☁CRM☁

• CRM Stands for "Customer Relationship Management".

• Customer relationship management (CRM) software serves the needs of small businesses as well as large enterprises by creating a focus on the business customers.

• Customer relationship management (CRM) is a system for managing a company’s interactions with current and future customers. It often involves using technology to organize, automate and synchronize Sales, marketing, customer service, and technical Support.

What is CRM

1. CRM methodology enables the organization to understand the customers' needs and behaviour better. It introduces reliable processes and procedures for interacting with customers and develop stronger relationships with them. 
2. The process helps organization in assimilating information about customers, sales, marketing effectiveness, responsiveness, and market trends. Then this information is used to give insight into behavior of customers and value of retaining those customers. 
3. The whole process is designed to reduce cost and increase profitability by holding on to the customer loyalty.
4. A simple installation and integration of the software package doesn't ensure success. 
5. It has to be absorbed into the system. Employees have to be convinced about its positive attributes, then they have to be trained. The existing business processes have to be modified. 
6. The company has to decide what kind of information is to be collected about the customers, what is to be done with the information, and prioritize this accumulated information. 
7. The company must drill into this database of its customers and ascertain their buying patterns, product preferences, the potential for add on sales etc.
8. A good strategy will be to integrate every area of touch point with customers like marketing, sales, customer service, and field support. 
9. This is achieved with the integration of the people, process, and technology in the business.

The Differences Between CRM and ERP

While specific features and capabilities differ between platforms and vendors, here's a quick list of some of the many activities each type of business software can help you improve:

Use CRM Software to manage any of the following front-office activities:

Organize marketing efforts, manage the sales pipeline, calculate time spent on converting leads to closing deals, streamline your sales processes, automates customer service, track a customer's interactions with your business, share marketing and sales collateral, create data reports, learn which products sell best and when, prioritize leads, manage inventory based on historical sales data, collaborate to sell as a team, manage your business contacts, manage your business leads, share customer profiles with co-workers and See where leads come from.

Use ERP Software to manage back-office activities and tasks including the following:

Distribution process management, supply chain management, services knowledge base, configure, prices, improve accuracy of financial data, facilitate better project planning, automate employee life-cycle, Standardize critical business procedures, reduce redundant tasks, assess business needs, accounting and financial applications, lower purchasing costs, manage human resources and payroll.

History of CRM

CRM first appeared in 1980s. In the budding stage it was in the form of Customer Information System (CIS). This first generation applications were single function solutions designed to support a specific set of employees.

 Typical applications were at help desk, sales and marketing department, or a particular function within a call center. 

Then it shaped to Contact Management, Sales Force Automation (SFA), Call Center and Customer Contact Center(CCC). These CRM applications increased the functionality of the software.

These applications offered inter-operable modules that included marketing, sales, analytics, customer service and call center support functions.

 Today it has matured to CRM and also Mobile CRM (m-CRM).

 The term CRM was first coined in early 1990s. It is a major strategic approach to customers and businesses are investing millions of dollars to acquire CRM services and solutions. It is the leading business strategy of the new millennium.

CRM Objectives

CRM, the technology, along with human resources of the company, enables the company to analyze the behavior of customers and their value. The main areas of focus are as the name suggests: customer ,relationship , and the management of relationship and the main objectives to implement CRM in the business strategy are:

• To simplify marketing and sales process
• To make call centers more efficient
• To provide better customer service
• To discover new customers and increase customer revenue
• To cross sell products more effectively

The CRM processes should fully support the basic steps of customer life cycle . The basic steps are:

• Attracting present and new customers
• Acquiring new customers
• Serving the customers
• Finally, retaining the customers

Selection of the Right CRM Technology

The point here is one size doesn't fit all . There is no single CRM software or formula which will give instant success to all companies. For small or medium enterprises, the requirement is different from that of big firms. Most CRM packages provide excellent sales force automation, but not equally good integration with computer telephony, or with web. These are adequate for small and medium firms but not for large firms. A mix of different software to link the databases, data warehousing software, contact management software, and a CRM package will go a long way in helping to upgrade the small companies.

Other internet enabled applications available are enterprise resource planning packages, e-commerce applications, relationship management packages, enterprise portal applications etc. One can adopt the best practices to slash costs, introduce efficiencies into supply chain and internal operations. Today t he global market for CRM services and solutions is currently worth $148 billion. This proves to show the numerous choices available in this field.

Benefits

The following are the benefits of adopting CRM processes:

• Develop better communication channels
• Collect customer related data
• Create detailed profiles of individual customers
• Increased customer satisfaction
• Access to customer account history, order information, and customer information at all touch points
• Identify new selling opportunities
• Increased market share and profit margin
• Increased revenues
• More effective reach and marketing
• Improved customer service and support
• Improved response time to customer requests for information
• Enhanced customer loyalty
• Improved ability to meet customer requirements
• Improved quality communication and networking
• Reduced costs of buying and using product and services
• Better stand against global competition

Types of CRMs:

1.Operational CRM

2.Analytical CRM

3.Collaborative CRM

1.Operational CRM:

• The operational application of CRM enables effective interaction with customers. 

• These contact management tools aim to reduce costs by improved process efficiency and use of media based communication channels. 

• These are also aimed to provide customers with a consistent interface across all communication channels. 

• To achieve this relevant customer data is collected and also displayed at all customer touch points. This is the customer master data. 

• Another set of data where employees' contact with customers is also logged. 

• This has information like topics discussed, customer requirements, soft customer data like hobbies, preferences, interests, details about children and other minor stuffs.

• Banks are an exemplary implementation of CRM as customer contact management. 

• Channel management tools aim to understand how customer interacts with the company. It aims to deliver products and services across multiple channels in effective, efficient, and consistent manner. 
• Content management tools enable the company to manage what is visible to the customers i.e. what the customers are able to see when they interact with the company. 

The various processes undertaken are: 

            campaign management

            sales management

            service management

            complaint management.

2.Analytical CRM:

The data collected in operational management is analyzed to segment customers. The valuable information thus obtained is used to satisfy customers. Analytical CRM is composed of:

1. Pattern discovery component
2. Product and customer analysis component
3. Multitude component
4. Sorting and customer fractionation component
5. Customer value evaluation component

Analytical solutions provided for most companies are integrated view of customer across all channels and applications, campaign performance analysis, customer profitability analysis, cross-selling and up selling. The analytical solutions help answer questions like:

1. Who are their best customers?
2. Whom they are likely to loose?
3. How to retain them?
4. How to attract new customers?
5. How to improve profitability of customers?

Examples are data warehousing, online analytical processing (OLAP), and data mining systems.

Note : Concept of customer segmentation : the value of customer is judged based on RFM analysis i.e. focusing on Recency, Frequency, and Monetary value from customer purchasing data in retail business. Accordingly the customers are divided into various levels. The four main segments of customers are:

• At the top is the VIP customer whose expenditure is most and form 1% of all customers in a certain period.
• Then the main customer forming 5%.
• Next the ordinary customer forming 20%.
• And at the bottom is the scattered customer an overwhelming 80%.

The first three categories create more than 80% of all profits for the company and as a result they are differentiated as the best customers. They are the real targets of Customer Centralization.

3.Collaborative CRM:

The various departments of company like the sales, technical support, and marketing, share the information they collect about customers. The objective is to improve the quality of customer service and increase customer loyalty.

It allows the company to synchronize and manage efficient, productive interaction with customers, prospects, partners, and internal associates across all communication channels. The customers' viewpoint is taken care of at every transaction level thus enabling better service to the customer. Collaborative CRM also reduces web service costs by enabling web collaboration.

Implementation

To implement CRM, following factors need to be given due consideration:

• Easy interaction between customers and company, enhancing quick response to customers' request and suggestions
• Easy access to information about company like content of customization, advantages of the company, benefits doled out to the customers. This establishes profitable relationships with the customers based on mutual trust and respect
• Abundant supply of customer information which have been accumulated and integrated from different channels
• Grow with customers i.e. customers' information should be updated along with the passage of time
•  Have cordial relationship with other companies targeting the same customer segment. Thus giving relevant solution to customers' need and increasing acknowledgement to customers
• Customers' information must be segmented to provide support for customization based on personalized information i.e. tailoring the company's product and services accordingly

Improvement in customer relationships increases customer loyalty, decreases customer turnover, increases sales revenue, and decreases marketing costs, thus increasing profit margins.

Company types that must adopt CRM

Companies that do not have repeat business from customers will not gain much from CRM. And also that have walk-in customers not providing multiple sales and service channels will not benefit much from CRM. Again if maintaining long term relationship with customer is not a priority for the company, it will be wise not to invest in CRM.

Then who benefits? The more the channels to access customers and more the number of touch points with customers, greater is the need for CRM installation. Companies in

• Banking
• Finance
• Insurance
• Airlines and Hotels
• Telecommunications and Health Care Benefit from installing CRM software.

Technical Functionalities

Multiple communication channel - This is one major factor of CRM, which enables business to be responsive to the needs and desires of its customers. CRM solutions provide better utilization of all communication channels in company. The various communication channels are:

• Web channel - This supports a number of customer service and customer account management activities. Customers can verify and browse product descriptions and also report problems through this channel.
• Fax channel - Company can use this channel to generate fax that is sent directly to customers, while customers use this to submit requests for information and contact.
• Interactive TV channel - Cable TV companies interact with customers through this channel.
• IVR (Integrated Voice Response) - This channel answers all incoming calls from the toll free network, and also provides guidance through use of prompts.
• E-mail - Customers can e-mail their service requests and check status. The company can also use this as outbound channel to distribute information.
• Direct mail - This channel is used primarily for outbound communication to customers. The inbound direct mails are not managed by CRM.
• Direct field sales force channel - Activities like browsing product offerings, capturing leads, completing orders, and performing high level customer care are all done remotely by the agents through this channel.

Database - database of customers is created by collecting information through semi-structured interviews, document analysis of annual reports, organizational charts, and system charts. The information is collected on the basis of strategy and process of CRM. The information thus collected is continuously updated to build up a lifetime relationship.

Workflow and assignment - CRM solutions enhance the customer service by clearly defining the tasks, assigning the tasks to the various departments. The order of carrying out the tasks is spelt out. CRM solutions also monitor the smooth flow of information to support the task and finally keep track of the tasks being completed.

Scalability - CRM applications can be used on a large scale, in terms of number of participants it can handle, and can be expanded to any desired scale.

Privacy concerns - This functionality is one of the major factors in the selection criteria of CRM applications. Those organizations implementing customer facing operational applications, customer intelligence, and customer-centric marketing must give priority to customer privacy issue in deciding the business strategy. Questions like how customers' privacy can come into play during operation and how it is protected in each application need to be answered first before choosing the right CRM solution.

Often it is seen that CRM applications has not brought success to organizations as expected. The failure rate for CRM implementations is as high as 70%. The reasons are:

• Absence of a clear transitional process i.e.. a step by step awareness, a clear funding strategy, and attainable goals is a must rather than introducing sweeping changes all at once.
• The main focus of business is on products' sale and geographical segmentation of market but not on customer segments.
• Key performance measurements are not tracked. Data integration, interdepartmental communication, and good supervision of these processes are critical to success.
• Weak functional organization of a company can cause customer and employees' confusion.
• Short term interests are often given importance. Ethics must be given priority over financial gains. A customer focussed company must be prepared to make recommendations in favor of customers even at the cost of short term interests of the company.
• The financial measures of success are often inadequate. In a customer centric model the branding, research, and development must align with development, compensation, budgeting, and incentive policies.
• Other new technology and solutions are introduced without implementing the necessary framework

Popular CRMs:

1.SalesForce CRM is an online web-based Customer Relationship Management (CRM) service from Salesforce.com. As with all CRM software, it captures and organizes communications and information from current or prospective customers from many departments across a company.

2.Sugar CRM is a commercial open source CRM suitable for companies of all sizes. The version 3.0 called the Sugar Suite has various functionalities like:

• Sales forecasting
• Campaign and Project Management
• Email marketing
• Calendaring, call scheduling, planning meetings, note tracking-customizable dashboards for real time tracking of business activities  
• Calendar Synchronization by project management, tasks and activities reminder.

3.vTiger open-source CRM is most suitable for small and medium businesses. Originally built from source code of SugarCRM , it is based on open-source technologies like Linux, Apache, MySQL and PHP.

Future of CRM

CRM is here to stay and will evolve. The desire to improve customer satisfaction and retention of customers will constantly drive the need to improve CRM systems.

Economy is now driven by customers and not by sellers as in the past. There are different type of customers, different types of business models, and selling strategies. And it is a matter of time when there will be different types of CRM software to support these models.

Technology will improve to put more functionality tools in CRM applications as there is more demand for knowledge management systems, sales coaching systems, and service intelligence systems. Information today is in the form of maps, charts, and graphs generated by report writers and visual profiling programs. These will give way to voice activated and speech feed-back tools and other elaborate visual aids using 3-D and CAD style graphics.