Customer

Relationship Management

08/03/09 Present by1 :-

Contents
• Introduction
• Why need CRM
• Goals of CRM
• Types of CRM
• Implementation Type of CRM
• Web Based CRM
• Modules of SAP CRM
• Benefits of CRM
• Cost Calculations
• Q&A
• Thank you !!!
• Appendix A - Market Capitalization
• Appendix B – CRM Definition

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Introduction
Customer Relationship Management
(CRM) is the term given to the concepts
that a company employs to manage its
relationship with their customer.

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Why Need CRM
Every company do CRM – one way or other.
Few Facts : why need CRM
Not a single point of contact

Communication Gap

Getting a new customer cost 5 times then

retaining existing customer
1% increase in sale with existing customer
will boost profit by 17% while 3% in other case

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Goals of CRM
The idea behind CRM to gain insight into the behavior of customers and the
values of those customers. If it works as hoped then business can :-

Provide better customer services

Make call center more efficient

Cross sell product more effectively

Helps sales staff close deals faster

Simplify marketing & sales process

Discover new customers

Increase customer revenue

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Types of CRM
• Operational CRM which provides support to front office, business
processes including sales, marketing and service. Operational CRM
processes customer data for a variety of purposes:
• Managing campaigns
• Enterprise Marketing Automation
• Sales Force Automation
• Sales Management System

• Analytical CRM which analyses the customer data for various

purposes such as design and execution of targeted marketing
campaigns to optimize marketing effectiveness, design and
execution of specific customer campaign, analysis of customer
behavior to aid product and service decision making, management
decision, prediction of probability of customer defection.

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Types of CRM
• Consumer Relationship CRM covers aspects of a company's
dealing with customers handled by the Consumer Affairs and
Customer Relations contact centers within a company.
Representatives handle in-bound contact from anonymous
consumers and customers.

• Sales Intelligence CRM is similar to Analytical CRM, but is

intended as a more direct sales tool. Features include alerts sent to
sales staff regarding:
• Cross-selling/Up-selling/Switch-selling opportunities
• Customer Drift
• Sales performance
• Customer trends
• Customer margins
• Customer alignment

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Types of CRM
• Collaborative CRM covers aspects of a company's dealings with
customers that are handled by various departments within a
company, such as sales, technical support and marketing.
Collaborative CRM's ultimate goal is to use information collected by
all departments to improve the quality of services provided by the
company.

• Campaign Management combines elements of Operational and

Analytical CRM. Campaign management functions include:
• Target groups formed from the client base according to
selected criteria
• Sending campaign-related material (e.g. on special offers) to
selected recipients using various channels (e.g. e-mail,
telephone, SMS, post)
• Tracking, storing, and analyzing campaign statistics, including
tracking responses and analyzing trends
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Implementation type of CRM
Two Category to implement CRM :

REMOTELY HOSTED :- LOCALLY HOSTED :-

Smooth running Complete Control
Free upgrade Customize in our own way
Secure Application
Continuous Support

Possible Technical Support

misuse of Security concerns
Problematic
data
upgrade

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Web Based CRM
Web based CRM are different from traditional CRM in look and feel.

Benefits :-
• Low implementation Cost
• Rapid Development
• Accessibility
• Instant Information Sharing
• Light Weight

Features :-
• Power Dialing
• Voice Messaging
• Fax / email Customization

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SAP – CRM Modules
Web

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Benefits of CRM
improved Improve
Vision Growth customer Sales & Profit
satisfaction Service

• Expand • Increate • By • Single • Long term

the market the knowing Point profitability
& attract number of what communi-
new opportunity customer cation
partners demands With
Customer
•Develop • Customize • Sustainable
additional Knowledge • Email Income
streams of base Marketing
revenue
• Reporting

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Cost Calculations
• CRM Cost Includes :-

Hardware Cost
Software Cost
Professional Services

Approx Cost :- 0.5 M $ or 2.5 Cr Rs

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Q&A

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Thank you !!

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Appendix A – Market Capitalization

Vendor % Share
Oracle 16.3%
SAP 25.3%
Salesforce 8.3%
Amdocs 5.2%
Microsoft 4.1% *Data as
per year
Others….. 40.6% 2006-07

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Appendix B – CRM Definition
• CRM is an IT-enabled business strategy, the outcomes of which
optimize profitability, revenue and customer satisfaction by
organizing around customer segments, fostering customer-
satisfying behaviors and implementing customer-centric processes.
- Gartner Group

• “CRM is a business strategy to select and manage customers to

optimize long – term value” –CRMGuru.Com

• "CRM is an enterprise – wide mindset, mantra and set of business

processes and policies that are designed to acquire, retain and
service customers. - Scott Fletcher, VP, i2.

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