Capabilities of CRM Software

The major CRM

software products
support business
processes in sales,
service, and marketing,
integrating customer
information from many
different sources.
Included are support for
both the operational and
analytical aspects of
CRM.
 CRM Systems
Typically provide software and online tools for sales, customer service, and marketing.
Sales force automation (SFA)
Help sales staff increase their productivity by focusing sales efforts on the
most profitable customers
Provides sales prospect and contact information, sales quote generation
capabilities, product information, product configuration capabilities
Assemble information about a particular customer’s past purchases to help the
salesperson make personalized recommendations.
Increases each salesperson’s efficiency by reducing the cost per sale and cost
of acquiring new customers and retaining old ones.
Possess capabilities for sales forecasting, territory management, and team
selling
 CRM Systems
Customer service - Provide information and tools to increase the efficiency of
call centers, help desks, and customer support staff.
Have capabilities for assigning and managing customer service requests
CRM in call center
Improved access to consistent and accurate customer information helps call centers handle
more calls per day and decrease the duration of each call.
Achieve greater productivity, reduced transaction time, and higher quality of service at
lower cost.
Incoming and outgoing calls are dealt with customer call management; Interactive Voice
Response (IVR) system is used for interacting with customers.
The quality of the service is monitored and maintained based on the performance
indicators with service label management.
Also include Web-based self-service capabilities
 CRM Systems
Marketing – CRM systems provide capabilities for
Capturing prospect and customer data, providing product and service
information, qualifying leads for targeted marketing, scheduling and tracking
direct-marketing mailings or e-mail, cross-selling
Also include tools for analyzing marketing and customer data, identifying
profitable and unprofitable customers, designing products and services to
satisfy specific customer needs and interests, and identifying opportunities for
cross-selling.
Also help firms manage and execute marketing campaigns at all stages from
planning to determining the rate of success for each campaign
Cross-selling - Marketing of complementary products to customers
Customer Loyalty Management Process Map

This process map shows how a best practice for promoting customer loyalty
through customer service would be modeled by customer relationship
management software. The CRM software helps firms identify high-value
customers for preferential treatment.
Phases of CRM
 Modules of CRM Systems
Partner relationship management (PRM)
Applications that apply many of the same tools used in CRM systems to enhance
collaboration between a company and its business partners, such as distributors and dealers,
to better coordinate and optimize sales and service to customers across all marketing
channels
If a company works through distributors or retailers, PRM helps these channels sell to
customers directly
Ability to trade information and distribute leads and data about customers
Integrating lead generation, pricing, promotions, order configurations, and availability
Tools to assess partners’ performances
Employee relationship management (ERM)
Setting objectives, employee performance management, performance-based
compensation, employee training
 Types of CRM Software
On the basis of the type of customer portfolios, speed of business operations,
necessity to share information, and the need to handle huge data, there are
different types of CRM. Based on their characteristics, there are four different
types of CRMs.
Strategic CRM - Its main characteristic is that it is customer-centric.
Acquiring and maintaining profitable customers.
Assorted information of customers is captured and
stored – value proposition development is
maintained.
This CRM system derives better solutions based on
the changes in the customers’ requirements.
The business runs based on the behavior of the
customers’ satisfaction levels.
 Types of CRM Software
Operational CRM - Goal to streamline and automate workflows in sales,
marketing, and customer service.
Solutions that are strong in this area have excellent lead management, contact
management, help desk, and sales pipeline
This CRM is engaged to generate leads, and get them converted to contacts.
Then it is engaged to provide service to the customers throughout customer lifecycle.
This is commonly used by managers, marketers, salespeople, service reps and tech
support to offload repetitive tasks and fast track work.
It has efficient systems to capture customers’ information and maintain better
interactions through phone, fax, email, etc.
It stores the data regarding the demands, preferences, topics of discussions, updates,
etc. along with customers’ contact history which can be reviewed and used whenever
necessary.
 Types of CRM Software
Collaborative CRM - Promotes teamwork and transparency among sales, marketing,
and support by sharing customer information and syncing their activities.
Features excellent communication tools including social discussion, chat, and integrated email.
Strong in file sharing, editing controls, and activity streaming.
Intended for improving the communication and transaction among the businesses.
Efficient and advanced communication systems are available with these CRMs – they
include Voice over Internet Protocol (VoIP), web forums, chat rooms, and Electronic Data
Interchange (EDI).
Better partner promotions are managed with the help of in-built Partner Relationship
Management (PRM) software in collaborative CRMs.
Streamlining the communication between customers and business owners is the main
responsibility of these CRMs.
A seamless multi-channel customer experience is evident with collaborative CRM.
 Types of CRM Software
Analytical CRM - Source tons of data from different sources & consolidate them
into insights useful to strategic planning.
Sources include operational CRM, customer touch points, data warehouse
sources, analytical platform use in OLAP
Features robust reporting and dashboards and can generate real-time data.
Quick look-ups and drill-down tools are standard.
Useful for CEOs and executives, department heads & team leads
Output of Analytical CRM
Identify buying patterns, to create segments for targeted marketing, and to pinpoint
profitable and unprofitable customers
Customer lifetime value (CLTV) - based on the relationship between the revenue
produced by a specific customer, the expenses incurred in acquiring and servicing that
customer, and the expected life of the relationship between the customer and the company.
Analytical CRM

Analytical CRM uses a

customer data
warehouse and tools to
analyze customer data
collected from the firm's
customer touch points
and from other sources.
IT Integration with CRM
 CRM Software Providers
ZOHO - Zoho's CRM platform is designed to generate sales and streamline work.
The company emphasizes its system's ability to automate tasks and improve
workflow, while building leads and creating more sales opportunities.
Additionally, it can automatically assign leads to particular agents, prioritize
prospects, and track and measure all marketing activities.
SALESFORCE - As perhaps the most popular CRM, Salesforce claims it can
improve customer satisfaction by 37%.
The company offers separate sales solutions for B2C and B2B companies, as well as
various powerful platforms including Salesforce1, its most popular service.
You can take advantage of individualized self-service portals or complete call center
solutions that integrate with the CRM itself.
It also offers a marketing cloud platform that lets you connect all of your digital
marketing solutions with your contact database.
 CRM Software Providers
SugarCRM - Emphasizes its ability to give you a 360-degree view of each
individual customer. By providing contextual intelligence for your data, you get
a more complete picture of your customers' interests.
The system's unique features offer real-time collaboration with experts across
your organization, social selling, and more.
NetSuite - Offers a complete CRM solution that promises personalized
interaction across the entire customer lifecycle.
While the company delivers common CRM features such as customer support
and marketing automation, NetSuite stands out among its competitors, providing
quotes, order management, sales forecasting and even integrated Ecommerce
functionality.
NetSuite specializes in mid-market and enterprise solutions.
 CXM – Customer Experience Management
 CXM is an all-encompassing strategy for the entire
business. The goal is to deliver consistently positive
experiences to customers that will influence their behavior
and drive loyalty, advocacy, and ultimately business growth.
 CRM helps businesses understand the customer by
providing information on what a customer looks like to the
company. Customer experience management provides the
reverse perspective. It defines what a company looks like to
the customer, that is, how the customer perceives the
company.
 Strategically speaking, CXM puts customers at the center of
marketing, sales, customer support, logistics, and all other
touchpoints, in order to drive brand loyalty and repeat
business. This is the reason why the voice of the customer is
very important in customer experience management strategy
and tools. It enables the business to analyze and understand
customer sentiment relating to their experiences with the
company.
Moving from CRM to CX
 Any and every aspect/function of a
company that creates a touchpoint with
the customer contributes to the
perception of the company and brand in
the minds of the customer. So,
activities, processes, and departments
such as packaging, shipping, public
relations, and corporate social
responsibility gain significant
importance in managing customer
experience.
 Companies across the globe are starting
to take the distinction between CRM
and CX seriously, while at the same
time, remaining mindful of the enduring
value of the data available in CRM
systems. This data needs to be
leveraged to create and deliver a better
experience for customers.
 Enterprise Resource Planning (ERP) Systems
Fully integrated business management system covering functional areas of an
enterprise like Logistics, Production, Finance, Accounting and Human
Resources.
Organizes and integrates operation processes and information flows to make
optimum use of resources such as men, material, money and machine.
Enterprise resource planning promises one database, one application, one user
interface for the entire enterprise
ERP solutions evolved from applications focused on materials requirements and
resource planning and computer integrated manufacturing.
Enabling technologies include - Sophisticated IT infrastructure, scalable
RDBMS, Workflow, Work group, Group Ware, Electronic Data Interchange
(EDI), Data warehousing, etc..
Enterprise Resource Planning (ERP) Systems
Evolution of ERP Systems
ERP Process and Information Flows
 Enterprise Resource Planning (ERP) Systems

Modular design comprising many distinct business modules such as financial,

manufacturing, accounting, distribution, etc.
Use centralized common database management system (DBMS)
The modules are integrated and provide seamless data flow among the modules,
increasing operational transparency through standard interfaces
 Features of ERP Systems
Provides multi-platform, multi-facility, multi-mode manufacturing, multi-currency, multi-
lingual facilities.
Covers all functional areas like manufacturing, selling and distribution, payables,
receivables, inventory, accounts, human resources, purchases
Provides complete integration of systems not only across departments but also across
companies under the same management.
ERP allows automatic introduction of the latest technologies like Electronic Fund Transfer
(EFT), Electronic Data Interchange (EDI), Internet, Intranet, Video conferencing, E-
Commerce etc.
ERP eliminates most business problems like material shortages, productivity
enhancements, customer service, cash management, inventory problems, quality problems,
prompt delivery etc.
ERP provides intelligent business tools like decision support system, Executive
information system, Data mining and easy working systems to enable better decisions.
Framework of ERP Systems
 Components of ERP Systems
Financial Management : At the core of ERP are the financial modules,including general
ledger, accounts receivable, accounts payable, billing and fixed asset management.
If your organization is considering the move to an ERP system to support expansion into
global markets, make sure that multiple currencies and languages are supported, as well as
regulatory compliance in the U.S. and in foreign countries.
Other functionality in the financial management modules will include budgets, cash-flow,
expense and tax reporting. The evaluation team should focus on areas that are most
important to support the strategic plans for your organization.
Business Intelligence :In general, BI tools allow users to share and analyse the data
collected across the enterprise and centralized in the ERP database.
BI can come in the form of dashboards, automated reporting and analysis tools used to
monitor the organizational business performance.
BI supports informed decision making by everyone, from executives to line managers and
accountants.
 Components of ERP Systems
Supply Chain Management : Supply Chain Management (SCM), sometimes
referred to as logistics, improves the flow of materials through an organization
by managing planning, scheduling, procurement, and fulfillment, to maximize
customer satisfaction and profitability.
Sub modules in SCM often include production scheduling, demand management,
distribution management, inventory management, warehouse management,
procurement and order management..
Human Resource Management : Human resource management ERP modules
should enhance the employee experience – from initial recruitment to time tracking.
Â Sub modules can include payroll, performance management, time tracking,
benefits, compensation and workforce planning.
Self-service tools that allow managers and employees to enter time and attendance, choose
benefits and manage PTO are available in many ERP solutions.
 Components of ERP Systems
Manufacturing Operations : Manufacturing modules make manufacturing
operations more efficient through product configuration, job costing and
bill of materials management.
ERP manufacturing modules often include Capacity Requirements
Planning, Materials Requirements Planning, forecasting, Master
Production Scheduling, work-order management and shop floor control
Integration :
Key to the value of an ERP package is the integration between modules,
so that all of the core business functions are connected.
Information should flow across the organization so that BI reports on
organization-wide results
ERP Systems PSD
Benefits of ERP Systems
Selection of ERP Systems
Example Systems : Before ERP Systems
Before ERP and After ERP
Example Systems : AFTER ERP Systems
ERP Implementation Lifecycle
 ERP Implementation Lifecycle
Pre-Evaluation Screening is the phase which
starts when company decides to go for a ERP
System, the search for perfect solution starts.
Package Evaluation process is one of the
most important phase of the ERP
implementation , because the package you
select will decide failure or success of project.
Project Planning Phase is the phase which
plans and designs the implementation
process.
Details of how to go about implementation
,Time schedules and deadlines are decided.
Roles and responsibilities are identified and
assigned.
 ERP Implementation Lifecycle
GAP ANALYSIS Re-Engineering : The BPR approach to an ERP
implementation implies two separate, but closely
Importance Main objective Different ways of finding
linked implementations involved on an ERP site
FIND OUT THE
DESIGN A
i.e. a technical implementation & a business
GAPS
BETWEEN MODEL process implementation.
BUSINESS COVERS ANY
AND ERP
PACKAGE
FUNCTIONAL
GAP
UPDATING
SOFTWARE
The BPR approach emphasis the human
COMPANY
DESIGNING A
element of necessary changes within the
CREATES A
PROGRAM
MODEL organization, which is generally more
Configuration : Business processes have to be understood & mapped in such a way that the
arrived solution matches with the overall goals of the company.
A prototype (a simulation of the actual business processes of the company) will be used
which allows for thorough testing of the ‘to be’ model in a controlled environment.
As the ERP consultants configure & test the prototype they attempt to solve any logistical
problems inherited in the BPR before the actual go-live implementation.
 ERP Implementation Lifecycle
Implementation team Training : Internal teams are being trained not how to use the system,
but how to implement it. This is the phase where the company trains its employees to
implement & later run the system.
For the company to be self sufficient in running the ERP system, it should have a good in-
house team that can handle the various situations.
Thus, it is very vital that the company recognizes the importance of this phase & selects
those employees who have the right attitude- people who are willing to change, learn new
things & are not afraid of technology- & good functional knowledge.
Testing : This is the phase where you try to break the system and we reach a point where we
are testing real case scenarios.
The system is configured & now we must come up with extreme case scenarios- system
overloads, multiple users logging on at the same time with the same query, users entering
invalid data, hackers trying to access restricted areas & so on.
The test case must be designed specifically to find the weak links in the system & these
bugs should be fixed before going live.
 ERP Implementation Lifecycle
GO LIVE : On the technical side, the work is almost complete- data conversions is done,
databases are up & running, & on the functional side, the prototype is fully configured &
tested & ready to go operational.
The system is officially proclaimed operational, even though the implementation team must
have been testing it & running successfully for some time.
END USER TRAINING : The success or failure of an ERP system depends on how the
actual users use the system.
The most successful implemented ERP packages fail due to lack of end user training.
ERP system changes the job descriptions of the people, so it is important to identify the
people who are going to use the system. The current skills of the people are identified &
they are divided into groups.
Every group is provided training on the new system.
The training section gives the overall view of the system & how the individual actions will
be affecting the entire system.
 ERP Implementation Lifecycle
POST IMPLEMENTATION : There should be people within the company who
have the technical processes to make the necessary enhancements to the system
as & when required.
The system must be upgraded as & when new versions or technologies are
introduced.
Everyone who uses these systems needs to be trained on how they work, how
they relate to the business process & how a transaction ripples ( flow) through
the entire company whenever they press a key.
The training will never end; it is an ongoing process; new people will always be
coming in & new functionality will always be entering the organization.
Living with ERP system will be totally different from installing them.
However, an organization can only get the maximum value of these inputs if it
successfully adopts & effectively uses the system.
 Disadvantages of ERP Systems
Disadvantage How to overcome
Time-consuming Minimize sensitive issues, internal politics and
raise general consensus.
Expensive Cost may vary from thousands of dollars to
millions. Business process reengineering cost
may be extremely high.
Conformity of the The architecture and components of the
modules selected system should conform to the business
processes, culture and strategic goals of the
organization.
Vendor dependence Single vendor vs. multi-vendor consideration,
options for “best of breeds,” long-term committed
support.
Features and complexity ERP system may have too many features and
modules so the user needs to consider carefully
and implement the needful only.
Scalability and global Look for vendor investment in R&D, long term
outreach commitment to product and services, consider
Internet-enabled systems.