Planning and Implementing CRM projects Semester Genap 2014 2015

Planning and Implementing CRM projects Semester Genap 2014/2015

Learning Objectives v Understand major phases in a CRM implementation v Identify a number of tools and processes that can be applied in each phase of an implementation v Understand the importance of project management and change management throughout the implementation process

CRM Project Design & Planning Process

Phase 1: Develop the CRM Strategy v CRM strategy: high level plan of action that aligns people, processes and technology to achieve customer-related goals v Sub-phases: § Situation analysis § Commence CRM education (Memulai) § Develop the CRM vision § Set priorities § Establish goals and objectives § Identify people, process and technology requirements § Develop the business case

Duane E. Sharp: Stages of a CRM Strategy v Interacting § e. g: sales processes v Analyzing § To create relevant interactions to build valued relationship v Learning § Connecting interaction between consumer – organization (to obtain knowledge) v Planning § Developing marketing plans and strategies to meet customer requirements

Situation Analysis The customer strategy cube

What is a CRM Vision? v A CRM vision is a high-level statement of how CRM will change a business as it relates to customers

CRM Vision Statements (Example) Salesforce. com: v We will work with our members in a trust-based relationship to represent their interests, and to satisfy their needs for high value, security, and peace of mind in motoring, travel, and home. v Nurturing relationships one cup at a time. Deliver a customer experience that consistently develops enthusiastically satisfied customers in every market in which we do business. v Build and maintain long-term relationships with valuable customers by creating personalized experiences across all touch-points and by anticipating customer needs and providing customized offers. v Nothing is more important than making every user successful.

Strategic Goals for CRM Projects (Gartner)

Business Case: Revenues v CRM implementations can generate additional revenues in a number of ways: § § § § Conversion of more leads More cross-selling and up-selling More accurate product pricing Higher levels of customer satisfaction and retention Higher levels of word-of-mouth influence More leads and/or sales from marketing campaigns More sales from more effective selling processes

Phase 2: Build the CRM Project Foundations v Identify stakeholders v Establish governance structures v Identify change management needs v Identify project management needs v Identify critical success factors v Develop risk management plan

Who are The Stakeholders in CRM Projects? v Stakeholders include any party that will be impacted by the adoption of CRM § § § § senior management users of any new system marketing staff sales people customer service agents channel partners customers IT specialists

CRM Project Governance Structure

Intellectual buyin No Yes The Buy-in Matrix Bystanders Champions Weak links Loose cannons No Yes Emotional buyin

Identify Project Management Needs v Role of CRM Program Director v Sets out steps of journey from situation analysis to achievement of CRM vision, goals and objectives v Tool kit: Gantt charts, Critical Path Analysis (CPA), Program Evaluation and Review Technique (PERT) or network diagrams.

Critical Success Factors v CSF’s are attributes and variables that can significantly impact business outcomes

CSF’s for CRM projects Critical success factor People Process Technology 1. Senior management commitment X 2. Creation of a multi-disciplinary team X 3. Objectives definition X 4. Interdepartmental integration X X 5. Communication of the CRM strategy to staff X X 6. Staff commitment X 7. Customer information management 8. Customer service X X 9. Sales automation X X X X 10. Marketing automation 11. Support for operational management X 12. Customer contact management X 13. Information systems integration X X X (more important in bold)

Risk Management Plan v Gartner has identified a number of risks that threaten project success § management that has little customer understanding or involvement § rewards and incentives that are tied to old, non-customer objectives § organizational culture that is not customer-focussed § limited or no input from the customers § thinking that technology is the solution § lack of specifically designed, mutually reinforcing processes; § poor-quality customer data and information § little coordination between departmental initiatives and projects § creation of the CRM team happens last, and the team lacks business staff § no measures or monitoring of benefits and lack of testing

Phase 3: Need Specification & Partner Selection v Process engineering v Data review and gap analysis v Initial technology needs specification, and research alternative solutions v Write request for proposals (RFP) v Call for proposals v Revised technology needs identification v Assessment and partner selection

Business Process Defined v A business process is set of activities performed by people and/or technology in order to achieve a desired outcome v Processes are ‘how things are done’ v Processes can be classified as § Vertical and horizontal § Front-office and back-office § Primary and secondary v CRM processes include all customer-facing (front-office) processes within sales, marketing and service functions

Campaign Management Process Customer phones in Check scores No interest Offer product to high scores Buy product Open account on phone 2 Send application form 7 Out bound phone follow-up 42 7 Mail follow-up Do nothing Check account balance (numbers are days)

Data Review and Gap Analysis v Customer-related data is used for strategic, operational, analytical and collaborative CRM purposes v Identify the information needed v Identify the information available v Identify the gap v Consider data quality issues

Initial Technology Needs …… …. . specification and research alternative solutions v Identify applications and functionality that meets business case requirements § Visit vendor websites § Join online communities and learn from members § Visit online CRM exhibitions § Read case studies § Join benchmarking group v Consider build, buy or rent decision § Consider total cost of ownership v Most users opt for an on-premise (installed) CRM system or a hosted (online) system

Contents of Request For Proposal (RFP) [1] v Instructions to respondents v Company background v The CRM vision and strategy v Strategic, operational, analytical and collaborative CRM requirements v Process issues: § Customer interaction mapping § Process re-engineering

Contents of RFP [2] v Technology issues: § Delivery model – Saa. S, on-premise, blended § Functionality required – sales, marketing and service § Management reports required § Hardware requirements § Architectural issues § Systems integration issues § Customization issues § Upgrades and service requirements

Contents of RFP [3] v People issues: § Project management services § Change management services § Management and staff training v Costing issues – TCO targets v Implementation issues – pilot, training, support, roll-out, time-line v Contractual issues v Criteria for assessing proposals v Time-line for responding to proposals

Phase 4: Project Implementation v Refine project plan v Identify technology customisation needs v Prototype design, test, modify and roll out

CRM Deployment Options v On premise § installed on your company’s own servers v 3 rd party hosted § Installed and accessed from another party’s servers via internet § ASP (Application Service Provider) model or the Software-as-a-Service (Saa. S) model v On-premise hosted § The software is on your site but managed by other party

CRM Costs Comparing first-year costs: on-premise vs. hosted CRM Cost item On-premise CRM Hosted CRM 500 Application licence/subscription $1, 250, 000 $750, 000 Implementation and customization $6, 250, 000 $187, 000 Training $150, 000 $75, 000 IT infrastructure/hardware $500, 000 $0 IT personnel $500, 000 $0 Support/upgrade costs $225, 000 $0 $8, 875, 000 $1, 012, 500 Number of users Year one expenditure Sources: Triple Tree; Software & Information Industry Association (SIAA); salesforce. com; Yankee Group. Table originally appeared in e. Marketer 2005.

Phase 5: Performance Evaluation v Project outcomes § Was the project has been delivered on time and to budget? v Business outcomes § Have business goals and specific CRM objectives been achieved? § Consider time-frame for CRM objectives

Understanding CRM Project Costs • CRM software licence fees • systems integration • infrastructure costs, new desktop, laptop or handheld devices • software configuration • data modelling • beta-testing • • helpdesk support change management project management process reengineering software upgrades training consultancy services opportunity costs

References v Francis Buttle, Customer Relationship Management: Concepts and Technologies, 2 e, Elsevier Ltd. , 2009 v Baran, Galka and Strunk, Principles of Customer Relationship Management, South-Western, 2008