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Successful Practices in

Customer RelationshipManagementRainer Alt,

Thomas Puschmann

nstitute of Information

anagement

University of St. Gallen

St. Gallen, Switzerland

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{Prename.Surname}@uni

Abstract

and only 20% knowwhether a customer has

visited theirMany

companies have initiated

rojects to improve on

internet portal.

customer orientation andlan the implementation

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of cusTo eliminate

weaknesses in customer

contact, many tomer

relationship management

(CRM) systems. Amongcompanies are either

lanning or in the processof imple-the desired

benefits are increased

customer satisfaction

menting CRM systems.

According to a Gartner

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survey [8]

and retention byroviding personalized

roducts and65% of UScompanies intended to

initiate CRM projectsvalue added services.

lthough the potentials of

CRM arein 2002 (seealso [21] and [1]). In

Europe, roughly 3% ofobvious only a few

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successful CRM

implementations are

companies had fully

implemented a CRM

project in 2001, known inractice. This article

describes the results of a17% had initiated more

than one local project and

35%

cross-industrybenchmarking project in

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which 120 com-were

developing concepts for

the introduction of CRM

anies participated. Theresults show that there is

no

[27]. Another 45% have

not pursued any CRMactivities

unique CRM project and

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that successful

implementa-to date.

tions are rarely technical

rojects. From theresearch six As

Wayland/Cole [29] pointout, CRM projects have

critical success factors for

CRM projects emerged:step-new implementation

qualities which may alsobe con-wise evolution,

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straightforward

implementation and long-

nected with the high

number of failed CRM

rojects [24].

term project,organizational redesign,

integrated system Our

research aims to establishan understanding what

architecture of standardcomponents, change

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manage-businesses are

doing in the area of CRM

and to identify ment, and

top management support.

The six successful factorswhich determine the

success of CRM projects.or practice companies

show examples of how

these critical this purpose

a consortium was

established which per-

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success factors are

applied.

ormed a benchmarking

roject consisting ofquestionnaires, interviews

and site visits. Section 2describes the 1.

ntroduction

research method and the

six successful practicecompanies. Section 3

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rovides the results of the

CRM bench-Building and

maintaining customer

relationships is marking

roject based on fivebenchmarks. Finally, Sec-

neither new nor necessarytied to the use of

information tion 4 derives

six generic success factors

and presents an

technology. Nonetheless,

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the use of customer

relationship outlook into

uture CRM

developments.

management (CRM)

systems is becomingincreasingly important to

improve customer lifetime

value [33]. By 2.esearch Method

roviding information on

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customer data, profiles

and his-tory they support

an important area of a

companys core 2.1

iterature Review

rocesses, especially inmarketing, sales and

service [7],

[15]. In fact, the adoption

of CRM systems leads to are-The first requirement

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or the successful

implementa-design

customer oriented

rocesses, similar to the

effect tion of CRM isclarity regarding CRM

terminology. From whichRP systems have had on

roduction-oriented the

many approaches

available, the distinction

between processes. In

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spite of the wide use of

sales force automa-the

ollowing three areas has

become generally

accepted tion systems insales [20] a Forrester

study [4] observes

[6]:

significant deficits in

todays marketing, salesand service

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Operational CRM

supports front office

rocesses, processes. It

was found that just 22%

of the companies e.g. thestaff in a call center [28],

[17], [5], [9].

surveyed possess a

uniform customer viewand only 37%

know which customers are

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looked after by the

individual

Analytical CRM builds

on operational CRM andes-business units. A

customer profilingconcept for customer

tablishes information on

customer segments,behav-selection is used by

ust 19% of the companiessurveyed ior and value

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using statistical methods

[18], [19].

Collaborative CRM

concentrates on customerinte-ture introduction

roject, CRMorganization and gration

using a coordinated mix

of interaction chan-rocesses, system

architecture, efficiency,and culture nels (multi-

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channel management),

e.g. online shops, have

been selected as

benchmarks and refined

as cri-and call centers[12].

teria during the kick-off

meeting (see Table 1).

CRM is therefore

understood as a customer-oriented management

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approach where

information systems

rovide information to

support operational,

analytical andenchmarks

Criteria

collaborative CRMrocesses and thus

contribute to cus-ntroduction

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High level of

implementation

tomer profitability and

retention.

roject

Running CRM system (>

6 months)

esearch on success

actors is an area that has

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already Organization

Customer processthinking

received some attention in

the IS literature. Among

the and customer

Analytical CRM(customer segmentation)

rocess

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examples is the general

taxonomy of Wil-

Customer centred

organization structures

liams/Ramaprasad [31]

and the increasing

interest in fac-System

Centralized customer

database

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tors that determine the

success of E-Commerce

or Web-architecture

Integration of CRMapplications

resences [26]. Although

CRM is often conceived

as part

Integration of Internetortals

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of E-Commerce [23],

Wilson et al. [32] report

success Efficiency

Quantification of CRMeffects

actors which are specific

to CRM projects. Using

the

Availability ofmeasurement system

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induction method they

discovered the need for

roject Culture

CRM as corporatehilosophy

approval procedures, the

need to leverage best

ractices,

Availability of changemanagement

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the importance of

rototyping new

rocesses, and the need to

manage for the delivery o

the intended benefits.

Table 1. Benchmarks andcriteria

ased on the work ofWells et al. [30], Bose [2]

describes more specificcritical issues that need to

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be addressed during the

CRM development life-

cycle. Among the rec-

Screening phase. Theresearch team identified

200

ommendations are to

conduct a completebusiness analy-potential

successful practiceorganizations of which sis

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since CRM implies

changes along interaction

oints 120 received

questionnaires structured

according to withcustomers, to ensure long-

term commitment of sen-the benchmarking criteria

defined in the kick-off ior

level management, to

consider a stage-wise

implemen-meeting. Out of

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the 55 returned

questionnaires 13

tation of the CRM-

modules, and to carefullyaddress structured

telephone interviews and10 in-depth case

people problems duringthe implementation

rocess. In studies wereselected.

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a study of 96

organizations, Yu [34]

reports that corporate

culture and process and

technology improvementwere the

Review meeting. At the

second consortium

meeting

best predictors of CRMsuccess.

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the research team

resented the

questionnaire results and

the case studies on an

anonymous basis. These2.2 Benchmarking

rocedure

were then analyzed and

evaluated by theconsortium members who

inally selected 6companies as suc-To

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investigate the use of

CRM in organizations an

to cessful practices.

identify successfulractices the criteria

rovided by exist-

ing research were applied

in a benchmarkingrocedure.

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Company visits and final

conference. The research

This approach has proved

suitable for obtaining

informa-team and theconsortium members

visited the suction oncurrent practices and

results [16].

enchmarking cessful

ractice organizations,

spending one day at

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which foresees the

systematic comparison of

and learning each

company. The results of

the evaluation were fromother organizations may

differ in many dimensions,resented to the

consortium at the final

conference.

such as internal/externaland

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qualitative/quantitative

de-The design of the

research project provided

two data sign [3]. The

external and qualitativeconsortium bench-sources

or evaluation purposes:1) the 55 questionnaires

marking approach

adopted here comprised

customer rela-returned,

which originated

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rimarily from European

com-tionship executives

rom 12 organizations an

4 research-panies (59%)

with over 50,000employees (48%), and 2)

ers. Due to the chosenresearch methodology a

mix of the six

comprehensive case

studies recorded on site at

the questionnaire and

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case study approach

this research successful

ractice organizations.

oth sources are de-

resents a broad and in-depth picture of CRM.

our scribed in detail inthe following sections.

hases were completedwithin the timeframe May

through September 2001(see Figure 1):

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Preparation and kick-of

meeting. The research

team outlined the topic

and goals of the

benchmarking project andestablished the

consortium. Based onlitera-

reparation and Kick-Ofeeting

Swisscom AG in Zurich,

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Switzerland, reorganized

its Bench-

Benchmarks defined by

the research team basedon literature marks

customer contacts in

1998. With a Direct

arketing

Criteria agreed andrioritized by the

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consortium members

Criteria

Center (DMC) the

company has created twocorporate areas which

have been supported by aVantiveScreening Phase

Fallstudie

Fallstudie

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Fallstudie

Fallstudie

Fallstudie

Fallstudie

system for customer

contact management since1999.

200 potential successful

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ractice organizations

identified Dat

at aba

aba se

se

Fallstudie

Fallstudie

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Fallstudie

120 questionnaires sentout, of which 55 were

returned se

se ar

ar ch

ch es

es

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Fallstudie

Fallstudie

Fallstudie

13 phone interviews and

10 case studies conductedt handles 6 million

telephone calls perannum, 1.5

million incoming and 2

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million outgoing letters.

eview Meeting

Unisys (Schweiz) AG inThalwil, Switzerland, a

sub-

10 case studies

analyzed, evaluated andresented anonymously

6 successful practice

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organizations selected by

consortium sidiary of the

Unisys Corporation in

lue Bell, Phila-delphia,

USA, supplies IT-servicesto about 220 customers.

ollowing areorganization of its sales

struc-Company Visits and

inal Conference

C

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2

1

4

1

3

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ture at the end of the

1990s, the company

introduced

Data evaluated andanalyzed

6

5

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General concepts and

critical factors derived B

2

5 4

3

a Siebel system whichrovides uniform

customer data for sales,

reporting and forecasting

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at a global Figure 1.

teps in the CRM

consortium

level.

benchmarking

3. Benchmarking Results

2.3 Successful Practice

Organizations

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3.1 Introduction Project

The successful practiceorganizations which were

selected during the reviewmeeting consisted of the

ollow-Almost all of the55 companies who

returned the ques-ing:

tionnaires mentioned a

similar set of motivationsor the

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Alta Resources Corp. in

eenah (WI), USA, a ser-

initiation of their CRM

activities. Among the

examples vice provider inthe area of call centers

and customer areimproved customer

selection, the targeted use

of interaction (e.g.

complaint management,

lead genera-channels for

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customer contact,

enhanced customer value

through cross-and up-

selling opportunities and

increased tion). As earlyas 1995 Alta Resources

implemented atransparency in CRM

rocesses. Only 11% of

the compa-Vantive system

or managing the

customer contacts nies

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stated efficiency as a

major motivator for CRM.

of all clients by telephone,

e-mail, letter and internetThe strategic nature of

CRM is also reflected inthe portals.

implementation projectswhich typically begin with

coor-

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Bertelsmann AG in

Gtersloh, Germany,

whose Di-dination

between the areas

marketing,sales/distribution rect

Group is responsible forthe relationships to and

T, and the definition of

common goals. In 80% of

the approx. 20 million

book club and online

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customers organizations

surveyed, an overall

concept formed the

worldwide. With its

subsidiary Syskoplan thecom-starting point for the

introduction of CRM,which in 64%

any set up a Marketntelligence Organization

in of cases wascoordinated with an E-

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business strategy and

1996 and implemented an

integrated SAP system

the reorganization ofbusiness processes (44%).

t Hei-with the modulesCRM, APO, BW and PS.

delberg CRM was part ofa corporate eBusiness

roject called e-Forumwhich defined

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transformation maps and

Consors Discount-roker AG in Nuremberg,

Ger-standards for R&D,inance and production,

administra-many, ainancial services

rovider focusing on

inter-tion and marketing,sales and after sales. In

the latter, net-basedsecurities transactions.

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Consors handles in-CRM

comprised 10 customer

ocused projects which

teractions to its 450,000

customers primarily viatheir were offered as pre-

configured solutions tothe country call center

and internet portal. In

October 2000 the

organizations.

company began with the

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introduction of an

integrated An important

art of the introduction

rojects was the Clarify

system.

implementation of theCRM-system. This phase

was completed in an

average of 7 months andincluded the defini-

Heidelberger

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ruckmaschinen AG in

eidelberg, tion of

evaluation criteria, the

software selection,

custom-Germany, aninternational supplier of

rinting solu-izing, pilotand roll-out. 67% of all

companies imple-tions

who aimed to improve the

contact and direct mented

a pilot application before

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rolling out the system.

sales to their 100000customers worldwide.

Starting Similarevaluation criteria were

used in each case: in ad-in 1996 Heidelberg

designed a CRM strategy

which dition tomanufacturer-related

criteria such as manufac-also includes the

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implementation of a

centralized turers vision,

support and globality,

importance was at-Clarify

system.

tached above all toroduct-related

characteristics such as

unctionality, product

maturity, integrationcapability and product

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ortfolio. Unisys

(Switzerland), is now or-

modularity of the solution.

anized according toFinancial Industries and

n all the organizationsconsidered, project

coordina-Swisscom

according to Fixnet andMobile cus-tion was

handled centrally, whileless than one third of

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tomers.

CRM projects were in theresponsibility of the IT

department. As Figure 2shows, marketing,

sales/distribution

Centralized organization

units. Responsibility forand management were

requently involved in therojects.

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CRM activities is usually

organized in new

organizational units

which act as internal

service providers.

eidelberg covers localmarkets with 85 Sales and

Others

Service Units (SSU) who

rovide the business areasCustomers

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with marketing tools,

know-how and

experience. A Controlling

new departmentMarketing Intelligence &

CRM

(MI-M) coordinates

marketing activities andutilizes Ext. Offices

synergies on a corporate

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basis. Bertelsmann,

Swiss-Sales/Distr.

com, and Consors have

also established corporateanagement

centers which offer

specialist skills and know-

how in the area ofanalytical CRM (e.g.

churn analyses, data IT

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mining).

arketing

Link to forecasting.nformation from

operational 0

10

20

30

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40

50

60

CRM processes is used in

redicting sales volumesumber of Companies

(N = 55)

and supply chain

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lanning. Unisys

implemented a Figure 2.

epartments involved in

CRM

ortnightly evaluation of

opportunities which led toa implementation

rojects

maximum sales

orecasting variance of+/- 2%.

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ertelsmann uses the

lanned campaign

successes for 3.2 CRM

Organization and

rocesses

requirements planning inthe supply chain to their

book stores, e.g. a

campaign success of 15%leads to an equivalent

increase in the demand ofbooks.

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The benchmarking

showed that CRM

involves significant

changes regarding the

organization ofmarketing, Centralization

of CRM responsibilityroved important sales

and service activities.

ost companies

reorganized for achieving

the necessary

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standardization of CRM

ac-internal processes and

implemented them on a

cross-tivities. Unisys

(Switzerland) had alreadyadapted a global

unctional and cross-organizational basis (see

igure 2).

standardized sales

rocess which ensured auniform un-Remarkably,

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only 30% involved the

customers them-

derstanding of the terms

lead, opportunity,

quotation, selves in thedesign process. More

information in redesignetc. Standardized

interfaces between

complaints and ser-efforts

were provided by the six

successful practice com-

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vice management enabled

the integration of two

ormerly panies:

separate processes.eidelbergs service

engineers, for

Customer life cycle

models. Customerrelationships example,

now know when aroduction manager is

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lan-are divided in

various phases and

individual services ning to

buy a new machine.

are offered to the

customer in each phase.or example, customers

in the service phase at

eidelberg may obtaininformation and spare

arts through their 1Customers were involved

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in the

online shop. Companiessuch as Consors and

Swiss-process design

com link analytical CRM

rocesses to the

operational 2 Internal

customer processes were

activities. The life cycle isused to predict customer

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re-engineered

behavior, e.g. when acustomer can be

addressed via 3 Processeswere implemented on a

a campaign, when he or

she is likely to cancel a

rela-cross-functional andcross-organizational basis

tionship etc. Customersare assigned based on

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ast 30

20

10

0

10

20

30

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40

urchases, volumes, andsocio-demographic or

eo-Number ofCompanies

(N = 55)

trongly

isagree

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gree

trongly

raphical data.

disagree

agree

Figure 2. Process design

at the benchmarked

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Customer segmentation.

esponsibility for

customers companies

has been redesigned onthe basis of customer

and/or market segments.or example, a board

member at Consors has

responsibility for largevolume customers (heavy

traders) across thecompanys entire

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3.3 System Architecture

Analytical CRM. Formanagement and

evaluation purposes, theoperational customer data

are integrated CRMsystems usually replace

isolated solutions which

with a centralized datawarehouse which

consolidated supportspecific activities in

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marketing, sales, and

service.

data based on certain

criteria (e.g. sales,rofits) in a A centralized

database provides auniform view of cus-

uniform data model.

Consors, for example, hasstored tomers and support

or standardizedrocesses. Although all 30

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million transactions

erformed to date. A cus-

58% of all companies sai

they had a CRM system in

tomers transactions canbe analyzed over time,

e.g.

operation, less than half

of them used it on a cross-all customers who opened

a securities account inorganizational basis. As

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igure 3 shows, almost all

com-1997/98 and since

then have only carried out

1-5

anies pursue a best-of-

breed approach, i.e.specialized transactions.

The data mining tool

analyzes defined systemsrom Siebel, Vantive,

Update or Clarify comple-dimensions, e.g. compares

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the characteristics of one

ment existing ERP

systems. Four companies,

including building loan

customer with another,leading to the

ertelsmann, use SAPCRM linked with other

SAP com-determination o

a customer segment with

an affin-ponents.

lthough similar in their

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basic functionalities, ity

or building loans and

thus providing the basis

the system decisions

reflect each vendorsstrengths: sales for a

targeted marketingcampaign.

orce support at Siebel,service and call center

support at Vantive andClarify, and integrated

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rocesses at SAP.

Collaborative CRM.pproximately 60% of the

com-Most companiescustomized the selected

systems to suit paniessurveyed use internet

ortals in their customer

their individualrequirements. At

eidelberg the MI-M

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communication (see

igure 4) for selected or

suitable department

defined three reference

models for a globalactivities. Heidelberg, for

example, offers the sale ofstandard functionality

together with the local

SSUs and some consumer

oods (e.g. printing

cartridges) and

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customized roughly 20%

at local level. This ratio

was also service

management. At Alta

esources a green lightobserved at the other

successful practiceorganizations in the

Vantive system alerts the

call center represen-

(20-30%).

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tative that personal data

has been entered in a cus-

esults from

Questionnaires

uccessful Practices

tomers portal and that

the customer requires

urther information on aspecific product. Consors

also has aSiebel

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Unisys

distinctive collaborativeCRM system which

handles Update.com

customer transactions

both through the call

centerSAP

ertelsmann

and via the portal. The

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latter also features

comple-Clarify

Consors, Heidelberg

mentary services such as

insurance.

Vantive

lta Resources,

wisscom

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Own devt.

CRM is optimallyintegrated into the

existingOther

ystem landscape

We use internet portals

or customer interaction0

2

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4

6

8

10

12

14

umber of Companies

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(N=55)

The view of customerdata is uniform

Figure 3: CRM systems

used by benchmarking

We use mobile devices in

our personal contactsarticipants

with customers

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We use a cross-

organizational CRM

ystem

We have a customerrofiling concept for

acquiring,Manycompanies had a

centralized system

architecture.

recording and utilizingcustomer data

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Globally operating

companies, such as

ertelsmann, Hei-

-30

-20

-10

0

10

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20

30

40

50

umber of Companies

(N=55)

delberg, and Unisys, had

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local systems with

eriodicallyStrongly

isagree

greee

trongly

disagree

agree

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replicating customer

databases. These

architectures also

rovided integration

across different CRMdimensions: Figure 4.

Questionnaire results onystem

architecture

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Operational CRM.

Operational integration

oints exist to human

resource systems for user

data and ERP systems fortransferring order

information 3.4Operational Efficiency

which was captured e.g.rom a call center

representative.ntegration to supply

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chain systems is illus-

mplementing a CRM

system is not mainly

driven by trated by

ertelsmann: Campaigndata from SAP

the possible savings. 55%

of the benchmarked

companies CRM is sent toSAP SD for the

calculation of salesagreed that strategic or

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qualitative goals have

been the plan data, and

then routed to SAP MRP

or require-main drivers

or introducing CRM.mong the effects are

ments and procurementlanning. Anomalies,

i.e.

improved process and

data transparency, bettercustomer products where

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inventories remain

significantly retention,

higher consultancy

quality, more targeted

customer communicationor proactive customer

management.

above or below demand,

are shown in the SAPPO

Only 38% have proved

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the operational efficiency

com-Alert Monitor.

ared to 50% which

reported difficulty inmeasuring set. Heidelberg

and Unisys used a similarstrategy to con-CRM

effects. Figure 5

summarizes the mostrequently vince field

sales force who considertheir knowledge of used

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benefit arguments.

customers and markets tobe personal advantages

and Among the successfulractices, Swisscom

erformed therefore findit difficult to share it

throughout the com-an

operational efficiencyanalysis composed of

direct ef-pany.eidelbergs goal was to

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shape an understanding

ects (savings relating to

operational processes in

direct that CRM is about

a transparent customer,not about marketing and

data maintenance),indirect effects (fewer

transparent salesmen. At

Unisys all staff were

trained misses, greater

roductivity in sales),

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increased sales vol-and

obliged to use the system.

espite organizational

ume and additional

business which led to aOI of 2.9

rules (no budget without

system entry) motivated

users, years for the CRMroject. At Consors,

qualitative goals someusers had to be

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motivated with pressure

and some such as

improved customer

service were the clear

riority, non-users wereobserved after two years.

Unisys and Hei-but havebeen supported by a

thorough control of time-

delberg estimate a

minimum of two years for

illing the frame and

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budget, as well as by

rocess savings of 30%

database with the

customer data. Use of thesystems by and increased

revenues of 40%. Bothigures were de-

management was

considered as amotivating boundary

tailed, e.g. processsavings with reduced

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ostage costs due

condition.

to more focused mailings

(from 500,000 to 1,000letters per mass mailing).

Others

eidelberg calculated aositive net present value

T

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which also included the

corporate standardization

ofMarketing

CRM systems (cost-effective rollout, release

change, etc.).ertelsmann expects

improved customer care

or Countries (decentral)

their 20 million clubcustomers and is trying to

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increaseManagement

the success rate ofcampaigns through more

targeted cus-0

5

10

15

20

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25

30

35

tomer communication.

urely qualitativearguments wereNumber

of Companies

(N=55)

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mentioned at Unisys, e.g.

the strategic necessity of

systematic opportunity

management with key

accounts.

Figure 6. Organizationalunits responsible

or CRM

eduction in throughputtime

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igher efficiency in sales

operations

xploitation of customer

otential

ncrease in customer

atisfaction

4. Success Factors andOutlook

eduction in the number

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of complaints

ncreased profits thanksto CRM

0

10

20

30

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40

50

4.1 Success Factors inCRM

umber of Companies

(N=55)

one

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ow

verage

igh

The benchmarking

consortium detailed andrioritized Figure 5.

otentials of CRMrojects

measurements for each

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benchmark identified in

the kick-off meeting (see

Table 1) and guided the

entire selection 3.5

Culture

of successful practices.Our analysis led to the

ormula-tion of six

success factors (see Table2). They support Involving

as many potential systemusers as possible is

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existing findings

regarding non-technical

actors in IT

vital to the adoption ofCRM within an

organization. Thisadoption (e.g. [2], [14],

[15], [22], [32], [34]).

lthough not only refersto establish the necessary

skills for operat-theimplementation of a CRM

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system often marks the ing

the system but also to

convince staff that the

system start of a

companys reorganizationin marketing, sales will be

beneficial. In allbenchmarked companies

man-and service, the

success is mainly

determined on organ-

agement played an active

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role in the decision-

making izational and

cultural turf:

rocess and theimplementation of CRM

(see Figure 6).

Evolution path. As a first

step, most companies im-Other departments

involved includedmarketing, customer

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lemented a system for

operational CRM, e.g.

call contact centers,

inance and/or

accounting, sales andtech-center or sales force

rocesses. Thiscorresponds to nical

service, and seldom

logistics and production.

existing research whichconsiders a centralized

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data-Although most CRM

rojects were within time

and base providing

consistent and up-to-date

information budget, theeffort to obtain adoption

varied. In call center as arerequisite for CRM

[15]. Analytical CRM

rests implementations

(Swisscom, Consors, Alta

esources, upon this

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oundation and covers

data mining and

ertelsmann) employee

acceptance largely

existed. At churn analysisunctionality. Only little

use was madeertelsmann, the call

center staff were involved

in the of collaborative

CRM which indicates an

evolution CRM design

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and were able to relate to

the goals of CRM

(better call center

support, no loss of jobs)rom the out-

ath from operational,

analytical to collaborative

ment in the introductionroject and the creation

of CRM and a stepwiseimplementation of CRM.

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incentives to use the

system on a daily basis.

Timeframe. Most

successful practiceorganizations

Top management

support. For establishing

customer have gonethrough a rapid system

evaluation phaseorientation on a corporate

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level (board members

with and completed the

system introduction phase

within customer

responsibility),implementing inter-

approximately 7 months.owever, filling the data-

organizational process

and system standards, an

or base with meaningful

information and achieving

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supporting the adoption o

the CRM systems within

adoption in the areas of

marketing, sales, and

service the organization(penalizing non-use,

setting an ex-wasconsidered to take a

minimum of 2 years. This

ample) top management

support was a key

require-supports the

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average timeframe of four

ears reported ment. Top

management sponsors

also ensure that by [34].

Successful companiessplit these long-term

short-term setbacks in theCRM project can be over-

CRM projects into

manageable subprojects

lasting a come. This is

especially important since

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unlike other maximum of

6 months.

T projects (e.g.

eProcurement projects),the introduc-

tion of CRM projects isnot motivated by

quantitativeOrganizational redesign.

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rior to the introduction

of efficiencies but

legitimized out of

strategic motiva-a CRM

system all successfulractices established tions

(e.g. strategic necessity,customer retention).

CRM concepts for thedefinition of processes

and or-Although thissupports existing findings

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[13], the ganizational

structures. The former

includes the iden-

benchmarking emphasizes

the importance of measur-tification of interaction

oints along customer lifecy-ing whether time and

budget goals have been

met as cles which are also

established in literature

(e.g. [11]) well as to

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balance CRM investments

with direct and and the

definition of uniform

customer data and pro-

indirect benefits.

cedures across variousinteraction channels. This

refers to the business

analysis mentioned byose [2].

enchmarks

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Criteria

Critical success factors

owever, organizationalredesign also needs to

con-Introduction

igh level of imple-

Start with operational

CRM and

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sider structural issues, i.e.

to establish a centralized

roject

mentation

enhance with analytical

and

collaborative CRM

responsibility and

authority for defining

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cross-Running CRM sys-

tem (> 6 months)

apid evaluation of CRMin-

unctional standards.Contrary to centralized

organi-formation systems

ations, highly

decentralized

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organizations leave the

edium-term projects

which

implementation lead tocountry organizations and

need to be broken down in

revent conflicts with the

existing culture.

manageable sub-projects

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Organization

Customer process

edesign of customerinterac-

System architecture.Virtually all the CRM

systems and customerthinking

tion points and

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orientation on

in the benchmarking werestandard packages, while

rocess

nalytical CRM

customer process

activities

no system offered a

comprehensive

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operational, ana-

(customer segmenta-

Centralized organizationunit

tion)

or standardization

lytical and collaborative

CRM functionality. Ad-

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Customer centred

nvolvement of topmanage-

vanced CRM companies

integrated specialized sys-

organization struc-

ment

tems for operational,

analytical, and

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collaborative tures

CRM into a best-of-breedarchitecture. Following

the System archi-Centralized customer

Select CRM systemdepending evolution path

described above, mature

CRM con-tecture

database

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on CRM focus

ntegration of CRM

Use standard CRMsoftware

cepts also required anintegration architecture

or applications

with minimal

customization

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seamlessly exchanging

information. A restrictive

atti-Integration of Internet

ntegrate systems for

analytical tude wasobserved concerning the

change requests portals

and collaborative CRM

with

collected among CRMusers. All successful

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ractice operational CRM

system

representatives agreed

that customization ofstandard Efficiency

Quantification of

anagement of projectsin

CRM effects

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time and in budget

ackages wasdisproportionate to the

achieved bene-vailability of meas-

easurement of small

quantifi-

its.

urement system

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able benefits

Change management.Convincing employees of

the Culture

CRM as corporate

nvolve users in early

stage and

hilosophy

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communicate CRM goals

benefits of CRM methodsand systems is regarded

as Availability of

CRM should not conflict

with

an important successactor reported in

literature [2].

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change management

established organizationculture

The benchmarking

resents a more specific

icture, Ensure use of

CRM on man-since

convincing call centerstaff proved to be not as

agement level

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difficult as to obtain the

buy in within the sales

orce.

Table 2. Summary ofbenchmarks, criteria and

mong the instrumentsobserved were early in-

success factors

volvement in the

introduction project andthe creation

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eferences

4.2 Outlook

[1] Anonymous.nterprise Software: An

ndustry Finds None of

the benchmarked

companies had a fully im-

Order in the Madness.ed Herring, 10, 16

(2000), 74-75.

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lemented CRM concept.

lthough the initial

modules existed in the

orm of a customer

database, data ware-

[2] Bose, R. Customerelationship

anagement: Key house

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anagement & portance

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[3] Camp, R.enchmarking: The

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Search for Industry Best

Communities give rise to

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ractices that Lead to

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online chat rooms, online

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[10] additional

ossibilities were

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romoting customer

[4] Chatham, B.; Orlov,.M.; Howard, E.;

Worthen, B., retention.

and Coutts, A. The

Customer Conversation.Cambridge:

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Following the

ertelsmann example,

several compa-Forrester

esearch, Inc., 2000.

nies are planning to

integrate CRM and supplychain systems. Standard

software vendors such as

SAP are

[5] Crego, E.T., andSchiffrin , P.D. Customer-

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centered already

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other modules. The

interfaces are provided by

data warehouse and

middle-

[6] Fayerman, M.

Customer Relationshipanagement. In ware

systems.

Serban, A., M., Luan, J.

(eds.), New Directions fornstitu-

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Mobile technologies

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ossibilities for tional

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investi-John Wiley &

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ating which services can

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[7] Fingar, P.; Kumar,., and Sharma, T.

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