CRM Assignment2

Page 1 of 14

SYMBIOSIS INSTITUTE OF MANAGEMENT STUDIES

CUSTOMER RELATIONSHIP MANAGEMENT

(CRM)

ASSIGNMENT NO. 1

NAME : Praveen Manchal

COURSE: EX- PGDM (Marketing)

ROLL NO: 10020468033

Submitted to: Mr. Amit Waghmare

Page 2 of 14

1.“The new interactive technologies are not enough to cement a relationship, because

companies need to change their behavior toward a customer and not just their

communication.” Explain what this statement means. Do you agree or disagree?

Customer relationship management

(CRM) Making managerial decisions

with the end goal of increasing the value

of the customer base through better

relationshipswith customers, usually on

an individual basis.

The Learning Relationship works like

this: If you’re my customer and I get you

to talk to me, and I remember what you

tell me, then I get smarter and smarter

about you. I know something about you

my competitors don’t know. So I can do

things for you my competitors can’t do,

because they don’t know you as well as I

do. Before long, you can get something

from me you can’t get anywhere else, for

any price. At the very least, you’d have to

start all over somewhere else, but starting

over is more costly than staying with me,

so long as you like me and trust me to

look out for your best interests.

No company can succeed without customers. If you don’t have customers, you don’t have a business. You

have a hobby.- Don Peppers and Martha Rogers

If you don't deliver service your customer’s value, someone else will. Access to information is

the foundation of customer satisfaction and retention. Here's how one organization determined that the

efficiencies of a document-to-data information management system could pay for itself in the first year.

In today's highly competitive managed care arena, providing better-than-average customer service is

only good enough for staying abreast of the pack.

Becoming the front-runner requires extraordinary measures, particularly in the understanding and

management of information, the cornerstone of any customer transaction.

Satisfying customers -- or, better yet, delighting them -- is all about responding by building business

capabilities which allow quick, effective access to information.

Page 3 of 14

2. If retention is so much more profitable than acquisition, why have companies

persisted for so long in spending more on getting new customers than

keeping the ones they have?

It costs six times more to acquire a new customer than keep an old one.

The odds of selling a product to a new customer are 15%, while the odds of selling it to an existing customer

are 50%.

One dissatisfied customer typically tells eight to ten

people about his or her experience.

70% of complaining customers will do business with

the company again if it quickly takes care of a service

snafu.

More than 90% of existing companies do not have the

necessary integration of sales and service processes and

systems to support e-commerce.

A company can boost its profits 85% by increasing its

annual customer retention by only 5%!

Customer retention is the number of customers doing

business with a firm at the end of a fi-nancial year,

expressed as percentage of those who were active

customers at the beginning of the year.

How many times have you heard that it costs X times more to acquire a customer than to retain one? The

most recent incident for me was in an article in CRM magazine.

“according to Gartner it costs eight to ten times more to acquire customers that it does to retain

them.”

It’s time to eliminate this urban legend from our repertoire. Here are just a few of the reasons why the claim

that acquisition is so much more costly than retention is pure fiction. The costs of acquisition and retention:

1) Vary by industry, by product, and company strategy. Don’t tell me that the ratio is eight or ten to

one across every product and industry. The automotive industry probably has a fifty (or hundred) to

one acquisition to retention ratio. Car dealers, as far as I can tell, don’t spend a dime on customer

retention. In the world of financial services, though, I’d bet that HSBC and Emigrant Savings have

effectively acquired savings account customers online with above-average industry rates. Retaining

— and, as importantly, cross-selling — those customers could not have been as easy (i.e., cheap).

Page 4 of 14

2) Ebb and flow with economic cycles. Lenders found it a whole lot cheaper to acquire new mortgage and

home equity loan applicants a few years ago than they do today. And why would anybody assume that

retaining those borrowers from a few years ago was a piece of cake that didn’t require much investment?

Hogwash.

3) Are incalculable. Let me put it this way: You have no idea how much it’s costing you to retain

customers. Do you include all the costs associated with providing customer service to customers in your

retention calculations? After all, if you don’t service them, you will have less chance of retaining them. Do

you allocate all IT application maintenance and enhancements to your retention calculations? If you don’t

continually improve your transaction and interaction service capabilities, your ability to retain customers

diminishes, you know.

No, the fact of the matter is that you don’t have the slightest clue what it costs to retain a customer, because

no one has really defined a standard for what costs to include and which ones to exclude

Customer Relationship Management (CRM)

In the B2B arena, CRM is helping define how we give selected clients that extra bit of attention, and those

unexpected but valued ideas and initiatives that help the customer run their business better. CRM is an

important strategy that needs to be owned in the boardroom. For this to be successful it needs to be treated

as a key business process, with customer-defined deliverables, interlinking and clearly defined process steps,

measures of performance and accountabilities.

For many people this means a sophisticated technology system. True, but that's the enabler only. CRM is

not about technology, but technology helps enable the way we collect, store and share relevant client

information that helps us do this.

For B2B clients I often recommend as a first step that they undertake an in-depthKey Customer

Relationship Review that gives them a snapshot and improvement platform for their most important

customers, following the 80/20 rule.

Most customers leave because they are unhappy, and sixty-seven percent of clients leave because of a

perceived feeling of indifference. Managers and supervisors need to coach their inside sales team to keep in

front of their customers. Look at who you have not talked to in the past year and who you have not

contacted in the past 30 days and make sure to send them an e-mail or phone call to let them know that you

are still interested in them. Ask customers how the product you sold them is working out or if they need

anything else. This way, you are letting your customers know that you value them.

Page 5 of 14

3. SWOT analysis of top 5 CRM software product vendors.

“Fueled by renewed interest in customer experience management,” notes the report, “heightened

accountability and heavy development investments from the vendors, the CRM acronym has become

fashionable again.”

Vendors’2009 CRM revenue totaled more than US$14 billion, which was an “impressive” 12 percent

growth rate over 2008, according to the report.

“This represents the strongest year-over-year growth rate for the segment since 2005, when the customer

management market was still in hyper-growth,” write the analysts.

1. RIGHTNOW TECHNOLOGIES:

Right Now Technologies NASDAQ: RNOW is a U.S. software company that develops customer

relationship management (CRM) software for enterprise organizations. It is incorporated

in Delaware and headquartered in Bozeman, Montana. The company was founded in 1997 by Greg

Gianforte in Bozeman, Montana Additional offices have opened in California, New York, New

Jersey, Massachusetts, Texas, Illinois, Washington DC, Colorado,

Canada, Europe, Australia and Asia.

Right Now is primarily known for its business model of offering its software as a hosted service in the

cloud. As of November 2009, the company has nearly 2000 customers, including Australia Post, British

Airways, and Iomega Continental Tire.

Page 6 of 14

2. SAP CRM

SAP has a low presence in public

sector and currently generates only 9% of

its revenue from the public sector. SAP’s

software revenues from the public sector

declined by 6.6% to $341m (R271m) in

2006. By contrast, Microsoft’s ERP

division has more than 7,800 public

sector customers worldwide who use its

ERP (Enterprise Resource Planning) and

Customer Relationship Management

(CRM) products. Oracle has also

strengthened its presence in the public

sector through its acquisition of

PeopleSoft...”

The global software market value will reach $272 billion in2011, representing a five-year CAGR of 7.5%.

• Microsoft remains the software market leader with a 21.8%market share, followed by IBM with 8.9%

share.

• Major acquisitions in 2007 included SAP acquiring Business Objects for $6.8 billion, IBM acquiring

Cognos for $5 billion and the $3 billion acquisition of Hyperion by Oracle.

• New and stricter government regulations are creating opportunities for vendors with specific strengths in

security and data protection technologies such as EMC and Symantec.

With SAP CRM, marketers gain the essential business insights needed to make intelligent decisions,

sharpen their focus on customers to drive demand and increase customer retention, and better manage

marketing resources to do more with less. Key SAP CRM marketing capabilities include:

Marketing resource and brand management

Campaign management

Segmentation and list management

Real-time offer management

Loyalty management

E-marketing

Page 7 of 14

Key Marketing Benefits of SAP Customer Relationship Management

SAP CRM enables you to:

Align marketing resources to support organizational objectives

Understand the returns on your marketing spend

Accelerate marketing processes with increased visibility and control

Drive customer demand with targeted marketing messages

Identify and retain high-value customers with customer loyalty programs

Establish a standard, streamlined marketing process with a central marketing platform

3. ORACLE CRM:

The world's most complete customer relationship management (CRM). Oracle offers the broadest and

deepest portfolio of CRM solutions that address all customer touch-points and provide rich functionality to

support the specific business needs for organizations of every size to deliver a superior customer experience.

Only Oracle Provides Complete CRM:

Innovation—Industry recognized leader in CRM

Industry—Over 20 industry tailored solutions

Insight—Embedded real-time business intelligence

Integration—End-to-end business processes

Infrastructure—Broadest choice of deployment options

Oracle CRM is a Customer Relationship Management system developed by Oracle Corporation. Oracle

CRM includes Oracle and PeopleSoft products but leads with Siebel CRM and CRM on Demand.

Page 8 of 14

4. MICROSOFT CRM:

Microsoft Dynamics CRM is a multi-lingual Customer Relationship Management software package

developed by Microsoft. Out of the box, the product focuses mainly on Sales, Marketing, and Service (help

desk) sectors, but Microsoft has been marketing Dynamics CRM as an XRM platform and has been

encouraging partners to use its proprietary framework to customize it to meet many different demands.

Dynamics CRM is a server-client application, which, like Microsoft SharePoint, is primarily an IIS-based

web application which also supports extensive web services interfaces. Clients access Dynamics CRM

either by using Microsoft Internet Explorer 6 or later web browser or by a thick client plug-in to Microsoft

Outlook While other browsers can be used to access Dynamics, results can be mixed and are not supported

by Microsoft.

Page 9 of 14

5. Salesforce.com:

Salesforce.com is an enterprise cloud computing company headquartered in San Francisco, USA that

distributes business software on a subscription basis. Salesforce.com hosts the applications offsite It is best

known for its Customer Relationship Management (CRM) products and, through acquisition, has expanded

into the "social enterprise arena.

Page 10 of 14

4. What role you will perform, if you are selected by one of the top CRM service

provider and what will be your value addition?

Data Management

1. Minimizing Duplications and data quality

2. Enforcing Data Entry Standards

3. Maintaining the Data Conversion Rules from disparate systems

Sales Professional

1. Understand Sales processes, that is, what is involved in winning new business, preferably with an in

depth understanding of known Sales processes such as SPIN, Miller Heinemann, Solution Selling, etc.

2. Great Presentation skills, as they will be required to sell new ideas and processes internally to

management and staff

3. To be able to sell the idea that CRM is not a IT solution, but a tool to help an organization to better

understand what their customers want and need

Change Manager

1. Plan for Change Management

2. Design incentives for people to change the way that they perform their jobs, as CRM always involves

change and will be one of the greatest challenges

3. Motivator—sells the benefits of CRM to the users and management, so they will change

Senior Business Architect

1. Setting the process and performance framework for business transformation for a CRM implementation

i.e. business and process analysis and then designing the CRM application so it meets the business

requirements of the organization

2. Analysis of what information is required from other applications, ERP, etc

Business Analyst

1. Analysis of any problems,

2. Errors

Page 11 of 14

3. What information users will have access to, what information will help them perform their jobs more

effectively

Data Modeler

1. Creation of list views for marketing mail outs

2. Creation of other list views that will help users such as Territory Management, Opportunities, customers,

etc

3. Creation of Business Objects Reports

Application Administrator

1. Creation & Maintenance of Teams,

2. Maintenance of existing Users

3. Creation of new Users

4. Creation of Users Synchronization Rules

5. Territory Realignment

6. Applying any new Customization

7. Testing new processes and customization

Performance Measurement

1. of Users

2. Data

3. Customer Information

4. Marketing Campaigns

5. System Effectiveness

Portfolio Manager

1. Building Relationships with Portfolio stakeholders such as CEO, Sales Director, Marketing Director,

Customer Service Director, etc

2. Evaluating and prioritizing CRM initiatives based on discussions with above

3. Planning, Release Scheduling: Roll Outs to different divisions, departments, etc

Page 12 of 14

4. Planning the application upgrades

5. Maintain Relationship with CRM application vendor

6. Build and maintain relationship with IT department

5. While most organizations are moving towards customer centric philosophy, there is

one organization, HCL that boldly says “Employee First, Customer Second”. Do you

agree with such strategy? Justify your stand

Sounds typical HR speak?

Maybe yes, ….but in a country whose IT prowess/future hinges on the ability to service external clients, this

looks like a fairly bold statement to make. Can’t but help recall Mahatma Gandhi’s famous quote commonly

found plastered across shops & establishments all over India

“A customer is the most important visitor on our premises, he is not dependent on us. We are dependent on

him. He is not an interruption in our work. He is the purpose of it. He is not an outsider in our business. He

is part of it. We are not doing him a favor by serving him. He is doing us a favor by giving us an opportunity

to do so.”

The initiatives that are part of the policy look well intentioned, though not necessary first of its kind. What

looks first of its kind is an organisation of this size, in a county like India, in an industry like client servicing

oriented IT services making this a policy statement. And while this initiative predates it, the Satyam scandal

makes this pitch even more intriguing for an Indian IT major.

Strategy used to be about protecting existing competitive advantage. Today, it is about finding the next

advantage; every strategy starts to decay the day it is created. Our research addresses how established

corporations can execute breakthrough strategies to address tomorrow's business realities. Actions belong in

one of three POINTS. 1: manage the present; 2: selectively abandon the past; and 3: create the future.

1 is about improving the current business. 2 and 3 are about breakout performance and growth. Strategy

cannot be just about 1, securing profits for the next year. Strategy must encompass 2 and 3. It must be about

what a company needs to do to sustain leadership for the next 10 years. In fact, managers' central task is to

balance managing the present with creating the future. For example, Apple must continue to excel at

producing personal computers that delight its core customers (1). But it must also secure its future by

launching high-growth-potential, transformative businesses like iPod and iTunes (2 and 3).

Organizations that operate with a short timeframe assume that their industries are stable and static. But it

takes years for large organizations to change direction. By comparison, change in the industry environment

is rapid and nonlinear. For instance, nanotechnology and genetic engineering are revolutionizing the

pharmaceutical and semiconductor industries. Globalization is opening doors to emerging economies with

Page 13 of 14

billions of customers who have vast unmet needs. Once-distinct industries, such as entertainment,

telephony, and computing, are converging. And rapidly escalating concerns about security and the

environment are creating unforeseen markets.

Because these forces create nonlinear change, old assumptions are no longer valid. Because strategies are

quickly imitated, they need almost constant reinvention. The only way to stay ahead---the only way to

capture emerging opportunities---is to innovate.

Senior managers must maximize profits from existing businesses. 1 is tremendously important, but

responsible leaders must build for a future beyond that life. Too many companies ignore 2 and 3 until it is

too late, as vividly illustrated by the problems experienced by Sears and Kmart in retailing and by Kodak in

photography. How can other companies avoid similar declines? How can large, established corporations

build breakthrough new businesses?

Below are some feedback provided by ex-HCLite

I’ve worked there for 12+ Years and quit recently. THIS IS ANOTHER MARKETING TACTICS TO PROMOTE

THE COMPANY TO HCLITES AND OTHERS. MANY TIMES I’ve heard my manager saying “We have no other

option than giving the customer what/when he wants; even if it takes the entire team to work 24×7″.

FYI, HR team was unable to tell us what Employee First means.

I’m not sure how the rating firms (Gartner, Forrester etc) are able to believe this story and HCL is getting awards

for this.

This marketing line “Employee First, Customer Second” looks to be stolen from Dr. Stephen Covey’s “Principle

Centered Leadership” which was published long ago.

------ Ex_HCLite

Do you think this policy is in real implementaion in HCL? This just sucks! I can show tens of teams with in my

clear visibility that just say Yes Yes Yes to client. Damn to the employees, whatever is the attrition rate, HCL

never cares. This just sucks you know! I am going to put papers next week.

This is just a marketing strategy. HCL first of all does not have good internet connectivity, good systems to work

on (Ball mice, Old HCL monitors, Pentium 4 still, 1 GB RAM, very old shivering keys of keyboard). I hate this

company to my throat.

----- Ex_HCLite

Page 14 of 14

Ha ha ha ha ha…………seems like an absolute joke to me….it should rather be “customer first employee

second”……..it’s nothing more than a marketing agenda…….HCL has an internal forum, where the ceo answers

to the queries of employees…..if you happen to read that, you will come to know about vineet nayar…..he is the

number one fake in HCL and a bias too……..HCL is good for people who are in their 40′s and 50′s and i am sure

people who are advocating for hcl are one of those…….it is a company of managers, for the managers and by the

managers……….they market themselves “a $5 billion company” and also boast that they are earning good

revenues…..it is one of those organizations which has a high number of projects to work on, as compared to their

peers ……on the contrary, analyze the appraisals they have given to their employees, sucks totally……..employee

first, customer second- insane statement….this company is governed by the dictatorship of managers and people

who are good at ASS licking, get everything they desire for……@#%^* off HCL……..

----- Ex_HCLite

We should note that Employee First, Customer Second is neither devised by Nayar nor actually

implemented by Nayar.

It is ONLY in the PAPER (server, internal websites etc) but NOT in the SPRIT.

---- Ex_HCLite