Challenges & Opportunities in CRM

CHALLENGES & OPPORTUNITIES IN CRM
INTRODUCTION
Over the last decade Customer Relationship Management(CRM) has attracted
considerable attention from both academics and practitioners and billions of dollars have
been spent for the deployment of CRM systems by businesses hoping to obtain a better
understanding of the customers behaviour that will assist them to build long term
relationships with customers and boost their profitability and yet has not been determined
a commonly accepted definition that will reflect CRMs main attributes. Below, based on
a literature study we will attempt to identify the most important attributes of a CRM
system and the interrelation between them. Exploring CRM main features will help us to
expand our understanding of this important research field and to create a
cohesive body of knowledge.
Additionally, we will highlight the main benefits for a company from the
implementation of a CRM system, but also the potential problems during the
implementation process and the operational phase. The success rate of CRM system
implementation is alarmingly low, and combined with high implementation costs make
the acquisition of a CRM system a highly risky business. Our intention is to lift this
shadow from CRM systems that makes reluctant many companies to proceed to the
implementation of such systems, although their undeniable benefits at theoretical level,
by shedding light on the most common causes of failure during and implementation and
operational stage. On top of everything else based on the literature study we identify the
most important success factors during the preparation, implementation and operational
stage of a CRM system. Finally, we will provide a section dedicated to the future trends
and opportunities in CRM research field and
practice.
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CRM stands for Customer Relationship Management. Mainly, the CRM Software
allows businesses to manage business relationships, the data and the information
associated with them. Successful CRM software solution are built around the people and
relationships as in any business, you need to establish strong relationships with your
customers. You as a business owner connect with the people who need your products or
services.
CRM is a strategy and technology that is used to build stronger relationships
between organizations and their clients. An organization will store information that is
related to their clients, and employees will analyze it to use it in forecasting and making
reports. Some of the strategies of CRM software are planning for targeted marketing
campaigns towards specific clients. The strategies used will be relying on the information
that is coming from the CRM system. CRM software solution is commonly used by all
kind of corporations that focusing on maintaining a strong relationship with their
customers.
There are many reasons why CRM software has become the most important
software in the last 10 years. The competition has become highly competitive in the
global market, and it has become easier for clients to switch companies if they are not
happy with the service they receive or want the product with the low price. One of the
primary goals of CRM solution is to retain clients and protect them from competitors
temptations. When CRM is used effectively, an organization will be able to build a
relationship with their clients that can last a lifetime. It is so important to realize that
CRM system solution is more than just software. This CRM introduction aims to
explaining what the CRM is in a nutshell and making it easier to realize the tremendous
benefits of purchasing a Customer Relationship Management software that will help
drive more customers thus more profit towards you and makes your life easier.
Today growing businesses manage customer connections and information in a
variety of ways. Some use old fashioned note cards and Rolodex. Others store
information on their mobile phone while on the go or while having no means of accessing
a Personal Computer or a laptop. Others use Excel spreadsheets or Google documents
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and that is the most common case. While that may help in the short term when has a
small team and dont plan on scaling up business, if wanted to scale up for fast growth, it
may be time to consider a CRM system to help collect precious business data in one
place, make it accessible via the cloud, and free up the time to focus on delighting
customers rather than letting valuable insights and information fall through the cracks. A
Cloud CRM System would be perfect for satisfying all of business needs while being able
to access the important data needed from anywhere with an internet connection available.
There are many things the ideal Cloud Based CRM Software should have; it should
enable the organization to find the factors that interest their clients the most. Any
corporation must realize that it is impossible for them to succeed if they do not cater to
their clients desires and needs. Online CRM software solution is a powerful system that
will enable them to do this.
With CRM strategy, the customer is always right, and they are the core factor in
the success of the company. It is important for any corporation to use reports that are
dependent on their clients data. This will greatly tip the odds of success in their favor.
The Customer support cycle is an internal part of CRM system, when a client sent
complaints; they must be handled efficiently and in a timely manner. The corporation
should also seek to make sure those mistakes are not repeated. When sales are complete,
they should be tracked so that the corporation can analyze them from various aspects and
produce reports. The analytical aspect of CRM system deals with analyzing clients
information and using if for business intelligence purposes.
Once thought of as a type of software, CRM has evolved into a customer-centric
philosophy that must infiltrate an entire organization. There are three important key
elements to a successful CRM initiative: people, process, and technology. The people
throughout a company, from the CEO to each and every customer service representative
need to buy in to and support CRM. A company's business processes must be
reengineered to strengthen its CRM initiative, often from the view of How can this
process better serve the customer? Firms must select the right technology to drive these
improved processes, provide the best data to the employees, and be easy enough to
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operate that users won't hesitate to use. If one of these three foundations is not solid and
sound, the entire CRM structure will crumble.
A brief introduction to the Customer Relationship Management is that its a
strategy used to learn more about customers' needs and behaviors in order to develop
stronger business relationships with them. After all, good customer relationships are the
heart of any business success. There are many technological components to CRM, but
thinking about CRM in primarily technological terms is a mistake. The more useful way
to think about CRM is as a process that will help bring together lots of pieces of
information about customers, sales, marketing effectiveness, responsiveness and market
trends together to complete your business puzzle in order to bring the harmony into your
work force.
If customer relationships are the heart of business success, then the CRM is the
valve the pumps a company's life blood. As such, Customer Relationship Management is
best suited to help businesses use people, processes, and technology to gain insight into
the behavior and value of customers. This insight allows for improved customer service,
increased call center efficiency, added cross-sell and upsell opportunities, improved close
rates, streamlined sales and marketing processes, improved customer profiling and
targeting, reduced costs, and increased share of customer and overall profitability.
Every business organization depends on customers for sustenance, the question is
how to create and maintain customer satisfaction. Every business communicates with
their clients in many different ways, especially in our technology rich and information
based society. How we treat all of this information is where CRM plays a key role. As in
many publications of late on one to one marketing, cyclical selling and counselor selling
the mainstay is the relationship and how we recognize it.
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IMPORTANCE & OBJECTIVES

Looking at some broader perspectives given as below we can easily determine why a
CRM System is always important for an organization.
1. A CRM system consists of a historical view and analysis of all the acquired or to
be acquired customers. This helps in reduced searching and correlating customers
and to foresee customer needs effectively and increase business.
2. CRM contains each and every bit of details of a customer, hence it is very easy for
track a customer accordingly and can be used to determine which customer can be
profitable and which not.
3. In CRM system, customers are grouped according to different aspects according
to the type of business they do or according to physical location and are allocated
to different customer managers often called as account managers. This helps in
focusing and concentrating on each and every customer separately.
4. A CRM system is not only used to deal with the existing customers but is also
useful in acquiring new customers. The process first starts with identifying a
customer and maintaining all the corresponding details into the CRM system
which is also called an Opportunity of Business. The Sales and Field
representatives then try getting business out of these customers by sophistically
following up with them and converting them into a winning deal. All this is very
easily and efficiently done by an integrated CRM system.
5. The strongest aspect of Customer Relationship Management is that it is very costeffective. The advantage of decently implemented CRM system is that there is
very less need of paper and manual work which requires lesser staff to manage
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and lesser resources to deal with. The technologies used in implementing a CRM
system are also very cheap and smooth as compared to the traditional way of
business.
6. All the details in CRM system is kept centralized which is available anytime on
fingertips. This reduces the process time and increases productivity.
7. Efficiently dealing with all the customers and providing them what they actually
need increases the customer satisfaction. This increases the chance of getting
more business which ultimately enhances turnover and profit.
8. If the customer is satisfied they will always be loyal and will remain in business
forever resulting in increasing customer base and ultimately enhancing net growth
of business.
In todays commercial world, practice of dealing with existing customers and thriving
business by getting more customers into loop is predominant and is mere a dilemma.
Installing a CRM system can definitely improve the situation and help in challenging the
new ways of marketing and business in an efficient manner. Hence in the era of business
every organization should be recommended to have a full-fledged CRM system to cope
up with all the business needs.
Objectives of the Study
To understand and identify the Customer Relationship Management Practices
followed by the many firms.

To study the various CRM techniques adopted by organized retail firms and
stores.
To study the benefits of CRM to the retailers and customers.
To provide the effectiveness of loyalty program adopted by firms to customers.
To understand about the various challenges & opportunities in CRM in various
firms.
Goals and Objectives of CRM
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1. Customer Satisfaction:
Every company wants their customers to be satisfied. Satisfied customers are more
likely to return to make further purchases, as well as promote a companys good name
and make recommendations to others. Customers more than ever want to feel
engaged with the companies that they are dealing with and so if they feel like they are
being listened to, consulted with and respected, they will have a better user
experience which will make them more likely to return.
2. Run an Efficient Business :
Using CRM can help businesses to develop better working practices, especially with
departments such as customer service. Implementing CRM services through your
business can help you react to customers queries and concerns quicker and more
efficiently, which will boost your productivity as well as adding to customer
satisfaction.
3. Produce Better Marketing Campaigns:
If you can work out who to target and what communications they respond to best,
then you will be able to produce more efficient marketing campaigns. CRM data can
show you this and enable you to profile target groups which may be underperforming
in order to try and boost this area of your business, with the goal of boosting progfits.
4. Gaining New Customers:
CRM will help you find out a lot of useful information about your customer base, and
will allow you to work out where there are gaps that need to be filled. Exploring the
reasons why customers fail to make purchases or why they may not rate your
companys services can help you adapt new policies and techniques which may help
you attract new customers. The same principals apply to working out why previous
customers have stopped using your services or why they might have turned to your
competitors.
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5. Boost Sales:
Finally, this last objective is what drives all of the other objectives above. With so
much competition in the market today, it is important more than ever that businesses
stay relevant and keep offering new things to their clients. By improving the way your
business operates, how the customer interacts with your business and producing
effective marketing strategies, you can hope to improve the way your business is
viewed and encourage new customers, as well as ensuring that existing ones keep
coming back. This will boost your profits and help keep your company ahead of its
competitors. Once youve established what it is you hope to achieve from CRM
management, you can begin to look for the right service provider.
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RESEARCH METHODOLOGY
Research is an art of scientific investigation. In other words research is a scientific
and systematic search for pertinent information on a specific topic. The logic behind
taking research methodology into consideration is that one can have knowledge regarding
the method and procedure adopted for achievements of objective of the project. With the
adoption of this others can also evaluate the results too.
So keeping in view the nature of requirement of the study to collect all the
relevant information regarding the comparison of public sector banks and the private
sector banks direct personal interview method with the help of structured questionnaire
was adopted for collection of primary data.
Secondary data has been collected through the various magazines and newspaper
and by surfing on internet and also by visiting the websites of Indian Banking
Association.
DATA COLLECTION
Data was collected by using two main methods i.e. primary data and secondary data.
PRIMARY DATA primary data is the data which is used or collected for the first time
and it is not used by anyone in the past. There are number of sources of primary data
from which the information can be collected. We took the following resources for our
research.
a) QUESTIONNAIRE This method of data collection is quite popular, particularly in
case of big enquiries. Here in our research we set 10 simple questions and requested the
respondents to answer these questions with correct information.
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SECONDARY DATA Secondary data is the data which is available in readymade form
and which has already been used by other people for various purposes. The sources of
secondary data are newspaper, internet, websites of IBA, journals and other published
documents.
This project is based on secondary Data.
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OVERVIEW
The biggest management challenge in the new millennium of liberalization and
globalization for a business is to serve and maintain good relationship with the king -the
customer. In the past producers took their customers for granted, because at that time the
customers were not demanding nor had alternative source of supply or suppliers. But
today there is a radical transformation. The changing business environment is
characterized by economic liberalization, increasing competition, high consumer choice,
demanding customer, more emphasis on quality and value of purchase etc.
All these changes have made todays producer shift from traditional marketing to
modern marketing. Modern marketing calls for more than developing a product, pricing
it, promoting it and making it accessible to target customer. It demands building trust, a
binding force and value added relationship with the customers.
The process of developing a cooperative and collaborative relationship between
the buyer and seller is called customer relationship management shortly called CRM. The
idea of CRM is to know the individual customer intimately, so that the company has a
customized product ready for even before asks for it.
Aims of CRM
The CRM is a new technique in marketing where the marketer tries to develop
long term relationship with the customers to develop them as life time customers. CRM
aims to make the customer climb up the ladder of loyalty.
The company first tries to determine who are likely prospects i.e. the people who
have a strong potential interest in the product and ability to pay for it. The company
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hopes to convert many of its qualified prospect into first time customers and then to
convert those first time customers into repeat customers. Then the company tries to
convert these repeat customers into clients. They are those people who buy only from the
company in the relevant product categories. The next challenge for the company is to
convert these client into advocates. Advocates are those clients who praise the company
and encourage others to buy from it.
The ultimate challenge is to convert these advocates into partners where the
customers and the clients work actively together to discover ways of getting mutual
benefit. Thus in CRM the key performance figure is not just current market share but
share of life time value by converting customers into partners.
In crm the company tries to identify that small percentage (20%) of key account holders
whos contribution to the company revenues is high (80%). So from this point of view,
crm is also known as key account management.
Why customer relationship management?
A satisfied customer in 10 years will bring 100 more customers to the company.
It costs 7 time more to attract a new customer than to serve an old one.
20% of the companys loyal customers account for 80% of its revenues.
The chances of selling to an existing customer, the chances of selling to a new
customer.
Eight ways to keep customers for life

1. Every part of the companys marketing effort should be geared towards building
lifetime relationships.
2. People want to do business with friendly people. To have effective relations a friendly
attitude must permeate in the organization.
3. Information technology developments should be positively used to serve the
customers.
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4. The company should always be flexible to bend its rules and procedures in the clients
favor.
5. The company should communicate with its customers even when it is not trying to sell
something.
6. The company can communicate and develop stronger customer bonding by providing
financial and social benefits.
7. The company should try to know all its customers including their lifestyles, hobbies,
likes and dislikes etc.
8. The company should make it a point to deliver more than what is promised.
How to introduce CRM in the company?
There are four key steps for putting one to one marketing program to work
Step 1 : Identify your customers
To launch a one to one initiative the company must be able to locate
and contact a fair number of customers or at least a substantial portion of its
valuable customers. It is crucial to know the customer details as much as
possible, not just their names or address, but their habits, preferences and so
forth.
Step 2 : Differentiating your customers

Customers are different in two principal ways, they represent different levels of
value and have different needs. Once the company identifies its customers differentiating
them will help the company to focus its efforts to gain the most advantage with the most
valuable customers.
Step 3 : Interacting with the customer
Interaction is also a crucial component of a successful CRM initiative. It is
important to remember that interaction just not occur through marketing and sales
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channels, customer interact in many different ways with many different areas of the
organization so to foster relationship all the areas of the organization must be accessible
to the customer.
Step 4 : Customize your enterprises behavior
Ultimately to lock a customer into a relationship a company must adapt some
aspect of its behavior to meet customers individually expressed needs this might mean
mass customizing a manufactured product or it might involve tailoring some aspect of the
service surrounding the product.
Types
CRM in customer contact center
CRM systems are customer relationship management platforms. The goal of the system is
to track, record, store in databases, and then determine the information in a way that
increases customer relations. The CRM codifies the interactions between you and your
customers so that you can maximize sales and profit using analytics and KPIs to give the
users as much information on where to focus their marketing and customer service to
maximize revenue and decrease idle and unproductive contact with your customers. The
contact channels use such operational methods as contact centers. The CRM software is
installed in the contact centers, and help direct customers to the right agent or selfempowered knowledge. CRM software can also be used to identify and reward loyal
customers over a period of time.
CRM in Business-to-Business (B2B) market
The modern environment requires one business to interact with another via the web.
According to a Sweeney Group definition, CRM is all the tools, technologies and
procedures to manage, improve, or facilitate sales, support and related interactions with
customers, prospects, and business partners throughout the enterprise. It assumes that
CRM is involved in every B2B transaction. Despite the general notion that CRM systems
were created for the customer-centric businesses, they can also be applied to B2B
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environments to streamline and improve customer management conditions. B2C and B2B
CRM systems are not created equally and different CRM software applies to B2B and
Business-to-Customer (B2C) conditions. B2B relationships usually have longer maturity
times than B2C relationships. For the best level of CRM operation in a B2B environment,
the software must be personalized and delivered at individual levels.
Differences between CRM for Business to Business (B2B) and Business to Customers
(B2C)
B2B and B2C marketing operates differently, and that is why they cannot use the same
software. All the differences are focused on the approach of these two types of
businesses:
B2B companies have smaller contact databases than B2C
The amount of sales in B2B is relatively small

In B2B there are less figure propositions, but in some cases they cost a lot more
than B2C items

Relationships in B2B environment are built over a longer time
B2B CRM must be easily integrated with products from other companies. Such
integration enables the creation of forecasts about customer behavior based on
their buying history, bills, business success, etc.

An application for a B2B company must have a function to connect all the
contacts, processes and deals among the customers segment and then prepare a
paper.
Automation of sales process is an important requirement for B2B products. It
should effectively manage the deal and progress it through all the phases towards
signing
A crucial point is personalization. It helps the B2B company to save strong and
long-lasting relationships with the customer. To help the company communicate
with their clients more effectively, there should be integration with the company's
email system.
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Small business
For small businesses a CRM system may simply consist of a contact manager system
which integrates emails, documents, jobs, faxes, and scheduling for individual
accounts. CRM systems available for specific markets (legal, finance) frequently focus
on event management and relationship tracking as opposed to financial return on
investment (ROI).
Social media
CRM often makes use of social media to build up customer relationships. Some CRM
systems integrate social media sites like Twitter, LinkedIn and Facebook to track and
communicate with customers sharing their opinions and experiences with a company,
products and services.[14] Enterprise Feedback Management software platforms such
asConfirmit, Medallia, and Satmetrix combine internal survey data with trends identified
through social media to allow businesses to make more accurate decisions on which
products to supply.
Non-profit and membership-based
Systems for non-profit and also membership-based organizations help track constituents,
fund-raising, Sponsors demographics, membership levels, membership directories,
volunteering and communication with individuals.
Customer-centric relationship management (CCRM)
CCRM is a style of customer relationship management that focuses on customer
preferences instead of customer leverage. This is a nascent sub-discipline of traditional
customer relationship management; to take advantage of changes in communications
technology.
Customer centric organizations help customers make better decisions and it also helps
drive profitability. CCRM adds value by engaging customers in individual, interactive
relationships.
Customer-centricity differs from client-centricity in that the latter refers almost
exclusively to business-to-business models rather than customer-facing firms.
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Features of CCRM
Customer-centric relationship management is used in marketing, customer service and
sales, including:
tailored marketing
one-to-one customer service
retaining customers
building brand loyalty
providing information customers actually want
Subscription billing
Rewards
Accenture and Emerald Insightare now beginning to focus on CCRM as a discipline, with
studies appearing on Mendeley.
Advantages of CRM:
Provide better customer services.

Increase customer Revenues.
Discover new customers.
Cros sell/ Up sell products more effectively.
Help sells staff close deals faster.
Make call center more efficient.
Simply marketing & sells processes.
Disadvantages of CRM:
Record loss.
Training.
Require additional work inputting data.
Require continous maintenance, information updating, and system upgrading
costly.
Difficult to integrate with other management information system.
Why CRMs Fail - Make Sure the Right People are Behind Your CRM
Implementation
There are many reasons why a CRM project may be considered as a failure. These
reasons differ from each person involved in the project: from the key stakeholders to the
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end user - each person has a very different perception of what a CRM system is, what it is
there for and what the end result should be.
An end user in a sales team who is trying to make his/her sales quota is not likely
going to automatically understand the complex relationship between all of the elements
of the CRM or the underlying business reasons for implementing the system in the first
place. Indeed, there may even be resistance from end users who even see a CRM as a
kind of CCTV camera, allowing managers to see what they get up to during the day. In
truth, there are numerous reasons why CRMs fail but these can be mitigated with a
certain amount of understanding of these reasons combined with a little sensible forward
planning.
Problems can start right at the very beginning perhaps by senior management who
want to implement a CRM but who do not fully understand what a CRM application
can/cannot do or how much work is involved in implementing a CRM in for example a
large organisation, which has its own business units, business managers, each with their
own opinions, biases and sets of priorities.
Poor understanding and even mistrust of Software as a Service (SaaS) CRMs can
lead to unnecessary implementations of on-site CRMs which can often be fraught with
unseen technical challenges and costs. When a CRM loses momentum, also expect to
observe loss of user enthusiasm and buy in. For example, if the sales force is not
completely sold on the how the CRM system will benefit them, they will be reluctant to
spend time using it.
Other critical factor for user buy in is a quick time to value. This is where SaaS,
also known as on demand CRMs really come into their own - you can, with a little no
how or minor level of consultancy, set up a CRM for an SMB in a matter of days.
Other common reasons might be:
Key sponsors are not involved in the project
Unclear CRM requirements and priorities
Lack of focus - no CRM Roadmap
Metrics for success were not defined before or after the project
Unclear strategy to integrate with existing systems

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IT control the CRM project

Many organisational leaders assume CRM implementation is all about IT and complex
technical challenges and are eager to pass a CRM implementation project to the company
IT team or worse, the sole IT person within the company and charge them with the
daunting task of implementing a CRM system which will likely involve numerous people
across Sales, Marketing and Customer Support teams, all of different backgrounds and
with different interests and immediate needs.
In fact, CRM implementation is more about people and processes, analysing and
improving business rules, user psychology and even analyzing and improving social
interaction; that is, interactions between internal teams and perhaps most importantly
between internal teams and their customers. Of course, a CRM project may well present
considerable technical challenges, especially if being done on a large scale in a company
or organisation which is well established and which has numerous existing systems which
need to be integrated (such as ERP systems, Accounting Packages etc.).
However, with a sensible and well thought out rollout plan, these high risk/difficult areas
can be kept to minimum and/or phased in later once you have the key, low risk elements
of the CRM in place for the people who most need them first:
Sales
Marketing
Support
Who should own a CRM project, if not IT?
There is a strong argument from numerous CRM implementers that the end users of a
CRM should own the project. Why? Because a CRM is a user based application and deals
with improving the way end users understand and interact with their customers. They
really understand the key problems with the current methods/business process as they are
the ones who perform the roles/processes, day in day out. IT, do not.
The best CRM implementations are when the users are firmly buckled in the driving seat,
with IT present in a support capacity.
Should I use a CRM consultant?
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Many companies implement a CRM entirely by themselves or allocate someone within
the company to take on the role. One thing is sure though, a CRM Consultant can help
you speed up your implementation and avoid common pit falls. A few qualities should be
considered as desirable though, if not required, in whoever you choose to implement your
CRM:
Your CRM implementer needs to be a good communicator and be good with people, able
to listen and record user needs, pain points and areas for improvement. With this in mind,
experience with structured requirements gathering techniques and Process/Systems
Analysis and Design would also be beneficial.
A CRM Implementation Project should be treated like any other project. The key person
in charge should be able to demonstrate basic Project Management skills such as creating
project plans and status reports, risk management etc. in order to structure the project
effectively and keep it on track.
Obviously training is a key part of a CRM implementation project so your CRM
Consultant or CRM implementer should be charismatic and able to conduct training
sessions as well as prepare training materials as/if needed. Remember, it may be possible
that some of your end users are not even that confident with computers, so they need to
be educated in this area as well as CRM concepts and usage.
There will always be a period of resistance or drops in enthusiasm, which is when its up
to the CRM implementer and, importantly, team managers (who need to lead by example)
to encourage practice and participation by team members.
What about barriers in a cross cultural / multi language environment?
Most of us work in a multi cultural environment. Some of us even work in a multi
language working environment overseas, as expatriate employees or foreign business
owners. The chances are high that you have customers who are from multiple different
countries. With this in mind, sensitivity to this fact and forethought and planning on how
best to implement a CRM, to people who may not even be native speakers of your
language, is especially important.
The key person in charge of the project should ideally be experienced in this sort of
situation and sensitive to cross cultural/cross language communication and cultural
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differences. For example, direct/indirect approach, tone, body language, business culture,
meetings, negotiations or conflict resolution.
Problems and challenges in the effective implementation of CRM systems
Many organizations are considering introducing CRM systems or are in the process of
doing so. The main concern of these organizations is their ability to make the necessary
changes at the level of organizational strategy that the introduction of the CRM system
requires. Organizations are also concerned about damaging their existing customer care
system. Their fears are based on past failures in their own or in other organizations.
With most other types of information systems we are concerned mainly with operations
relevant to the organizations internal resources. By contrast, introducing a CRM system
affects the companys customers, who are external to the organization and beyond its
control. The companys reputation and future are greatly dependent on the success of the
CRM implementation. Failure in the introduction of the CRM system, especially in
service and sales phone centers, can result in real disaster for the organization. The
present article focuses on issues that must be addressed in order to ensure that a new
CRM system is introduced in the organization in the best possible way, generating
maximum return on investment, without affecting current activity, and with minimal risk.
The implementation of CRM systems varies from one organization to the next; each one
must be treated as a separate application, having different needs and requiring different
solutions.
Identify seven types of CRM applications: (1) CRM systems for call centers; (2) CRM
systems for service representatives in the field; (3) CRM systems for telemarketing; (4)
CRM systems for sales managers in the field (sales managers who are in direct contact
with the client); (5) CRM systems for marketing; (6) analytic CRM systems for the
creation of BI insights and reports based on a database of client contacts; and (7) XRM
systems for servicing partners and clients over the Internet.
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Challenges of CRM Systems in Commercial Banks
There are challenges such as is
Resources especially when funds are less.
Budgets strained.
Lack of qualified technical staff.
Professional training.
Need continuous maintenance, information updating, and system upgrading,

costly.
Difficult to integrate with other management information systems.
What is Social CRM?

A number of companies have successfully adopted the new paradigm, and proved
that social CRM can have a very significant beneficial effect on each of the functional
areas of a business. Social CRM applications encourage participation among various
stakeholders in order to support sales, marketing, as well as customer and business
processes. It engages customers in different scenarios, such as, ideas for innovation,
development of new products and services, word-of-mouth marketing, price comparisons
and product reviews.
Some of the largest brands have increased their digital spend and have started
experimenting with social media to engage with the customer and provide an improved
customer experience. Examples of companies using social media include Bank of
America, which has been successfully running customer services via Twitter and Dell in
the Hi Tech industry, which has used social media effectively to drive sales and increase
revenue.
Paul Greenberg, the godfather of CRM describes the phenomena of Social CRM
as:
A philosophy and a business strategy, supported by a technology platform, business
rules, workflow, process, and social characteristics, designed to engage the customer in a
collaborative conversation in order to provide mutually beneficial value in a trusted and
Page 22

transparent business environment. Social CRM is the companys response to customers
ownership of the conversation.
Challenges Of Social CRM
On the way to achieving success in Social CRM objectives, there are some
challenges that organizations need to be ready to overcome. These can include noise, for
example, large volumes of social conversations which may not all be relevant. Sifting
through the noise in order to arrive at actionable insights requires an iterative approach
that leverages tools such as listening platforms to understand where the conversations are
taking place and the sentiment associated with the conversations.
Special attention needs to be given to enabling quick responsiveness to issues.
Due to the wide reach and ease of collaboration in the online sphere, it is not uncommon
to receive backlash that quickly spirals, for not doing things correctly. Hence, it becomes
important to ensure that incorrect information is checked quickly to prevent unnecessary
damage to a brand or reputation.
While it is important to engage with customers, it is also important that firms be
upfront and transparent in their dealings with customers. Any attempt to influence
positive opinion through the use of monetary incentives can quickly be discovered for
what it really is a veiled attempt at buying good marketing and press release. This could
unduly raise questions on the validity of social media data and be seen as disruptive
marketing gimmicks.
Sales Effectiveness Challenges
Share Best Practices: The value of sharing of best practices sales strategies, qualification
techniques, objection handling, presentations, letters, proposals, etc., was understood by
most firms, but few reported doing this effectively and consistently. In the vast majority
of the cases sharing ideas was done very informally if it was done at all, leaving a major
corporate asset under-utilized.
Support Channel Partners: Many companies reported that they intended to increase
their utilization of channel partners to drive business in the future, and were finding that
the policies, procedures, and tools they provided their own sales representatives did not
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always work effectively when used by the channel. They reported the need to greatly
simplify their operations if they were going to gain mind share from the channel reps to
aggressively sell their products or services.
Ramp Up New Reps: As product lines are becoming broader, and individual offerings
are often more complex, getting new reps up to speed quickly is becoming a greater
challenge. Outlines the time frames required to get a new sales person up to a base level
of performance. It is worth noting that many firms stated that to get to full productivity
often took one to two years.
Generate Leads: Many sales people, to meet their revenue goals, have to generate leads
on their own, independent of corporate marketing programs. Targeting potential prospects
and then developing and implementing local direct marketing programs is time
consuming and hard to do. Also, marketing additional offerings to existing accounts was
also cited as a challenge, as easily getting information on what products or services a
client already had was often difficult.
Easily Access Information: Few firms reported lack of information as an issue. The
issue was getting the right information to the right person at the right time. Two sets of
problems emerged here. Either the reps were being bombarded by too much information
a never-ending flow of new product announcements, price changes, competitive bulletins,
etc. making it a monumental task to try to stay current. Or the information they needed to
sell to and service customers existed somewhere in the company, and they had to spend a
significant amount of time trying to find out who had it. In both cases the need to more
effectively manage the flow of information was seen as a major requirement for
improving sales effectiveness.
Communicate Enterprise-wide: Sales representatives often need support from other
functional areas such as finance, manufacturing, distribution, R&D, etc. in order to close
a deal. Communicating effectively with those departments was seen as difficult today,
and for many companies was becoming even more so. One of the major trends, reported
by 81% of the firms surveyed, was the move towards the virtual sales force having reps
work out of home offices, customer sites, or executive suites to be closer to the client
and/or reduce costs. As the percentage of the total sales force working remotely increases,
the challenge of working collaboratively can also be expected to increase.
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Introduce New Products: As product life cycles collapse, the rate of new product
introductions is hitting an all time high for many companies. This is placing a huge
burden on sales managers and sales reps to find the time to continually get up to speed on
these new offerings and take the new messages to the marketplace, while continuing to
manage opportunities already in the pipeline.
Forecast Accurately: Forecasting is all too often more magic than science, and for many
firms it is black magic at that. Consider the ratings the firms we surveyed reported
regarding the accuracy of their forecasts. Since many companies make key business
decisions based on their forecasts resource allocations, manufacturing schedules, raw
material parts orders, etc. in accuracies in forecasting is causing enterprise-wide
effectiveness problems.
Qualify Prospects: Determining which product or service offering best fits the needs of a
prospect, if any do at all, is becoming a serious challenge. Sales representatives are
expected to become experts on all aspects of the product line, especially since many firms
are reducing their sales support staffs, and many organizations report that this is
unrealistic.
Communicate Sales Management: A second communications challenge appears to be
allowing sales representatives to easily communicate all the things they are working on
with management, and vice versa. One interesting trend we noted was the increase from
past years in the ratio of sales reps to sales managers. The average across all companies
surveyed was 9.1 reps to 1 manager, with one company on the extreme side reporting that
their ratio was 24:1. These high numbers are making it harder for sales representative to
get the coaching and counseling they need.
Service Accounts: The value of doing a great job servicing existing clients so you can
sell them more in the future is clear to all firms. How to do it consistently is not. Many
firms reported lacking the bandwidth and mechanisms to have sales representatives do
the necessary account development work to build true customer loyalty.
Generate Proposals & Configure/Submit Orders: These are two inter-related problems
experienced by many sales forces: the complexity of the orders themselves, and the
number of sign-offs required to approve non-standards deals, are making sales
representatives ineffective and inefficient at completing these two critical tasks.
Page 25

From RM to mCRM
The origins of CRM can be traced back to the concept of relationship marketing
(RM). The term RM was initially coined (1983), who defined it as attracting, maintaining
and in multiservice organizations enhancing customer relationships. This emphasis on
relationships defines how companies interact with their customers . CRM is the outcome
of the continuing evolution and integration of marketing ideas and novel available data,
technologies, and organizational forms with the goal of engaging in a meaningful
dialogue with individual customers. While RM does not acknowledge the technology
underlying the management of customers, CRM uses information technology (IT) in
implementing RM strategies. There is a consensus that CRM requires the company to
manage and coordinate communication with customers across different media. This is
because different customers have different needs and thus, the company should treat them
differently.
However, with the growing number of channels through which the company can
communicate with its customers, getting their time and attention has turned into a major
challenge. Accordingly, it has become more difficult for companies to find the
appropriate media and strategies to use in order to communicate with their customers.
Especially, promising for CRM purposes is the potential established by the integration of
electronic media and database technologies for creating unique and personalized
communication with individual customers . As stated, this potential has been gradually
put into practice by several industries. Paralleling this development, the internet as a
channel through which to manage customer relationships (eCRM) has attracted
significant attention among academics. Despite of being a subset of eCRM, mCRM has
gained far less attention. Although the potential of the mobile medium within CRM is
broadly acknowledged among academic, there is still a severe lack of research that delves
into this nascent phenomenon.
Some publications have concentrated purely on mCRM. For instance, it can be
considered one of the first publications concentrating on mCRM. It strives to explain how
businesses can incorporate wireless technologies into existing operations and strategies.
Examined features of CRM implemented on the internet (eCRM) and the mobile channel
Page 26

(mCRM) from the customers perspective and, consequently, proposed an analytical
framework for examining current practices. Explored the value of mobile CRM
service offerings to consumers. Presented a structured method by which mobile business
can be introduced to the CRM field. In addition, mCRM has generated a number of nonacademic works such as white papers.
Electronic Customer Relationship Management (e-CRM)
In the opinion there is nothing new since good marketers have been taking care of their
customers for many decades now. What is new is the lack of CRM in the fast moving
online world.
1. A world where customer expectations are often there is still ample room for companies
to embrace higher than those of the offline world. broader CRM initiatives including a
more customer-focused and useful online presence.
2. A world where customers` raised expectations is regularly crushed by successful
online companies.
3. A world where customer e-mails are left company's best customers and maximizing the
unanswered for days.
4. A world where immediate responses are who argue for and against CRM, but the
research expected but often times are not delivered.
5. A world where satisfying customers is simply company-wide CRM initiative will truly
save not enough to keep them.
6. A world of consolidating relationship where surfers visit fewer sites but spend longer
with them.
eCRM Software Systems May Contain A Selection Of The Following Features
Customer Management Provides access to all customer information including
enquiry status and correspondence.

Knowledge Management A centralized knowledge base that handles and shares
customer information.
Account Management Access to customer information and history, allowing
sales terms and customer service teams to function efficiently.
Page 27
Case Management Captures enquiries, escalates priority cases and notifies

management of unresolved issues.
Back-end integration Blends with other systems such as billing, inventory and
logistics through relevant customer contact points such as websites and call
centres.
Reporting and analysis Report generation on customer behaviour and business

criteria.
eCRM Opportunities
eCRM is not here to change marketing but to enhance it by presenting
opportunities to companies to improve their effectiveness and to deliver customer value.
It can reduce the costs involved in communicating to customers, optimize work flows as
a result of integration with other enterprise Systems, facilitate better market segmentation
and enable enhanced customer interactions, relationship and personalization
opportunities. The goal of eCRM systems is to improve customer service, retain valuable
customers and to aid in providing analytical capabilities within an organization.
CRM applications take full advantage of technology innovations with their ability to
collect and analyze data on customer patterns, interpret customer behavior, develop
predictive models, respond with timely and effective customized communications and
deliver product and service value to individual customers. Using technology to optimize
interactions with customers companies can create a degree view of customers to learn
from past interactions to optimize future ones. It is also the infrastructure that enables the
delineation of, and increases in, customer value and the correct means by which to
motivate valuable customers to stay loyal.
Industries that tend to be more eCRM ready are aware of distinct contact with
customers, are very competitive and are constantly seeking differentiation. eCRM can be
used as an approach to relationship management with multiple stakeholders including
customers, employees, channel partners and suppliers. Specific opportunities of eCRM
highlighted here include enhanced customer interactions and relationships, managing
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customer touch points, personalization options and leveraging eCRM capabilities as a
potential source of competitive advantage.
Managing Customer Touch Points
Customers are moving between traditional and online channels with greater frequency
when dealing with organizations. eCRM systems support multichannel touch points with
the company and a key challenge is providing a consistent experience for the customer.
Offering multiple interaction paths scores convenience points for customers but this
benefit quickly evaporates if the customers are forced to repeat themselves because one
part of the organization is not synchronized with another. Customers accustomed to real
time information and responses must be catered for when they switch to an alternative
channel. It shouldnt in principle make any difference whether a customer interacts with
the company through the sales force, over the Web or indirectly through a reseller. For
this reason effective multi-channel management has emerged as a hallmark of a
successful CRM strategy within organizations.
Personalization and e-Loyalty
With new eCRM technologies it becomes possible for a company to tailor the whole
customer experience to the individual. Tailoring based on customer data, active
personalisation, includes information content presented, the products offered and also
advertising from other organizations. The existence of direct-to-customer channels is the
key enabler for automated systems to be able to deliver highly relevant content because
of the amount of data that can be collected.
Leveraging eCRM as a Source of Competitive Advantage
When executed correctly eCRM implementations are designed as a digital loyalty cycle
that continuously improves to create lasting competitive advantage. When a company
uses eCRM technology and redefines its business processes in customer acquisition and
retention, it strengthens its capabilities in key areas that determine a customers purchase
decision including pricing, product quality, marketing, sales and customer service to
create a virtuous digital loyalty cycle.
Challenges of eCRM
With eCRM customers drive the interaction deciding on the type and duration of contact
permissible. The ability to create intimacy with the customer is limited and building trust
Page 29

can be difficult. When managing an on-line channel companies are faced with the fact
that greater choice creates fickleness among customers and with the competition only one
click away there are no second chances to recover mistakes in these remote channels.
Data integration and IT architecture challenges also exist for organizations adopting
eCRM technologies.
Customer Interactions and Relationships
The use of an eCRM system enables traditional physical customer proximity to be
substituted by digital proximity. The need for customer reassurance in the purchase
decision can be exacerbated by new e-channels and needs to be addressed by the creation
of, for example, on-line communities, on-line shop assistants, customer testimonials and
general reassurance about buying strategies and purchase choices for customers. The
ability to create intimacy with the customer does not exist on-line and due to the
remoteness of these channels building trust is more difficult, with the relationship
element of eCRM harder to build beyond a purely transactional one. In the absence of
such trust it is harder to get customers to share the data which is essential to creating
effective CRM strategies. Privacy policies and guarantees become an essential element in
building trust and consequently effective eCRM initiatives for companies.
Managing an On-Line Channel
eCRM as merely part of the bigger picture of enterprisewide CRM, as CRM enabled by
the use of new electronic and interactive media. The on-line channel is described as
merely one piece of the CRM puzzle but one which will become increasingly important
for companies who must now learn to manage relationships with e-customers as these
electronic channels mature and the e-customer base proliferates. eCRM is now a priority
for the majority of companies as the impact of electronic initiatives on sales and service
requirements continues in tandem with the increased levels of investments in Internetrelated delivery made by companies. eCRM can then be seen to provide a structure for
the possible strategic evolution of a technology-mediated relationship marketing business
framework.
Page 30

How CRM Solves 4 Industry Challenges for General Contractors?
After working with two of the largest general contracting firms in St. Louis, Turnkey
Technologies understands the sales challenges that contractors and construction industry
professionals face every day.
In one given day, a general contractor is:
continually managing leads,
tracking and managing project bids,
nurturing a network of relationships,
updating project scopes and documentation
managing end-to-end construction projects
the list goes on!
While juggling these many tasks, general contractors are also working to close a sale and
coordinate work in often demanding timeframes as needed by their prospects and clients.
Contracting firms choose to resolve key sales challenges using Microsoft Dynamics
CRM, a mobile and user-friendly customer relationship management solution that easily
integrates with field service and construction industry project management software.
Keep reading to see how these companies improve their sales cycle using Dynamics
CRM.
1. Slow Response Time to Inquiries and Bids
For general contracting firms, proposal delays due to managing bids and information
from subcontractors or updating schematics can result in lost sales opportunities.
Dynamics CRM allows to document activities throughout the bid process to pave the way
to meaningful analysis and improved win rates. Leads can be nurtured through a
workflow to free up the teams to update bid information and proposals as necessary.
Page 31

Additionally useful, CRM notifies users when inquiries are created, distributes them to
the right team, and even enters them as leads automatically with simple automation.
2. An Unorganized Sales Pipeline

The most profitable contractors rely on an organized, clear-cut sales pipeline full of
projects and bids. To maximize revenue, contractors should focus their efforts on projects
they have a good percentage of winning, and avoid chasing projects with less potential.
Dynamics CRM not only provides visibility into pipeline, but it enhances pipeline
accuracy by bringing structure, consistency and rules to the sales processes that feed
pipeline. In Dynamics CRM, users can drill down into their pipeline to access its records
in greater detail, thus providing the business intelligence necessary to win more
bids, faster.
3. Inability to Connect Sales Revenue to Marketing for ROI Analysis

When it comes to marketing, executives need to see ROI. The struggle exists for any
marketer, but why is it so difficult in the construction industry? marketing mix. Audience
is incredibly diverse, which means must use more outlets than the average marketer to
effectively reach a prospect. CRM allows organizations to easily track their marketing
ROI for both digital and offline initiatives. By mapping product, account and contact
details to a project and opportunity records, can track marketing campaigns success over
any length of time.
4. Difficulty Determining the Target Audience: Client, Specifier or Other?
Page 32

Dynamics CRM allows to structure and segment marketing efforts to cater to each
relationship type easily using Marketing Lists, queues and workflows. Laying the
groundwork here delivers a great payoff and paves the way for personalized, automated
email and nurture campaigns.
CRM in the Textile industry

In textile industry one company sell its product to another company. For example
a yarn manufacturing company sell to fabric manufacturing company. A fabric
manufacturing company sell fabric to apparel company. The main customers of the
companies in the textile industry are the wholesalers. And the final product is sold to the
wholesalers and retailers. In this industry the customers are few and profit margins are
high. So CRM is very much necessary and relevant in this industry. There is a high
degree of uncertainty on the part of the buyers, the likelihood of customers seeking a
relationship is increased. If the firm loses its customer it would be major loss to the firm.
The product in the textile industry is complex and quality is an important factor. One of
the major values the customer expects from vendors is quality. No customer will tolerate
average quality. According to GEs chairman John quality is the best assurance of
customer allegiance and strongest defense against competition and the only path to
sustained growth and earnings. If the product is not of good quality the customer will
not be satisfied and the firm may lose its customer. Moreover there is a scope of
customization in the product. The seller has to customize the product according to the
need of the customer. Customization is changing the product according to the need of the
customer in order to satisfy cutomers.
Page 33
CONCLUSION & SUGGESTIONS

Customer Relationship Management (or CRM) is a way for businesses to connect
with their customer, increase profits, and provide better customer service. CRM is one
very important factor in an effective overall business strategy and should not be
overlooked. The following are some tips to keep in mind in developing a CRM strategy
for business and finding the CRM vendor(s) that is right for us.1. It is all about the
customer. It is easy to get caught up in flashy programs and elaborate IT techniques and
lose focus of the bigger picture. All CRM is about enhancing customer satisfaction. Keep
this in mind when selecting vendors and software applications.2. Choose On-Demand.
Whereas traditional CRM programs and services require companies to hire new IT people
and demand extensive resources to implement elaborate programs, On-demand CRM
Page 34

software comes with support. Vendors that offer On-demand solutions are especially
great for small to medium size businesses, as well as those just getting into the CRM
market. Choosing On-Demand will allow business to focus its attention in expanding in
the areas and is therefore the way to go for the twenty-first century company.3. Its not
just software. This fits into the first point.
Customer Relationship Management is not simply about implementing the right
software packages. It is continual process of learning your customers needs, desires, and
expectation and being able to respond in an effective manner. The right software
applications, strategies, and methods will allow to access, analyze and learn from
customer data. But still have to use that information to develop lasting relationships with
customers. Therefore, it is important to know the reason behind each CRM application
youuse.4. Know your options. It is important to understand that there are literally
hundreds of CRM vendors competing for business. Many will make unsubstantiated or
completely meaningless claims. There are countless vendors who all claim to be number
one. It is essential that spend the time investigating the vendors and the services they
offer, comparing them to one another. This way it will be able to find the one that offers
the services you need at a price that is fair. Remember that flash is not everything, and
sometimes the company with the most effective CRM solutions will be the most
unassuming. Start with the established vendors such as Siebel, Salesforce.com, Net Suite,
IBM, Microsoft, and SAP.5. Stay on top of the tech curve. This is not contradicting points
one and three.
The end is always customer service, but it is a fast paced world and you have
to keep up. Major vendors are always updating their software and improving their
services. To get the most out of CRM applications, need the most up-to-date technology.
This does not mean buying into every tech fad. It should carefully consider whether a
new technology is going to improve customer relations, or just be a drain on resources.
Properly implemented, customer relationship management will greatly improve business.
Satisfied customers will be more willing to do repeat business and refer more customers .
It is worth the investment to help learn from customers and respond to their needs. In
selecting the right CRM solutions for business, always keep the customer in mind, look
Page 35

for a reliable vendor, and stay on top of the latest technologies. These tips will help you
run a more effective CRM campaign and improve overall business.
Suggestions
There should be more and more emphasis given by the company for satisfying the
customer up to a apex limit and by providing the utility of every penny of his
money.
There should be more use of information technology.
The company should be flexible to bend its rules and procedures in the clients
favour.
The company can communicate and develop stronger customer bonding by
providing social and financial benefits.
BIBLIOGRAPHY
www.crmasiasolution.com
www.sysnetts.com
www.crminfiline.com
www.crmodyssey.com
www.imd.org
Page 36

Wikipedia.org
www.dit.ie
www.abhinavjournal.com
www.tmu.ac.in
www.scribd.com
www.crmnext.com
www.allprojectreport.com
Page 37

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CHALLENGES & OPPORTUNITIES IN CRM