1. THE CHANGING ROLE OF
CUSTOMER RELATIONSHIP
MANAGEMENT SOFTWARE
Adam Needles
Amit Gautam
Sriram Krishnamurthy
University of Wisconsin - Madison

2. INTRODUCTION TO CRM
Adam Needles
Amit Gautam
Sriram Krishnamurthy
University of Wisconsin - Madison

3. Introduction to CRM
What is the vision of CRM?

CRM defines a strategic, enterprise-wide program to align business processes and
functions with a customer-centric point of view.
What CRM is really… today?

CRM is an system that leverages customer data and helps businesses to take increasingly
‘customer-aware’ actions. It helps improve customer-lifecycle management.
• Mining customer data to find new business opportunities
• Offering better customer service
• Cross selling products more effectively
• Helping sales staff close deals faster
• Retaining existing customers and discovering new ones
3

4. Introduction to CRM
What’s going on in CRM lately?

Social media meets CRM:

quot;Like Oracle, SAP CRM is moving quickly to incorporate

contemporary tools into a 21st century culture. This is an
instance of SAP recognizing that collaboration, co-creation
and communication are the name of the 21st Century game
and setting up channels to interact with SAP-interested
parties, to be able to capture data that will be of immense
value and will be “organic” to the folks providing it - rather
than categorized by the folks requesting it.quot; (ZD Net blogs - quot;CRM
2.0: The Conversationquot; - March 2009)
Salesforce proves an unstoppable force:

quot;Salesforce.com’s quarterly revenue jumped 34% Y-o-Y to

$290 million.quot; (WSJ - February 2009)
4

5. Introduction to CRM
What’s going on in CRM lately?

Web/SaaS delivery hits the enterprise:

quot;Demonstrating that software-as-a-service (SaaS) is a valid

option for enterprises, Salesforce.com has moved up a few
notches in the scoring ... quot; (CRM Magazine - Sep 2008)
Microsoft gets serious in CRM, signals it’s no longer a

niche industry:
quot;Is Microsoft winning the CRM race? The latest CRM

products and partnerships from Redmond's software
juggernaut have set industry tongues wagging about
whether Microsoft has finally forced its way to the forefront-
-or if it was ever destined to be a true leader in the first
place.quot; (CRM Magazine - July 2008)
5

6. CRM’S PLACE IN THE ENTERPRISE
Adam Needles
Amit Gautam
Sriram Krishnamurthy
University of Wisconsin - Madison

7. CRM's place in the enterprise
Two views of CRM

Operational

Analytical

Source: Jill Dyche – The CRM Handbook - 2002
7

8. CRM's place in the enterprise
Operational CRM

Functional areas

Customer service and support (CSS)

Sales force automation (SFA)

Enterprise marketing automation (EMA)

Information and process integration

Customer decision support

Customer information management

Customer interaction management

Systems integration

Workflow

8

9. CRM's place in the enterprise
Analytical CRM

Customer lifetime value

Marketing effectiveness

Profitability and growth

Segmentation

Interface with

Business intelligence / business analytics

Business planning

9

10. CRM's place in the enterprise
CRM vs. ERP

“ERP was the methodological omega point for the
product-driven corporate ecosystem. It took the MRP
systems and expanded them to include other critical
business departments such as human resources (labor)
and finance (capital). … But it was still based in a world
that was driven by product creation and consumer
demand, though a computerized, much more flexible
version of that world.”
Paul Greenberg – CRM at the Speed of Light - 2004
10

11. CRM's place in the enterprise
CRM vs. ERP

Is CRM the new peer of ERP?

What does each system tell us?

Product-centric vs. customer-centric

Supply-side view vs. demand-side view

ERP
CRM
11

12. CRM's place in the enterprise
CRM vs. ERP

Is CRM the new peer of ERP?

What does each system tell us?

Product-centric vs. customer-centric

Supply-side view vs. demand-side view

ERP CRM
12

13. WHAT’S WRONG WITH CRM?
Adam Needles
Amit Gautam
Sriram Krishnamurthy
University of Wisconsin - Madison

14. What's wrong with CRM?
Tries to be all things to all people

14

15. What's wrong with CRM?
Source: David Raab – quot;Introduction to Demand Generation Systemsquot; – 2008
15

16. What's wrong with CRM?
Tries to be all things to all people

Keeps marketers mired in the tactical not the strategic

16

17. What's wrong with CRM?
Tries to be all things to all people

Keeps marketers mired in the tactical not the strategic

Presents a demographic-centric not behavior-centric

customer picture
17

18. What's wrong with CRM?
“Digital body language is an art and science that revolves
around detecting and understanding prospective buyers’
signals and intentions to better communicate with them.
“Marketers who continue to pursue their mission with a
disconnected set of communication tools and non-
integrated data sets cannot gain the multi-perspective
visibility into their prospects that is required to
understand and leverage their digital body language.”
Steve Woods – Digital Body Language - 2009
18

19. What's wrong with CRM?
Tries to be all things to all people

Keeps marketers mired in the tactical not the strategic

Presents a demographic-centric not behavior-centric

customer picture
Does not support dynamic adjustment of marketing

processes and outcomes
19

20. What's wrong with CRM?
Tries to be all things to all people

Keeps marketers mired in the tactical not the strategic

Presents a demographic-centric not behavior-centric

customer picture
Does not support dynamic adjustment of marketing

processes and outcomes
Requires another layer of intelligent, 'integrated

marketing management' to be useful
20

21. What's wrong with CRM?
A marketer’s point of view …
Source: Adam Needles – quot; Top 20 Integrated Marketing Management Platforms 1 of 3: Marketers’ Needs + Technology Landscape” – 2009
21

22. VENDOR LANDSCAPE
Adam Needles
Amit Gautam
Sriram Krishnamurthy
University of Wisconsin - Madison

23. Vendor landscape
Top vendors

Enterprise

Mid-market

Small business

23

24. Vendor landscape
Top vendors

Enterprise

Mid-market

Small business

Comparison of Web-based/SaaS platforms

24

25. Vendor landscape
Top vendors

Enterprise

Mid-market

Small business

Comparison of Web-based/SaaS platforms

Aka … why you should never use SAP CRM …

25

26. Vendor landscape
Top vendors: Enterprise

Leader: Oracle (Siebel CRM)

Top tier:

Microsoft (Dynamics CRM)

RightNow

Salesforce

SAP

Source: CRM Magazine – September 2008
26

27. Vendor landscape
Top vendors: Mid-market

Leader: Salesforce

Top tier:

Microsoft (Dynamics CRM)

Oracle (Siebel CRM)

RightNow

Sage

Source: CRM Magazine – September 2008
27

28. Vendor landscape
Top vendors: Small business

Leader: Maximizer Software

Top tier:

NetSuite

Salesforce

SugarCRM

Zoho

Source: CRM Magazine – September 2008
28

29. Vendor landscape
Comparison of Web-based/SaaS platforms

Source: Inside CRM – “Hosted CRM Comparison Guide – 2008
29

30. Vendor landscape
Comparison of Web-based/SaaS platforms

Oracle Salesforce SAP
Starting at $70 per user, per $125 per user, per $149 per user, per
Pricing month month month
• • •
Marketing Analytics / dashboards
• • •
Campaign management
•
E-mail automation
• •
E-mail marketing
• • •
Lead management and routing
•
Real-time budget tracking
•
Search-based marketing
•
Segmentation tools
•
Workflow automation
Source: Inside CRM – “Hosted CRM Comparison Guide – 2008
30

31. Vendor landscape
Comparison of Web-based/SaaS platforms

Oracle Salesforce SAP
Starting at $70 per user, per month $125 per user, per month $149 per user, per month
Pricing
• • •
Sales Account and contact management
• • •
Analytics and forecasting
•
Approvals and workflow
• • •
Calendar and task management
•
Collaboration tools
•
Documents and contracts management
• • •
Lead, opportunity and pipeline management
• •
Microsoft Office integration
• •
Mobile access
•
Offline access
•
Product catalog
•
Qutotation management
•
Support for multiple languages, currencies
•
Territory management
Source: Inside CRM – “Hosted CRM Comparison Guide – 2008
31

32. Vendor landscape
Comparison of Web-based/SaaS platforms

Oracle Salesforce SAP
Starting at $70 per user, per $125 per user, per $149 per user, per
Pricing month month month
• • •
Service Agent / service-request management
•
Asset and product management
•
Call scripting
•
Cases and activity management
• •
Customer self service
•
E-mail management
• •
Knowledge management
• • •
Service analytics
•
Ticket escalationa and distribution
• •
Voice/telephone recognition
•
Warranty and contract tracking
Source: Inside CRM – “Hosted CRM Comparison Guide – 2008
32

33. FUTURE OF CRM
Adam Needles
Amit Gautam
Sriram Krishnamurthy
University of Wisconsin - Madison

34. Future of CRM
Power shift from IT to marketing

Source: Scott Brinker - quot;Why IT and marketing are diametrically opposedquot; - 10 January 2009
34

35. Future of CRM
Power shift from IT to marketing

Power struggle: quot;The gap that is the marketing/IT divide is

… the result of structural differences in their organizational
missions. ... IT has a relatively conservative agenda. ... For
most marketers, what worked yesterday as the status quo is
not good enough tomorrow. Markets are in constant flux,
and there is an insatiable demand for more ... IT and
marketing are each pursuing their mandated objectives —
unfortunately, those objectives easily conflict.”
Source: Scott Brinker - quot;Why IT and marketing are diametrically opposedquot; - 10 January 2009
35

36. Future of CRM
Power shift from IT to marketing

Power shift: “... *A+ growing array of software-as-a-service

(SaaS) products for marketing is enabling those technology
solutions to be more easily sourced from external vendors,
with minimal dependence on IT. It's now feasible for
marketing to have its own technology sandboxes, making it
more of a strategic question — in that balance between IT
and marketing — as to where particular components live.”
Source: Scott Brinker - quot;Why IT and marketing are diametrically opposedquot; - 10 January 2009
36

37. Future of CRM
One size doesn’t fit all

Source: Scott Brinker - quot;Why IT and marketing are diametrically opposedquot; - 10 January 2009
37

38. Future of CRM
One size doesn’t fit all

B2B vs. B2C

Direct vs. channels

Bricks-and-mortar vs. online

Product vs. service

Source: Scott Brinker - quot;Why IT and marketing are diametrically opposedquot; - 10 January 2009
38

39. Future of CRM
Influencers, brand communities and non-customers

matter more than ever
Target
customer
Cloud of
influence
Company
39

40. THANK YOU + QUESTIONS?
Contact Us
Adam Needles
Amit Gautam
Sriram Krishnamurthy B. Needles
Adam
aneedles@wisc.edu
617-413-6087
University of Wisconsin - Madison
www.propellingbrands.com