Database Reference
In-Depth Information
This is also the root of one of the major problems leading to failures of SAP CRM
implementations. Sales persons, sales consultants, and sales managers are extremely
possessive of their customers and related interaction information; such withholding
of critical customer information prevents the information stored in CRMs to be
treated fully as customer relationships and to be leveraged for maximum benefit.
2.1.2 CRM Perceives an Enterprise as a Global Enterprise
In these times of divestitures, mergers, and acquisitions, this is an important requirement. Unlike
some of the earlier enterprise-wide solutions available on mainframes, CRM packages like SAP
CRM cater to corporation-wide requirements even if an organization is involved in disparate
businesses such as discrete industries (manufacturing, engineering, and so on), process industries
(chemicals, paints, and so on), and service industries (banking, media, and so on). CRM packages
enable the management to plan, operate, and manage such conglomerates without the impedi-
ment of mismatching systems for different divisions.
Although it might seem a minor point, CRM packages also permit the important functional-
ity of enabling seamless integration of distributed or multilocation operations; we consider this
aspect in the next subsection.
2.1.3 CRM Reflects and Mimics the Integrated Nature of an Enterprise
By promoting cross functional processes and work teams, CRM, like SAP CRM, provides a pow-
erful medium for supporting, reconciling, and optimizing the conflicting goals of different func-
tions within an organization. For instance, marketing may want production of more customized
products to cater to the requirements in the market, whereas production function will want to
standardize products for reducing setup times and related costs. The tussle between these two
functions may result in releasing products that incur (say) five times the normal failure rates, the
brunt of which is borne by the service function. Thus, marketing and to a large extent manufactur-
ing obtain their short-term sales forecasts at the expense of the service function. The longer-term
adverse effect on customer retention and loyalty may not even become evident until after many
months have elapsed.
Companies interact with their customers across a variety of channels: offline channels such as
branch stores and direct mail, as well as online channel as call centers, e-mail, and the Internet.
In any CVM strategy, all of these interactions are part of an integrated communications strategy
to realize the full value-creation potential of these interactions. In fact, as customers continue to
use more channels to interact with the enterprise, the company must ensure that it has the infra-
structure to provide consistent and optimal marketing messages across each of its touch point
applications.
CRM provides an integrated view of an enterprise's customers to everyone in the organization
so that the customer can be serviced effectively throughout the customer life cycle. For instance, if
marketing runs an outbound campaign, all the information about the customers and the program
should be retained for
◾
The salespeople to follow up
◾
The customer service people to answer any queries
◾
Technical support to provide any field support
