Transcript Why Customer Relationship Management for industries?

Why Customer Relationship
Management for industries?
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Competitive advantage
• In the past we had 3 aspects of competition- time , costs and quality
• Less costly & more profitable to maintain a relationship with an existing
customer
• CRM concepts allow the purchaser to offer additional services that are
valued by the customer
• Customers can choose from many alternative manufacturers
• This increase in the number of products, models and types increases the
pressure on companies to include greater flexibility & responsiveness in
their internal processes and performance levels.
Software solutions for CRM
1. Operative CRM - improves and automates business
processes in marketing, sales & service departments
2. Analytical CRM - prepare, support, optimize customeroriented decision processes based on a customer
database
3. Cross-company CRM – enables long-term cooperation
between the company and its business partners (direct
sales/ Channel Management)
“One size does not fit all”
• There is not only one CRM solution that can be applied to
all industries
• Who is the customer?
• What does he want?
• What does the company want to achieve?
1.Trends
1 Interaction channels-multi channel
concepts(banks,insurance,utilities,TC)
2. Extended Sales Scenarios- usage based billing (UBB)
3. Extended after sales&customer service scenarios- warranty, subcontracting, rotables mgt
4.The influence of mobile devices-real-time connections are still not
available
5. Service level monitoring- service level agreements (SLAs)
6. Real-time connection to customer installations- expensive scenario
7. Loyalty & Reward- systems for rewarding customer royalty
(telephony, courier service, credit cards, airlines)
8. Future of CRM- more data for customer and his behavior
2. Structuring of Industry solutions
2.1 Many of the goals of CRM are cross-industry(new customers
or increasing loyalty)
2.2 Industry classification by NACE – european mandatory
statistical classification of economic activity.
NACE
segment
Economic sectors contained
Examples
A,B
Agriculture & forestry,fisheries & fish
farming
Arable farming, fishing
C
Mining,oil & gas, stone & earth quarrying
Coal mining, oil recovery
D
Processing industries: Food industry,
tobacco, textiles,, paper, chemicals
industry…
Weaving, beverage
manufacturing,
instrument making
E…
Energy & water supply
Energy, water, gas
suppliers
2.3 Industry Sector Classification for Software
solutions
SAP Industry
solutions
NACE Sectors
A
Cross-industry
mySAP CRM
B
X
C
X
D
X
E
X
SAP for
aerospace
X
SAP
Automotive
X
SAP Banking
F…
X
X
X
3. Software solutions for CRM in industries
• CRM software solutions must offer substantial analytical
functions that enable the continual monitoring of all customer
relationship measures
• It should be possible to structure sales areas hierarchically
according to user-defined grouping criteria
• 3.1 Business partner
• Pan-Enterprise Partner Relationships – using many different
partners for various task groups
• 3.2 Industry specific products and services
• 3.2.1Industry specific business processes- Splitting work
processes into smaller units provides benefits of
specialization,but the tasks are no longer transparent.
Industry specific approaches to satisfying requirements of consumers
along the hierarchy of needs
Leisure industry, sport facility
operators, universities
Selfactualization
Esteem
Car brands, high-tech gadgets, luxury goods
Belongingness
Telecomm, postal system, publishers, printers,broadcasting
Safety needs
Public authorities, national defense, pension schemes, hospitals
Physiological needs
Consumer products, estate agents, clothing industry, utilities, construction industry
Customer related business
progress with SAP
• 1. Each enterprise has individual requirements- basic solution
from a respectable manufacturer
• 2. Structure of SAP industry solutions
•
23 Industry solutions
• SAP solution maps with example of the consumer products
industry
• To provide a quick overview of the processes and functions of all
industry business scenarios and display graphically the details
Solution map
3.1 From industry specific to enterprise
specific solutions
• SAP NETWeaver- provides prerequisites for the creation, composition
and operation of company-specific solutions.
• SAP Enterprise Portal- offers each user a role-dependent central point of
access for transactions
• SAP Mobile Business- enables mobile devices to access the applications
of mySAP Business suite
• SAP Business Information Warehouse ( SAP BW)- analyzes structured
business data,products,business transaction data.
• SAP Knowledge Management (KM) intgrated in the SAP EP- objects are
indexed and classified and stored in various formats at various locations
in the company.
• SAP Exchange Infrastructure (XI)-is the basis of the SAP MASTER DATA
MANAGEMENT (MDM) –enables the standards-based and open, processoriented integration of components (queuing, mapping, recipient
determination, routing and monitoring of collaborative processes)
• SAP Solution Manager- supports implementation & operation of the
solution made from the SAP components, offers tools for planning &
execution of SAP implementation projects
Fine-Tuning of Business Processes by
configuration
• The main functionality of SAP software solutions can be
customized in 3 ways:
• 1 Customizing settings
• 2 Using interface configuration
• 3. Enhancement of business objects with additional attributes
The CRM business objects can be enhanced by marketing
attributes
From a technical point of view marketing attributes are
additional fields that are generated for the business partner
object before being made available to mobile devices
3.2 Flexible Enhancement with composite
applications
• The goal of CA is to implement additional business processes
quickly and flexibly by leveraging existing investments for the
company.
• This is done by using the functionality of already existing
applications.
• SAP Composite application framework(CAF)- offers an
abstraction layer with an environment for development and
execution of composite applications
3.3 Outlook for the following chapters
The industries are divided according to their CRM requirements
Many demands made on CRM affect more than 1 industry
4. Manufacturing industries
• 4.1 Automotive industry requirements
₋ Faultless vehicle, equipped and configured according to the needs
₋ Services such as after-sales services, breakdown services or mobility
guarantees
₋ Financial service, installment purchase plans, credit,leasing
₋ A certain brand image,so that it represents a lifestyle
Marketing- make sure the products stand out from the competition.
Different customer,different expectation
4.1.1 Transition from Make-to-stock production to make-to-order
production
Make-to-stock production- common in the USA- the dealer checks if
there is a suitable vehicle if not he if there is a planned configuration
Make-to-order -
Individual object
A product or model with a uniquely identifiable instance, for
example,truck/car/motorcycle/tractor/bus which has a unique
registration number. This enables to track vehicle-specific info
The IB is not only used the automotive industry: washing
machines with manufacturing info, buildings with their
apartments and the location,size, number of rooms…
Object family
Category
Van
Car
Truck
Attribute set
Basic
Technical
Data
Attribute
Type
Engine
Transmission
History of individual objects
• Event history – shows who created the event, when it was
created, what type it is…
• Attribute history – all changes made to the object itself
• Partner history- shows how the business partners for an
individual object has changed throughout its lifetime
• Counter history –displays counter readings (mileage)
Interaction center
• It is central interaction channel where business transactions are
processed by phone, email, fax or web chat.
• Functions for automotive industry:
•
•
•
•
•
•
•
•
•
Registration of customer requests & processing of chats,emails..
Checking all business-partner/vehicle relationships
Customer interaction in service,sales or marketing activities
Finding solutions in the solution database, to anser queries directly
Forwarding inquiries to the responsible departments & areas
Checking & updating vehicle-related warranty & contact info
Entering,processing problem messages, complaints & orders
Selling spare parts
Updating customer relationships
Critical success factors for CRM implementation
• What is the goal of the project? To increase customer
satisfaction? Do new customers need to be found or should
the company identify valuable customer relationships?
• Companies should focus on integrating strategy, processes and
technology. CRM software does not solve problems of badly
organized CRM processes.
Selection of important customer-oriented
business scenarios
Business Scenario
Short Description
Campaign mgt
Optimization of running a campaign form the market analisis to
the results check
Lead mgt
Automation of pre-sales steps
Focus on most promising purchasers & sales possibilites
Customer segmentation
Personalizing the range of products & services offered
Service order processing
Support processes in the service area,taking account of inquiries
& quotations, order creation, spare parts planning
Mgt of services on
contractual & warranty
bases
Special requirements & extension of service order
Spare parts procurement Functions to sell spare parts based on service processing
Leasing
Supports the leasing process,contract mgt,changing current
leasing agreements…
Interaction center for
the automotive industry
Grouping info about customers,vehicles & parts, customer
enquiries,claims, return calls
Relationship network
Marketing campaigns with effectiveness reviews
• It is important to target customers individually, existing
customers are the easiest to target
• Email campaign done by the Marketing manager
1. planning the marketing campaign
2. Determining the target group- grouped by selected
attributes
3. Executing the marketing campaing
4. Conducting the follow-up activities
5. Analyzing the campaign success- number of users upgraded,
activities/revenue
Supply
Supplier of
Raw/
Packaging
Material
Production
Distribution
Business to consumer (B2C)
Business 2 Business (B2B)
Consumer
Products
Company
Distributor
Supplier of
services
•
•
-
Retail
Grocery/
Mass
Merchandiser
7.1.1 Brand Products & the significance of Marketing
The clever use of advertising & PR plays a major role
Lack of transparency in Marketing & Sales
Growing number of singles, graphic circumstances,
Difficult to analyze the success of specific advertising measures
Consumer Products Industry
Consumer
SAP for consumer products
• Marketing- evaluations & analyses offer marketing mgrs an overview
of market share,sales, familiarity of a brand compared to that of its
competitors
- Use this info to plan in advance retail promotions,marketing events etc
• Account mgt- access to all relevant customer info. Customers are
assigned to representatives or sales employees to help to plan,start,
log activities for the account,check order receipts,promotions,trade
fairs…
• Category mgt- planning & optimizing the presentation of their
products on site, merchandise of product category.
SAP Trade promotion MGT
• Avarage 23% of the annual sales= marketing.
-planning strategies & activities in M&S
-analysis & evaluation tools for campaigns & trade promotions
-mobile laptop solution
-fully automatic & integrated mgt of all logistics processes
-integration of mySAP ERP & SCM to plan & cover additional
requirements for a promotion
-role-based access using the SAP enterprise portal
Customer Relationship Management for
industries?
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Customer Relationship Management
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