|What You Know About CRM? [message #165658]
||Fri, 31 March 2006 05:21
Registered: September 2005
What is Customer Relationship Management|
Customer relationship management(CRM)is a business strategy to select and manage customers to optimize long term value.CRM requires a customer-centric business philosophy and culture to support effective marketing,sales and service processes.
CRM - is it simple or complex?
CRM is a complicated system because it is a combination of highly personal human interactions and the extremely impersonal use of technology.If that isnt enough.CRM technology is loaded with an incredible amount of functionality.To make it worse, much of that functionality is never used by a company that bought it.There is a new 20-80 law in CRM that says that you will use 20% of the functionality that you will buy and 80% will sit on the shelf.
What's the Industry Approach towards CRM?
Business is taking a "pain cure" approach towards CRM. In other words,buy the CRM pieces that will solve immediate problems and worry about the larger enterprise rollouts later.
How you implement CRM?
This is not at all easy task.Implementation just doesnt mean installing software and hoping it runs well.It means understanding how the software must conform to the business model and the style of the company.Very rarely CRM software works right out of the box.If it does ,it is more of a miracle than by a design.CRM is a very complex implementation involving multiple elements and frequently back-office integration.
Types of CRM?
Operational CRM--- Involving customer service, order management,invoice/billing,or sales and marketing automation and management
Analytical CRM--- Analytical CRM is the capture,storage,expectation,processing,and reporting of customer data to the user.
Colloborative CRM--- It is the communication center, the coordination network that provide neural paths to the customer and his suppliers.It could mean a portal, a partner relationship management (PRM) applications or a customer interaction center (CIC). Communication channels such as the web or email, voice applications etc.
How are CRM objectives?
CRM objectives are SMART(Specific,Measurable,Assignable,Realistic,Time Related).To acheive these objectives Team Work,Trust, and Effective Communication are prerequisites.
What's the success ratio of CRM Projects?
95% of CRM Projects are failures(IBM Global Services Survey 2004).They have average cost overruns of 178%,average schedule overruns of 230%.Survey says CRM packages cost the earth, take ages to implement and at the end of the day deliver nothing.The Same survey has come out with most shocking news:lack of commitment from the project team members is the key factor for the disastrous project overruns.
Who are The Major CRM Vendors?
Oracle,Sales Force.com,Microsoft, SAP, Clarify
Factors which affect CRM Projects?
CTQ- Critical to Quality
CTC- Critical to Cost
CTS- Critical to Schedule
VOE- Voice of Customer
Suggestion to those who are relatively new to CRM?
Dont ever try to know everything about the subject.CRM is too vast and extremely complex,you cant even take it inside, let alone chew it, gulp it and digest it.