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* Opportunity management. This feature helps the company to manage unpredictable growth and demand and implement a good [[forecasting]] model to integrate sales history with [[sales forecasting|sales projection]]s.<ref name="zeng"/>
* Opportunity management. This feature helps the company to manage unpredictable growth and demand and implement a good [[forecasting]] model to integrate sales history with [[sales forecasting|sales projection]]s.<ref name="zeng"/>
*CRM in developing and maintaining client relationships
*CRM in developing and maintaining client relationships
Hitesh


===Marketing and Customer Service===
===Marketing and Customer Service===

Revision as of 06:13, 19 December 2014

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.[1]

Types

CRM Solutions

CRM Solutions come with many features and tools and it's important for a company to choose a product based on their specific organizational needs. Most vendors will present information on their respective websites:

  • Features These are what the product actually does and what value it can provide to an organization.
  • Support Many CRM vendors have a basic level of support which generally only includes email and/or access to a support forum.[2][3][4] Telephone support is often charged in either an annual or ad hoc pricing strategy. Some companies offer on-site support for an extra premium.[5]
  • Pricing This will be shown either per-user[4][6] or as a flat price for a number of users.[7] Vendors charge annually, quarterly, or monthly with variable pricing options for different features.
  • Demonstration Periods Many vendors offer a trial period and/or online demonstrations.

Characteristics of CRM

  • Relationship management is a customer-oriented feature with service response based on customer input, one-to-one solutions to customers’ requirements, direct online communications with customer and customer service centers that help customers solve their issues.
  • Sales force automation. This function can implement sales promotion analysis, automate tracking of a client’s account history for repeated sales or future sales, and also сoordinate sales, marketing, call centers, and retail outlets in order to realize the salesforce automation.
  • Use of technology. This feature is about following the technology trend and skills of value delivering using technology to make “up-to-the-second” customer data available. It applies data warehouse technology in order to aggregate transaction information, to merge the information with CRM solutions, and to provide KPI (key performance indicators).
  • Opportunity management. This feature helps the company to manage unpredictable growth and demand and implement a good forecasting model to integrate sales history with sales projections.[8]
  • CRM in developing and maintaining client relationships

Hitesh

Marketing and Customer Service

Customer relationship management systems track and measure marketing campaigns over multiple networks. These systems can track customer analysis by customer clicks and sales. Places where CRM is used include call centers, social media, direct mail, data storage files, banks, and customer data queries.

CRM in customer contact centers

CRM systems are customer relationship management platforms. The goal of the system is to track, record, store in databases, and then determine the information in a way that increases customer relations (predominantly increased ARPU, and decreased churn). The CRM codifies the interactions between you and your customers so that you can maximize sales and profit using analytics and KPIs to give the users as much information on where to focus their marketing and customer service to maximize revenue and decrease idle and unproductive contact with your customers. The contact channels (now aiming to be omni-channel from multi-channel) use such operational methods as contact centers. The CRM software is installed in the contact centers, and help direct customers to the right agent or self-empowered knowledge.[9] CRM software can also be used to identify and reward loyal customers over a period of time.

Growing in popularity is the idea of gamifying customer service environments. The repetitive and tedious act of answering support calls all day can be draining, even for the most enthusiastic customer service representative. When agents are bored with their work, they become less engaged and less motivated to do their jobs well. They are also prone to making mistakes. Gamification tools can motivate agents by tapping into their visceral need for reward, status, achievement, and competition.[10]

CRM in B2B (Business-to-Business) market

The modern environment requires one business to interact with another via the web. According to a Sweeney Group definition, CRM is “all the tools, technologies and procedures to manage, improve, or facilitate sales, support and related interactions with customers, prospects, and business partners throughout the enterprise”.[11] It assumes that CRM is involved in every B2B transaction.[8]

Despite the general notion that CRM systems were created for the customer-centric businesses, they can also be applied to B2B environments to streamline and improve customer management conditions. B2C and B2B CRM systems are not created equally and different CRM software applies to B2B and Business-to-Customer (B2C) conditions. B2B relationships usually have longer maturity times than B2C relationships. For the best level of CRM operation in a B2B environment, the software must be personalized and delivered at individual levels.[12]

Implementing CRM to the company

The following are general guidelines on implementing a CRM system.

  1. Make a strategic decision on what problems you want your CRM system to address, what improvements or changes it should bring in the business processes of the organization.
  2. Choose an appropriate project manager. Typically IT will be engaged, however a manager with a customer service/sales and marketing business focus should be involved, as the impact of the project will be mainly on the business side.
  3. Ensure executive sponsorship and top management support.
  4. Empower team members with the required authority to complete the tasks.
  5. Select the correct implementation partner. They must have both vertical and horizontal business knowledge, as well as technical expertise.
  6. Define KPI's that will measure the project's success
  7. Use a phased approach. Work towards long-term enterprise-scale implementation through a series of smaller, phased implementations [13]

Differences between CRM for B2B (Business to Business) and B2C (Business to Customers)

B2B and B2C marketing operates differently, that is why they cannot use the same software. All the differences are focused on the approach of these two types of businesses:

  • B2B companies have smaller contact databases than B2C
  • The amount of sales in B2B is relatively small
  • In B2B there is less figure propositions, but in some cases they cost a lot more than B2C items
  • Relationships in B2B environment are built over a longer time

B2B operations require special CRM solutions that are not the same as for the B2C industry:

  • B2B industries require specialized CRM solutions, which are different from B2C companies’ requirements. This is the main reason for ineffective adoption of applications, despite both B2B and B2C industries having the same aim: to “understand its own customers better”
  • There must be different CRM solutions for industries within the B2B market, because of the special needs of each one. Also there is a demand of designing solutions using special color schemes.
  • B2B CRM must be easily integrated with other companies’ IT-solutions. Such integration enables the creation of forecasts about customer behavior based on their buying history, bills, business success, etc.
  • An application for a B2B company must have a function to connect all the contacts, processes and deals among the customers segment and then prepare a paper
  • Automation of sales process is an important requirement for B2B solutions. It should effectively manage the deal and progress it through all the phases towards signing
  • A crucial point is personalization. It helps the B2B company to save strong and long-lasting relationships with the customer. To communicate with them more effectively, there should be integration with the email solutions

So, all the B2B applications must be both personalized and be able to establish communication channels for support of customers

SaaS CRM Software

Often referred to as "on-demand" software, SaaS based software is delivered via the Internet and does not require installation on your computer. Instead, you'll generally access the software via your web browser. Businesses using the software do not purchase the software, and typically pay a subscription fee to the software vendor.[14]

Small business

For small businesses a CRM system may simply consist of a contact manager system which integrates emails, documents, jobs, faxes, and scheduling for individual accounts.[15] CRM systems available for specific markets (legal, finance) frequently focus on event management and relationship tracking as opposed to financial return on investment (ROI).

Social media

CRM often makes use of social media to build up customer relationships. Some CRM systems integrate social media sites like Twitter, LinkedIn and Facebook to track and communicate with customers sharing their opinions and experiences with a company, products and services.[16] Enterprise Feedback Management software platforms such as Confirmit, Medallia, and Satmetrix combine internal survey data with trends identified through social media to allow businesses to make more accurate decisions on which products to supply.[17]

Non-profit and membership-based

Systems for non-profit and also membership-based organizations help track constituents, fund-raising, Sponsors demographics, membership levels, membership directories, volunteering and communication with individuals.[citation needed]

Customer-centric relationship management (CCRM)

CCRM is a style of customer relationship management that focuses on customer preferences instead of customer leverage. This is a nascent sub-discipline of traditional customer relationship management; to take advantage of changes in communications technology.

Customer centric organizations help customers make better decisions and it also helps drive profitability. CCRM adds value by engaging customers in individual, interactive relationships.[18]

Customer-centricity differs from client-centricity in that the latter refers almost exclusively to business-to-business models rather than customer-facing firms.

Features of CCRM

Customer-centric relationship management is used in marketing, customer service and sales, including:

  • tailored marketing
  • one-to-one customer service
  • retaining customers
  • building brand loyalty
  • providing information customers actually want
  • Subscription billing
  • Rewards

Accenture[19] and Emerald Insight[20] are now beginning to focus on CCRM as a discipline, with studies appearing on Mendeley.[21]

Adoption issues

In 2003, a Gartner report estimated that more than $2 billion had been spent on software that was not being used. According to CSO Insights, less than 40 percent of 1,275 participating companies had end-user adoption rates above 90 percent.[22] Many corporations only use CRM systems on a partial or fragmented basis.[23][citation needed] In a 2007 survey from the UK, four-fifths of senior executives reported that their biggest challenge is getting their staff to use the systems they had installed. 43 percent of respondents said they use less than half the functionality of their existing system.[24][citation needed]. Recently, it is found in a study that market research regarding consumers preference may increase the adoption of CRM among the developing countries' consumers.[25]

CRM Paradox

The CRM Paradox, also referred to as the "Dark side of CRM",[26] entails favoritism and differential treatment of some customers. This may cause perceptions of unfairness among other customers' buyers. They may opt out of relationships, spread negative information, or engage in misbehavior that may damage the firm. CRM fundamentally involves treating customers differently based on the assumption that customers are different and have different needs. Such perceived inequality may cause dissatisfaction, mistrust and result in unfair practices. A customer shows trust when he bonds in a relationship with a firm when he knows that the firm is acting fairly and adding value. However, customers may not trust that firms will be fair in splitting the value creation pie[clarify] in the first place. For example, Amazon’s test use of dynamic pricing (different prices for different customers) was a public relations nightmare for the company[citation needed].

Market leaders

The CRM market grew by 12.5 percent in 2012.[27] The following table lists the top vendors in 2006–2008 and 2013 (figures in millions of US dollars) published in Gartner studies.[28][29]

Vendor 2013 Revenue 2013 Share (%) 2012 Revenue 2012 Share (%) 2008 Revenue 2008 Share (%) 2007 Revenue 2007 Share (%) 2006 Revenue 2006 Share (%)
Salesforce.com CRM 3,292 16.1 2,525.6 14.0 965 10.6 676.5 8.3 451.7 6.9
SAP AG 2,622 12.8 2,327.1 12.9 2,055 22.5 2,050.8 25.3 1,681.7 25.6
Oracle 2,097 10.2 2,015.2 11.1 1,475 16.1 1,319.8 16.3 1,016.8 15.5
Microsoft Dynamics CRM 1,392 6.8 1,135.3 6.3 581 6.4 332.1 4.1 176.1 2.7
Others 11,076 54.1 10,086.8 55.7 3,620 39.6 3,289.1 40.6 2,881.6 43.8
Total 20,476 100 18,090 100 9,147 100 7,674 100 6,214 100

Trends

In the Gartner CRM Summit 2010 challenges like "System tries to capture data from social networking traffic like Twitter, handles Facebook page addresses or other online social networking sites" were discussed and solutions were provided which would help in bringing more clientele.[30] Many CRM vendors offer subscription-based web tools (cloud computing) and software as a service (SaaS). Some CRM systems are equipped with mobile capabilities, making information accessible to remote sales staff.[citation needed] Salesforce.com was the first company to provide enterprise applications through a web browser, and has maintained its leadership position.[31] Traditional providers have recently moved into the cloud-based market via acquisitions of smaller providers: Oracle purchased RightNow in October 2011[32] and SAP acquired SuccessFactors in December 2011.[33]

The era of the "social customer"[34] refers to the use of social media (Twitter, Facebook, LinkedIn, Google Plus, Pinterest, Instagram, Yelp, customer reviews in Amazon, etc.) by customers. CR philosophy and strategy has shifted to encompass social networks and user communities.

Sales forces also play an important role in CRM, as maximizing sales effectiveness and increasing sales productivity is a driving force behind the adoption of CRM. Empowering sales managers was listed as one of the top 5 CRM trends in 2013.[35]

Another related development is vendor relationship management (VRM), which provide tools and services that allow customers to manage their individual relationship with vendors. VRM development has grown out of efforts by ProjectVRM at Harvard's Berkman Center for Internet & Society and Identity Commons' Internet Identity Workshops, as well as by a growing number of startups and established companies. VRM was the subject of a cover story in the May 2010 issue of CRM Magazine.[36]

In 2001, Doug Laney developed the concept and coined the term 'Extended Relationship Management' (XRM).[37] Laney defines XRM as extending CRM disciplines to secondary allies such as the government, press and industry consortia.

CRM futurist Dennison DeGregor describes a shift from 'push CRM' toward a 'customer transparency' (CT) model, due to the increased proliferation of channels, devices, and social media.[38]

Capterra, Inc. Ranked the Top CRM Software Solutions in 2013 based on total number of customers, total number of users and social presence.[39]

See also

Notes

  1. ^ Shaw, Robert, Computer Aided Marketing & Selling (1991) Butterworth Heinemann ISBN 978-0-7506-1707-9
  2. ^ http://opencrm.co.uk/support.html
  3. ^ http://www.salesforce.com/uk/service-cloud/overview/
  4. ^ a b http://www.microsoft.com/en-gb/dynamics/dynamics-online-support.aspx
  5. ^ TopTen Reviews CRM Software Review
  6. ^ http://www.salesforce.com/uk/crm/editions-pricing.jsp
  7. ^ http://opencrm.co.uk/plans-and-pricing.html
  8. ^ a b Yun E. Zeng, H. Joseph Wen, David C. Yen, "Customer relationship management (CRM) in business-to-business (B2B) e-commerce", Emerald 11, (2003).
  9. ^ SAP Insider (15 November 2007) Still Struggling to Reduce Call Center Costs Without Losing Customers?
  10. ^ Myron, David. DestinationCRM.com. Information Today, Inc. CRM in Customer Service http://www.destinationcrm.com/Articles/ReadArticle.aspx?ArticleID=99909 CRM in Customer Service. Retrieved 15 October 2014. {{cite web}}: Check |url= value (help); Missing or empty |title= (help)
  11. ^ Davenport, T.H., Harris, J.G., Kohli, A.K. (2001), "How do they know their customers so well?", MIT Sloan Management Review, Vol. 42 No.2, pp.63-73.
  12. ^ Rebekah Henderson, B2B Insights (2013) How to build a B2B-friendly CRM
  13. ^ Piskar F., Faganel A. (2009). A successful CRM Implementation Project in a Service Company: Case Study. Organizacija, Vol: 42, pp. 199-208
  14. ^ Cloud Taxonomy CRM Software as a Service
  15. ^ Gordon Johnston (2014) CRM for B2B: Busting the myths (Part Two)
  16. ^ DestinationCRM.com (2009) Who Owns the Social Customer?
  17. ^ Lester, Aaron (23 April 2013). "Seeking treasure from social media tracking? Follow the customer". SearchBusinessAnalytics. Retrieved 1 October 2013.
  18. ^ It’s all about the Customer, Stupid – The Importance of Customer Centric Partners
  19. ^ Sales and Customer Services–CRM: Services Overview
  20. ^ Customer-centric relationship management system development: A generative knowledge integration perspective
  21. ^ CRM and customer-centric knowledge management: an empirical research
  22. ^ Jim Dickie, CSO Insights (2006) Demystifying CRM Adoption Rates
  23. ^ Joachim, David. "CRM tools improve access, usability." (cover story). B to B 87, no. 3 (11 March 2002): 1
  24. ^ David Sims, TMC.net (2007) CRM Adoption ‘Biggest Problem’ in 83 Percent of Cases
  25. ^ Hasan, M. R., Rahman, M., And Khan, M. M. (2013). Rural Consumers’ Adoption of CRM in a Developing Country Context. International Journal of Business and Management Invention (IJBMI), 2(9), 121-131. [1]
  26. ^ Nguyen, B. & Mutum, D. S. (2012). A review of customer relationship management: successes, advances, pitfalls and futures, Business Process Management Journal, 18 (3). 400-419 [2]
  27. ^ Forbes.com (2013) 2013 CRM Market Share Update: 40% Of CRM Systems Sold Are SaaS-Based
  28. ^ "Gartner Says Worldwide Customer Relationship Management Market Grew 23 Percent in 2007" (Press release). Gartner, Inc. 12 September 2008. Retrieved 15 August 2008.
  29. ^ "Gartner Says Worldwide CRM Market Grew 12.5 Percent in 2008" (Press release). Gartner, Inc. 15 June 2009. Retrieved 27 October 2009.
  30. ^ CRM Trends in Insurance IndustryCRM Trends in Insurance Industry: April, 2010
  31. ^ Put Cloud CRM to Work PC World: April, 2010
  32. ^ Oracle Buys Cloud-based Customer Service Company RightNow For $1.5 Billion Techcrunch: 24 October 2011
  33. ^ SAP Challenges Oracle With $3.4 Billion SuccessFactors Purchase Bloomberg Businessweek: 7 December 2011
  34. ^ Greenberg, Paul (2009). CRM at the Speed of Light (4th ed.). McGraw Hill. p. 7.
  35. ^ "Top 5 CRM Trends for 2013". Enterprise Apps Today. Retrieved 7 June 2013.
  36. ^ Destinationcrm.com CRM Magazine: May, 2010
  37. ^ [3] The Great Enterprise Balancing Act: Extended Relationship Management (XRM), Doug Laney, META Group publication, 10 December 2001
  38. ^ DeGregor, Dennison (2011). Customer-Transparent Enterprise: Beyond 20th Century CRM. Motivational Press. ISBN 1-935723-23-5.
  39. ^ http://www.capterra.com/customer-relationship-management-software/#infographic
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