1. A
Presentation on
Module V: Issues and Challenges in
Implementation of CRM
Prepared by
Nilesh Sen
Manohar Rathore
Riddhi Mehta
Jesal Kothari
Jaydeep Budheliya
Shekher Nirmal
Amod Hardikar
Submitted to
Prof. Neelam Kshatriya
2. Topics Covered
Overview of Retail
CRM Implementation Road Map & Steps of CRM Implementation
CRM Roadblocks (4P’s)
Phased development
Learning from customer defections
Emerging trends in CRM
Evaluating customer retention plan
3. “Rural or Urban, Old OR Young, Malls OR
Kirana Shops & So on— People from every Nook
& Corner needs everything which is available @
Retail Store.”
4. O
V
E
R
V
I
E
w
5th Largest in the world.
Entry of MNC—Walmart,Carrefour,Costco
Major Players—Reliance, Tata, Aditya Birla Group,
K Raheja Group.
Accounts 12% of GDP
Organized retail (8%)
Traditional to Shopping Malls
13. Definition of Customer Retention
• Customer Retention is the activity that a
selling organization undertakes in order to
reduce customer defections.
14. Facts about CR
Cost of
acquiring
a new
customer
Leaky
Bucket
Theory
CRM is
part of
CR
Customer
complaint
Customer
satisfacti
on V/S
CR
Why
Customer
switch?
Lessening
the
Defection
rate
16. Customer
Retention
plans
Customer retention is increasingly
becoming more and more important .
Most firms offer loyal customer rewards for
their loyalty.
Customer portfolio analysis, customer
retaining mareting mix, reorganisation for
Customer retention.
However many rewards program are
misunderstood and often wrongly applied.
19. Lack of
Organisation
al Control &
Coordination
Lack of
Sensitivity
Insufficient
linkage
between
marketing &
Operation
High
Customer
expectation
Realistic
target
turnover
rates
24. Implementation Road Map
A CRM Roadmap is a strategic plan that identifies how an
organization can meet and exceed its customers' needs. This
includes, but is not limited to, assessing how the sales, marketing
and service entities work together to:
1. gain insight from their customers (e.g. purchase history, desired
products/services),
2. produce valuable offerings/products (e.g. personalized product)
and
3. provide the ultimate customer experience (e.g. multiple
touchpoints, 360 degree view of the customer).
25. •So how do organizations know which CRM capabilities they have,
and which they need to realize their strategic goal?
•Now we will see primary steps (which have been used cross-
industry, including financial services, electronics and high-tech,
consumer products, manufacturing, etc.) to follow when developing
a CRM Roadmap.
CRM Road Map…How?
26. •The “sponsor” for a CRM Roadmap effort must have a vested interest
in the project and ideally has P&L responsibility for the group to be
impacted.
•As with any project an organization undertakes that involves
significant change to business processes, organizational structures, or
roles and responsibilities, the lack of key, influential sponsorship
reduces the effectiveness of the project, since there is no driving force
for implementation.`
Step 1: Gain Senior Level Sponsorship
27. It is critical to gain insights of various key stakeholders and
decision-makers within the organization.
Examples of questions that help gauge the health of the client's
CRM include:
• How would you define CRM?
• What types of customer information is captured/tracked
(acquisition/retention costs, churn, cost to serve, etc.)?
• What information would you like to know about your
customers that you currently do not?
Done by interviewing Executives, Managers, Marketers, Front
line staff…
Step 2: Gather Information
28. •Through these meetings, we gain an understanding of the
client's current CRM capabilities and significant opportunities
to improve their customer relationships, and map out findings.
•Also important to understand company's future direction
(usually between 6 months and 2 years).
•Then comparison of current state of CRM against best
practices within the companies respective industry.
Step 3: Assess Current state and Define
Future state Gaps
29. •Value opportunities represent the potential benefits delivered by
being more customer-centric.
•Identify and categorize value opportunities along the lines of people,
process and technology.
•Example of a "process" value opportunity is improving data capture
for all customer contacts across sales functions and touch points (e.g.
phone, e-mail, etc.).
•"People" value opportunities may involve additional training on
service procedures for capturing customer data.
•"Technology" value opportunities might include developing a data
warehouse.
Step 4: Identify Value Opportunities
30. •After determination of where the value opportunities lie.
Identification of which strategic CRM capabilities are needed.
•Below is a sample of link between a specific value opportunity and
its corresponding strategic CRM capabilities:
•Value Opportunity :
• Improve customer understanding
•Strategic CRM Capability:
• Possess good knowledge of the customer
• Leverage customer information from the service process
• Understand customer profitability and cost-to-serve.
Step 5: Link Value Opportunities to
strategic CRM Capabilities
31. •Once value opportunities are prioritized, specific CRM projects
need to be developed. Defining and executing CRM projects will
ensure the company masters the relevant strategic CRM capabilities.
•An effective way to define relevant projects is through
brainstorming sessions with the client. Samples of the outcome of a
session might include:
• Understand customer profitability
• Enhance call center operations by implementing sophisticated
touch-point technologies
• Establish a data warehouse
• Improve sales force training
Step 6: Define CRM Projects and Requirements
32. •Once the projects and requirements are defined, it is necessary to
develop the business case to support or refute the criticality of a
specific project. The business case seeks to justify the money
investment needed and the ROI. Each business case should include:
• Details and costs of required resources (people, technology,
training, outsourced resources, etc.),
• Projected duration of time of each project.
• Potential benefits
•For example, a typical CRM investment ranges from $10 to $25
million (or more) over a three to five year period. The amount is
wholly dependent upon how many initiatives have been identified
and how extensive those initiatives are. Examples:
• Marketing Insight initiative
Step 7: Develop Business Case
33. •Developing a roll-out strategy enables organizations to focus their
resources, money and time on the most important projects that help
them become customer driven.
•Prioritization and phasing of projects is conducted with the
executive team, a process in which they evaluate the results of the
business cases, and consider for each project's financial results,
duration, level of effort required, and technical impact.
•Critical Success Factors
Step 8: Develop a Roll-out strategy
34. •Achieving success in developing intimate and enduring
relationships with customers begins with a holistic consideration
of an organization's functions and abilities that affect its
consumer's objectives.
•Developing a CRM Roadmap therefore, is a continuous process
and not just a one-time exercise, because customers' needs and
preferences change constantly.
•The correct strategy can help your organization form deeper
relationships with its consumers, and also obtain a competitive
advantage in the marketplace.
A Final Thought...
35. Emerging Trends in CRM
1. Near-field Communication
2. Location-based Services
3. Augmented Reality
4. Social Media on Mobile & Social Media as
Customer Service Channel
5. Next Generation Mobile Apps
36. 4Ps of CRM Roadblocks
• Process
• Perception
• Privacy
• Politics
37. Process
• Companies are slow/unwilling to modify
business process to support both customer
relationship comfort zone of staff OR customer
old way of doing things, tentative
responsibilities etc.--Sleepary Scope.
38. Perception
• CRM must be viewed as job enabler not as
latest in the series of doctrine to be
implemented corporate policies.
• People are made to believe that they should be
able to accomplice the test in less time and
purpose new task as well.
39. Privacy
• Understand the quid procque are more lokely
to share their personal informationwith the
company if they