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Successful Practices in
Customer RelationshipManagementRainer Alt,
Thomas Puschmann
nstitute of Information
anagement
University of St. Gallen
St. Gallen, Switzerland
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{Prename.Surname}@uni
Abstract
and only 20% knowwhether a customer has
visited theirMany
companies have initiated
rojects to improve on
internet portal.
customer orientation andlan the implementation
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of cusTo eliminate
weaknesses in customer
contact, many tomer
relationship management
(CRM) systems. Amongcompanies are either
lanning or in the processof imple-the desired
benefits are increased
customer satisfaction
menting CRM systems.
According to a Gartner
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survey [8]
and retention byroviding personalized
roducts and65% of UScompanies intended to
initiate CRM projectsvalue added services.
lthough the potentials of
CRM arein 2002 (seealso [21] and [1]). In
Europe, roughly 3% ofobvious only a few
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successful CRM
implementations are
companies had fully
implemented a CRM
project in 2001, known inractice. This article
describes the results of a17% had initiated more
than one local project and
35%
cross-industrybenchmarking project in
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which 120 com-were
developing concepts for
the introduction of CRM
anies participated. Theresults show that there is
no
[27]. Another 45% have
not pursued any CRMactivities
unique CRM project and
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that successful
implementa-to date.
tions are rarely technical
rojects. From theresearch six As
Wayland/Cole [29] pointout, CRM projects have
critical success factors for
CRM projects emerged:step-new implementation
qualities which may alsobe con-wise evolution,
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straightforward
implementation and long-
nected with the high
number of failed CRM
rojects [24].
term project,organizational redesign,
integrated system Our
research aims to establishan understanding what
architecture of standardcomponents, change
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manage-businesses are
doing in the area of CRM
and to identify ment, and
top management support.
The six successful factorswhich determine the
success of CRM projects.or practice companies
show examples of how
these critical this purpose
a consortium was
established which per-
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success factors are
applied.
ormed a benchmarking
roject consisting ofquestionnaires, interviews
and site visits. Section 2describes the 1.
ntroduction
research method and the
six successful practicecompanies. Section 3
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rovides the results of the
CRM bench-Building and
maintaining customer
relationships is marking
roject based on fivebenchmarks. Finally, Sec-
neither new nor necessarytied to the use of
information tion 4 derives
six generic success factors
and presents an
technology. Nonetheless,
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the use of customer
relationship outlook into
uture CRM
developments.
management (CRM)
systems is becomingincreasingly important to
improve customer lifetime
value [33]. By 2.esearch Method
roviding information on
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customer data, profiles
and his-tory they support
an important area of a
companys core 2.1
iterature Review
rocesses, especially inmarketing, sales and
service [7],
[15]. In fact, the adoption
of CRM systems leads to are-The first requirement
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or the successful
implementa-design
customer oriented
rocesses, similar to the
effect tion of CRM isclarity regarding CRM
terminology. From whichRP systems have had on
roduction-oriented the
many approaches
available, the distinction
between processes. In
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spite of the wide use of
sales force automa-the
ollowing three areas has
become generally
accepted tion systems insales [20] a Forrester
study [4] observes
[6]:
significant deficits in
todays marketing, salesand service
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Operational CRM
supports front office
rocesses, processes. It
was found that just 22%
of the companies e.g. thestaff in a call center [28],
[17], [5], [9].
surveyed possess a
uniform customer viewand only 37%
know which customers are
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looked after by the
individual
Analytical CRM builds
on operational CRM andes-business units. A
customer profilingconcept for customer
tablishes information on
customer segments,behav-selection is used by
ust 19% of the companiessurveyed ior and value
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using statistical methods
[18], [19].
Collaborative CRM
concentrates on customerinte-ture introduction
roject, CRMorganization and gration
using a coordinated mix
of interaction chan-rocesses, system
architecture, efficiency,and culture nels (multi-
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channel management),
e.g. online shops, have
been selected as
benchmarks and refined
as cri-and call centers[12].
teria during the kick-off
meeting (see Table 1).
CRM is therefore
understood as a customer-oriented management
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approach where
information systems
rovide information to
support operational,
analytical andenchmarks
Criteria
collaborative CRMrocesses and thus
contribute to cus-ntroduction
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High level of
implementation
tomer profitability and
retention.
roject
Running CRM system (>
6 months)
esearch on success
actors is an area that has
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already Organization
Customer processthinking
received some attention in
the IS literature. Among
the and customer
Analytical CRM(customer segmentation)
rocess
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examples is the general
taxonomy of Wil-
Customer centred
organization structures
liams/Ramaprasad [31]
and the increasing
interest in fac-System
Centralized customer
database
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tors that determine the
success of E-Commerce
or Web-architecture
Integration of CRMapplications
resences [26]. Although
CRM is often conceived
as part
Integration of Internetortals
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of E-Commerce [23],
Wilson et al. [32] report
success Efficiency
Quantification of CRMeffects
actors which are specific
to CRM projects. Using
the
Availability ofmeasurement system
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induction method they
discovered the need for
roject Culture
CRM as corporatehilosophy
approval procedures, the
need to leverage best
ractices,
Availability of changemanagement
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the importance of
rototyping new
rocesses, and the need to
manage for the delivery o
the intended benefits.
Table 1. Benchmarks andcriteria
ased on the work ofWells et al. [30], Bose [2]
describes more specificcritical issues that need to
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be addressed during the
CRM development life-
cycle. Among the rec-
Screening phase. Theresearch team identified
200
ommendations are to
conduct a completebusiness analy-potential
successful practiceorganizations of which sis
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since CRM implies
changes along interaction
oints 120 received
questionnaires structured
according to withcustomers, to ensure long-
term commitment of sen-the benchmarking criteria
defined in the kick-off ior
level management, to
consider a stage-wise
implemen-meeting. Out of
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the 55 returned
questionnaires 13
tation of the CRM-
modules, and to carefullyaddress structured
telephone interviews and10 in-depth case
people problems duringthe implementation
rocess. In studies wereselected.
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a study of 96
organizations, Yu [34]
reports that corporate
culture and process and
technology improvementwere the
Review meeting. At the
second consortium
meeting
best predictors of CRMsuccess.
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the research team
resented the
questionnaire results and
the case studies on an
anonymous basis. These2.2 Benchmarking
rocedure
were then analyzed and
evaluated by theconsortium members who
inally selected 6companies as suc-To
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investigate the use of
CRM in organizations an
to cessful practices.
identify successfulractices the criteria
rovided by exist-
ing research were applied
in a benchmarkingrocedure.
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Company visits and final
conference. The research
This approach has proved
suitable for obtaining
informa-team and theconsortium members
visited the suction oncurrent practices and
results [16].
enchmarking cessful
ractice organizations,
spending one day at
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which foresees the
systematic comparison of
and learning each
company. The results of
the evaluation were fromother organizations may
differ in many dimensions,resented to the
consortium at the final
conference.
such as internal/externaland
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qualitative/quantitative
de-The design of the
research project provided
two data sign [3]. The
external and qualitativeconsortium bench-sources
or evaluation purposes:1) the 55 questionnaires
marking approach
adopted here comprised
customer rela-returned,
which originated
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rimarily from European
com-tionship executives
rom 12 organizations an
4 research-panies (59%)
with over 50,000employees (48%), and 2)
ers. Due to the chosenresearch methodology a
mix of the six
comprehensive case
studies recorded on site at
the questionnaire and
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case study approach
this research successful
ractice organizations.
oth sources are de-
resents a broad and in-depth picture of CRM.
our scribed in detail inthe following sections.
hases were completedwithin the timeframe May
through September 2001(see Figure 1):
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Preparation and kick-of
meeting. The research
team outlined the topic
and goals of the
benchmarking project andestablished the
consortium. Based onlitera-
reparation and Kick-Ofeeting
Swisscom AG in Zurich,
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Switzerland, reorganized
its Bench-
Benchmarks defined by
the research team basedon literature marks
customer contacts in
1998. With a Direct
arketing
Criteria agreed andrioritized by the
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consortium members
Criteria
Center (DMC) the
company has created twocorporate areas which
have been supported by aVantiveScreening Phase
Fallstudie
Fallstudie
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Fallstudie
Fallstudie
Fallstudie
Fallstudie
system for customer
contact management since1999.
200 potential successful
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ractice organizations
identified Dat
at aba
aba se
se
Fallstudie
Fallstudie
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Fallstudie
120 questionnaires sentout, of which 55 were
returned se
se ar
ar ch
ch es
es
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Fallstudie
Fallstudie
Fallstudie
13 phone interviews and
10 case studies conductedt handles 6 million
telephone calls perannum, 1.5
million incoming and 2
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million outgoing letters.
eview Meeting
Unisys (Schweiz) AG inThalwil, Switzerland, a
sub-
10 case studies
analyzed, evaluated andresented anonymously
6 successful practice
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organizations selected by
consortium sidiary of the
Unisys Corporation in
lue Bell, Phila-delphia,
USA, supplies IT-servicesto about 220 customers.
ollowing areorganization of its sales
struc-Company Visits and
inal Conference
C
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2
1
4
1
3
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ture at the end of the
1990s, the company
introduced
Data evaluated andanalyzed
6
5
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General concepts and
critical factors derived B
2
5 4
3
a Siebel system whichrovides uniform
customer data for sales,
reporting and forecasting
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at a global Figure 1.
teps in the CRM
consortium
level.
benchmarking
3. Benchmarking Results
2.3 Successful Practice
Organizations
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3.1 Introduction Project
The successful practiceorganizations which were
selected during the reviewmeeting consisted of the
ollow-Almost all of the55 companies who
returned the ques-ing:
tionnaires mentioned a
similar set of motivationsor the
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Alta Resources Corp. in
eenah (WI), USA, a ser-
initiation of their CRM
activities. Among the
examples vice provider inthe area of call centers
and customer areimproved customer
selection, the targeted use
of interaction (e.g.
complaint management,
lead genera-channels for
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customer contact,
enhanced customer value
through cross-and up-
selling opportunities and
increased tion). As earlyas 1995 Alta Resources
implemented atransparency in CRM
rocesses. Only 11% of
the compa-Vantive system
or managing the
customer contacts nies
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stated efficiency as a
major motivator for CRM.
of all clients by telephone,
e-mail, letter and internetThe strategic nature of
CRM is also reflected inthe portals.
implementation projectswhich typically begin with
coor-
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Bertelsmann AG in
Gtersloh, Germany,
whose Di-dination
between the areas
marketing,sales/distribution rect
Group is responsible forthe relationships to and
T, and the definition of
common goals. In 80% of
the approx. 20 million
book club and online
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customers organizations
surveyed, an overall
concept formed the
worldwide. With its
subsidiary Syskoplan thecom-starting point for the
introduction of CRM,which in 64%
any set up a Marketntelligence Organization
in of cases wascoordinated with an E-
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business strategy and
1996 and implemented an
integrated SAP system
the reorganization ofbusiness processes (44%).
t Hei-with the modulesCRM, APO, BW and PS.
delberg CRM was part ofa corporate eBusiness
roject called e-Forumwhich defined
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transformation maps and
Consors Discount-roker AG in Nuremberg,
Ger-standards for R&D,inance and production,
administra-many, ainancial services
rovider focusing on
inter-tion and marketing,sales and after sales. In
the latter, net-basedsecurities transactions.
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Consors handles in-CRM
comprised 10 customer
ocused projects which
teractions to its 450,000
customers primarily viatheir were offered as pre-
configured solutions tothe country call center
and internet portal. In
October 2000 the
organizations.
company began with the
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introduction of an
integrated An important
art of the introduction
rojects was the Clarify
system.
implementation of theCRM-system. This phase
was completed in an
average of 7 months andincluded the defini-
Heidelberger
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ruckmaschinen AG in
eidelberg, tion of
evaluation criteria, the
software selection,
custom-Germany, aninternational supplier of
rinting solu-izing, pilotand roll-out. 67% of all
companies imple-tions
who aimed to improve the
contact and direct mented
a pilot application before
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rolling out the system.
sales to their 100000customers worldwide.
Starting Similarevaluation criteria were
used in each case: in ad-in 1996 Heidelberg
designed a CRM strategy
which dition tomanufacturer-related
criteria such as manufac-also includes the
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implementation of a
centralized turers vision,
support and globality,
importance was at-Clarify
system.
tached above all toroduct-related
characteristics such as
unctionality, product
maturity, integrationcapability and product
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ortfolio. Unisys
(Switzerland), is now or-
modularity of the solution.
anized according toFinancial Industries and
n all the organizationsconsidered, project
coordina-Swisscom
according to Fixnet andMobile cus-tion was
handled centrally, whileless than one third of
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tomers.
CRM projects were in theresponsibility of the IT
department. As Figure 2shows, marketing,
sales/distribution
Centralized organization
units. Responsibility forand management were
requently involved in therojects.
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CRM activities is usually
organized in new
organizational units
which act as internal
service providers.
eidelberg covers localmarkets with 85 Sales and
Others
Service Units (SSU) who
rovide the business areasCustomers
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with marketing tools,
know-how and
experience. A Controlling
new departmentMarketing Intelligence &
CRM
(MI-M) coordinates
marketing activities andutilizes Ext. Offices
synergies on a corporate
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basis. Bertelsmann,
Swiss-Sales/Distr.
com, and Consors have
also established corporateanagement
centers which offer
specialist skills and know-
how in the area ofanalytical CRM (e.g.
churn analyses, data IT
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mining).
arketing
Link to forecasting.nformation from
operational 0
10
20
30
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40
50
60
CRM processes is used in
redicting sales volumesumber of Companies
(N = 55)
and supply chain
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lanning. Unisys
implemented a Figure 2.
epartments involved in
CRM
ortnightly evaluation of
opportunities which led toa implementation
rojects
maximum sales
orecasting variance of+/- 2%.
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ertelsmann uses the
lanned campaign
successes for 3.2 CRM
Organization and
rocesses
requirements planning inthe supply chain to their
book stores, e.g. a
campaign success of 15%leads to an equivalent
increase in the demand ofbooks.
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The benchmarking
showed that CRM
involves significant
changes regarding the
organization ofmarketing, Centralization
of CRM responsibilityroved important sales
and service activities.
ost companies
reorganized for achieving
the necessary
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standardization of CRM
ac-internal processes and
implemented them on a
cross-tivities. Unisys
(Switzerland) had alreadyadapted a global
unctional and cross-organizational basis (see
igure 2).
standardized sales
rocess which ensured auniform un-Remarkably,
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only 30% involved the
customers them-
derstanding of the terms
lead, opportunity,
quotation, selves in thedesign process. More
information in redesignetc. Standardized
interfaces between
complaints and ser-efforts
were provided by the six
successful practice com-
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vice management enabled
the integration of two
ormerly panies:
separate processes.eidelbergs service
engineers, for
Customer life cycle
models. Customerrelationships example,
now know when aroduction manager is
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lan-are divided in
various phases and
individual services ning to
buy a new machine.
are offered to the
customer in each phase.or example, customers
in the service phase at
eidelberg may obtaininformation and spare
arts through their 1Customers were involved
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in the
online shop. Companiessuch as Consors and
Swiss-process design
com link analytical CRM
rocesses to the
operational 2 Internal
customer processes were
activities. The life cycle isused to predict customer
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re-engineered
behavior, e.g. when acustomer can be
addressed via 3 Processeswere implemented on a
a campaign, when he or
she is likely to cancel a
rela-cross-functional andcross-organizational basis
tionship etc. Customersare assigned based on
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ast 30
20
10
0
10
20
30
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40
urchases, volumes, andsocio-demographic or
eo-Number ofCompanies
(N = 55)
trongly
isagree
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gree
trongly
raphical data.
disagree
agree
Figure 2. Process design
at the benchmarked
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Customer segmentation.
esponsibility for
customers companies
has been redesigned onthe basis of customer
and/or market segments.or example, a board
member at Consors has
responsibility for largevolume customers (heavy
traders) across thecompanys entire
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3.3 System Architecture
Analytical CRM. Formanagement and
evaluation purposes, theoperational customer data
are integrated CRMsystems usually replace
isolated solutions which
with a centralized datawarehouse which
consolidated supportspecific activities in
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marketing, sales, and
service.
data based on certain
criteria (e.g. sales,rofits) in a A centralized
database provides auniform view of cus-
uniform data model.
Consors, for example, hasstored tomers and support
or standardizedrocesses. Although all 30
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million transactions
erformed to date. A cus-
58% of all companies sai
they had a CRM system in
tomers transactions canbe analyzed over time,
e.g.
operation, less than half
of them used it on a cross-all customers who opened
a securities account inorganizational basis. As
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igure 3 shows, almost all
com-1997/98 and since
then have only carried out
1-5
anies pursue a best-of-
breed approach, i.e.specialized transactions.
The data mining tool
analyzes defined systemsrom Siebel, Vantive,
Update or Clarify comple-dimensions, e.g. compares
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the characteristics of one
ment existing ERP
systems. Four companies,
including building loan
customer with another,leading to the
ertelsmann, use SAPCRM linked with other
SAP com-determination o
a customer segment with
an affin-ponents.
lthough similar in their
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basic functionalities, ity
or building loans and
thus providing the basis
the system decisions
reflect each vendorsstrengths: sales for a
targeted marketingcampaign.
orce support at Siebel,service and call center
support at Vantive andClarify, and integrated
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rocesses at SAP.
Collaborative CRM.pproximately 60% of the
com-Most companiescustomized the selected
systems to suit paniessurveyed use internet
ortals in their customer
their individualrequirements. At
eidelberg the MI-M
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communication (see
igure 4) for selected or
suitable department
defined three reference
models for a globalactivities. Heidelberg, for
example, offers the sale ofstandard functionality
together with the local
SSUs and some consumer
oods (e.g. printing
cartridges) and
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customized roughly 20%
at local level. This ratio
was also service
management. At Alta
esources a green lightobserved at the other
successful practiceorganizations in the
Vantive system alerts the
call center represen-
(20-30%).
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tative that personal data
has been entered in a cus-
esults from
Questionnaires
uccessful Practices
tomers portal and that
the customer requires
urther information on aspecific product. Consors
also has aSiebel
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Unisys
distinctive collaborativeCRM system which
handles Update.com
customer transactions
both through the call
centerSAP
ertelsmann
and via the portal. The
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latter also features
comple-Clarify
Consors, Heidelberg
mentary services such as
insurance.
Vantive
lta Resources,
wisscom
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Own devt.
CRM is optimallyintegrated into the
existingOther
ystem landscape
We use internet portals
or customer interaction0
2
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4
6
8
10
12
14
umber of Companies
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(N=55)
The view of customerdata is uniform
Figure 3: CRM systems
used by benchmarking
We use mobile devices in
our personal contactsarticipants
with customers
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We use a cross-
organizational CRM
ystem
We have a customerrofiling concept for
acquiring,Manycompanies had a
centralized system
architecture.
recording and utilizingcustomer data
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Globally operating
companies, such as
ertelsmann, Hei-
-30
-20
-10
0
10
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20
30
40
50
umber of Companies
(N=55)
delberg, and Unisys, had
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local systems with
eriodicallyStrongly
isagree
greee
trongly
disagree
agree
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replicating customer
databases. These
architectures also
rovided integration
across different CRMdimensions: Figure 4.
Questionnaire results onystem
architecture
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Operational CRM.
Operational integration
oints exist to human
resource systems for user
data and ERP systems fortransferring order
information 3.4Operational Efficiency
which was captured e.g.rom a call center
representative.ntegration to supply
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chain systems is illus-
mplementing a CRM
system is not mainly
driven by trated by
ertelsmann: Campaigndata from SAP
the possible savings. 55%
of the benchmarked
companies CRM is sent toSAP SD for the
calculation of salesagreed that strategic or
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qualitative goals have
been the plan data, and
then routed to SAP MRP
or require-main drivers
or introducing CRM.mong the effects are
ments and procurementlanning. Anomalies,
i.e.
improved process and
data transparency, bettercustomer products where
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inventories remain
significantly retention,
higher consultancy
quality, more targeted
customer communicationor proactive customer
management.
above or below demand,
are shown in the SAPPO
Only 38% have proved
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the operational efficiency
com-Alert Monitor.
ared to 50% which
reported difficulty inmeasuring set. Heidelberg
and Unisys used a similarstrategy to con-CRM
effects. Figure 5
summarizes the mostrequently vince field
sales force who considertheir knowledge of used
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benefit arguments.
customers and markets tobe personal advantages
and Among the successfulractices, Swisscom
erformed therefore findit difficult to share it
throughout the com-an
operational efficiencyanalysis composed of
direct ef-pany.eidelbergs goal was to
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shape an understanding
ects (savings relating to
operational processes in
direct that CRM is about
a transparent customer,not about marketing and
data maintenance),indirect effects (fewer
transparent salesmen. At
Unisys all staff were
trained misses, greater
roductivity in sales),
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increased sales vol-and
obliged to use the system.
espite organizational
ume and additional
business which led to aOI of 2.9
rules (no budget without
system entry) motivated
users, years for the CRMroject. At Consors,
qualitative goals someusers had to be
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motivated with pressure
and some such as
improved customer
service were the clear
riority, non-users wereobserved after two years.
Unisys and Hei-but havebeen supported by a
thorough control of time-
delberg estimate a
minimum of two years for
illing the frame and
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budget, as well as by
rocess savings of 30%
database with the
customer data. Use of thesystems by and increased
revenues of 40%. Bothigures were de-
management was
considered as amotivating boundary
tailed, e.g. processsavings with reduced
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ostage costs due
condition.
to more focused mailings
(from 500,000 to 1,000letters per mass mailing).
Others
eidelberg calculated aositive net present value
T
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which also included the
corporate standardization
ofMarketing
CRM systems (cost-effective rollout, release
change, etc.).ertelsmann expects
improved customer care
or Countries (decentral)
their 20 million clubcustomers and is trying to
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increaseManagement
the success rate ofcampaigns through more
targeted cus-0
5
10
15
20
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25
30
35
tomer communication.
urely qualitativearguments wereNumber
of Companies
(N=55)
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mentioned at Unisys, e.g.
the strategic necessity of
systematic opportunity
management with key
accounts.
Figure 6. Organizationalunits responsible
or CRM
eduction in throughputtime
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igher efficiency in sales
operations
xploitation of customer
otential
ncrease in customer
atisfaction
4. Success Factors andOutlook
eduction in the number
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of complaints
ncreased profits thanksto CRM
0
10
20
30
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40
50
4.1 Success Factors inCRM
umber of Companies
(N=55)
one
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ow
verage
igh
The benchmarking
consortium detailed andrioritized Figure 5.
otentials of CRMrojects
measurements for each
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benchmark identified in
the kick-off meeting (see
Table 1) and guided the
entire selection 3.5
Culture
of successful practices.Our analysis led to the
ormula-tion of six
success factors (see Table2). They support Involving
as many potential systemusers as possible is
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existing findings
regarding non-technical
actors in IT
vital to the adoption ofCRM within an
organization. Thisadoption (e.g. [2], [14],
[15], [22], [32], [34]).
lthough not only refersto establish the necessary
skills for operat-theimplementation of a CRM
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system often marks the ing
the system but also to
convince staff that the
system start of a
companys reorganizationin marketing, sales will be
beneficial. In allbenchmarked companies
man-and service, the
success is mainly
determined on organ-
agement played an active
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role in the decision-
making izational and
cultural turf:
rocess and theimplementation of CRM
(see Figure 6).
Evolution path. As a first
step, most companies im-Other departments
involved includedmarketing, customer
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lemented a system for
operational CRM, e.g.
call contact centers,
inance and/or
accounting, sales andtech-center or sales force
rocesses. Thiscorresponds to nical
service, and seldom
logistics and production.
existing research whichconsiders a centralized
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data-Although most CRM
rojects were within time
and base providing
consistent and up-to-date
information budget, theeffort to obtain adoption
varied. In call center as arerequisite for CRM
[15]. Analytical CRM
rests implementations
(Swisscom, Consors, Alta
esources, upon this
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oundation and covers
data mining and
ertelsmann) employee
acceptance largely
existed. At churn analysisunctionality. Only little
use was madeertelsmann, the call
center staff were involved
in the of collaborative
CRM which indicates an
evolution CRM design
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and were able to relate to
the goals of CRM
(better call center
support, no loss of jobs)rom the out-
ath from operational,
analytical to collaborative
ment in the introductionroject and the creation
of CRM and a stepwiseimplementation of CRM.
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incentives to use the
system on a daily basis.
Timeframe. Most
successful practiceorganizations
Top management
support. For establishing
customer have gonethrough a rapid system
evaluation phaseorientation on a corporate
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level (board members
with and completed the
system introduction phase
within customer
responsibility),implementing inter-
approximately 7 months.owever, filling the data-
organizational process
and system standards, an
or base with meaningful
information and achieving
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supporting the adoption o
the CRM systems within
adoption in the areas of
marketing, sales, and
service the organization(penalizing non-use,
setting an ex-wasconsidered to take a
minimum of 2 years. This
ample) top management
support was a key
require-supports the
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average timeframe of four
ears reported ment. Top
management sponsors
also ensure that by [34].
Successful companiessplit these long-term
short-term setbacks in theCRM project can be over-
CRM projects into
manageable subprojects
lasting a come. This is
especially important since
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unlike other maximum of
6 months.
T projects (e.g.
eProcurement projects),the introduc-
tion of CRM projects isnot motivated by
quantitativeOrganizational redesign.
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rior to the introduction
of efficiencies but
legitimized out of
strategic motiva-a CRM
system all successfulractices established tions
(e.g. strategic necessity,customer retention).
CRM concepts for thedefinition of processes
and or-Although thissupports existing findings
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[13], the ganizational
structures. The former
includes the iden-
benchmarking emphasizes
the importance of measur-tification of interaction
oints along customer lifecy-ing whether time and
budget goals have been
met as cles which are also
established in literature
(e.g. [11]) well as to
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balance CRM investments
with direct and and the
definition of uniform
customer data and pro-
indirect benefits.
cedures across variousinteraction channels. This
refers to the business
analysis mentioned byose [2].
enchmarks
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Criteria
Critical success factors
owever, organizationalredesign also needs to
con-Introduction
igh level of imple-
Start with operational
CRM and
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sider structural issues, i.e.
to establish a centralized
roject
mentation
enhance with analytical
and
collaborative CRM
responsibility and
authority for defining
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cross-Running CRM sys-
tem (> 6 months)
apid evaluation of CRMin-
unctional standards.Contrary to centralized
organi-formation systems
ations, highly
decentralized
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organizations leave the
edium-term projects
which
implementation lead tocountry organizations and
need to be broken down in
revent conflicts with the
existing culture.
manageable sub-projects
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Organization
Customer process
edesign of customerinterac-
System architecture.Virtually all the CRM
systems and customerthinking
tion points and
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orientation on
in the benchmarking werestandard packages, while
rocess
nalytical CRM
customer process
activities
no system offered a
comprehensive
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operational, ana-
(customer segmenta-
Centralized organizationunit
tion)
or standardization
lytical and collaborative
CRM functionality. Ad-
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Customer centred
nvolvement of topmanage-
vanced CRM companies
integrated specialized sys-
organization struc-
ment
tems for operational,
analytical, and
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collaborative tures
CRM into a best-of-breedarchitecture. Following
the System archi-Centralized customer
Select CRM systemdepending evolution path
described above, mature
CRM con-tecture
database
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on CRM focus
ntegration of CRM
Use standard CRMsoftware
cepts also required anintegration architecture
or applications
with minimal
customization
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seamlessly exchanging
information. A restrictive
atti-Integration of Internet
ntegrate systems for
analytical tude wasobserved concerning the
change requests portals
and collaborative CRM
with
collected among CRMusers. All successful
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ractice operational CRM
system
representatives agreed
that customization ofstandard Efficiency
Quantification of
anagement of projectsin
CRM effects
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time and in budget
ackages wasdisproportionate to the
achieved bene-vailability of meas-
easurement of small
quantifi-
its.
urement system
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able benefits
Change management.Convincing employees of
the Culture
CRM as corporate
nvolve users in early
stage and
hilosophy
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communicate CRM goals
benefits of CRM methodsand systems is regarded
as Availability of
CRM should not conflict
with
an important successactor reported in
literature [2].
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change management
established organizationculture
The benchmarking
resents a more specific
icture, Ensure use of
CRM on man-since
convincing call centerstaff proved to be not as
agement level
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difficult as to obtain the
buy in within the sales
orce.
Table 2. Summary ofbenchmarks, criteria and
mong the instrumentsobserved were early in-
success factors
volvement in the
introduction project andthe creation
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eferences
4.2 Outlook
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7/25/2019 Pid24773 - Jf Lock
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lemented CRM concept.
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orm of a customer
database, data ware-
[2] Bose, R. Customerelationship
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Search for Industry Best
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ractices that Lead to
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online chat rooms, online
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[10] additional
ossibilities were
mentioned for supporting
the customer process and
romoting customer
[4] Chatham, B.; Orlov,.M.; Howard, E.;
Worthen, B., retention.
and Coutts, A. The
Customer Conversation.Cambridge:
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Following the
ertelsmann example,
several compa-Forrester
esearch, Inc., 2000.
nies are planning to
integrate CRM and supplychain systems. Standard
software vendors such as
SAP are
[5] Crego, E.T., andSchiffrin , P.D. Customer-
7/25/2019 Pid24773 - Jf Lock
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centered already
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other modules. The
interfaces are provided by
data warehouse and
middle-
[6] Fayerman, M.
Customer Relationshipanagement. In ware
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Mobile technologies
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ossibilities for tional
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investi-John Wiley &
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or
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They expand their
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but also cyclically overthe complete Perspective.
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[11] Ives, B., and
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standing of success
actors on a detailed level.
urther research is
needed to derive
empirically testablehypothe-
[12] Keen, P.; Ballance,
C.; Chan, S., and
Schrump, S.
ses as suggested byomano [23] and to
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