniket Chauhan | SICSR | CRM

7/20/2013

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COST OF OWNERSHIP OF CRM TOOLS

Definition: Total Cost of Ownership is a financial estimate that provides a cost basis for determining the economic value of an investment. For a CRM tool, it basically includes the hardware costs, software costs, development costs, maintenance costs, labour & training costs, etc.
Basic Cost Components of a CRM tool: License costs (per named user) Installation costs (annual) Upgrade costs (usually at discounted prices) Maintenance and support costs (technical support, additional licenses, etc.) IT support costs (servers hardware / software / virtual , databases, etc.) Migration costs (extraction and transfer of data) Costs per additional functionality in the CRM package (mobile integration, reporting, customer portal, quoting integration, campaign management, etc.)
Aniket Chauhan | SICSR | CRM
7/20/2013

COST OF OWNERSHIP OF CRM TOOLS (CONTD.)

CRM Implementation Models:

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(i) On-Demand CRM

(ii) On-Premise CRM

(iii) Open Source CRM

Total cost of Ownership of On-demand and On-premise CRM tools:

Shown above is a 5 year TCO projection. Assumptions : 30 users with Sales, Marketing and Customer Support CRM implementation.

Aniket Chauhan | SICSR | CRM

7/20/2013

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COST OF OWNERSHIP OF CRM TOOLS (CONTD.)

Total cost of Ownership of Open Source CRM tools:
Unlike other CRM implementation models, license costs are absent in this model, and hence around 10% to 15% of the total investment is saved. Implementation, customization, hardware and the IT labour for internal or outsourced support are where the real costs lie. Conclusion: Thus, looking at the costs incurred for each of the models, we can deduce the following: Stand-alone organization or function looking for a quick, out-of-the box solution should prefer the on-demand model. Mid-size / large organization looking to provide multiple departments with access to customer data or to coordinate work functions, including sales, marketing, customer service or call center tasks must use the on- premises model.
Aniket Chauhan | SICSR | CRM
7/20/2013

CRM TOOLS DATA SECURITY

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THREAT POINTS
59 % caused by Hardware/System Malfunction 26 % caused by Human Error

9 % caused by Software Malfunction 4 % caused by Viruses

2 % caused by natural disaster
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Aniket Chauhan | SICSR | CRM

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SECURITY IMPLEMENTATION
o Policies & Procedures (Internal Threat Neutralization)
Identify when changes have been made to the system Who should be notified for breach, data loss and actions to be taken

o Monitoring (Continuous Improvement) Internal / Outsourced Critical services, abnormalities, changes. o Backup Schedule (Ensuring Maximum Availability) Frequency of backup Chain of command for data recovery/restoration

Aniket Chauhan | SICSR | CRM

7/20/2013

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SECURITY IMPLEMENTATION
Physical security of the server rooms. Use of latest biometric security systems.

Role based access: Strong user authentication and different logon levels to restrict visibility.
Network perimeter defense: Using latest and appropriately configured hardware and software firewalls. Operating System security: Use a minimal number of access points to all production servers. Disabling and/or removing any unnecessary users, protocols, and processes.

Aniket Chauhan | SICSR | CRM

7/20/2013

SECURITY IMPLEMENTATION CONTINUED

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Database Security: Whenever possible, database access is controlled at the operating system and database connection level for additional security. Access to production databases is restricted to a limited number of points, and production databases do not share a master password database.
Reliability & Backup: When selecting the actual backup medium and storage of that medium, a company's RTO must be considered. Back-up duplicated and duplicate backup must be stored off-site. Remote backup through web interface without any agent installation Data Encryption: Encryption using valid digital certificates while the storing data as well as when the data is on the move. Application Security: Remove underlying system (vulnerabilities) through flaws in the design, development, deployment, upgrade, or maintenance of the application.
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Aniket Chauhan | SICSR | CRM

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MODULES IN CRM DASHBOARD

CRM Dashboard

Calendar Month View

Sales Management

Marketing Management

Case Management

Project Milestones and Tasks

Advanced Search

Person/Contact View

Aniket Chauhan | SICSR | CRM

7/20/2013