Growth, profitability, and market share — they
are all, in the end, really determined by
your customers. Customers do or do not buy
a product or service. Customers bid the price
up or drive it down, depending on the value
they perceive from a product or service. No
matter how good a product or how
efficient a company, without customers there
is no growth, profitability, or market share.
Successful companies put the customer at the center
of their business. They understand who their most valuable customers
are, they understand their needs and their buying habits. They target
and tailor their offerings and personalize their interactions with
their customers. Successful companies design and continuously improve
business processes across their entire ecosystem to adapt quickly to
changing customer needs. They strive to become a fully Customer-Centric
Enterprise — not just to know what, when, where,
and how their customers want to buy, but to tune their entire enterprise and
ecosystem to react quickly and efficiently to deliver on those needs, preferably
before the competition even has time to react.
Information technology is a mission-critical enabler of
the Customer-Centric Enterprise. IT provides the enterprise with insight
on customer needs and empowers the company
to execute on those needs. The capabilities of your Customer Relationship Management
(CRM) software solution therefore have a direct impact on your ability to grow,
improve profitability, and gain market share. There is a widening gap between
companies who have CRM software solutions that can support a Customer-Centric
Enterprise strategy and those that cannot. Let's call them the haves and
have-nots. Into which category do you fall? A few basic business questions can
help you gauge your CRM capabilities:
1. Can you measure the success of your marketing campaigns including
all related financial information? Can you use these findings to optimize
Can you plan a marketing campaign and set
targets for the number of leads and revenue
you want to generate? And can you kick-off
campaign execution? I imagine you can. However,
I suggest this alone is not sufficient. It's easy to
plan for these targets and initiate activities. It's
quite another story to monitor all aspects concerning
execution of the plan, and not only track and report
KPIs around the leads and sales it generates, but
also track costs and profitability, and use this
insight to continuously refine execution.
mySAP CRM customers have this complete visibility. They can close the
loop on marketing activities, from planning through execution, and track
and analyze results and costs (see Figure 1). If you
don't have a
complete picture of a campaign, from inception to its sales aftermath, from
money budgeted for a campaign to the leads and sales opportunities it
generates, count yourself among the have-nots. If you have a complete
and clear vision into these processes and a way to benchmark results
and costs, consider yourself among the haves.
mySAP CRM eliminates complex integration issues because it delivers everything marketing departments need to track and analyze customer relations — from order placement to shipping and billing. Sophisticated tools enhance a marketing organization's ability to plan, execute, and measure its programs by supporting marketing planning, campaign management, e-marketing, lead management, marketing analytics, and customer segmentation.
mySAP CRM equips sales organizations with the capabilities they need to maximize sales-team productivity, shorten sales cycles, increase revenues, and promote customer loyalty. Sales organizations benefit from consistency, predictability, and effectiveness, ensuring that promising leads become profitable customers across all sales channels.
mySAP CRM offers consolidated, operational insight that enables service organizations to make informed decisions founded on timely, reliable information, while helping ensure that personnel meet their service-level responsibilities. Full-featured services capabilities enable organizations to manage customer service and support, e-services, field services, and service operations.
The interaction center capabilities of mySAP CRM unite front- and back-offices into a single, enterprise-wide operation, enabling all members of the enterprise to manage customer relationships across every communication channel. With its new Web-based user interface, the interaction center from SAP provides a state-of-the-art collaboration and communication platform for telesales, telemarketing, and customer service and support. A broad range of workforce management capabilities help interaction center managers better allocate resources and run their operations more efficiently.
mySAP CRM provides a broad range of applications for analyzing customer interactions, business processes, and market opportunities. By taking advantage of state-of-the-art reporting tools to monitor and measure the performance of their businesses, companies can uncover hidden patterns and trends to anticipate risks and opportunities in marketing, sales, and service. mySAP CRM comprises powerful analytical components with SAP Business Information Warehouse and provides an integrated and flexible planning platform for setting clear goals and coordinating resources to achieve business objectives.
mySAP CRM supports a wide range of mobile devices and platforms, including mobile clients (for example, laptops and tablet PCs), handheld devices, WAP devices, and browser clients to provide users with powerful CRM capabilities — both online and offline. Companies thus have the freedom to choose the most convenient way to access information anytime, anywhere.
By empowering customers with personalized Web experiences and convenient self-services, mySAP CRM helps companies turn the Internet into a profitable sales and interaction channel for both business customers and consumers. Fully integrated Web channels strengthen sales and service operations while reducing transaction costs and customer service calls.
mySAP CRM empowers enterprises to manage partner relationships and helps channel partners sell more effectively. With access to all partner-related information, companies can recognize and forecast demand across all sales channels and collaborate with partners to reduce channel support costs, increase value to customers, and drive more revenue through indirect channels. Leveraging SAP's core strengths in e-commerce, CRM, and partner relationship management, mySAP CRM delivers a collaborative channel solution that also enables partners to manage their own end customers — a distinct market differentiator.
|mySAP CRM Capabilities at a Glance
2. Can you measure the value of your customer
Simple question. Notoriously difficult task — one that has historically
been fraught with error. Often the root cause of these errors is a siloed view
of the customer. I see this time and time again. Take too narrow a view and you
reach misleading conclusions about that customer's real value to your company.
Here's an example: Your sales force automation system reveals that a certain
customer is a big-dollar account. Your call center tracking system shows that
with 90% of this customer's calls for support, problems and questions are
resolved in less than three minutes and on the first try. It's
easy to conclude this is an ideal customer. But
step back from your front-office data and take
a 360-degree look at this customer, and you may
find low-margin purchases, high product returns,
a big order backlog, and a large number of disputed
invoices. The reality is that this is a low-profitability
customer. Siloed systems can actually blind you
to the real value of a customer. mySAP CRM customers
can draw from the enterprise to gain visibility,
considering all the data sources that impact
the profitability equation. The have-nots cannot. What separates the two camps is the ability to effectively manage
profitable growth, and I expect the divide will grow more pronounced over
3. Does your call center generate business?
For many companies the call center is
at the heart of customer interactions. (With
the growing adoption of email and other
means of communication, a more appropriate
term would be "interaction
center" rather than "call center.") Does yours provide
your agents with full
visibility of a customer's history across all touch-points? Do your
call center agents have all the information at their fingertips to address
needs and strengthen this relationship — including information on a
payments and returns, inquiries into
new products and services, and availability of
those products and services? What separates the haves and have-nots is
the ability to transform a call center — traditionally
viewed as a cost center — into an interaction
center that can be a revenue center. The mySAP CRM interaction center helps companies to capitalize
on their strategic customer in-roads, bolster customer loyalty, harvest upselling/cross-selling
opportunities, and gain insight on customers and buying trends.
4. Do you base your business
decisions on the right information?
Unfortunately, good analytics can't
be run solely on data from your CRM solution.
The goal is a consistent and comprehensive
view of the customer. So do your finance, sales,
logistics, product development, and marketing
organizations all share a common view of your
customers? The haves in this
case optimize business processes, enable better and faster decision making
based on enterprise-wide customer intelligence, and provide relevant information
to their users. Thus, the haves can predict future customer activity and
plan business strategies more accurately than the have-nots. This helps focus
limited resources on the customers and activities that will generate the
How can this be established? By deploying a solution that integrates
all customer-facing business processes, even if they are provided by
multiple vendors. mySAP CRM, powered by
SAP NetWeaver, is such a solution. All relevant sources of customer data
are included out of the box. Analytics are provided in many mySAP CRM business
processes and throughout all areas of customer business to help you refine
marketing campaigns, track your sales pipeline against forecast, and analyze
service costs and problem resolution, just to mention a few.
mySAP CRM is designed
for step-by-step deployment so that
you can implement what you need when
you need it without the risk of creating
solution or information silos. More
than 280 ready-made business processes — taking into account the different needs of different industries — allow
for quick and reliable implementation.
mySAP CRM processes are connected to
all other relevant mySAP Business Suite
solutions. In this, you enable end-to-end
processes out-of-the-box that provide
complete and comprehensive views of
|Step-by-Step Deployment of mySAP CRM
Put It All Together — When You're
Most customers implement mySAP CRM step by
step — addressing their most
important business priorities first and quickly achieving business value, then
expanding the solution as needed — realizing tangible ROI with each step
along the way. Audi, for example, pegs a projected $3 million revenue increase
to its new SAP-based customer loyalty programs. Brother International reduced
the time it takes to service customers and dealers by nearly 50%. Villeroy & Boch
credits mySAP CRM for 53,000 fewer abandoned
These results are not exceptions. We can see tangible increases in
revenue generation, operational efficiencies,
and profitability when mySAP CRM solutions are being implemented. It just
stands to reason that you will drive more revenue through shortened sales
cycles and by making sales people more productive. You will increase profitability
by reducing the cost of marketing per sale. And you will manage growth
by finding the right marketing mix to bring those results that benefit
the bottom line.
These gains improve exponentially, though, when the CRM solution can
span the entire enterprise across departmental boundaries. This is where
the divide between the haves and the have-nots becomes very pronounced.
a CRM strategy. Build a roadmap, a step-by-step deployment plan that
not only immediately addresses specific needs and derives a quick ROI
go, but that works toward an overarching CRM strategy. Keep your eye
all-important goal of providing a true (and that means enterprise-wide)
360-degree view of your customers.
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