5 Modules
Managing the customer Implementing CRM
CRM, its Fundamentals lifecycle
and Customer Operational, Analytical,
Relationship Collaborative CRM
Strategic CRM
1
CRM 22-24 batch CM1 Krishna Koppa
CRM planning and implementing process –
Implementing CRM Develop CRM strategy,
Build CRM project foundations,
Needs specification and partner selection,
Project implementation,
Performance evaluation
2
CRM 22-24 batch CM1 Krishna Koppa
Implementing
CRM
CRM 22-24 batch CM1 Krishna Koppa
CRM planning and Implementation process
CRM 22-24 batch CM1 Krishna Koppa
CRM planning and Implementation process
1. Develop CRM Strategy
CRM Strategy : is a high level plan of action that
aligns people, processes and technology to achieve
customer-related goals
Decision points and activities in developing ‘CRM strategy’
Situation analysis
Commence CRM Education
Develop CRM Vision
Set Priorities
Establish goals and objectives
Identify people, process and tech requirements
Develop the business case
CRM 22-24 batch CM1 Krishna Koppa
CRM planning and Implementation process
Decision points and activities in developing ‘CRM strategy’
Situation analysis
Situation analysis is an analysis that sets out to describe, understand company’s current
customer strategy
‘Where are we now?’
‘Why are we where we are?’
Customer Strategy Cube
P3
Products
P2
P1
No of potential business units = 3*3*3 = 27
CRM 22-24 batch CM1 Krishna Koppa
CRM planning and Implementation process
Customer Strategy Cube – Multi dimensional model
CRM 22-24 batch CM1 Krishna Koppa
CRM planning and Implementation process
Decision points and activities in developing ‘CRM strategy’
Develop CRM Vision
CRM Vision is a high-level statement of how CRM will change your business as it relates to
customers.
“Nothing is more important than making every user successful”
“Our mission: to inspire and nurture the human spirit – one person,
one cup and one neighbourhood at a time”
CRM 22-24 batch CM1 Krishna Koppa
CRM planning and Implementation process
Decision points and activities in developing ‘CRM strategy’
Develop CRM Vision
CRM Vision is a high-level statement of how CRM will change your business as it relates to
customers.
CRM shape CRM
Vision Strategy
Senior Wider visioning
management’s process engaging
perspective partners and
customers
CRM 22-24 batch CM1 Krishna Koppa
CRM planning and Implementation process
Decision points and activities in developing ‘CRM strategy’
Establish CRM Goals and objectives
Goals = qualitative outcomes
Objectives = measurable outcomes
CRM goals are generally grouped in to 3 sets
1 Enhancing customer satisfaction and loyalty
Eg: Enhance cross selling/ up-selling, increase customer retention, increase loyalty
2 Enhance revenue
Eg: Increase sales revenues, increase profit per customer, increase new acquisitions
3 Reduce costs
Eg: reduce costs of sales, reduce cost of marketing
CRM 22-24 batch CM1 Krishna Koppa
CRM planning and Implementation process
Decision points and activities in developing ‘CRM strategy’
Develop the business case
Business case is built around costs and benefits of the CRM implementation
WHY SHOULD WE INVEST IN CRM PROJECT?
CRM benefits need to be assessed
against the costs of CRM
implementation
CRM 22-24 batch CM1 Krishna Koppa
CRM planning and Implementation process
Decision points and activities in developing ‘CRM strategy’
Develop the business case
CRM implementation …
Generates revenue by… Reduces costs by…
Conversion of more leads from Improved lead generation/
suspects to prospect to qualification
opportunity Lower costs of customer
acquisitions
More cross selling/upselling
More efficient account
More accurate product pricing management
Higher levels of word-of-mouth, Less waste in marketing
customer satisfaction and management
retention Reduced customer costs
Incremental sales from more More efficient front-office
effective selling processes processes
CRM 22-24 batch CM1 Krishna Koppa
CRM planning and Implementation process
Decision points and activities in developing ‘CRM strategy’
Develop the business case
COSTS
BENEFITS • Cost of CRM software
• Cost of system integration
• Costs of infrastructure (devices
and hardware)
• Costs of change management
• Costs of training
• Costs of consultancy
• Opportunity costs of employees
not doing their regular jobs
• IT costs (10%-25% of total CRM
costs)
CRM 22-24 batch CM1 Krishna Koppa
CRM planning and Implementation process
2. Develop CRM Project Foundations
Decision points and activities in developing ‘CRM Project
Foundations’
Identify Stake holders
Establish governance structure
Identify change management needs
Organizational culture
Buy-In
Identify Project management needs (Gantt/PERT/CPA)
Identify critical success factors (CSFs)
Develop risk management plans
CRM 22-24 batch CM1 Krishna Koppa
CRM planning and Implementation process
Decision points and activities in developing ‘CRM Project
Foundations’
Organizational culture
The Competing Values model of organizational culture
(Cameron and Quinn Model)
Flexibility and discretion
External focus and differentiation
Internal focus and integration
CLAN ADHOCRACY
HIERARCHY MARKET
Stability and Control
CRM 22-24 batch CM1 Krishna Koppa
CRM planning and Implementation process
Decision points and activities in developing ‘CRM Project
Foundations’
Buy-In
The Buy-in matrix
(John Kotter Model)
Emotional buy-in
No Yes
Intellectual Buy-in
Yes Bystanders Champions
No Weak links Loose cannons
Four employee segments
CRM 22-24 batch CM1 Krishna Koppa
CRM planning and Implementation process
Decision points and activities in developing ‘CRM Project
Foundations’
Develop risk management plan
Causes for likely failure of CRM plan
Management having little customer understanding or involvement
Organizational culture that is non-customer focused
Rewards and incentives tied to old and non-customer objectives
Limited or no input from customers
Thinking that technology is the only solution
Poor quality customer data
etc
CRM 22-24 batch CM1 Krishna Koppa
CRM planning and Implementation process
3. Need specification and partner selection
Decision points and activities in ‘Need specification and
partner selection’
Process mapping and refinement
(Horizontal / Vertical, Front office / Back office, Primary /
Secondary processes)
Data review and gap analysis
Initial technology needs specification and
research alternative solutions
Hosted or on-premise CRM
Write request for proposal (RFPs)
Call for proposals
Revised technology needs identification
Assessment partner selection
CRM 22-24 batch CM1 Krishna Koppa
CRM planning and Implementation process
Decision points and activities in ‘Need specification and
partner selection’
Hosted or on-premise CRM
Some Hosted CRM vendors
Salesforce.com
Siebel Systems
Oracle ondemand
Rightnow Technologies
Sugar CRM
Saleslogix
Aplicor Inc
CRM 22-24 batch CM1 Krishna Koppa
CRM planning and Implementation process
4. Project Implementation
Decision points and activities in ‘Project Implementation’
Refine project plan
Identify technology customization needs
Prototype design, test, modify and roll out
CRM 22-24 batch CM1 Krishna Koppa
CRM planning and Implementation process
5. Evaluate Performance
Decision points and activities in ‘Evaluate Performance’
Measure Project outcomes
Measure business outcomes
CRM 22-24 batch CM1 Krishna Koppa
CRM planning and Implementation process
Summary: 28 steps ‘CRM planning
and Implementation process’
CRM 22-24 batch CM1 Krishna Koppa
Journey so far….
CRM 22-24 batch CM1 Krishna Koppa
