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Yash - Study CRM Implementation at Siemens India

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STUDY ON CRM IMPLEMENTATION AT SIEMENS INDIA

DISSERTATION SUBMITTED TO NSB ACADEMY IN PARTIAL


FULFILLMENT OF THE REQUIREMENTS FOR THE AWARD OF
of

POST GRADUATE DIPLOMA IN MANAGEMENT

Submitted by

Yash K Sharma

Register Number

NSB/PGDM/19-24

Under the Guidance of

Dr.P. Madhan Kumar

NSB ACADEMY

Sy. No.85, Singena Agrahara, Huskur Post, Anekal Taluk,

Bangalore 560099, INDIA


May-2021
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ACKNOWLEDGEMENTS
In this project, I have made an honest and dedicated attempt to make the Project Report so
easy to understand for a person who is willing to get knowledge about the “Study CRM
Implementation at Siemens India” I am deeply indebted to my lecturers & my faculties
who gave me opportunity of making project report. I am also thankful to my Project
supervisor Dr.P. Madhan Kumar for their kind support & suggestion for making project
report.

Signature

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TABLE OF CONTENTS

I. Introduction: Introduction includes


II. Review of Literature & Research Design
 Introduction
 Review of Literature
 Statement of the Problem
 Scope of the Study
 Objectives of the Problem
 Hypotheses
 Operational Definitions of Concept
 Methodology
 Limitations of the Study

III. Profile of the Industry/Business/Selected Companies

IV. Results, Analyses & Discussion

V. Summary of Findings, Conclusions and Suggestions


 Summary of Findings
 Conclusions
 Suggestions

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EXECUTIVE SUMMARY
This study will investigate the efficiency of CRM in Siemens India (customer relationship
management). The aim of this study is to assess the effect of CRM implementation on this
company. The research will allow us to determine whether or not Siemens India has added
value in implementing CRM.

The study specific goals are to analyse why the CRM is inadequate in the company, to
examine the management role of CRM strategies, to evaluate the approach of CRM
deployment, to examine the different effects of inadequate CRM on the success of Siemens
India and to analyse how important CRM is for the company

Chapter 1 sets out the structure for this research. It provides the background of the study, the
statement of problem, the study's objectives, research questions, the scope and relevance of
the study.

The literature is examined in Chapter II as an account of the knowledge and ideas of


academics and experts accredited. The objectives of this study are guided by the first section.

Chapter 3 outlines the methodology used to select a sample from which research is to be done
and the methods used to select respondents. It also describes how data is collected and
analysed. The paper presents anticipated problems in the current research study. These
include time and monetary constraints and difficulties in obtaining respondents' information.

CHAPTER 1
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INTRODUCTION

It has been an opportunity to build good relations with the client, which has previously made
the revolution important in the field of information technology and in particular on the global
website possible via the internet. Through merging direct customer requirements to create
and maintain a long-term customer relationship, and providing the customer with a highly
interactive and personalised experience. The ultimate objective is to make huge returns
because the prices are repeated and to reduce costs due to the acquisition of customers. CRM
management has been in marketing literature for over a decade. Management of customer
relations [CRM] surprisingly, much more debate about what CRM does is still evident.

This can be done by buying our product, but the new perspective concerns exactly what
customers need and can be done to efficiently deliver different needs and even the needs of
all customers. The old industry perspective differs from the new perspective. This can be seen
as a major paradigm shift and a total jump in how business is organised.

Parvatiyar and Sheth (2001) explains many themes represent thin perspective in marketing
functions, while others give a broad and paradigmatic view of focus and approach.
Management of Client Relationships as a marketing database is an intricate example and
promotions are exploited in the customer database. Electronic marketing, including after
marketing, is another example of the narrow approach (Blattberg and Deighton, 2001)
(Vavra, 2002). Electronic marketing undertakes all marketing efforts supported by the IT, but
aims, once sold, to connect customers. Management means customer contacts on a broader
scale. Since CRM is an important service and product adding instrument for businesses, apt
CRM was regarded as a key strategic way for companies of all industries to add products and
services.

Companies approach their customers and search for new ways of generating value for clients
and transforming relationships and finding solutions through CRM partnerships. The
Organization must consider certain conditions when building a customer-organization
relationship, including needs and desires. The conditions can be influenced by the good
CRM. The most cost-effective products and services are obvious to our customers. Most
obviously, this gives a large number of suppliers an insight into this. The advantages refer to
the role of service and product customers here. It is most important to note that different
customers can benefit from any separate service or product. During this phase, even in
customer views, things and situations are important. The key is that customers clearly want to
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satisfy their different needs. Their benefits and features are very different and much wider
than some service or product. In general, customer requirements extend far beyond the
proposal of suppliers. CRM is mainly focused on ensuring that customers not only meet their
wishes and needs, but also meet them extraordinarily.

Provide a complete list containing all customer relationship management functions. It is


important to point out the key structures in customer relations. Sin et al. (2005) suggested that
CRM should be comprised of 4 customer relations, CRM based on technology, key customer
focus, knowledge management, etc. All of them are described in the following.

1.2.1 Technology- based customer relationship management

In facilitating customer relations, technology plays an important role (Das, 2004). It also
allows firms to create a detailed list of customer relationship management practises at lower
costs and to provide a much higher and more quality of service. Wong and Sohal (2003)
explained that, regardless of the situation or marketing effort that can change their behaviour,
they have been prepared to buy or to even repatriate the goods or services that they wanted.
Two dimensions: fidelity, conduct and attitudes (Day, 2001; Dick and Basu, 2004).

Exemplary examples of loyalty are repeated shopping or purchase, and examples of loyalty
are emotional ties or trust (Baumann et al., 2005). In the case of other current factors that
prevent client defection, the loyalty to behaviour does not demonstrate clearly the loyalty to
attitudes (Aldlaigan and Buttle, 2005; Reinartz and Kumar, 2002).

The customer loyalty and level of profit were also linked (Reinchheld and kumar, 2002)
Loyalty to customers (Lindgreen, 2004; Das, 2004; Sin et al, 2005; Parvatiyar and Sheth,
2001). The world perceptions of marketers have changed because customers and consumers
who are able to deliver long-term profit need to be better understood. Vendors have
traditionally been trained to get their clients by buying new clients, which had never before or
at the time by rivals. This calls for mass commercials and promotions for members and
customers of the channel. It is not a question now of purchasing a customer but of retaining
existing customers.

This calls for a different way of thinking and a new set of tools. A well-constructed
experiment involves finding out how much you spend on conservation and acquisition goals,

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or asking them how much you spend on them. Although difficult to distinguish between
acquisitions and retention problems, acquisitions tend to dominate retention. The focus was
on customer relationships from Reichheld, which showed that customer retention rates
increased substantially as a result of slight increases. His studies, for example, showed that a
5% increase in retention had an impact of rather considerable 95 percent on the net
incorporated value of consumers.

The fact that consultants like McKinsey buy customers generate more than doubles the gross
revenues of the customers shows 35% of the (advertisement agencies) (software) research.
The widespread technological modernization of customer-related products results in greater
profitability because of a reduced customer mix.

In order to achieve an effective CRM, organisations need to implement a new working


strategy or perspective. It needs to be understood that the customer action of the company is a
traditional customer service and that modern CRM is achieved through work with the client.
This description provides an idea of how the traditional customer service delivery is different
from the modern CRM approach. A company should always have an ongoing, long-term and
cooperative customer relationship.

When new customers are obtained, enormous costs arise for companies with many
provisional relationships with their consumers. The costs of maintaining existing clients in a
company are probably much lower than new ones.

1.2.2 The principle of Pareto

Alternatively, the rule is 80:20, with each company accounting for 20% of its customers, 80%
sales, 20% of its customers, and 80% sales and servicing problems, with 20% being of its
customers. This is also the 80% rule. Therefore, it is important for the company that it clearly
identifies which customers correspond to a particular category to be able to effectively
manage them. If customers are satisfied and value a company's services and products, they
become excellent business representatives.

Consequently, these customers must be nurtured and treated as particularly as possible. If


customers are unhappy, they are potentially saboteurs and fail to understand the company and
the services they deliver. Therefore, companies should strive to build trust and relationships
or ensure that the separation is handled with maximus integrity, professionalism and dignity,
given that the customer has very little or no loyalty at all to the company.
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Any company should always concentrate on creating core levels of expertise and a
fundamental strategy for developing customer relations.

In doing so, the efforts of the company will probably be harmonised with their customers and
working cultures, in which they can always exceed the expectations of their customers. The
company manages and understands the impact of people on the culture of the organisation. It
recognises and treats customises as partners.

1.3 Background of the Study

CRM is an essential component of current business management. The existing partnership is


covered by the Customer Organization.

It considers customers to support any company despite being an international enterprise with
hundreds of thousands of employees, even multimillion sales, or only a single trader with few
ordinary customers. The two examples which contain a range of drastically different
customer relation management are similar in principle to the CRM. Customer relationship
management can also be seen as a marketing tool in modern business marketing approaches.
The consequences of globalisation and liberalisation have resulted in very high competition
levels. In addition to the presence of a differentiated product, it is extremely crucial for many
customers worldwide to understand the increasing number of companies offering various
product and service. A number of people have successfully incorporated their use into their
operations. Therefore, it is extremely important to integrate CRM applications into operations
and business processes.

Success in the modern business builds on marketing proposals to leverage customer service
that include customer companies, needs analysis and comparative advantages. It depends
heavily on customers, customer relationships and the provision of services to retain existing
customers and to stir potential customers (Thompson et al, 2006). However, as stated in
various literal reviews, the implementation of CRM has confronted several challenges that
have led to errors or inconvenient results. In addition to the desirable results of the company
in line with CRM requirements, the failure of senior management and integration with needs
and customer preferences have a negative impact on CRM's success. (Christian and others)
(2007). Successful organisations were found in the following three main levels of customer
relations. These involve the establishment and maintenance of mutual objectives and positive
organisational feeling between the customers and the organisation.

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In order to develop and improve the customer relationship management, the marketing
manager's task will be divided or planned into two sections: the one concerning the
acquisition, the other on retention. The skills needed primarily to fulfil the two tasks are
completely different. The usual strategic marketing method, including sales and advertising,
is available to people with skills in this area. However, they are quite different for retention
skills, as the job needs a better understanding of the basis in order to fulfil a certain product
class. Time is critically rare and it is extremely difficult for companies which employ a lead
client [CCO], focusing solely on customer interaction, to do brilliant work in both the
procurement and retention process.

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CHAPTER 2

REVIEW OF LITERATURE & RESEARCH DESIGN

2.1. Introduction

This includes the examination by accredited academics and experts of existing literature as an
account of the knowledge and ideals established. It is guided in Chapter One by the aims of
the study. These include the causes of CRM deficiencies in Siemens India, the management's
role in implementing CRM strategies, an assessment of CRM approaches in implementing
CRMs, an investigation of the insufficient impact on Siemens India' s success and an analysis
of the significance of CRM.

2.1.1 Literature Search Plan

The search plan for literature involves navigation approach to access library literature. The
college library and internet search was carried out. The aim of this study was to find good and
relevant literature on this subject as well as to look at the selected vocabulary to bebale in
order to deduce or remove any other limited words that could be used within the subject. By
using the browser or the topic search mode and putting the controlled vocabulary in the print
version of the database, the relevant articles and information and those other items which
were not relevant were obtained. The relevance of the material has been identified by quickly
looking at the information provided and determining whether it is useful for research.
Textbooks and peer reviewed journals from the year 2000 to 2016 were included in the
reviewed literature. Recent publications have been found through multiple searches in the
database. The terms used for the search were confined to published publications from 2000 to
2016. All the publications identified were then examined and those relevant were retrieved
for literature review.

The reference lists have been manually or searched by hand to identify further publications
for all the documents or publications received.

The search engine specifications used includes Google's internet search and the use of search
terms and specific search dates. CRM, customer loyalty, customer satisfaction, customer
value, customer lifetime, CRM strategy and CRM in Siemens India were the main words for
the identification of relevant data for the subject.

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2.1.2 Structure of literature review

The literature review of this study focuses on the following subjects and issues:

Part I. Customer Relationship Management: its definition and a brief description.

Part II. Major CRM elements

Part III. Implementation of the right Customer Relationship Management solutions

Part IV. Types of Customer Relationship Management solutions: a) Off the shelf solutions b)
Outsourced solutions c) Managed solutions d) Bespoke software

Part V. Components of Customer Relationship Management: a) Technology b) People c)


Business process

Part VI. Failures in the implementation of CRM

Part VII. CRM strategy and level of response

Part VIII. Behaviours and needs related to CRM

Part IX. Benefits of Customer Relationship Management: a) Distributed or shared data b)


Cost reduction c) Quality and improved Customer service d) Enhanced customer satisfaction
e) Better retention of customers f) Increased new business g) Increased repeat business h.
Reduced costs i) Increased profits

Part X. Assessment of CRM benefits

Part XI. The Management role in implementing CRM Strategies

Part XII. Impact of Inadequacy of CRM on Success of Companies: a) Effects on customer,


loyalty and retention b) Effects on the management c) Effects on marketing.

Part XIII. Customer Relationship Management at Siemens India a) Customer Experience


Enhancement Engine

2.1.2.3 Theoretical frame of reference

The list below shows the various literature reviewed which were critically analysed in order
to develop the chapter on literature review and used to obtain information regarding customer
relations: its different elements, benefits, components and solutions, management's roles in
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their implementation and impacts on their inefficiency. There are approximately 35


references in the literature review. The author's name and year are mentioned below from that
main concept used by the researcher here.

Author Year Concept

Adelaar, T. (2000) CRM technology

Aldlaigan and Buttle, F. (2005) customer satisfaction

Ali, A. and Alshawi, S. (2003) CRM implementation

Alt, R. and Puschmann, T. (2004) Benefits of CRM

Arussy, L. (2005) Inadequate CRM implementation

Blumberg, D. (2002) CRM implementation

Bohling, T., Bowman, D., LaValle, S., Ramani, G. et al. (2005) Inadequate CRM
implementation

Chalmeta, R. (2006) CRM benefits

Darrellm and Ledingham (2004) CRM benefits

Dick, A., and Basu, K. (2004) CRM benefits: Customer loyalty

Dwyer, et al. (2007) Benefits of CRM: customer retention

Evans,R. and Laskin, L. (2001) CRM benefits

Gefen, D. (2002) CRM benefits: Customer loyalty

Goodhue, et al. 2002 CRM benefits

Kale, H. (2004) CRM implementation failure

King, F. & Burgees, F. (2007) CRM implementation failure

Kristin, A. and Kerr, C. (2002) overview of Customer Relationship Management

MacFarlane, M. (2011) CRM customer satisfaction and loyalty

McCalla, et al. ( 2003) causes of CRM failure


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Nevin, J. (2005) CRM overview

Nguyen T et al. (2007) Behaviours and needs related to CRM

Payne, A. and Frow, P. (2004) CRM implementation failures and benefits

Payne, M and Ballantyne, D. (2002) CRM benefits

Peppers, D, Rogers, M & Dorf, B. (2000) Effective CRM implementation

Rigby, D. and Ledingham, D. (2004) Inadequate CRM implementation: impacts

Rigby, et al. (2002) Inadequate CRM implementation: impacts

Rowley, J. and Dawes, J. (2000) "Disloyalty: a closer look at non-loyals", Journal of


Consumer Marketing, 17 (6):538 – 547

Siemens India (2011) CRM implementation at Siemens India

Thirkell, C. and Huff, L. (2007) CRM solutions

Thompson S., Devadoss, P. and Pan, L. (2006) CRM components

Treacy, M. and Wiersema, F. (2005) Role of the management in implementing CRM

Peel, J. (2002) CRM overview

Varadarajan.R. (2006) CRM benefits

Verhoef, C. and Langerak, C. (2002) CRM failure

An overview of how each of the above references has been used in the paper is as depicted
below.

Adelaar, T. (2000) Looks at the use of CRM technology with an e-commerce and market
structure impact focus. Aldlaigan and Buttle, F. (2005) examine how satisfied customers are
when buying from retail bank services. The impact of cross culture on the implementation of
CRM is assessed by Ali and Alshawi (2003). This reference was useful for finding
information on the different elements and components of CRM.

The successful CRM procedures were examined by Alt and Puschmann (2004) and they
provided information on company advantages of CRM. Arussy, L. (2005) points out the

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mistakes made and the need to understand when implementing CRM. The book was useful to
identify how best to use CRM to achieve certain objectives.

Blumberg, D. (2002) explained how e trade can be effective in implementing CRM. The
various causes of the failure of CRM were identified by Bohling, Bowman, LaValle and
Ramani, et al. (2005). Chalmeta, Republic of Germany (2006) has been able to identify the
benefits of CRM and the roles of computing and developed important concepts about CRM
implementing.

In the analysis of CRM benefit in this study, Darrellm and Ledingham (2004) have also been
helpful. The concept of customer loyalty as a product of CRM is presented by Dick, A. and
Basu, K. (2004). The journal was useful not only in the literature review but also in the
defining loyalty to customers.

It is important to involve the full participation of customers and staff in implementing CRM,
according to Dwyer, Schurr, and Oh (2007). I used the references as a basic objective of
implementing CRM for discussing customer retention.

Focus on CRM relationship marketing is Evans and Laskin (2001). Through the book, I have
identified CRM as a customer-oriented strategy for business processes. E-commerce plays an
important role in CRM and contributes greatly to customer loyalty, as Gefen has shown
(2002).

In both chapter 1 and 2 of those papers, the management of journal marketing by Goodhue,
Wixom and Watson (2002) is useful. The journal has helped to identify CRM advantages in
particular. CRM failure talks in Kale, (2004). Information on the key causes of CRM failure
is provided in the journal and is important in ensuring successful implementation of CRM
through effective decision-making. King Burgees' (2007) projects clearly highlight the
problems involved in CRM implementation and helped identify the causes of the failure of
CRM and the factors needed to succeed in the execution.

The Customer Relationship Management concept was discussed in a broader context and thus
helped Kristin and Kerr (2002) in the first and second chapters of the study. Through
MacFarlane's Software Guide, (2011), companies that are effective at ensuring improving the
delivery of service and have emphasise the importance of CRM as contributors to the
customer satisfaction and loyalty in developing customer tracking and analysing their
different needs are highlighted.
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McCalla, et al. (2003) were useful to identify the cause and what needs to be carried out to
ensure successful CRM implantation failures. The research work of Nevin (2005) aimed at
creating a clearer understanding of the CRM concept, including the definitions, in this section
of the research study.

Nguyen, Sherif and Newby (2007) gave me detailed information about failures during CRM
implementation, advantages of CRM, comportments and needs related to CRM in an article
entitled "Strategies for successful CRM implementation."

The information I've used to discuss CRM executions failures and the benefits that result
from CRM is provided by Payne and Frow (2004). The benefits that CRM implementation by
a company could have on marketing and marketing strategies are identified by Payne and
Ballantyne (2002).

The focus in its various works on one-to-one marketing is Peppers, Rogers & Dorf (2000)
and Peppers and Rogers (2003). A review of the book and articles presented by the authors
gave an insight into the effective implementation of CRM by concentrating on individual
customers.

In the provision of CRM failure information and impact on inadequate CRM implementation,
works by Rigby and Ledingham (2004) and Rihby Reichheld and Schefter (2002) have been
significant.

In marketing and therefore in the understanding of the concept Rowley and Dawes (2000) are
concerned about customer loyalty.

The implementation of CRM was obtained from their web site at Siemens India and cited as
Siemens India (2011). This provides further details about CE3: the technological solution
used to enhance customer experience.

Identification of CRM's strategic value The CRM strategy is viewed by Thirkell and Huff
(2007). He examines the different components of CRM. Thompson, Devadoss and Pan
(2006). This document uses the journal's article as one of the components and benefits of
CRM implementation for obtaining information on technology.

The roles that management plays during CRM implementation have been effective from
Treacy and Wiersema (2005). Peel, J. (2002) also gives an overview of the contemporary
CRM concept.
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A statement by Varadarajan (2006) shows the importance of CRM as a way to increase


business revenue, productivity and profitability, as shown below in the reviewed literature.
Verhoef and Langerak (2002) provide information on failure in CRM implementation via
their work entitled "Eleven misconceptions regarding customer relationship management"
and identify the assumption that CRM is equal to customer buying and customer satisfaction
is one reason for CRM failure.

Zeithaml, Parasuraman & Leonard (2002) discusses how important it is to incorporate


various processes to guarantee that CRMs are successful. The synchronisation of the various
processes prepares the company for an increase in production levels, according to these
authors. The authors describe how CRM is implemented, involving three main business
processes: sales, services and marketing.

Each of the above references provided information on the different areas of customer
relationship management effectively. All the literature information was sufficiently pertinent
and relevant. In the remaining chapters of this dissertation the reviewed literature will be
useful to help in providing a basis for the collection of primary data. The main research
findings can later be compared to those obtained in the literature review from the various
other studies carried out by different authors and the comparison results are later used to draw
adequate conclusions. At the end of this dissertation, the literature reviewed will also be
successful at making recommendations.

2.2 Customer Relationship Management

Customer relationship management is defined, by its abbreviation CRM, as the tools and
methodologies by which companies can manage their clients in an organised manner.
According to Thirkell and Huff (2007), this management process is a strategy that is adopted
by many companies around the world in order to efficiently manage their different
interactions with clinics, consumers and sales prospects. This involves the development,
automation and synchronisation of business processes through technology adoption and use.
This applies not only to sales, but also to other business activities as technical support,
marketing, customer service and services according to Nevin (2005). CRM can therefore be
said to aim to identify, attract and introduce new customers, to nurture and retain existing
customers, return previous customers and reduce marketing and customer service costs. In
this case customer relationship management includes strategies for efficient business
operation in the customer interface departments and in other departments. Management of
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customer relations in small enterprises involves a range of processes. One of these processes
helps to identify and target the best customers of a company, promote quality and leading
sales, plan and carry out marketing campaigns with clear and accurate goals. SMART must
always be the set goal, which means that it must be targeted, measurable, achievable, very
realistic and time-bound. As a process, CRM can also develop individualised interactions
with customers to promote customer satisfaction and deliver the highest quality of customer
service for customers that are considered to have the highest profit. Communication has
always been seen as the key to a successful relationship. In the case of CRM, both high-
quality and consistent relationships should apply. Focus, pertinence, reliability, time and
coherence are also necessary. The key to communication is the message sent and the
significance that is gained at the other end. Regardless of their thoughts on what the
communicator might have said. Communication should be assessed on the basis of the
reaction from the recipient so that the communication could be termed poor if the observed
reaction is bad.

All information in the CRM system ensures correct communication to the public. The system
should also ensure that actionable and honest feedback is facilitated and encouraged. The
information contained within CRM system enables communication to be conveyed in the
right way to the right audience. The communication system should encourage and facilitate
feedback and honesty (Kristin and Kerr, 2002). Browser and software-based applications are
the principal tools in customer relationship management that include collecting and
organising important information on customers of a company. For example, a company can
use an old customer database during the building of a customer satisfaction survey or the
decision-making process on which customers are most interested in its new products (Kale,
2004).

2.3 Major CRM elements

CRM aims to fulfil three key demands as a strategy. The requirement is to ensure that each
customer is fully visualised and understood as a company or an existing firm so as to enable
unified and uniform contact between the customer and any employee in the company.

This knowledge increases the sales opportunities and the efficiency of customer service
(Kristin and Kerr, 2002).

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The second requisite for CRM is to enable customers to view and understand the company
consistently and fully without taking into account the way they have contact with their
customers. This is an efficient way to improve customer satisfaction and retention. The third
requirement is that the employees in the front office be able to effectively carry out
marketing, services and sales tasks to ensure teamwork in order to increase expertise and
reduce costs.

CRM allows business owners to manage and even report to customers or to communicate
with other business contacts, including sales both outside and inside the company (Ali and
Alshawi, 2003).

2.4 Executing the right CRM solutions

CRM is a company that is able to have an enormous impact on an enterprise as a business


strategy. However, this implementation requires an effective process of decision-making.
Consequently, making the right decision requires consideration of a number of factors.
According to Thirkell and Huff (2007), the need to identify the objectives that CRM wants to
achieve is one key factor. Some of these can include improving the attraction and support of
customers through improved customer data collection or integration of customer data
collected from various sources. Objective identification permits the implementation of the
most effective and relevant strategies.

Increasing efficient customer-capacity and mainly in large companies, ICT and software are
very important. There are different types of systems on the market today so that a clear
understanding of the different requirements required for the selection of software solutions is
required. In most cases this process will require the company to choose a preferable ICT
provider for implementing software solutions and to support processes for specification,
implementation, training and maintenance, in large companies in particular. Just like in any
other ICT project, it is essential that selected consultants have access to solutions that have
been demonstrated to be economical, and that they are not only knowledgeable but also
reliable. Consultants should also be able to build and implement effective CRM software and
ICT capabilities.

The conduct of market research is also essential to ensure that various CRM solutions are
successfully implemented. This involves recognize the top sellers and the current price range,

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identifying the different technologies used by competitors and interacting with business-
related trade associations.

The need to always concentrate on the type of CRM needed is also important. In this case, the
CRM could be networked, generic, web-hosted, autonomous, in-patient, custom or industry
specific. When you identify the kind of CRM you need, the right tools, needs and procedures
for implementing are selected effectively. This includes the identification of the probable
effects on customer service profitability, revenue and cost. In this case, a cost-benefit analyse
will be used to determine various costs such as cost per user or licence, number of licences
needed, rent or purchase costs, and costs for ISDN or broadband for the transfer of large files.
In addition the implementation should be carried out in such a way that every new solution
can be integrated with the already existing solution if the CRM implementation is performed
for a specific function within the enterprise. When a new method of work is introduced, it
will affect other fields of activity. For example, if the customer increases, this can have an
effect on stock management, sales and purchases. The combination of different processes
prepares the company to increase its output level (Zeithaml, et al. 2002).

Another important factor is that the data collection process is sufficient and efficient. This
requires always ensuring that all the data collected are taken into account in decision-making.
For example, by effective data collection an enterprise can identify whether sufficient
resources are available to support an increased customer response and, if the resources are not
enough, develop alternatives or appropriate control measures. An additional important factors
in the decision-making process during CRM implementation are data security and data
protection. The system that has been created must always ensure full protection of customers'
privacy. Therefore, the company implementing the system is required to register under the
Data Protection Act. All information contained in the system should be developed so that it
can be accessed only by relevant parties within the company. Management of customer
relations involves collaboration and information sharing within and outside the company.
This means that before the system is implemented in a given company or business, it is
necessary to make several decisions. These decisions include: whether the diverse solutions
match the supply chain partners, whether the company is prepared to implement necessary
culture changes and whether the systems are safe. Partnership or cooperation planning
requires the company to plan for any additional training required by employees to manage the
system efficiently and efficiently. Companies should also ensure that they interact with their
key customers and providers on such issues as software, hardware platforms and
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collaborative policies. The project should be divided into handy parts and a pilot study
established. The planning should include a measurable architecture. Peel (2002) also says it is
necessary for the company to test the systems prior to the real purchase and installation of the
system to ensure the correct implementation process. When the actual installation is required,
installing the demonstration versions is an efficient way to identify any obvious challenges
and advantages for the system to be viable. It can also be used for the comparison of features
of the different systems, so that one can choose the best way to buy one (Kristin and Kerr,
2002). A planning of the stage or phase of implementation ensures critical systems decisions
such as, for example, integration into the business of the CRM system in phases, the time it
takes to complete the project, the need to train employees and their training costs and the
need to know whether external experts must provide advice on the project (Kale, 2004).

2.5 Types of CRM solutions

Customer Relationship Management is very essential promoting business success. The better
the existing relationship between the business and its clients and other partners, the easier it
becomes to do business and create revenue in return (Varadarajan, 2006). The use of
technology to make improvements on CRM can therefore be said to be a wise move. CRM
solution can be grouped into four main categories as discussed below.

2.5.1 Off the shelf solutions

Several customer relationship management applications provide software companies that are
integrated into existing packages. Smaller firms require the reduced software versions, which
could be viewed as the cheapest choice since the company is investing in standard software
components. However, the software cannot always work, so that the company sometimes
needs price and convenience to trade functionality. Therefore, flexibility is needed to ensure
business success (Thirkell and Huff, 2007).

2.5.2 Outsourced solutions

These apply for application service vendor web-based solutions. The solutions are most
useful if a company has to implement a solution urgently but lacks the in-house skills
expected to accomplish the work from start to finish. This is also an excellent fit for
companies that are already equipped with e-marketing capabilities (Gefen, 2002).

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2.5.3 Bespoke software

The development of a supreme brand in modified CRM solutions requires software and
consultants to customise a system that can be integrated into existing company software. This
is not only a costly company, but also a time-consuming undertaking. To select this process, a
company must ensure that its exact requirements are specified effectively. The cost of the
software depends on the designer quotations of the application. This solution is most often
considered to be the largest in comparison with all other solutions (Blumberg, 2002).

2.5.4 Managed solutions

This approach is a hybrid of outsourced and bespoke, and it entails leasing a CRM
application suite that is configured as a bespoke solution or package. The approach is cost-
effective in this scenario, but the corporation will have to make certain compromises in terms
of functionality (Peel, 2002).

2.6 Customer Relationship Management Components

For customer relationship management, the researchers produced different definitions.


However, in one way or another, these definitions are different. The researchers seem to
agree upon five key aspects, including technology, business culture, processes, relationships
and people, in the categorisation of various components of CRM (Ali and Alshawi, 2003).
Contributions to each part are determined by the level of implementation.

2.6.1 Technology

Technology means that a company is computing capable of collecting, managing, saving and
using customer information effectively and efficiently (Adelaar 2000). It helps customer
relationship management systems achieve their different goals for collecting, classifying and
saving valuable customer information (Payne and Frow, 2004). Integration technology allows
firms to build better and stronger relations with their customers by providing a broader
perception of customers (Thompson et al., 2006). This means that companies must basically
use Information Technology as a way to make them understand their customers' conduct
effectively, develop predictive models, establish effective methods of communicating with
customers and respond to customers through accurate and real-time information. Integration

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of IT into a company requires the approach of concepts such as software, data storage, call
centres and help desks, Internet influence and process automation (Blumberg, 2002).

2.6.2 People

Dwyer et al. (2007) think that successful staff and clients play an important role in any CRM
project. By acquiring information on different aspects of the consumers, CRM manages a
company's relationships with its various customers. CRM aims mainly to translate customer
data into personalised services and products to meet consumers' ever-changing needs in order
to achieve customer loyalty. It is important that the staff and the management team make sure
they commit themselves to the task in full, in order to succeed in providing consumers with
good service and meet their diverse needs in the process of implementing CRM.

2.6.3 Business process

According to Evans and Laskin, relationship marketing is the core of CRM as a business
strategy (2001). Companies that turn their corporate processes into customer-focused ones are
the most successful in implementing Customer Relationship Management. As a result, all
businesses whose business operations include indirect or direct client interaction are assessed
and analysed. Enhancing direct touch with customers should be prioritised in CRM-related
business activities. CRM installation entails three primary business processes: sales, services,
and marketing (Zeithaml, et al. 2002).

2.7 Mistakes made during CRM implementation

Several past studies have been undertaken to investigate the many factors that contribute to
CRM's success in many businesses (Rigby and Ledingham. 2004; Wisktron, 2004). Several
reasons for CRM's failure to meet its goals have been highlighted. While some of these
factors are unavoidable, the majority of them may be monitored and avoided. CRM
implementation failure is caused in the majority of situations by organisational and
technological issues. Attempts to determine the causes of these failures have yielded a slew
of causes and uncovered the root of a slew of issues that prohibit many initiatives from
attaining their objectives. 2002, Goodhue et al. The year was 2002. Support from top
management, alignment of various internal processes, the unification of the CRM project, and
high-level initiatives set by organisations that focus on return on investment are all variables
identified by Nguyen et al (2007) (ROI). The main reasons for CRM's failure are a lack of
effective management support, a lack of a customer-oriented corporate culture, the absence of
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a preparedness process, poor data quality, a lack of change management, a lack of strategy
and vision, and a lack of end-user involvement in CRM implementation (Chalmeta, 2006).
These characteristics were backed up by Kale (2004), including the identity of CRM as
technology, a customer-cantered culture, lack of appreciation of the customer's life
expectancy, lack of support from senior management, lack of recognition of the need to
manage change, failures associated with reengineering procedures. Other studies found
common causes of a failure of CRM. For example, one study analyses CRM in 650
companies and identifies the reasons for the failure as the result of organisational change,
insufficient CRM skill, poor business policy and an inadequate understanding of CRM. The
failure to develop effective CRM strategies is described by Rigby et al (2002) as the principal
cause of CRM failure. The researcher then describes four risks to be monitored for a
successful CRM implementation process based on his findings. This includes implementing
CRM prior to the customer strategy, implementing CRM prior to the organisational change in
line, presuming more CRM technology and stalking rather than twitching customers will
achieve greater results. However, the main causes of the implementation of CRM failure have
not been recognised as factors such as the failure to concentrate on social or human factors,
clients and workers (Bohling et al, 2006; King and Burgess, 2007and McCalla et al, 2003).
Additional reason for the process of implementing CRM is assuming that CRM is a customer
purchase equivalent and that customer satisfaction equals customer loyalty (Verhoef and
Langerak, 2002).

Poor planning is another factor that has been identified that results in CRM failures. Even if
efforts have been made to select and deploy software without support, rationality and context
for the employees, these initiatives will most likely fail. In other cases, companies only
automate those customer-focused processes, instead of redesigning them to best practises.
Poor integration may also be another problem in implementing which will fail to implement
successfully CRM (Payne and Frow, 2004). Integrations are key initiatives for many
companies in order to provide solutions to problems identified as well as to respond to
various needs, which mainly include improving a customer-oriented process or even
automating a particular customer support or favourite sales channel. These solutions offer
little alignment or integration with the global business strategy. They do not give the
customer a complete view and lead to customer dissatisfaction (Aldlaigan and Buttle, 2005).
It is important that companies prevent solo thinking and decision-making in order to find a
solution to the failure of the CRM implementation process. The different research

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recommendations stress the need for organisations to integrate customer-oriented activities


(Treacy and Wiersema, 2005). This results in the process of processing and replacement for
information sharing across sales, services and marketing that are departmentally focused and
internally focussed. For example, before cross-sales to a specific customer, sales
representatives should be aware of relevant marketing offers and current issues. On the other
hand, marketing personnel must ensure that they use customer information from service and
sales to improve and improve target offers and campaigns. Support agents must quickly and
fully access customers' service and sales history (Thompson et al., 2006).

2.8 CRM strategy and response rate

Through customer relations, companies can clearly understand their customers and group
them into different categories. You can also identify a potential customer base. This (2002)
allows rapid replies to the various questions, according to Verhoef and Langerak, so that the
often-changing perspective and wishes of our customers can be continuously, immediately
and frequently discussed. CRM helps a company if it is viewed as a tool that enables a
company to work and acquire from customers continuously (Kale, 2004).

Customer relationship management requires an efficient, but also internally integrated


business system. A large number of companies in the established organisational discipline are
able to collect and manage mass customer data from the implementation of CRM and from
specific technology itself through CRM technology while at the same time pursuing various
strategies in terms of information. CRM initiatives allow companies to offer specific
solutions throughout the customer relationship cycle for specific customer-oriented problems
(McCalla et al, 2003)

2.9 Behaviours and needs related to CRM

According to Chalmeta (2006), the way companies react to the CRM strategies they employ
in order to deal with changes in the consumer's behaviour pattern has changed enormously in
computing. By increasing the use of self-service channels like mobile phones and internet
customers are served directly without physical access to the company. To gain competitive
edge, companies are looking for innovative ways to personalise and improve online
experiences (mass customization) through various tools including web development, help
desk software and email organisers.

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Operational CRM supports business processes in the front office that include service,
marketing and sales. Each customer interaction is recorded as the contact history of the
customer. In this case, employees can retrieve any required information from the database
easily. This makes contact history so useful that customers can communicate with more than
one employee at different times without having to tell their history of interaction
occasionally. Call centres basically support their agents by using CRM software (Goodhue et
al, 2002).

CRM initiatives also provide new and up-to-date companies with a view to providing
customised products, which are responsive to the individual needs of the various targeted
consumers. CRM initiatives are also designed to help customers. CRM initiatives therefore
play a key role not only in marketing initiatives but also in other business functions, like
research and development, supply chain management, product development and business
process improvement. Excellent customer service is due to the knowledge and efficiency of
the specific needs of customers. CRM helps organisations to understand, predict and respond
consistently to the various needs of their consumers (Nguyen et al, 2007).

2.10 Benefits of CRM

Most organisations regard CRM as a new idea. However, companies have begun to
understand its relevance, which is why most successful organisations dedicate more energy
and resources to building and managing customer relationships. Like any other corporate
plan, the main objective of CRM is to increase the company's profit. As regards customer
relations, this is mainly achieved by providing good customer service than that provided by
the competitors. The principal objective of customer relationship management is not just to
increase customer service through a good capacity for customer relations, but also to cut
costs, waste and complaints. Research has previously shown several advantages for
companies which have implemented customer relationship management systems. These
researchers have identified nearly the same results and thus common benefits identified by
the majority of companies in various parts of the world (Kristin and Kerr, 2002). A successful
realisation of customer relations can be defined as a key to every business' success. When
CRM is well implemented in a company, it is promised that its customers receive better
service and that profitability will increase (Thompson et al., 2006). Many and diverse CRM
advantages can be compared to the number of companies implementing the projects.

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Implementing customer relations was found to be a very intelligent solution to gain


competitive advantage.

Customer relationship management may have enormous impacts on a company by reforming


the offer given to client requirements and not by shifting the focus from product to client and
focusing on the skills needed for effective customer relationship management. A well
implemented CRM system will increase the satisfaction of customers and even increase the
level of profit for business. Actual CRM benefits, just like various companies that adopt
processes and software, are endless and varied (Blumberg, 2002). CRM implementation
within the company is a worthwhile investment that creates an intelligent business solution
that makes the company competitive (Goodhue et al, 2002). With CRM, companies can better
understand their customers' diverse needs and requirements, effectively meet the needs
identified, predict and improve market trends. In essence, companies can achieve several
advantages. The following is discussed in Chalmeta (2006): Effective management of
customer relations reduces stresses for employees as wear out of the employees who are a
main source of stress reduces with improvement in relationships and services.

Distributed or shared data

As more businesses see that customer relationships are formed not simply through web
presence or customer service, but also at many other levels, they have come to see the value
and necessity of data sharing throughout the organisation. Relationships with customers In
addition, management systems enable firms to make educated decisions. (Nguyen et al,
2007).

Cost Reduction

CRM is critical in turning customers into business partners rather than just customers.
Customers can use CRM to make informed decisions, enter their own orders, and perform
other tasks without needing to seek assistance from staff. In this instance, fewer employees
are required, lowering firm costs that would otherwise be spent on hiring more employees.
(Treacy and Wiersema, 2005).

Quality and improved Customer Service

Every type of customer interaction data is centralised and provides the customer service
department with all the information it requires to provide it easily. This means that each time

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a transaction with the company is made the customer is not asked to provide a history of
interaction. Customer service representatives can use push technology to direct customers
towards any type of information they need (Payne and Ballantyne,2002). Without necessarily
seeking help from the support team, customers can easily operate through this system and
access any necessary information themselves (Dywer et al, 2002). Web-based CRM creates
Web-based customer data and database access via CRM. CRM solutions facilitate an
effective management, convenient and helpful response to different requests from customers
when consumers or prospective customers or buyers are interactive with an enterprise
through email, chat. This therefore greatly improves customer experience (Blumberg, 2002).

Enhanced Customer Satisfaction

CRM gives consumers a feeling that they are not only subjects for marketing and sales but
also part of the company. The system makes it possible to anticipate and therefore effectively
address the requirements of consumers and also ensures the high-quality service they receive
(Thompson et al., 2006). CRM responds to various problems relating to the sharing of
customer data and provides customers with a seamless mode of contact and customer
satisfaction experience as a unified marketing message. CRM also promotes a systemic and
organised sales, marketing and service system for a given company. CRM supports a specific
company. Each customer interaction is effectively and consistently conducted. As a result,
consumer satisfaction is increased (Peel, 2002).

Better retention of customers

Customer loyalty is more likely to result from high levels of customer satisfaction, which
means that organisations that have effectively adopted CRM are more likely to retain their
customers because they are constantly willing to return to the company for more products or
services. (Dick and Basu, 2004).

Increased new business

Existing consumers who obtain high-quality services and products and are completely
satisfied with the services provided by a company are more inclined to tell their friends and
other stakeholders about it. The company is gaining new consumers as a result of more and
more customers telling others about it and urging them to buy from it, who are then able to
inform or invite others, etc. This increases the number of new companies (Peel, 2002).

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Increased repeat business

Consumers who had planned to migrate to another company or who were incompatible with
that firm and would thus buy from other firms are turned into loyal consumers who can only
buy from the firm that implemented CRM by providing consistent quality customer care.

Cost reduction

The use of CRM ensures coordination and systematic work and overall work within a
company. In turn, this reduces money wastage, reducing labour costs and encouraging more
efficient and efficient business operations. The CRM front end applications also have a major
role to play in cost reduction through its integration with production and accounting back-end
systems.

Increased profits

The increase in customer retention, attraction of new customers and business growth at a
reduced cost are bound to increase the profitability of the business. The ability of customer
relationship management to generate sales cycles that are shorter because of the efficient
process of managing orders and accounts is another way of boosting profits. As business
opportunities continue to be maximised, it leads to a long-term level of profitability and
business growth.

Other advantages brought about by the use of CRM for companies include the development
of better communications channels, effectiveness in data and data collection and stocking, the
creation of detailed profiles such as the preferences of customers, the promotion of customer
instant delivery, and the effective identification of new opportunities (Darrellm and
Ledingham, 2004).

2.0.1 Benefits of CRM Evaluation

The benefits resulting from the implementation of CRM in a given company can be measured
and quantified. This can be done with the different dependent factors. The company revenue
will, for example, increase as a result of reduced operational costs that are easily quantifiable,
increased cross selling as a result of a single contact with the company, greater success in
bringing new customers to the company and rapid closure of agreements through a faster and
more effective response (Bohling et al, 2006). Various benefits have been achieved by
companies that have successfully implemented CRM applications in their marketing
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approaches. Many were able to customer service sync according to customer requirements.
The CRM enabled businesses to develop customer tracking and analytical systems that lead
to better services (MacFarlane, 2006). The tool also has an interface that enables customers to
share their views on how the improved communication channels can best serve them. The
operational costs for businesses, such as advertising and sales, are reduced and revenue
increases.

CRM also enables the company to customise the provision of its service and produce
products that meet customers' preference and taste limits. The company can also establish
new paths through cross-sales to increase revenues (Alt and Puschmann, 2004).

Basically, customer relationships and the opening of communication channels allow instant
market research to enable customers to respond directly and consistently to their
performance, services and products by providing them with much better information
compared to each survey market. The efficient and necessary customer relationship
management to help businesses develop: company stays with its customers for a longer
period of time, customer rates decrease, customers are referred to by increasing numbers of
contented customers, demand for trouble shooting and firefighting and services flows
generally as teams continue to work more professionally.

2.1 Implementing Customer Relationship Manager (CRM) Strategies: Management's


Role

The whole CRM is a rather complicated undertaking but when well developed, the company
or organisation will be brought to a new revolution. The management within the
implementing company plays an essential role in developing efficient communication plans
and strategies, knowing the main company business needs and defining the correct software,
in order to ensure its successful implementation. CRM returns well to the company when
done efficiently and correctly (Peel, 2002). Creating a market connection in the current
environment is crucial and has completely revolutionised marketing companies' strategies to
more related approaches. Enabling CRM management by IT has made the corporate strategy
more efficient with regard to establishing and developing relationships with valuable
customers with a view to maintaining customer loyalty. A good manager guarantees a
reliable, accessible, responsive, safe, courteous and communicative system of customer
relation management that takes into account all the necessary factors, that he is competent
and that he recognises the customer. In any given business, management plays a major part in
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examining the CRM issue and ensuring that it plays the role of retaining clients who already
exist through long-term, customer satisfaction-critical relationships. The management must
also find new ways to attract new customers and ensure long-term relationships remain. The
knowledge of management and the upgrade to CRM system is important not just to enable
the company to interact but also to attract and build one with its clients. This could be done
also by arranging how the customers can become familiar as a company or organisation
(Peel, 2002).

Another important role of management is to provide the organisation with a conducive


environment for knowledge and innovation, which are most essential for high-speed
competitors to achieve. It must ensure the management of skills so that the dreams and
objectives of the organization are achieved through a strategy based approach that facilitates
employees' abilities and development to use available information sources, capacities,
personality, expertise, feelings and culture to interpret data and information. By means of
information and data processes, this should improve the management of skills.

A management's skills and creativity depends on the analysis and creation of the framework
work of events and knowledge within the organisation The manager must know how to
manage and serve the skills of the customer much better as the multinationals are able to
achieve their status. So the buyer is the backbone of the company. This means

Managers need to ensure that CRM is implemented to create a competitive advantage in


terms of implementation and that it is effectively planned and implemented. To achieve the
defined goals The employees should have all the skills they need to ensure they are able to
understand the CRM system effectively and understand its different roles and responsibilities
to promote the success of the implementation.

In terms of relationships, it should also be necessary to develop strategies for collecting


customer information and to give customers a sterling value of their money in terms of the
quality of the end product or services. The information collected here is not only direct, but
also accurate and correct (Treacy and Wiersema, 1995).

Another significant role of managers in the implementation of CRM is identification of


hitches in customer connection cycles and are likely to be a blow against brand loyalty and to
have a negative effect on customer satisfaction. The plan of an effective communication
strategy is likely to be hit by these hits and negative effects. The communication strategy is

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important in order to gain competitive advantage as it contributes to the satisfaction of


customers. The manager must ensure that it is done professionally as a key point.

It is important to ensure that the management of any given CRM company does not focus on
its products to be a customer. This will help to ensure that customer quality service and
customer satisfaction and retention are prioritised.

Another role of the manager is to develop strategies in the communication plan that reflect
the organisation and not the product-centric organisation (Blumberg, 2002).

Another key role of management is the choice of the right technology platform and its
implementation costs, which include software development procurement and training
activities. This will help make the best choices and decisions possible and enable the
company to access the selected technology platform. Management should have sufficient
understanding and competence about the various CRM technologies to enable efficiency in
such decision-making processes. Another key role that managers must play is to evaluate the
ROI (return on investment) and monitor the CRM implementation and investment. The
manager must also ensure that employees are involved and are able to participate actively in
all processes involved in the entire implementation process. This is important to ensure that
they fully understand the system and also reduce resistance to the system. This will help them
understand it further. The manager must inform the organisation through policies, guidelines
or even training on CRM initiatives. The team with which it works will therefore be aware of
the expectations of the executive level that promote good understanding and customer
response. Employee participation in the execution process is a key to success. Furthermore, to
avoid CRM project failures, the manager must involve other key people in the project, since
they will be involved in constructing the CRM use in corporate culture. Checking what the
major sponsors want and offering a conducive environment should ensure the success of
potential users and even customers to make time and financial commitments (Blumberg,
2002). Another important role of management is the evaluation, monitoring and evaluation of
the CRM implementation and outcome. Managers must measure and keep an eye on how the
CRM initiatives are felt and how vital people actively initiate CRM. They must also monitor
with the CRM initiative the level of satisfaction of their customers, improvement in
profitability and customer retention.

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In order for management to achieve complete success, organisational, administrative and


political obstacles should be overcome. In the most cases, this affects the company's output
and ultimate sales and aid resulting from destabilisation.

2.2 The Impact of CRM Inadequacy on Business Success

CRM is an application of one relation to one, reacting to the client in the sense that the buyer
says, ensures a greater understanding of the needs of the customers and guarantees the
satisfaction of the customer (Peppers, Rogers, and Dorf 2000). It offers a pathway to the
creation of long-term relationships and profitability between information technology and
marketing strategies. If the CRM and its implementation process are inadequate, the
company's set objectives will not be achieved and a number of defects in various areas of the
company can be identified. This section of this paper discusses the different effects of
inadequate CRM implementation on a company.

2.2.1 Customer Reactions

a. Loyalty

Customer loyalty to a company is essential because it enables the company to put more
energy into business (Gefen, 2002, Rowley & Dawes, 2000). Sales and profitability of the
company will probably not be achieved without customer loyalty. Dislodge among customers
can be shown with reduced purchasing, reduced frequency of purchases or a customers'
complete withdrawal.

Loyalty in this article is therefore a critical factor for effective CRM if the CRM implemented
is insufficient and loyalty reduced, which has a significant impact on the profitability of the
company and will prevent its company from achieving its defined objectives. This may be in
terms of loyalty to a brand, loyalty to a store, loyalty to sellers and loyalty to products or
services. Blumberg (2002) notes website reinforcement Features of the existing CRM are
enhanced by organising the knowledge of the organisations and by understanding customer
expectations, strengthening and interacting with customers. When CRM's key function is to
maintain customer loyalty (Evans & Laskin, 2001), the customer will definitely not be
discouraged and will lose the company in large numbers. This means that CRM should
remain sufficiently focused to increase this factor.

b. Retention

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Customer retention retention in CRM is a mighty weapon. It is important for companies to


preserve existing clients, because in comparison to the cost of maintaining existing
customers, it will cost the company a lot of money to acquire new clients (Dwyer, et al.
2007). If the implementation of CRM is insufficient, companies cannot retain existing
customers. For many companies, the costs of losing the most profitable customers have been
streamlined to have a serious impact on the profitability of the customer. For example, in
banks, one to 50 percent of the entire customer profitability is likely to be at the top 30
percent. Customer retention allows the company to collect data from customers to help
understand the market, communicate with customers, and develop future customer
interaction. CRM must therefore do all it takes to ensure that retention is one of its key
targets. retention is a costly but crucial and profitable venture. As an important tool in a
company, this can change strategies and objectives in the short- and long-term. For the future
of the company, retention of customers is important. Inadequate CRM will seriously impede
the success of the company in relation to this factor. Unless the consumer considers tailored
products, the customers will start to look after enterprises that care about themselves (Dwyer,
et al. 2007).

2.2.2 Management Implications

Management has an enormous function to play in the determination and


understanding of and appreciation of the need and importance of customers. The management
needs to have theories of knowledge concerning the customer relationship in order to perform
these roles effectively. A long plan, adequate engagement and organisational investment
should also be made. Poor management of CRMs and inadequacy are therefore jointly
addressed, so that customers' requirements are not identified and met as necessary.
Inadequacy in CRM prevents the creation of a good corporate marketing structure (with
different buying influences) that the management has a major obligation to make possible.
Bad management is due to inadequacy and vice versa. Management ensures that a company
builds a business and customer relationship based on mutual advantages. If CRM is
insufficient, management has difficulty measuring the level of satisfaction of the customer as
it is unable to identify the correct measurements.

Lack of management and inadequacy in CRM will lead to customer losses. Furthermore,
insufficient CRM means that management cannot identify customer service requirements and
therefore cannot meet them further and thus result in losses (Zeithaml, 2002).

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2.3.3 Marketing impacts

For many companies, customer relationship management is an important marketing strategy.


One key role of CRM must be to ensure that there is a relationship between marketers and
customers based on the loyalty programmes. In this context, marketers should be prepared to
invest in infrastructure that can include web-based software or hardware that efficiently
exploit the benefits of CRM and that customers need to continue to have relationships with
the company. When the result or final product satisfies the client, customer loyalty is longer,
more is bought, the company is talked about favourably, and the price is sensitive (Payne and
Ballantyne, 2002). If CRM is poorly implemented, its role in marketing can not be played
effectively. Insufficiency means, therefore, that the company will be losing because the
company's advertising and knowledge of new customers will not exist, existing customers
will talk ill about the company and the company will in turn be on the way to collapse. In
addition, without the correct CRM, companies will not benefit from marketing knowledge so
the company will lose out (Treacy and Wiersema, 2005). Additional effects which
insufficient CRM will have on Kristin and Kerr companies (2002) are listed below:

The combined or removed weak sales distribution routes will not be realigned.

a general fall in the company's profit level Loss of information through coherent integration
between organisations and customers. CRM cannot quickly identify and adjust its
requirements and requirements for customer service.

Between marketing guidance and CRM performance there will be no mediation

The company or organization's operation is focus less and aimless without the establishment
of a CRM strategy.

A failure in CRM will not lead to the use of technology as a tool for obtaining, examining
and disseminating current customer perspectives, developing deeper data and focused
contacts and for identifying and addressing the needs of customers.

There will be no organised orientation on the market where broad guidance is disseminated
and characterised by the sharing of information between departments.

There is no early detection and reintroduction of a market problem time.

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2.4 Customer Relationship Management at Siemens India

Siemens India was an impeccable company whose growth was greatly encouraged by
delivering goods and services to its customers. Siemens India has developed a number of
strategies as a company willing to succeed extremely successfully in the present competitive
business world. They aim to attain competitive advantages and always maintain a leading
position. As a service provider, the company is extremely concerned about various methods
of combating attractive proposals and pricing from its competitors, which in turn attract
customers. In addition, they recognise the need to control the reduction in service, network
level and customer dissatisfaction or negative experiences in preventing customer loss as it is
highly costly to acquire a new customer compared to the existing customer base. Siemens
India strongly believes that service providers' operational and marketing functions strongly
affect different factors, including loyalty programmes, churn management and bill shocks
prevention. In turn, this has led to the development of strategies to promote quality services
and customer interaction. This has encouraged the development of techniques to effectively
manage the company's relations with its customers. One such technique is the enhancement
of customer experience (CE3). Besides the information technology group of service providers
available, this is easy to implement (Siemens India, 2011).

2.4.1 Customer Experience Enhancement Engine

Siemens India has been able to come up with solutions in relation to the planning and
implementation of campaigns based on various inputs from customer segmentation and churn
management through the planning and effective implementation of this strategy. As a
solution, service providers can maintain their existing customers and ensure the life-time
value of these customers is expanded. The strategy acts as an effective approach. This is the
basis of their business strategy. It allows service providers to always lead before their
competitors and to quickly develop new, high-quality services and support efficient retention
management programmes through a number of capabilities. Through the attainment of a
competitive advantage, increasing sales of the company, and in turn increasing profitability
and productivity for the enterprise, those features may be also considered as essential in the
promotion of client satisfaction.

One feature of this kind is improved customer experience. By providing direct rewards or
creating an opportunity for users to collect and collect Points that can therefore be redeemed
for other valuable services of their will and which match the accumuated Points, a
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spontaneous loyalty experience amongst end-users was created with CE3. A further important
element is bill shock prevention, whereby the engine accumulates real-time and data in
different dimensions in relation to units of measurement, cost, counting and real-time ratings,
data services and mobile voice policies and charging, including mobile television and
broadband on demand provisions.

When the limits imposed by the abonor, or by the regulatory body are achieved, CE3
encourages the immediate and auto warning delivery via email and Short-Message Service
(SMS). Any other traffic on the network is currently blocked. A second essential feature of
CE3 is micro- segmentation on the basis of the history of profiles or use, which allows users
to collect client profiling data which will be used for targeted campaigns in future by the
flexible and versatile segmenting engine of a subscriber.

The four-play loyalty is mainly centralised, in order to connect the presented independent
business data structures to any amount of service platforms to create consolidated, pre-
paying, three-play and four-play play loyalty scenarios throughout the value chain. Another
feature, described by CE3, is the implementation of rapid and flexible loyalty campaigns. The
engine launch aims, accordingly, to create new marketing campaigns in a few hours and to
reduce the total length of time spent on the market. This allows users to effectively launch
promotional tests, evaluate the results and manage the different phases of promotions under
way.

Another essential feature of the Customer Experience Enhancement Engine is its seamless
integration with the previously existing Business Support Systems (BSS) and Operations
System Support (OSS), which creates high efficiency platforms to manage millions and
millions of different network transactions within a readily and highly available telex
environment. It allows seamless integration with the actual internal network, accounting, and
customer relationship platforms without the necessity of altering or phasing out any particular
system. In line with the Bill Shock Prevention Regulation 544/2009, customer experience
enhancement engine has been developed and implemented as a solution. This can be
amended to enable new regulations to be developed in compliance with the new regulatory
guidelines.

Siemens India's solution is to empower telecommunications companies Siemens: Siemens


Indi’s campaign management solution empowers micro-operators to market subscribers’
groups or individual subscribers, fosters network retention and enhances the use of
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subscribers, develops new ways of increasing operators' income and promotes customer
loyalty to contribute to competitive advantages. The system also supports users by providing
promotion analysis, an all-round picture of their subscribers, dynamic campaign promotion
and how subscribers react to the campaigns, customer experience assessment points,
commission or bonus calculations, and real-time collection, in terms of cost, recharge, use, or
change cost and count.

Statement of the Problem

For any company today, customer relationship management is a key element. The company
can bring competitive advantages to effective CRM organisation implementation and an
efficient organisation customer service. As a result of liberalisation and globalisation, the
existing business landscape faces many challenges. The focus on how companies should be
managed to contain existing and new customers has changed. Consequently, CRM plays a
major role in successful business transactions.

The business world is focusing on electronic trade issues with the development of the new
millennium (Teo et al., 2003). Intra-organizational transactions, inter-agency enterprises and
single clients, the Internet computer and networks are covered by the e-commerce industry.
The B2B transactions are influenced by this network. This is the task of the network. Recent
studies have forecast that internet eBusiness-2-Business revenues in 2004 will reach $6.8
billion. This kind of prediction is evident in the importance of the Internet as a means of
supporting business activity.

The Internet seems to offer virtually unlimited opportunities at present. In fact, many
companies have substantial advantages already. One of the outcomes of Internet
developments is World Wide Web, a network services providing information about
hyperlinks and hypermedia paradigms. In order to reduce resources, some companies have
invested mainly in this particular Web. Today, World Wide Web has huge management and
operational capabilities.

CRM was already identified in the literature and a cutting-edge approach. In fact, the
management of customer relations refers to all business activities designed to establish,
maintain and develop effective and lasting connections. Promoting client loyalty is one of the
customer relationship management results and a relationship fact. Customer loyalty to a
service or product supplier offers huge advantages, so companies want to achieve the loyalty

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they need. The Internet has now been given a new obligation to enable customers to connect
to CRM. Current Internet technological developments. Nearly all the available information
on the effects of Internet use on corporate management is based on evidence, anecdotes,
AdHoc research studies on experiments. There are very limited research to test internet
management results on customer relations, which ultimately lead to customer loyalty, but still
have opportunities and threats.

Due to its improved communication interactive and information capabilities the Internet used
by the organisation and the important praises that the organisation receives. It is used as a
channel to manage customer relations more effectively and to develop new network
cooperative chances. However, the Web offers customer relations of management
opportunities has rarely been empirically tested.

The care of building helpful interactions between customers is an old step in the business
world.

Greater competition and decreased consumer loyalty have necessitated the development of
new toolboxes to help firms achieve consumer loyalty and combat competitiveness through
personalised services and products.

With the help of Internet technology customers have developed their understanding of the
changing nature of products and demand for services, enabling companies to quickly deal
with increasing customer knowledge through their IT systems. Many of the companies have
difficulty implementing customer relationship management systems. Their projects in relation
management are deceptive at the critical level of failure.

As the Gartner Group has indicated, approximately 50% of all customer relationship projects
have not achieved their goals (Knox et al, 2003). Because of large client relationship failures,
a large number of researchers have developed different client relationships. In implementing
a customer relationship that effectively involves IT and the Internet in all the operations of
the organisation, the management plays an important role.

Objectives of the Study

 To assess the success of Siemens India's CRM implementation.


 To investigate the root reasons of CRM shortcomings at Siemens India.

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 Examine the role of management in CRM strategy execution • Evaluate CRM


implementation methodologies
 Examine the consequences of poor CRM on Siemens India's success

Research Questions
 How does the CRM application implementation process work?
 Why has CRM integration with corporate business processes proven so difficult for
many companies?
 What role does management play in the CRM implementation's success?
 How can the obstacles of CRM integration in the operations of business companies be
overcome??

Scope of the Study

The research study covers:

 The company's customer service policy


 The interaction between management and customer service personnel in the adoption
of CRM solutions, as well as whether or not additional parties are involved.
 How do the CRM application’s inadequacies affect Siemens India's profitability?

The Study's Importance

A key company needs to be incorporated into its strategies for improvement in the
implementation of customer relationship management. CRM companies can successfully
bring new customers into your business and ensure that they continue to satisfy the customers
through the delivery of their services, by supplying quality products and services. CRM helps
build a strong and successful relationship of customer to company. Thus, business,
productivity and profitability can be improved. CRM delivery has a number of business
consequences. The results of this study help to identify the effective implementation of
Siemens India's CRM in the company.

The objective of this study is to identify the various weaknesses in the implementation of
CRM in Siemens India and to identify the causes. This is important for developing the control
or corrective actions for inadequacies, and for implementing them and achieving previous
objectives. They're going to be important. CRM's shortcomings were largely caused by a lack

39
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of high-level management efforts. Every successful implementation of a project or policy has


enormous influence on the management. Decisions and support for implementation staff are
very important.

We will also be able to study the role of management in Siemens India and the results
obtained in this study in implementing customer relations management.

The results also help assess the different approaches Siemens India is undertaking to maintain
the installation and to implement in relation to customer relations. In most cases,
stakeholders' participation in the company's CRM implementation objective is essential for
success. However, the lack of willingness and support of management and the involvement of
all concerned parties are the primary reason for apparent shortcomings.

Another important aspect of this study is that it allows us to properly examine different
deficiencies in CRM system from Siemens India and to identify their impact on the company
through the results. This will be important, if corrective measures are to be applied in order to
prevent further loss or damage to a company.

In order to identify the various benefits for Siemens India, the importance of customer
relationship management will not only be recognised and analysed for this particular
company but for all other businesses. The results of the research therefore allow other
companies to determine whether they are implementing CRM or not. The findings will also
enable companies to learn from Siemens India's errors which lead to the inadequate use of
CRM and ensure that they do not repeat the same errors during their own processes.

Research Design

The purpose of this descriptive study is to look into the consequences of Siemens India's poor
customer service. The research employs both qualitative and quantitative methods. The
combination of methodologies will provide for a complete knowledge of the various factors
that underpin implementation flaws. Interviews are used face-to-face. Calculated and
presented in easy comparison tables will be the numbers and percentages of the respondents'
responses. The key informant will be provided with a qualitative interview guide. Five
customers of the company will also receive questionnaires.

Sample Framework

Sample size and technique


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A total of six people will participate in the study. The research aims to investigate the effects
of Siemens India's inadequate customer relation management with an emphasis on the role
the management played in the implementation process. The evaluation of customer
satisfaction level is very important when identifying the success of a completed CRM project.

Therefore, the sample chosen must be representative of the customers form a very important
part of the CRM system. The sample comprises five customers and one manager of the
company from Siemens India who have been dealing continuously with the company for the
last five years. In order to randomly select respondents, a random sampling will be used.

Sample procedure

A qualitative approach will be utilised to elicit responses from respondents as well as gather
data on the impacts of poor customer relationship management at Siemens India. The number
of respondents who took part in the study will be determined using quantitative sampling.

Data Collection

The selection of participants will, logically, lead to the collection of data pertinent to the
study's topic. Face-to-face interviews are used by the researcher to obtain various
perspectives. The use of face-to-face interviews is effective if any unsafe information the
respondent may have provided is to be clarified. It also ensures that the interviewer gets all
the necessary information, as he or she is in control and can ask the question in a manner
which he/she considers to be answered. The five selected customers of Siemens India will
also be provided with questions. Questionnaires are administered automatically when the
respondents are thought to be knowledgeable and thus able to complete them.

Frameworks are well-structured, easy to understand and readily heard. The second
questionnaires are to avoid internal bias, do not use leading or value-laden works. The
interview is done in such a way that there is a high degree of professionalism and no bias.

Secondary Data

The primary and secondary data were used in this study.

Primary data are collected through face-to-face interviews and surveys.

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Secondary data shall be collected via an analysis of documents, which shall be read and the
data required from reports, books, books, newspapers and journals as well as from the
Internet.

This will make sure data mistakes are diminished.

Primary and secondary researches

Primary research involves collecting data from scratch and requires a great deal of work in
billing. It is first-hand research that gives the researcher more realistic first-hand information.
Methods like focus groups, interviews, questionnaires, observations and surveys are used for
primary research. However, a great deal of effort is required to achieve success.

On the other hand, secondary research is based on materials or information already collected.
These findings are available in books, journals, archives, internet sources and newspapers.
The existing information sources have reduced challenges related to time and costs. However,
reliability and genuineness of the sources must be established for the best results.

Data recording

The material gathered will be documented on audio cassettes, information sheets, and write-
ups for future reference throughout the project's stages.

Target group

These are volunteers or beneficiaries who help with the data collection procedure. The
customer relations manager and five randomly selected clients would be included in the
research to obtain information about Siemens India.

Research analysis

For quantitative data, tools such as graphs, bars, and pie charts will be used to analyse the
findings. The qualitative data will be analysed by comparing the actual data information
acquired with conventional CRM application results or predicted outcomes that were
established before to the research's launch.

Resources used for the research analysis

In order to analyse a significant amount of data, you'll need to use computer-assisted tools
like excel spreadsheets, inferences, and measures of central tendency like mean and median.
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Ethical Considerations

Ethical consideration is a very important field to be considered, particularly when conducting


research. First of all, it is important for you to receive letters of approval that will allow you
to perform your research. This is why, first of all, I received a letter of clarification from the
university to help me do my research. Moreover, I had to get a Gate Pass letter from the
managers in the study area. In this case, I received a letter from the authorities concerned
allowing me to conduct my research. I ensured that I obtained the informed consent of the
respondents before collecting information using the questionnaire. In this case, I explicitly
explained who I was, and gave details of my research purposes. I also explained why I
needed information from him to the respondents. I then asked to allow the respondents to
proceed with a few questions. I asked the respondents. I also informed the respondents that he
or she feels that he or she needs to withdraw from research. The confidentiality and privacy
of all information gathered from interviewees is essential. During the entire research process,
the respondents must also remain anonymous. This research was carried out to ensure that all
information was kept confidential and private. I also ensure that the information given is for
research purposes only and that no other person is provided.

The essence of privacy and privacy as a research value was also explained. The
questionnaires will be burned after the entire investigation is completed and validated, as they
are no longer operational. A written agreement was concluded between the interviewees and
i.

Limitations of the Research Study

The research study collected data that could affect the results achieved, only a small number
of clients and only one respondent. The use of a different choice for data collection from
respondents, for example if several employees were employed at the low, high and medium
levels of management. Due to time and cost constraints, however, this alternative was not
used.

The research was nevertheless conducted with great care to ensure the representative nature
of all the answers and the data collected.

One of the main restrictions of this study was the lack of time to conduct research and deal
with other essential activities. Financial limitations, even if I could work in the budget, were
another likely limitation.
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CHAPTER 3

PROFILE OF THE COMPANIES

INDUSTRY PROFILE
Manufacturing has emerged as one of India's highest growth sectors. India's Prime Minister,
Mr Narendra Modi, has launched "Make in India" as a global platform for making India
global market recognition. By 2022 the government intends to create a new sector of 100
million jobs.

Market Size
The GVA of the sector was estimating at US$ 350.27 billion at current prices, as per the first
advanced FY21 estimate. The Purchasing Managers Index (PMI) for IHS Markit India
increased from 56.4 in December 2020 to 57.7 in January 2021.

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In the second quarter of the year 2011, according to the latest survey, capacity utilisation was
63.3 percent in India's manufacturing sector.

In December 2020, India's industrial output, measured by the Industrial Production Index
(IIP), amounted to 135.9, according to the Ministry of Statistics & Program Implementation.
Between April 2020 and December 2020, total exports of goods amounted to US$ 200.80
billion.
Investments
With the aid of Make in India, India is on its way to becoming the hub for hi-tech production
because global giants like GE, Siemens, HTC, Toshiba and Boeing have set up
manufacturing facilities in India attracted to the market in India of over a trillion consumers
and increasing purchasing power.

Between April 2000 and September 2020 cumulative foreign direct investment (FDI) in the
manufacture sector of India amounted to $ 91.28 trillion. In May 2020, FDI manufacturing
under the automatic route increased from 49% to 74% in the defence sector of India.

India has become one of the most attractive manufacturing investment destinations. Some of
the major investments and developments in this sector in the recent past are:

 On February 16, 2021, Amazon India announced to start manufacturing electronic


products in India, starting first with Amazon Fire TV stick manufacturing. The
company plans to start manufacturing with contract manufacturer Cloud Network
Technology, a subsidiary of Foxconn in Chennai by end-2021.
 In January 2021, Toyota Kirloskar Motor (TKM) signed a Memorandum of
Understanding (MoU) with the Directorate General of Training (DGT), Ministry of
Skill Development and Entrepreneurship, to develop skills among the youth under the
Flexi-MoU Scheme of the government.
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 On January 19, 2021, Amazon announced that it has partnered with Startup India,
Sequoia Capital India and Fireside Ventures to initiate an accelerator programme to
support entrepreneurs deliver products to audiences globally. Amazon Global Selling
programme is rapidly improving India's exports and helping create Indian global
brands. More than 800 Indian MSMEs exceeded USD 131,375 (Rs 1 crore) in e-
commerce export sales (under the programme) in 2019.

Government Initiatives
In order to promote a healthy environment in the country for growth in manufacturing the
Government of India has taken several initiatives. Some of the notable developments and
initiatives are:

In the Union budget for 2021-22 Indian domestic growth in the manufacturing, commercial
and other sectors is expected to increase. A major focus is on developing a robust
infrastructure, logistics and utility for the production sector.
Some of these initiatives are as follows:

 The Mega Investment Textiles Parks (MITRA) scheme to build world-class


infrastructure will enable global industry champions to be created, benefiting from
economies of scale and agglomeration. Seven Textile Parks will be established over
three years.
 The government proposed to make significant investments in the construction of
modern fishing harbours and fish landing centres, covering five major fishing
harbours in Kochi, Chennai, Visakhapatnam, Paradip, and Petuaghat, along with a
multipurpose Seaweed Park in Tamil Nadu. These initiatives are expected to improve
exports from the textiles and marine sectors.
 The 'Operation Green' scheme of the Ministry of the Food Processing Industry, which
was limited to onions, potatoes and tomatoes, has been expanded to 22 perishable
products to encourage exports from the agricultural sector. This will facilitate
infrastructure projects for horticulture products.

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Road Ahead
India is an attractive hub for manufacturing foreign investment. Many mobile, luxurious and
car brands have, among others, launched their manufacturing bases in the country or are
looking to establish them.

India's industrial sector can reach 1 trillion dollars by 2025. By 2025. A Common Market of
2.5 trillion USD GDP with 1,32 billion people is being made possible by the implementation
of the Goods and Services Tax (GST), which will attract investors. The ICEA predicts that
India will be able to expand its cumulative capacity for laptop and tablet production to US$
100 billion by 2025 by means of policy interventions.

The Government aims to ensure the holistic development of the nation with an impetus to
develop industrial corridors and smart cities. The corridors would help to integrate, monitor
and develop an environment conducive to industrial development, and promote advanced
manufacturing practises.

COMPANY PROFILE

In 1867, Siemens' long-term engagement in India began with the personalization of the first
telephone line between London and Calcutta supervised by Werner von Siemens. Siemens
now has 22 factories, 8 centres of competence, 11 Research & Development centres and the
national network for sales and service.

Siemens India is responsible for manufacturing steam turbines, turbo compressors, high-
voltage Switchgear, fire and suppression systems, engines and generators, relays and systems
for smart grids. Siemens India manufactures transformers, RMS and advanced medical

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devices. The plants replicate internationally leading manufacturing systems and practises. It
also provides rework and repair gas turbines, pads and rotors.

MIT its focus on electrisation, automation and digitisation, Siemens India stands for
engineering excellence, innovation and reliability. Siemens is a pioneer of software,
automation and infrastructure solutions as one of the world's biggest energy efficient and
resource-efficient technology manufacturers. The company is also a leading provider of
medical equipment, laboratory diagnostics and clinical information technology. Siemens also
offers business-to-business finance, rail automation, and wind power solutions.

Smart, sustainable urban solutions, intelligent grid, building, mobilising and distributing
power technology are the leaders of Siemens India. Siemens is already participating in India's
R-APDRP Government to instal smart grid solutions in several cities in India (Restructured
Accelerated Power Development and Reform Programme). The recent signing of the
Memorandum of Understanding with the Confederation of Industry Siemens India, a leading
industrial partner in an Indian Intelligent Cities Company (COIC) (CII).

Siemens India has been the favourite provider of technology solutions over over over more
than 6 decades, developing and implementing various major mobility, power management,
electricity and gas, smart infrastructure projects. Siemens India also improves its digital
portfolio and creates selected domestic applications.

Siemens India develops skills through corporate citizenship initiatives such as ITI upgrades,
professional development, Technical Development Centre, and Meritorious Engineering
Programs. The company signed Memoranda of Entrepreneurial Understandings with the
Government of Gujarat and the Indian Steel Authority in collaboration with industry agencies
such as the Automation Industry Association, the Indian Association of Machine Tool
Manufacturers and the Ci for technical training. Siemens also has sustainable and integrated
rural community development initiatives.

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History

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An Enduring Partnership

Siemens has been a strong partner to India – from setting up the Indo-European telegraph line
in 1867 to spearheading the Smart Cities project in 2015 and beyond.

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Siemens offers integrated solutions for India's sustainable future - efficient manufacturing,
integrated automation, intelligent infrastructure, complete mobility and sustainable energy.

SIEMENS DIVISIONS

Electrification, automation and digitalization are the long-term growth fields of Siemens. In
order to take full advantage of the market potential in these fields, our businesses are bundled
into eight divisions, and healthcare and Siemens Wind Power as separately managed
businesses.
1) Building Technologies

Building Technologies is the world market leader for safe, energy efficient and
environmentally friendly buildings and infrastructure.

2) Digital Factory

We offer a comprehensive portfolio of seamlessly integrated hardware, software and


technology-based services in order to support manufacturing companies.

3) Energy Management

We are a leading global supplier of products, systems, solutions, and services for the
economical, reliable, and intelligent transmission and distribution of power.

4) Financial Services

Our expertise is backed by engineering excellence and project management experience, as


well as in-depth knowledge of local and global markets.

5) Mobility

Efficient and integrated transportation of people and goods by rail and road – we handle all
products, solutions and services regarding mobility.
6) Power and Gas

We help our customers worldwide to successfully operate fossil power plants and to meet
their specific economic and ecological challenges.

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7) Power Generation Services

As service partner we ensure high reliability and optimal performance of rotating power
equipment within the utility, oil & gas, and industrial processing industries.
8) Process Industries and Drives

Measurably increase your productivity and improve your time to market – with innovative,
integrated technology across the entire lifecycle.

9) Healthcare

(Separately managed business)


 At Siemens Healthiness we are passionate about enabling healthcare providers worldwide to
deliver high-quality patient care, and to do so affordably.

10) Wind Power

(Separately managed business)


Wind Power is a leading supplier of reliable, environmentally-friendly and cost-efficient
renewable energy solutions.

PRODUCTS

 Products & Services


 Automation
 Building Technologies
 Drive Technology
 Energy
 Healthcare
 Mobility
 Financing
 Consumer Products
 Services
 Software

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CHAPTER 4

RESULTS, ANALYSES & DISCUSSION

4.1. Introduction

This chapter provides an overview of the research results and the analysis of data. Data
collected via surveys and interviews are available. Data are interpreted, discussed and
analysed in the same chapter, including the causes for CRM insufficiencies in the company,
management role in the implementation of CRM strategies, evaluation of CRM approaches,
study of the effects caused by insufficient CRM on Siemens India's success and analysis of
CRM's efficacy.

4.2 Socio-demographics

The manager of Siemens India's customer relations department was one of the respondents,
while the other three were consumers of the company.

Table 4.1 The length of time the responders have worked for the company

Duration Respondents Frequency

0 -1 year 0 0%

2 -3 years 2 33%

Over 3 years 4 67%

Total 6 100%

Source: primary data

The majority of responders (67%) have worked for the organisation for more than three
years. The manager is included in this. Two respondents (33 percent) have worked for the
organisation for a period of two to three years. This indicates that the respondents had all of
the necessary information.

4.3 Causes of CRM inadequacies at Siemens India

Based on data obtained from the respondents, the various CRM deficiencies in Siemens India
may be described as the reason for a number of reasons. Including: The senior managers' lack
of cooperation during the implementation process. This resulted mainly in delays in decision-
making processes, which caused further delays. Sometimes the necessary resources such as
funds and software cannot be approved and delivered on time. The lack of effective

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implementation strategies has also been a major reason identified by the respondents. This
was mainly because the implementation process lacked sufficient knowledge and skills.
Another reason for the inadequacy was the poor identification of different gaps during
implementation. Unfortunately, the current challenges could not be correctly identified to
ensure that the correct solutions and control measures could not be introduced to prevent the
failure of the CRM.

Another identified CRM inadequacy cause was poor planning. There was an obvious area of
poor planning in the area of money where management over and above the project was
buying very expensive software that otherwise would have been complemented with cheaper
alternatives and took so much time to finish the process. This resulted in wasting money. Not
all stakeholders were allowed to participate in the implementation of CRM in the company,
as identified by respondents, as a reason for the various deficiencies.

The involvement of all involved stakeholders is an important way to build resources so that
all people understand the whole process and contribute in terms of ideas, opinions, resources,
skills and knowledge to the process of implementation. Active participation also gives the
stakeholders a sense of belonging, which they feel is part and parcel of the entire project
process.

4.4 Management role in implementing CRM strategies

The management has been identified as playing an important role in implementing CRM
strategies and in particular in decision-making. Every requirement for complete CRM
implementation is compiled through proper management. Another management role
identified by the respondents is to monitor and evaluate the extent to which the
implementation process is progressing as scheduled, identify various process deficiencies,
and implement control measures to address the deficiencies and resolve identified problems.
This ensures that the system fulfils its intended goals. Assessment helps to identify the
impacts the system has on the company and whether the targets and objectives have been
achieved. Management is also responsible for ensuring that employees have all the required
skills and know-how to understand and work with the CRM system in an effective manner.
This can be accomplished through organisation of training courses for staff members and
throughout the planning, implementation, monitoring and assessment process of CRM.

4.5 CRM Implementation Approaches

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According to the manager, the company's strategy to deploying Customer


Relationship Management was one that attempted to ensure that all of the implementation's
aims and objectives were met, and that all employees were well-versed in the system. Every
member of staff was thus included in the whole planning and implementation process, as well
as receiving proper training on how to use the system to improve its efficacy.

4.6 Siemens India's development has been hampered by poor customer relationship
management.

The answers provided by the respondents showed only a few inadequacies or failures in the
implementation of CRM in Siemens India. However, these deficiencies have had a number of
effects on the company. The high costs of implementation that were mainly attributable to
poor planning are one such way. The company had to use a huge amount of its money in
order to carry out other implementation processes. High costs. At present the company is still
trying to recover from the enormous financial deficit by means of strategies to find funds to
deal with the several projects still to be completed since the money to finalise them had been
transferred to the CRM project. Inadequacy of CRM also led to a reduced rentability for the
company due to insufficient funds in production to cater for the production produced prior to
implementation. The level of production has decreased. The decrease in its production led to
a reduction in its supply level and thus to a reduction in the output level of the company.

4.7 Analysing the importance of CRM.

According to the data, CRM installation provides a number of advantages, not only for
customers but also for employees. The staff members have noted a significant reduction in
workload as a result of the automation and the ease with which information can be retrieved.
The improved relationship between the company and its customers has resulted in significant
benefits for both the company and its customers. The organisation has been able to increase
its quality-of-service delivery as a result of CRM, as evidenced by customer responses.
Customer feedback indicates that the quality of service delivery prior to.

Siemens India's CRM implementation was average. While 40% of customers now consider
the quality of services to be exceptional (after CRM adoption), 60% consider it to be good,
implying that the quality has increased. This is seen in the following table:

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Table 4.7 a: Prior to using CRM, Siemens India received feedback on the quality of
their services and product delivery.

Response(Rate of Quality) Respondents Frequency

Low 1 20%

Average 3 60%

Good 1 20%

Excellent 0 0%

Total 5 100%

Source: primary data

Figure 4.7 a: Before implementing CRM, Siemens India received negative feedback on
the quality of their services and product delivery.

Respondents

Low
Average
Good
Excellent
Total

Table 4.7 b: Siemens India's response to CRM implementation in terms of service and
product quality.

Response(Rate of Quality) Respondents Frequency

Low 0 0%
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Average 0 0%

Good 2 40%

Excellent 3 60%

Total 5 100%

Source: primary data

This has been presented in the graph below:

Figure 4.7 b. Graph to show response on the quality of services and product delivery at
Siemens India after they implemented CRM

5
4.5
4
3.5
3
2.5
Respondents
2 Frequency
1.5
1
0.5
0
Frequency
Low Average
Good Excellent Respondents
Total

All of the respondents stated that the implementation had a favourable impact on them in
some way. However, the benefits were largely noticed in terms of service quality and the
ability to connect effectively with the organisation.

Table 4.7c: Response on whether CRM implementation had any positive effects on the
customers

Response Respondents Frequency

Yes 5 100%
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No 0 0%

Total 5 100%

Source: primary data

By means of CRM the company can now effectively identify, understand and respond to all
different customer needs. This means that the company now produces products that best suit
its various customers' tastes and preferences.

The results also include greater customer satisfaction, increasing customer loyalty and
retention. Other consequences of CRM at Siemens India. The participants also stated that
they had introduced some of their friends to the company and thus brought new customers
and expanded their client base.

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CHAPTER 5

SUMMARY OF FINDINGS, CONCLUSIONS AND SUGGESTIONS

5.1. Introduction

The study's major summary findings, conclusions, and recommendations for future
treatments are presented in this chapter.

5.2 Summary of major Findings

The survey included six respondents: five Siemens India customers and one corporate
manager who represented employees, and the following are some of the key findings.

5.2.1 Causes of CRM inadequacies at Siemens India

The results obtained show that Siemens India has failed to coordinate well between senior
management and junior management, so that the executives were uncooperative, poor
planning and implementation strategies because there was insufficient knowledge and ability
to identify gaps or problems in implementing these strategies and not all of the key
stakeholders involved.

According to the findings, the process would have been a complete success had not been
present for these causes during the entire planning and implementation of CRM so that all the
targets and targets it was meant to achieve would have been achieved.

5.2.2 Management role in implementing CRM strategies

When customer relationship management is fully established, these findings highlight a


variety of functions that management should perform. Decision-making and the supply of all
resources required for the entire implementation process are among the roles identified.

Monitoring and evaluating project progress and results, as well as ensuring that staff
members are well-trained and have all of the necessary knowledge and abilities to effectively
operate the system, are all tasks that have been specified.
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5.2.3 CRM implementation approaches

According to the customer relations manager, the employed technique for CRM installation
comprised involving all members of staff throughout the entire process of planning for and
implementing CRM into the organisation. This was done to guarantee that they fully
comprehended the system and to decrease resistance. Employees were also given a sense of
belonging as part of the strategy.

5.2.4 Impact inadequate Customer Relationship Management has caused to the success
of Siemens India

In Siemens India, the main inadequacies of the implementation of CRM are due to a lack of
planning and budgeting, resulting in the excessive cost of the process to the company. For
instance, the company has experienced massive deficits in the funds that it is still trying to
recover because of the high cost of implementing. These deficits have led to a decrease in
production, delays in the completion of other ongoing projects, reduced supply to growing
customers and consequently reduced profits.

5.2.5 Analysing the importance of CRM.

The above results show benefits for Siemens India Company, employee and customers in
general. The advantages show the significance of CRM to the company, its employees and its
customers. CRM has generally strengthened customer-business relationships. CRM has made
it easier and efficient for employees to access all the necessary client information.

The company has also been able to identify the needs of the customer and thus manufacture
products that meet their specific requirements easily and easily. Customers indicated that they
have benefited by improving services and delivery of products and by efficient and direct
communication channels which enable them to directly raise their views and ideas to the
Company and from any region.

5.3 Conclusion

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The results gained from this can be regarded as a sensible move towards CRM
implementation at Siemens India which will lead to huge benefits for the enterprise. In order
to promote closer and strengthened relationships between the enterprise and its customers,
CRM is also essential, despite the few shortcomings. Not only is CRM important for the
business, but also for customers and other stakeholders. The various views expressed by this
study show more than the negative effects of CRM.

The above findings show that the management has to play a major role in ensuring the
implementation of the CRM in any company, especially in good decisions. The lack of
cooperation between management and senior managers in particular results in project failure.
This is due in particular to bureaucracy and delays in decision-making, approval of different
ideas, funds and resources.

5.4. Recommendations

It is apparent from the findings that CRM deficiencies may be avoided. CRM can be
successfully implemented and sustained but if a number of problems are guaranteed. One
such problem is the need for senior management to participate in the planning and
implementation process actively and voluntarily, in order for they to know and understand
effectively the importance of the project, the different demands and the benefits it will have
for the company. Although they cooperate, the decisions are made very quickly, resources are
approved and procured for implementation and all other questions are dealt with as soon as
they take place.

The management must also identify the important roles it plays in promoting success in the
implementation and efficient operation of CRM. By determining what to do, the managers
are ready for the task ahead, gaining the necessary knowledge and knowledge, ensuring the
staff is well trained and that they monitor and assess the project effectively, as it proceeds and
after completion. This will be important to identify any rising issues or shortcomings and to
take corrective action to address the problems. In the planning and implementation of CRM,
it is also important that all stakeholders are involved. This will help to build resources, ensure
everybody understands the entire process and makes contributions in terms of ideas, opinions,
resources, skills and knowledge in the process of implementation.

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Active participation also gives the stakeholders a sense of belonging, which they feel is part
and parcel of the entire project process. It is vital to identify the different lacunae and
problems in the project and to take corrective actions to ensure that the implemented CRM at
Siemens India works effectively. Furthermore, the company should develop strategies to
successfully deal with the consequences of CRM deficiencies. When dealing, for example,
with the deficits in funds, the company may reduce the production levels rather than decrease,
for example, for a short period of time, until the deficit is restored.

However, this will require the staff to discuss it and to make them understand the necessity to
do so. After the deficit is recovered, the company could promise a salary increase. As the
profit levels have increased significantly from the CRM, the promised amount may be higher
than the initial. The management must be actively and fully involved at each level in
identifying, planning and implementing these strategies.

REFERENCES

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 Aldlaigan, A., and Buttle, F. (2005). "Beyond satisfaction: customer attachment to


retail banks". International Journal of Bank Marketing, 23 (4): 349-359.
 Ali, A. and Alshawi, S. (2003). "Investigating the Impact of Cross-culture on CRM
Implementation: A Comparative Study".
 Alt, R. and Puschmann, T. (2004). Successful Practices in Customer Relationship
Management. Proceedings of the 37th Hawaii International Conference on System
Science.
 Arussy, L. (2005). Understanding the Fatal Mistakes: Passionate and Profitable.
John Wiley & Sons, Inc.
 Baumann, C., Burton, S., and Elliot, G. (2005). “Determinants of customer loyalty
and share of wallet in retail banking”, Journal of Financial Services Marketing, 9
(3): 231-248.
 Blattberg, R. and Deighton, J. (2001). “Interactive marketing: exploring the age of
addressability”. Sloan Management Review, 33 (1): 5-14.
 Blumberg, D. (2002). The Crm/E-Business Paradigm. NJ: Blumberg Associates, Inc.
Bohling, T., Bowman, D., LaValle, S., Ramani, G. et al. (2005). “A Customer
Relationship Management Roadmap: What Is Known, Potential Pitfalls, and Where
to Go”. Journal of Marketing, 69: 155-166.
 Chalmeta, R. (2006). “Methodology for customer relationship management”. The
Journal of Systems and Software, 79: 1015-1024
 Chen, J. and Popovich, K. (2003). “Understanding customer relationship management
(CRM) People, process and technology”. Business Process Management Journal,
9(5): 672-688
 Darrellm, K. and Ledingham, D. (2004) CRM Done Right. London: Harvard Business
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 Das, K. (2004). h-CRM: The key to lifelong business relationships. New Delhi: Viva
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 Day, G. (2001). "A two-dimensional concept of brand loyalty". Journal of Advertising
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 Dick, A., and Basu, K. (2004). "Customer loyalty: Toward an integrated conceptual
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 Dwyer, F., Schurr, P., and Oh, S. (2007) Developing buyer-seller relationships. The
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 Dyche´, J. (2002). The CRM Handbook: A Business Guide to Customer Relationship


Management. Upper Saddle River, NJ: Addison-Wesley.
 Evans, R., and Laskin, L. (2001). “The Relationship Marketing Process: A
Conceptualization and Application”, Industrial Marketing Management, 23: 439–452.
 Febelmar, C. (2009). Which techniques are used in market research?  Belgian
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 Frederick, N. (2003). Why CRM Doesn’t Work: How to Win by Letting Customers
Manage the Relationship. NJ: Princeton, Bloomberg Press.
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APPENDIX D

RESEARCH PLAN

Activity W1 W2 W
W4 W5 6 7 8 9 10 11 12

Preparing and selecting a research topic X

and strategy

Research Proposal Submission

Writing a review of critical literature

Data is gathered using a variety of pre-

determined procedures.

 Analysis and interpretation of collected

data

Final writing of research with proper

sequencing

Review and rectifications

Submission

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APPENDIX
Definitions

Strategy: The scope and direction of firm over a long-term which achieves a benefit for the
firm through its resource configuration within an environment where meeting the market
needs and fulfilling the expectations of stakeholders is challenging.

Management: The process of bringing people together with an aim of meeting al the set
objectives and goals through the effective and efficient utilization of the resources that are
available (Hummel et al. 2010).

Customer Satisfaction: This entails a measure of the way services and specific products that
a company supplies surpasses or meets the expectations of clients, the client number, total
customer percentage of those who have had experience with the organization, or if its various
services or product ratings surpasses the specified satisfaction.

Customer Retention: Customer retention refers to keeping a clients business rather than
have the client use competitor’s services or products (Nevin, 2005).

Customer Relationship Management: A strategy that has been widely implemented to


manage company interaction with customers, client and sales prospect; it gives a description
of the set business strategy within a given company and within the various departments
(Nevin, 2005).

Customer Oriented: Customer oriented means completely focusing on customers wants and
needs only, it is not about making the sale, and it is not about how much the commission you
make, your focus is solely on the customer

Capability: This entails a company’s ability to attain its set objectives and goals through a
planned implementation (Hummel et al. 2010).

Customer Loyalty: This relates to the attraction of the right clients, making them purchase,
purchase more often, purchase in greater quantities and even bring in new clients

Customer Service: This is the process of providing services to clients before, through and
after buying. It entails a line up of the various activities created to allow for increased client

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satisfaction level and to ensure that the service or product provided matches the expectations
of the clients.

Purchase: To obtain ownership of security or other assets in exchange for money or value
also called buy.

Marketing: This involves an organisational set purpose or function to allow for the creation,
communication and delivery of value to clients and the management of customer
relationships through ways that are beneficial to the company and to its different
stakeholders.

After Marketing: After marketing is a term that denotes the activities that a firm undertakes
after the sale is made, after sales activities are broadly understood as after sales services but is
more than the service support that is given after-sales.

Sales: This involves the process of selling different services or products in exchange for
money as well as any other form of compensation. It involves completing a particular
commercial activity

Implementation: Process of executing a plan, method or particular design for a given


undertaking.

Customer Relationship Strategy: CRM strategy refers to that through which companies
manage their relationships with sales prospects and consumers. It entails the use of
technology for organizing, automating and synchronizing business processes and mainly
sales (Nevin, 2005).

Customer Needs: Problems that customers intend to solve with the purchase of goods or
services.

Competitive Advantage: This occurs when a company is capable of delivering benefits


similar to those of its rivals but at a cost that is lower, cost advantage, or provides better
benefits than their rivals (Hummel et al. 2010).

Business Strategy: This is a document that gives an articulation of the next step for a given
business in pursuit of attaining its various goals (Hummel et al. 2010).

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QUESTIONNAIRE
1) The length of time the responders have worked for the company or organisation

a) 0 -1 year b) 2 -3 years c) Over 3 years

2) Prior to using CRM, Siemens India received feedback on the quality of their services and
product delivery.

a) Low b) Average

c) Good d) Excellent

3) Siemens India's response to CRM implementation in terms of service and product quality.

a) Low b) Average

c) Good d) Excellent

4) When asked if CRM deployment had any positive benefits on customers, respondents said
a) Yes b) No

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