Potential Implementation Problems in CRM

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Briefs major problems in CRM implementation and success factors with examples

Transcript of Potential Implementation Problems in CRM

Potential Implementation Problems in CRMBy:Kiran Kumari

Implementation of CRM

Components of CRM Implementation

Potential Implementation Problems

Failure to Provide proper project focus: Lack of clear definition and purpose of CRM and its components The project scope too large No sponsor or champion Fail to understand the expectations of key constituent groups in using CRM system

Failure to develop the system in the proper way: Lack the required technical knowledge and skills Failure in defining all of the risks Begin by selecting development tools rather than by defining functional requirements and system objectives. Failure in recognizing the importance of quality.o

o o o o

Failure in following a phased development

methodology(incorporate both prototype and RAD)o o

Overlook the importance of privacy and security Fail to perform a post-implementation evaluation

Three major issues

Resistance from employees Motivation and training Availability of information

Hurdles in Adoption of CRM

Implementation cost Lack in formalization of procedures: Affects the adaptability of employees towards CRM Considering CRM as a complex practice: Employees still want to use their contact books and schedule lists as it easy to maintain. Keeping the complete track of potential customer is troublesome Dose not pay at once: 75% of project fail due to high expectation of ROI

Problems with CRM Implementation

Exorbitant Costs Inadequate Focus on Objectives Insufficient Resources Complex Systems Business Needs Most Important No Customer Focus Slow Returns Data quality and availability

OTHERS

CRM system not connected directly to the operational systems: Not possible to access the operational and legacy data about clients and products through the CRM, and users must access simultaneously other systems, resulting in double entries. Connection is not complete and transparent: In this case it is possible to access the operational system not only through the CRM but also directly, circumventing the CRM and rendering its use optional.

Missing Client database: contains low quality data or with data that is missing altogether Poor performance: CRM system is connected to a large number of systems and often interacts with various technologies, many of them legacy systems. If the transition to CRM does not include the upgrading of the technology of legacy systems, performance is degraded.

Key guidelines to follow before you implement CRM

Develop corporate wide CRM engagement from key stakeholders. Envision the company's CRM strategy. Determine and prioritise CRM drivers and requirements. Develop a CRM roadmap

Critical Success Factors of CRM Implementation

Strategic Planning:Setting project goals, identifying high level business requirements, establishing project teams and high level project estimates, setting the priority of modules to be implemented incrementally Architectural Design:Integrating CRM with other enterprise software applications Phased Approach:Pilot programs and short-term milestones Data Requirements of CRM Projects Data Gathering Organization Commitment:Understanding the benefits of CMR

Pre-planning Technical evaluation of the data available: This evaluation is critical to determine the level of effort needed to integrate this data Human aspect of the implementation Pre-implementation checklist: A checklist can help ensure any potential problems are identified early in the process. Use of CRM hybrid model which is modular in design: Generates flexibility and provides more recovery benefits,easy to deploy and cost effective. Complete CRM project can cost a lot more but hybrid model CRM can cost much less and effectively solve problem of customer acquisition, retention with cost effective service.

CRM's a whole business, whole brain thing: needs understanding, commitment, energy and passion,business-wide transformation requiring change in every aspect of a corporation Getting rid of the inhibitors: wholly customer-driven, requires radical change, experimentation, courage and faith

q Command and Control Cultures (upside-down values) q Centralized Marketing Decision-Making (Marketing, advertising and selling q Lack of desire to re-engineer sales and marketing(corporatewide acceptance of the significance of customer loyalty, customer development

List of Enhancers and Enablers :

Culture Issue Speed Issue Communications Issue Prioritization Issue Motivation Issue Resource Issue Project Overload Issue People Issue CEO Issue - two elements: Gaining Support Personal Power and Leadership Skills

'the sign of a good leader is that the people believe they did it themselves.'

EXAMPLE

Patni's domain expertise, proven methodologies and extensive technical knowledge help customers build integrated solutions for sales force automation, marketing, customer contact centers and service deployment. CRM implementation methodology is designed to ensure maximum returns on CRM investments, while minimizing risk. Patni's CRM implementation practice can support projects of every size from limited CRM implementations like a customized lead management solution to full-cycle projects such as implementing a consumer response center.

Airtel - case study

Bharti started in 1995,whole system was manual Only 40% of customers issues getting resolved Were not meeting customers expectation and customer loyalty was a major problem Subscriber base grew @ 15-20% and crossed 1 million mark in 2002

Growth obstacles :

Not able to recharge amounts anywhere in India, had to carry scratch card Not able to pay bills anywhere in India Low customer retention Hutch(now Vodafone) was rated far superior System: Individual module for each of the process as order processing, billing etc.

CRM IMPLEMENTATION

Issues faced during implementation

Employees acceptance Users forced to work harder to create processes and reengineer systems around the new implementation CRM training for all related employees Integration of services across all 23 circles and upgrading the organization to provide newer services as selling of relevant schemes etc. Maintaining the service level at the same time enabling transition to CRM implementation Many independent systems need to be integrated Porting data from each system which totally went to terabytes Had to design proper workflow autoation

E - CRM intiative of Airtel :

Implementation partner is IBM Provide a host of services as: Online customer support Customer profiling Web interface Sales management for vendor and partner

Ex - CRM Agro

CRM Agro is an application that will help all those who are associated with agriculture industry to systematically build farmers database, analyze the data to generate timely market intelligence reports. Apart from agri-input companies, banks,government agencies, agriculture extension department and agricultural universities can use this software to track farmers' package of practice and help them to be more productive. simplified the whole process and now collecting agro market intelligence is as simple as sending SMS. Data can be as varied as farmer profile information, retailer information, sales information or can be customised for your needs.

Crop protection Chemical Companies:Bayer Crop Sciences and BASF India Ltd.

Use of SAP for: Sales related issues and Customers complaint management

Thank you