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Customer Relation Management n. Margaret Since-Hymas n. Sarye Lange n. Jodi Krause n. John Customer Relation Management n. Margaret Since-Hymas n. Sarye Lange n. Jodi Krause n. John Curtright n. Chris Hoffmeister 1

What Is CRM? n n n A strategy used to understand a customer. A What Is CRM? n n n A strategy used to understand a customer. A process to gather and sort information. Allows for better analysis of what a customer needs in order to be satisfied. Attempts to makes all information available about a customer to all aspects within a company. “CRM is a paradigm shift in terms of what you are focusing on. ” 2

CRM 3 CRM 3

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History of CRM n n n Beginning unknown- concept has existed since trade began History of CRM n n n Beginning unknown- concept has existed since trade began Resulted from increase in customer base and individualization A way to process mass amounts of customer information 5

Size of Spending q n The median annual CRM budget runs over $1 million Size of Spending q n The median annual CRM budget runs over $1 million with an implementation time of four years. 26% of united states businesses expect to be spending $500, 000 or more on CRM projects over the next two years. MIT Sloan Management Review, Larry Yu. Cambridge: Summer 2001. Vol 42 Iss 4 pg 18, www. Jupiter. com. . "What We're Buying" www. cio. com viewev 10 -12 -03 6

Size of Spending n n In a 2001 survey, spending levels on CRM are Size of Spending n n In a 2001 survey, spending levels on CRM are forecasted to rise from $9. 7 billion in 2001 to $16. 5 billion in 2006. Other research shows that spending could be as great as $30. 6 billion by 2005. MIT Sloan Management Review, Larry Yu. Cambridge: Summer 2001. Vol 42 Iss 4 pg 18, www. Jupiter. com. . "What We're Buying" www. cio. com viewev 10 -12 -03 “Watch out for CRM Hidden Costs” by A. Mello as seen on October 20, 2003 at http: //techupdate. zdnet. com/techupdate/stories/main/0, 14179, 2818263, 00. html 7

Spending by Region n North America: grew 5% in 2002 Europe: fell 22% in Spending by Region n North America: grew 5% in 2002 Europe: fell 22% in 2002 Asia: fell 15% in 2002 Gartner group • Predicts that market will fall 8% in 2003 • Predicts market will grow 5% annually from 2003 -2007 www. 4 gartner. com Viewed November 2, 2003 8

Market Leaders n n Popular among most major industries. Forecasted leaders (most CRM technology Market Leaders n n Popular among most major industries. Forecasted leaders (most CRM technology spending): Financial service companies-$5. 4 billion in 2006. n Retail-$3. 2 billion in 2006. n Telecommunications $2. 9 billion in 2006. n 9

Benefits of CRM 1. 2. 3. 4. Customer loyalty/increase in market share Increase in Benefits of CRM 1. 2. 3. 4. Customer loyalty/increase in market share Increase in sales and profits Greater frequency of sales, repeated business/reordering, larger sales, higher customer count and new customers Marketing and promotion savings “Report On Customer Relationship Management. ” www. lexisnexis. com March 2003, Viewed October 18, 2003. 10

Benefits Cont. 5. 6. 7. 8. 9. Fewer complaints, more complaints resolved Customers remaining Benefits Cont. 5. 6. 7. 8. 9. Fewer complaints, more complaints resolved Customers remaining with the organization Positive customer response Differentiation Improved employee morale and productivity “Report On Customer Relationship Management. ” www. lexisnexis. com March 2003, Viewed October 18, 2003. 11

Benefits Cont. 10. 11. 12. Improved employees relationships Fewer employee grievances, less absenteeism and Benefits Cont. 10. 11. 12. Improved employees relationships Fewer employee grievances, less absenteeism and less tardiness Less employee turnover “Report On Customer Relationship Management. ” www. lexisnexis. com March 2003, Viewed October 18, 2003. 12

CRM Yields q “It costs 6 -7 times more to acquire a new customer CRM Yields q “It costs 6 -7 times more to acquire a new customer than to retain an existing one. ” Harvard Business Review 13

Just How Much Information Is Held in CRM Packages? § § “Online customer service Just How Much Information Is Held in CRM Packages? § § “Online customer service contacts will grow from 870 million in 2001 to 4. 7 billion in 2006” This is a predicted jump of 3. 83 billion contacts in a mere 5 years! (Keep in mind the multiple channels of information for each customer. ) www. 4 gartner. com Viewed November 2, 2003 14

How Does Information Enter an Organization? Many organizations have various ways to gather customer How Does Information Enter an Organization? Many organizations have various ways to gather customer information: § Telephone § Fax § Web § Other § Personal contact 15

What Must Be Done With All the Information? n n n Sort information for What Must Be Done With All the Information? n n n Sort information for relevance All relevant information must be included when implementing CRM Any irrelevant information must be excluded when implementing CRM in order to reduce costs and time efforts 16

What Information is Relevant? n n Customer information must sorted through and organized. The What Information is Relevant? n n Customer information must sorted through and organized. The question must be asked of what information is valuable and what is useless. Useful information: n n n Responses to surveys/campaigns. Purchase dates. Shipping dates. Demographic data. Web sales data. 17

Types of Customer Information 18 Types of Customer Information 18

What Is a Main Goal of CRM? n n n To understand customers for What Is a Main Goal of CRM? n n n To understand customers for “profitable cross-channel customer relationships. ” To attempt to improve customer relations to increase customer retention. To Gain insight into customer behavior and answer what is valuable to them. “Report On Customer Relationship Management. ” www. lexisnexis. com March 2003, Viewed October 18, 2003. 19

Questions to Ask to Improve Customer Relationships? 1. 2. 3. 4. 5. About What Questions to Ask to Improve Customer Relationships? 1. 2. 3. 4. 5. About What do customers care most & what do they want in the future? What will happen if we only provide “mediocre” service? How do we value customer relationships? How can we improve our customer retention and satisfaction? What will the future bring to customer service? “Report On Customer Relationship Management. ” www. lexisnexis. com March 2003, Viewed October 18, 2003. 20

Implementation n n Must be more than a financial investment Keys to successful implementation: Implementation n n Must be more than a financial investment Keys to successful implementation: Do it incrementally n Scalable architecture n Be prepared technologically n Have adequate manpower for the amount of incoming data n 21

Industry Leaders n n n Siebel-voted the “CRM Platform 2003” by Network Word Italy Industry Leaders n n n Siebel-voted the “CRM Platform 2003” by Network Word Italy Industry specific, leading sales application suit Packaged 22

CRM Applications n n Reporting-compilation, who is best customer and what are they buying. CRM Applications n n Reporting-compilation, who is best customer and what are they buying. O&F- finalization step, assist in creating contracts, invoices, etc. 23

CRM Applications Cont. n n Sales-allows salespersons access to company database and resources Marketing-allows CRM Applications Cont. n n Sales-allows salespersons access to company database and resources Marketing-allows centralization of focus on current marketing techniques and markets Customer service-management of different customer touch points Document management-way to keep and maintain records in a way that can be access quickly 24

Vendors Specialized Vendors n n n Firstwave- first company to offer totally web-based CRM Vendors Specialized Vendors n n n Firstwave- first company to offer totally web-based CRM solution-packaged or ASP Tech. Excel- only CRM solution designed for software and product development companies (packaged) Knowledge concepts- Firmworks, accounting software specific 25

CRM: NOT Primarily Technological n n 54% of CRM spending levels is attributable to CRM: NOT Primarily Technological n n 54% of CRM spending levels is attributable to technology components. Quote from Judith Kincaid, author of Customer Relationship Management: Getting it Right!” “CRM is not just buying a piece of software to automate some of your current processes and then plugging it in. If it were that easy, more companies would have had CRM success already. ” “CRM is no silver bullet. CRM program success is achieved by completing small, focused projects that add up to a big victory over the long run. ” “Report On Customer Relationship Management. ” www. lexisnexis. com March 2003, Viewed October 18, 2003. 26

Reasons for Failure n n A recent survey from business intelligence quotes success rates Reasons for Failure n n A recent survey from business intelligence quotes success rates for CRM implementation as around 10%. Reasons: n n n Lack of communication between users. Incomplete picture. Inability to adapt to newer technology. Managements limited understanding, poor planning or lack of skills. Company politics, inertia and budget constraints. 27

CRM case study: Empire Blue Cross and Blue Shield of New York 28 CRM case study: Empire Blue Cross and Blue Shield of New York 28

Company Background n n n Founded: 1935 Headquarters: New York Employees: 6, 500, plus Company Background n n n Founded: 1935 Headquarters: New York Employees: 6, 500, plus 1, 800 independent brokers Customers: 29, 000 corporate customers, representing 4. 8 million individual customers Revenues (2001): $4. 3 billion 29

Company Background n n Serves the 28 eastern and southeastern counties of New York Company Background n n Serves the 28 eastern and southeastern counties of New York State and 10 contiguous counties in New Jersey and Connecticut Empire is the largest health insurance provider in New York 30

Before 2000 n n Paper-based sales process Customer had no contact with Empire and Before 2000 n n Paper-based sales process Customer had no contact with Empire and vice versa Broker could not generate quote or process paperwork Empire could not verify information with customer 31

Application Process before 2000 32 Application Process before 2000 32

Application Process Problems n n n Paper-based: long (about 27 days) Delay–filled sales process Application Process Problems n n n Paper-based: long (about 27 days) Delay–filled sales process Often difficult to make changes to plans Outdated enrollment forms when plans were revised Brokers were dependent on Empire relations staff, who were available during business hours only. 33

“We had 33 redundancy audit checkswhere we go over information to make sure it’s “We had 33 redundancy audit checkswhere we go over information to make sure it’s correct. We had created this nightmare. ” -Steven Bell, Vice President of E-Business Operations, Empire Blue Cross and Blue Shield 34

Implementation of CRM n n n In 1999 a team sat down and tracked Implementation of CRM n n n In 1999 a team sat down and tracked the process Cut the essential steps from 80 to 40 Off the shelf CRM product not enough Integration with current legacy mainframes Outsourcing: Firepond of Waltham, Mass Close cooperation with in-house IT department 35

Empire’s Broker Services Application n n Live in October of 2000 Includes quote engine Empire’s Broker Services Application n n Live in October of 2000 Includes quote engine and proposal configurator Password protected Broker can go online to create custom proposals, pull information together about plan options, and print information specific to the customer’s specifications 36

n n Broker can enroll new accounts Agents can maintain customer information online 24 n n Broker can enroll new accounts Agents can maintain customer information online 24 hr access Process now only took 2 -3 days 37

Updates since 2000 n n n New service was developed in-house Additional sites were Updates since 2000 n n n New service was developed in-house Additional sites were added: “Blue Tools” Employers can now enroll employees Individual members can now access and update personal data, check claims status and request ID cards Brokers can now service their accounts online Physicians can now check patient eligibility, submit claims, and check co-payments and deductibles online 38

Application Process after 2000 39 Application Process after 2000 39

40 40

Conclusion n CRM is a tool to focus on your customers’ needs. Empire Blue Conclusion n CRM is a tool to focus on your customers’ needs. Empire Blue Cross and Blue Shield uses CRM technology to facilitate the sales process of health insurance coverage. With this technology, Empire makes it easier for brokers, employers, individual members and physicians to come together in a 24 hr, easy to use environment. 41

CRM in Sports Seattle Mariners 42 CRM in Sports Seattle Mariners 42

Seattle Mariners n n n n Established in 1977 Defeated New York Yankees in Seattle Mariners n n n n Established in 1977 Defeated New York Yankees in 1995 Playoffs Started to increase fan support Opened Safeco Field Record-tying 116 wins in 2001 2002 Sales (mil. ) $167. 0 Most profitable team in the Major League Highest attendance in the American League (3. 4 million) "Onyx Helps Build Fan and Sponser Loyalty for the Seattle Mariners" 43

Successful Problems? n n n Increase in fan support highlighted inadequacies in their IT Successful Problems? n n n Increase in fan support highlighted inadequacies in their IT technology As sales increased the lack of integrated systems hurt customer service 13 Disconnected databases Most Alarming: An excel spreadsheet outlining season ticket holders was maintained by the secretary of the CEO. Decision to implement a CRM system took place in 2000 "Mike Rogoway, Knowledge Base" 44

Larry Witherspoon n n Vice President of Technology Responsible for food and ticketing Responsible Larry Witherspoon n n Vice President of Technology Responsible for food and ticketing Responsible for implementation of a CRM system Currently enrolled in the MBA program at the University of Washington "Mike Rogoway, Knowledge Base" 45

Onyx to the Rescue n n Larry Witherspoon: Mariners Vice President of IT services Onyx to the Rescue n n Larry Witherspoon: Mariners Vice President of IT services Selected Onyx Employee and Customer Portal for CRM system Systems were implemented in 12 weeks, just in time for the 2001 season Project was implemented in house by Witherspoon and 4 other people "John Hogan, www. crm. com" 46

Main Goal n Frances Traisman manager of customer communications and senior account executive said Main Goal n Frances Traisman manager of customer communications and senior account executive said “Our main goal with the Onyx system is customer retention, because it is much easier to keep a current season ticket holder or a 15 -game ticket holder than to go out and find a new one. ” "Onyx Helps Build Fan and Sponser Loyalty for the Seattle Mariners" 47

Additional Comments by Traisman n Traisman continued “This is a business based on passion Additional Comments by Traisman n Traisman continued “This is a business based on passion more than anything. If the fans feel disconnected from us and if they don’t feel we care about them, they’re not going to stay fans, and that affects the bottom line. ” "Onyx Helps Build Fan and Sponser Loyalty for the Seattle Mariners" 48

CRM Functions n n n Automate customer service and support activities Manage season-ticket holder, CRM Functions n n n Automate customer service and support activities Manage season-ticket holder, suite, and sponsorship sales Target new and existing customers and sponsors Perform market analysis and organize tailored marketing promotions to specific customer segments Integrate ballpark operations into Onyx to provide 360 -degree information for total customer satisfaction "Onyx Helps Build Fan and Sponser Loyalty for the Seattle Mariners" 49

Applications of CRM Functions n n Incident records serve as complaint forms (i. e. Applications of CRM Functions n n Incident records serve as complaint forms (i. e. broken seats) Automated birthday announcements for season ticket holders Review concession stand locations and plan future locations Tracking based on Compass Club Members card "Onyx Helps Build Fan and Sponser Loyalty for the Seattle Mariners" 50

Surprising Results n Most surprising result: “The number 1 complaint of the first home Surprising Results n Most surprising result: “The number 1 complaint of the first home stand? Sauerkraut. No sauerkraut. I was amazed…Now (with CRM) you can identify a trend and you can correct it quickly. ” Larry Witherspoon "John Hogan, www. crm. com" 51

Ticket Sales n n n 1998 2. 64 Million (5 th in AL) 1999 Ticket Sales n n n 1998 2. 64 Million (5 th in AL) 1999 2. 92 Million (4 th in the AL) 2000 3. 15 Million (4 th in the AL) 2001 3. 51 Million (led AL) 2002 3. 54 Million (led AL) "www. hoovers. com" 52

Return on Investment n n n System cost $500, 000 ROI was not as Return on Investment n n n System cost $500, 000 ROI was not as important as building customer loyalty “Success will be seen when performance on the field decreases and customers remain loyal. ” –Witherspoon Potential Revenue increase of $10 million per year due to an 8% increase in season ticket revenue Limited growth due to number of seats in the stadium (47, 116) "John Hogan, www. crm. com" 53

Customer Service Improvement n “By using a CRM system to track complaints, the organization Customer Service Improvement n “By using a CRM system to track complaints, the organization noticed patterns and addressed them. Concession complaints, for instance, dropped by 80% between 2001 and 2002. ”Witherspoon "Howard Baldwin, Customer Care for Smaller Businesses" 54

Why will this be successful? n n n Relatively small number of variables compared Why will this be successful? n n n Relatively small number of variables compared to many CRM projects “They only have 20 pieces of information about a single customer, we’ve got hundreds and hundreds. ” –Kelsey Corcoran (Verizon Wireless CRM Manager) More uniform sample- Baseball fans "Mike Rogoway, Knowledge Base" 55

Future of CRM in Seattle n n n Implementing predictive modeling in limited CRM Future of CRM in Seattle n n n Implementing predictive modeling in limited CRM programs Designed to highlight seasonal buying patterns in merchandise and concession sales. Goal: To reduce costs buy lowering inventory while avoiding stock-outs "John Cook, Technology in the Ballpark? Of course, it's Seattle" 56

CRM IN BANKING RBC FINANCIAL GROUP Source: www. rbc. com 57 CRM IN BANKING RBC FINANCIAL GROUP Source: www. rbc. com 57

RBC FINANCIAL GROUP - Canada’s Largest Bank Five major business lines: 1. RBC Royal RBC FINANCIAL GROUP - Canada’s Largest Bank Five major business lines: 1. RBC Royal Bank (personal & commercial banking) RBC Insurance 3. RBC Investments 2. (wealth management) 4. RBC Capital Markets (corporate & investment banking) 5. RBC Global Services (transaction processing) Source: www. rbc. com 58

RBC FINANCIAL GROUP - $270 billion in assets* - 23 million retail accounts - RBC FINANCIAL GROUP - $270 billion in assets* - 23 million retail accounts - 700 products - 58, 000 employees - 10 million clients throughout the world (incl. personal, commercial, corporate, & public sector) * Financial data for RBC Financial Group reported in Canadian Dollars as of 2001 Source: “Customer Profitability and Customer Relationship Management at RBC Financial Group, ” Harvard Business School # 1 -102 -072 prepared by Research Associate Lisa Brem under the supervision of Professor V. G. Narayanan 59

RBC FINANCIAL GROUP RBC ROYAL BANK This business line includes: - 50% of RBC’s RBC FINANCIAL GROUP RBC ROYAL BANK This business line includes: - 50% of RBC’s cash net income - Over 1, 300 branches - 4, 800 ABMs (ATMs) - 87, 250 POS terminals - 1. 4 million online banking customers - 2 million telephone banking customers - International network of 300 offices in 30 countries Source: “Customer Profitability and Customer Relationship Management at RBC Financial Group, ” Harvard Business School # 1 -102 -072 prepared by Research Associate Lisa Brem under the supervision of Professor V. G. Narayanan 60

RBC FINANCIAL GROUP CRM Goal: Provide to personal bankers, upon demand, all contacts, transactions, RBC FINANCIAL GROUP CRM Goal: Provide to personal bankers, upon demand, all contacts, transactions, accounts, & interactions with a customer. - Address - Current & future profitability - Current products Age Account balance(s) Company contacts Qualified service level Target products Reaction to direct marketing Source: “Customer Profitability and Customer Relationship Management at RBC Financial Group, ” Harvard Business School # 1 -102 -072 prepared by Research Associate Lisa Brem under the supervision of Professor V. G. Narayanan 61

RBC FINANCIAL GROUP Organization Chart- Executives Only Chief Executive Officer Vice. Chairman & CFO RBC FINANCIAL GROUP Organization Chart- Executives Only Chief Executive Officer Vice. Chairman & CFO Vice. Chairman, RBC Global Services & CIO Chairman & CEO, RBC Dain Rauscher Vice. Chairman, RBC Banking Senior Executive V -P HR & Public Affairs Chairman & CEO, RBC Insurance Vice. Chairman, RBC Capital Markets Vice. Chairman & Chief Risk Officer Vice. Chairman, RBC Investments Source: www. rbc. com 62

RBC FINANCIAL GROUP Implementation Timeline 1997 Mc. Laughlin hired to implement CRM; oversees CRM RBC FINANCIAL GROUP Implementation Timeline 1997 Mc. Laughlin hired to implement CRM; oversees CRM infrastructure, Information Management, Internet Banking, & Privacy 1998 Customer Survey creates a platform for CRM Software selection to facilitate CRM 1999 Information changes focus to profitable customers & how to make unprofitable customers into profitable ones 2000 CRM software and practices continue to be modified based on internal & external customer feedback Source: “Customer Profitability and Customer Relationship Management at RBC Financial Group, ” Harvard Business School # 1 -102 -072 prepared by Research Associate Lisa Brem under the supervision of Professor V. G. Narayanan 63

RBC FINANCIAL GROUP Benefits to Bank & Customer Before: Conventional wisdom: key differentiator for RBC FINANCIAL GROUP Benefits to Bank & Customer Before: Conventional wisdom: key differentiator for banks was a 24/7 call center and a branch on every corner After: Most important to the customer was customer intimacy, including trust, reassurance, a feeling that the bank knows them, understands their needs, recognizes who they are and values their business Source: “Customer Profitability and Customer Relationship Management at RBC Financial Group, ” Harvard Business School # 1 -102 -072 prepared by Research Associate Lisa Brem under the supervision of Professor V. G. Narayanan 64

RBC FINANCIAL GROUP Benefits to Bank & Customer Before: Every branch had a different RBC FINANCIAL GROUP Benefits to Bank & Customer Before: Every branch had a different way to generate sales leads, account managers were responsible for creating their own lists. Quality of lead list was based on quality of manager’s query and when you had time to stop by the appropriate department. After: Centralized and standardized sales leads customized by interest of customers in a subsegment, reminders for sales managers to call and offer products Source: “Customer Profitability and Customer Relationship Management at RBC Financial Group, ” Harvard Business School # 1 -102 -072 prepared by Research Associate Lisa Brem under the supervision of Professor V. G. Narayanan 65

RBC FINANCIAL GROUP Benefits to Bank & Customer Before: Product and functional silos; corporate RBC FINANCIAL GROUP Benefits to Bank & Customer Before: Product and functional silos; corporate processes were executed more from consensus and conversations than a clear road map. After: Bank determined a set of customer treatment strategies—such as the decision to offer pre-approved credit for credit lines—for hundreds of micro-segments; ultimate objective of one-to-one marketing. Source: “Customer Profitability and Customer Relationship Management at RBC Financial Group, ” Harvard Business School # 1 -102 -072 prepared by Research Associate Lisa Brem under the supervision of Professor V. G. Narayanan 66

RBC FINANCIAL GROUP Benefits to Bank & Customer Before: Customer Profitability Measurement: A- most RBC FINANCIAL GROUP Benefits to Bank & Customer Before: Customer Profitability Measurement: A- most profitable B- less profitable C- not profitable or loss Little consideration to future potential After: Customer segments: Key, Nexus, Prime CPM changed by at least two deciles for 70% due to more accurate spread information, customer specific risk assessments, transaction based fee and costs elements. Invest in some sub-segments to nurture our relationship with potentially profitable customers, take losses in the short term. Source: “Customer Profitability and Customer Relationship Management at RBC Financial Group, ” Harvard Business School # 1 -102 -072 prepared by Research Associate Lisa Brem under the supervision of Professor V. G. Narayanan 67

RBC FINANCIAL GROUP CRM Initiatives Source: “Customer Profitability and Customer Relationship Management at RBC RBC FINANCIAL GROUP CRM Initiatives Source: “Customer Profitability and Customer Relationship Management at RBC Financial Group, ” Harvard Business School # 1 -102 -072 prepared by Research Associate Lisa Brem under the supervision of Professor V. G. Narayanan 68

RBC FINANCIAL GROUP Net Income by Year ($million) 1998 1999 2000 2001 2002 Source: RBC FINANCIAL GROUP Net Income by Year ($million) 1998 1999 2000 2001 2002 Source: www. rbc. com 69

CRM and the customer n n n Improved customer service –no more “I will CRM and the customer n n n Improved customer service –no more “I will connect you to someone who can help you” Easier to get the services I desire –”wow they have sauerkraut!” Easier access to my services through a web-based CRM (Empire & RBC) 70

CRM and Privacy n CRM and Privacy n "Consumers have, inherently, internally contradictory desires -- [they want] to be treated as individuals, to be treated personally, and they desire relevance in all commercial contacts with them, " said Harry Watkins, CRM research director at Boston-based Aberdeen group. "They also have reasonable paranoia concerning the personal information that companies have; [Information] that is required to deliver all of that relevance. " 71

CRM and Privacy 72 CRM and Privacy 72

CRM and Privacy n n n CRM collects personal information to provide specialized services CRM and Privacy n n n CRM collects personal information to provide specialized services Customers are increasingly worried about what is being done with their personal information With new privacy laws, customers have to be informed that data is being collected 73

Future n n Continues improvements in establishing relationships with customers, but implementation practices still Future n n Continues improvements in establishing relationships with customers, but implementation practices still problematic Firms recognizing importance of database building and customer data capturing Increase in real time analysis of customer behavior and what likely to buy Chief customer officer 74

Failure Rate n n 12% of CRM packages never go live Only 16% of Failure Rate n n 12% of CRM packages never go live Only 16% of CRM projects actually improve business performance in a measurable way CRM project risk the highest rates of failure for companies (32% and 55% after one year) Only 21% improve customer satisfaction. 75

Best Practices n n CRM system needs to monitored and continuously modified. Align CRM Best Practices n n CRM system needs to monitored and continuously modified. Align CRM system with corporate strategy. Must be endorsed by company’s upper management. Collaboration across departments. 76

Best Practices n n n Keep simple- varying levels of skills. Vendor definition of Best Practices n n n Keep simple- varying levels of skills. Vendor definition of success needs to match that of company. Set clear benchmarks to measure success. n Customer acquisition costs, conversion rates from lookers to buyers, retention rate. 77

Questions 78 Questions 78