Published on: Mar 3, 2016
Transcripts - Nainesh crm
http://en.wikipedia.org/wiki/Customer_relationship_managementCustomer relationship managementFrom Wikipedia, the free encyclopediaCustomer relationship management (CRM) is a widely implemented strategy for managing a company‟sinteractions with customers, clients and sales prospects. It involves using technology to organize,automate, and synchronize business processes—principally sales activities, but also thosefor marketing, customer service, and technical support. The overall goals are to find, attract, and win newclients, nurture and retain those the company already has, entice former clients back into the fold, andreduce the costs of marketing and client service. Customer relationship management describes acompany-wide business strategy including customer-interface departments as well as otherdepartments. Measuring and valuing customer relationships is critical to implementing this strategy.  Contents [hide]1 Benefits of Customer Relationship Management2 Challenges o 2.1 Complexity o 2.2 Poor usability o 2.3 Fragmentation o 2.4 Business reputation o 2.5 Security concerns3 Types/variations o 3.1 Sales force automation o 3.2 Marketing o 3.3 Customer service and support o 3.4 Appointment o 3.5 Analytics o 3.6 Integrated/collaborative o 3.7 Small business o 3.8 Social media o 3.9 Non-profit and membership-based o 3.10 Horizontal Vs. Vertical4 Strategy5 Implementation
o 5.1 Implementation issues o 5.2 Adoption issues o 5.3 Statistics o 5.4 Increasing usage and adoption rates o 5.5 Help menus6 Development o 6.1 Clarity o 6.2 Test users7 Privacy and data security system8 Market structures9 Related trends10 See also11 NotesBenefits of Customer Relationship ManagementA Customer Relationship Management system may be chosen because it is thought to provide thefollowing advantages: Quality and efficiency Decrease in overall costs Decision support Enterprise ability Customer Attentions Increase profitability.ChallengesSuccessful development, implementation, use and support of customer relationship management systemscan provide a significant advantage to the user, but often there are obstacles that obstruct the user fromusing the system to its full potential. Instances of a CRM attempting to contain a large, complex group ofdata can become cumbersome and difficult to understand for ill-trained users. The lack of seniormanagement sponsorship can also hinder the success of a new CRM system. Stakeholders must beidentified early in the process and a full commitment is needed from all executives before beginning theconversion.Additionally, an interface that is difficult to navigate or understand can hinder the CRM‟s effectiveness,causing users to pick and choose which areas of the system to be used, while others may be pushedaside. This fragmented implementation can cause inherent challenges, as only certain parts are used andthe system is not fully functional. The increased use of customer relationship management software has
also led to an industry-wide shift in evaluating the role of the developer in designing and maintaining itssoftware. Companies are urged to consider the overall impact of a viable CRM software suite and thepotential for good or bad in its use.ComplexityTools and workflows can be complex, especially for large businesses. Previously these tools weregenerally limited to simple CRM solutions which focused on monitoring and recording interactions andcommunications. Software solutions then expanded to embrace deal tracking, territories, opportunities, andthe sales pipeline itself. Next came the advent of tools for other client-interface business functions, asdescribed below. These tools have been, and still are, offered as on-premises software that companiespurchase and run on their own IT infrastructure.Poor usabilityOne of the largest challenges that customer relationship management systems face is poor usability. Witha difficult interface for a user to navigate, implementation can be fragmented or not entirely complete.The importance of usability in a system has developed over time. Customers are likely not as patient towork through malfunctions or gaps in user safety, and there is an expectation that the usability of systemsshould be somewhat intuitive: “it helps make the machine an extension of the way I think — not how itwants me to think.”An intuitive design can prove most effective in developing the content and layout of a customer relationshipmanagement system. Two 2008 case studies show that the layout of a system provides a strongcorrelation to the ease of use for a system and that it proved more beneficial for the design to focus onpresenting information in a way that reflected the most important goals and tasks of the user, rather thanthe structure of the organization. This “ease of service” is paramount for developing a system that isusable.In many cases, the growth of capabilities and complexities of systems has hampered the usability of acustomer relationship management system. An overly complex computer system can result in an equallycomplex and non-friendly user interface, thus not allowing the system to work as fully intended.  Thisbloated software can appear sluggish and/or overwhelming to the user, keeping the system from full useand potential. A series of 1998 research indicates that each item added to an information display cansignificantly affect the overall experience of the user.FragmentationOften, poor usability can lead to implementations that are fragmented — isolated initiatives by individualdepartments to address their own needs. Systems that start disunited usually stay that way: [siloedthinking] and decision processes frequently lead to separate and incompatible systems, and dysfunctionalprocesses.
A fragmented implementation can negate any financial benefit associated with a customer relationshipmanagement system, as companies choose not to use all the associated features factored when justifyingthe investment. Instead, it is important that support for the CRM system is companywide. The challengeof fragmented implementations may be mitigated with improvements in late-generation CRM systems.Business reputationBuilding and maintaining a strong business reputation has become increasingly challenging. The outcomeof internal fragmentation that is observed and commented upon by customers is now visible to the rest ofthe world in the era of the social customer; in the past, only employees or partners were aware of it.Addressing the fragmentation requires a shift in philosophy and mindset in an organization so thateveryone considers the impact to the customer of policy, decisions and actions. Human response at alllevels of the organization can affect the customer experience for good or ill. Even one unhappy customercan deliver a body blow to a business.Some developments and shifts have made companies more conscious of the life-cycle of a customerrelationship management system. Companies now consider the possibility of brand loyalty andpersistence of its users to purchase updates, upgrades and future editions of software. Additionally, CRM systems face the challenge of producing viable financial profits, with a 2002 studysuggesting that less than half of CRM projects are expected to provide a significant return oninvestment. Poor usability and low usage rates lead many companies to indicate that it was difficult tojustify investment in the software without the potential for more tangible gains.Security concernsA large challenge faced by developers and users is found in striking a balance between ease of use in theCRM interface and suitable and acceptable security measures and features. Corporations investing in CRMsoftware do so expecting a relative ease of use while also requiring that customer and other sensitive dataremain secure. This balance can be difficult, as many believe that improvements in security come at theexpense of system usability.Research and study show the importance of designing and developing technology that balances a positiveuser interface with security features that meet industry and corporate standards. A 2002 study shows,however, that security and usability can coexist harmoniously. In many ways, a secure CRM system canbecome more usable.Researchers have argued that, in most cases, security breaches are the result of user-error (such asunintentionally downloading and executing a computer virus). In these events, the computer system actedas it should in identifying a file and then, following the user‟s orders to execute the file, exposed thecomputer and network to a harmful virus. Researchers argue that a more usable system creates lessconfusion and lessens the amount of potentially harmful errors, in turn creating a more secure and stableCRM system.
Technical writers can play a large role in developing customer relationship management systems that aresecure and easy to use. A series of 2008 research shows that CRM systems, among others, need to bemore open to flexibility of technical writers, allowing these professionals to become contentbuilders. These professionals can then gather information and use it at their preference, developing asystem that allows users to easily access desired information and is secure and trusted by its users.Types/variationsSales force automationSales force automation (SFA) involves using software to streamline all phases of the sales process,minimizing the time that sales representatives need to spend on each phase. This allows a business to usefewer sales representatives to manage their clients. At the core of SFA is a contact managementsystem for tracking and recording every stage in the sales process for each prospective client, from initialcontact to final disposition. Many SFA applications also include insights into opportunities, territories, salesforecasts and workflow automation, quote generationMarketingCRM systems for marketing help the enterprise identify and target potential clients and generate leads forthe sales team. A key marketing capability is tracking and measuring multichannel campaigns, includingemail, search, social media, telephone and direct mail. Metrics monitored include clicks, responses, leads,deals, and revenue. Alternatively, Prospect Relationship Management (PRM) solutions offer to trackcustomer behaviour and nurture them from first contact to sale, often cutting out the active sales processaltogether.In a web-focused marketing CRM solution, organizations create and track specific web activities that helpdevelop the client relationship. These activities may include such activities as free downloads, online videocontent, and online web presentations.Customer service and supportCRM software provides a business with the ability to create, assign and manage requests made bycustomers. An example would be Call Center software which helps to direct a customer to the agent whocan best help them with their current problem. Recognizing that this type of service is an important factor inattracting and retaining customers, organizations are increasingly turning to technology to help themimprove their clients‟ experience while aiming to increase efficiency and minimize costs.  CRM softwarecan also be used to identify and reward loyal customers which in turn will help customer retention. Even so,a 2009 study revealed that only 39% of corporate executives believe their employees have the right toolsand authority to solve client problems.AppointmentCreating and scheduling appointments with customers is a central activity of most customer orientedbusinesses. Sales, customer support, and service personnel regularly spend a portion of their time getting
in touch with customers and prospects through a variety of means to agree on a time and place for meetingfor a sales conversation or to deliver customer service. Appointment CRM is a relatively new CRM platformcategory in which an automated system is used to offer a suite of suitable appointment times to a customervia e-mail or through a web site. An automated process is used to schedule and confirm the appointment,and place it on the appropriate persons calendar. Appointment CRM systems can be an origination pointfor a sales lead and are generally integrated with sales and marketing CRM systems to capture and storethe interaction.AnalyticsRelevant analytics capabilities are often interwoven into applications for sales, marketing, and service.These features can be complemented and augmented with links to separate, purpose-built applications foranalytics and business intelligence. Sales analytics let companies monitor and understand client actionsand preferences, through sales forecasting and data quality.Marketing applications generally come with predictive analytics to improve segmentation and targeting, andfeatures for measuring the effectiveness of online, offline, and search marketing campaigns. Web analyticshave evolved significantly from their starting point of merely tracking mouse clicks on Web sites. Byevaluating “buy signals,” marketers can see which prospects are most likely to transact and also identifythose who are bogged down in a sales process and need assistance. Marketing and finance personnel alsouse analytics to assess the value of multi-faceted programs as a whole.These types of analytics are increasing in popularity as companies demand greater visibility into theperformance of call centers and other service and support channels, in order to correct problems beforethey affect satisfaction levels. Support-focused applications typically include dashboards similar to those forsales, plus capabilities to measure and analyze response times, service quality, agent performance, andthe frequency of various issues.Integrated/collaborativeDepartments within enterprises — especially large enterprises — tend to function with littlecollaboration. More recently, the development and adoption of these tools and services have fosteredgreater fluidity and cooperation among sales, service, and marketing. This finds expression in the conceptof collaborative systems that use technology to build bridges between departments. For example, feedbackfrom a technical support center can enlighten marketers about specific services and product featuresclients are asking for. Reps, in their turn, want to be able to pursue these opportunities without the burdenof re-entering records and contact data into a separate SFA system.Small businessFor small business, basic client service can be accomplished by a contact manager system: an integratedsolution that lets organizations and individuals efficiently track and record interactions, including emails,documents, jobs, faxes, scheduling, and more. These tools usually focus on accounts rather than onindividual contacts. They also generally include opportunity insight for tracking sales pipelines plus added
functionality for marketing and service. As with larger enterprises, small businesses are finding value inonline solutions, especially for mobile and telecommuting workers.Social mediaSocial media sites like Twitter, LinkedIn, Facebook and Google Plus are amplifying the voice of people inthe marketplace and are having profound and far-reaching effects on the ways in which people buy.Customers can now research companies online and then ask for recommendations through social mediachannels, making their buying media to share opinions and experiences on companies, products andservices. As social media is not as widely moderated or censored as mainstream media, individuals cansay anything they want about a company or brand, positive or negative.Increasingly, companies are looking to gain access to these conversations and take part in the dialogue.More than a few systems are now integrating to social networking sites. Social media promoters cite anumber of business advantages, such as using online communities as a source of high-quality leads and avehicle for crowd sourcing solutions to client-support problems. Companies can also leverage client statedhabits and preferences to "Hypertargeting" their sales and marketing communications.Some analysts take the view that business-to-business marketers should proceed cautiously when weavingsocial media into their business processes. These observers recommend careful market research todetermine if and where the phenomenon can provide measurable benefits for client interactions, sales andsupport. It is stated[by whom?] that people feel their interactions are peer-to-peer between them and theircontacts, and resent company involvement, sometimes responding with negatives about that company.Non-profit and membership-basedSystems for non-profit and membership-based organizations help track constituents and their involvementin the organization. Capabilities typically include tracking the following: fund-raising, demographics,membership levels, membership directories, volunteering and communications with individuals.Horizontal Vs. VerticalHorizontal CRM manufacturers offer the same non-specialized base product across all industries. Theytend to be cheaper, least common denominator solutions. For example, a bakery would get thesame product as a bank. Vertical CRM manufacturers offer specialized, specific industry or pain-point CRMsolutions. In general, horizontal CRM solutions are less costly up front, and more costly in the future, due tothe fact that companies must tailor them for their particular industry and business model. On theother hand, Vertical CRM solutions tend to be more costly up front and less costly down the road becausethey already incorporate best practices that are specific to an industry and business model. Major CRM vendors offer horizontal CRM solutions. In order to tailor a horizontal CRM solution, companiesmay use industry templates to overlay some generic best practices by industry on top of the horizontalCRM solution. Horizontal CRM vendors may also rely on value added reseller networks of
systems integrators to build vertical solutions and sell them as 3rd party add-ons or to come in andcustomize the solution to fit into a particular scenario.Vertical CRM vendors focus on a particular industry. As a general rule of thumb in CRM, it is ten times ascostly to build a vertical solution from a horizontal software program than it is to find a particular verticalsolution that is already tailored to your business model and industry.StrategyFor larger-scale enterprises, a complete and detailed plan is required to obtain the funding, resources, andcompany-wide support that can make the initiative of choosing and implementing a system successfully.Benefits must be defined, risks assessed, and cost quantified in three general areas: Processes: Though these systems have many technological components, business processes lie at its core. It can be seen as a more client-centric way of doing business, enabled by technology that consolidates and intelligently distributes pertinent information about clients, sales, marketing effectiveness, responsiveness, and market trends. Therefore, a company must analyze its business workflows and processes before choosing a technology platform; some will likely need re-engineering to better serve the overall goal of winning and satisfying clients. Moreover, planners need to determine the types of client information that are most relevant, and how best to employ them. People: For an initiative to be effective, an organization must convince its staff that the new technology and workflows will benefit employees as well as clients. Senior executives need to be strong and visible advocates who can clearly state and support the case for change. Collaboration, teamwork, and two-way communication should be encouraged across hierarchical boundaries, especially with respect to process improvement. Technology: In evaluating technology, key factors include alignment with the company‟s business process strategy and goals, including the ability to deliver the right data to the right employees and sufficient ease of adoption and use. Platform selection is best undertaken by a carefully chosen group of executives who understand the business processes to be automated as well as the software issues. Depending upon the size of the company and the breadth of data, choosing an application can take anywhere from a few weeks to a year or more.Implementation
Implementation issuesIncreases in revenue, higher rates of client satisfaction, and significant savings in operating costs are someof the benefits to an enterprise. Proponents emphasize that technology should be implemented only in thecontext of careful strategic and operational planning. Implementations almost invariably fall short whenone or more facets of this prescription are ignored: Poor planning: Initiatives can easily fail when efforts are limited to choosing and deploying software, without an accompanying rationale, context, and support for the workforce. In other instances, enterprises simply automate flawed client-facing processes rather than redesign them according to best practices. Poor integration: For many companies, integrations are piecemeal initiatives that address a glaring need: improving a particular client-facing process or two or automating a favored sales or client support channel. Such “point solutions” offer little or no integration or alignment with a company‟s overall strategy. They offer a less than complete client view and often lead to unsatisfactory user experiences. Toward a solution: overcoming siloed thinking. Experts advise organizations to recognize the immense value of integrating their client- facing operations. In this view, internally-focused, department-centric views should be discarded in favor of reorienting processes toward information-sharing across marketing, sales, and service. For example, sales representatives need to know about current issues and relevant marketing promotions before attempting to cross-sell to a specific client. Marketing staff should be able to leverage client information from sales and service to better target campaigns and offers. And support agents require quick and complete access to a client‟s sales and service history.Adoption issuesHistorically, the landscape is littered with instances of low adoption rates. Many of the challenges listedabove offer a glimpse into some of the obstacles that corporations implementing a CRM suite face; in manycases time, resources and staffing do not allow for the troubleshooting necessary to tackle an issue and thesystem is shelved or sidestepped instead.Why is it so difficult sometimes to get employees up to date on rapidly developing new technology?Essentially, your employees need to understand how the system works, as well as understand the clientsand their needs. No doubt this process is time consuming, but it is well worth the time and effort, as you will
be better able to understand and meet the needs of your clients. CRM training needs to cover two types ofinformation: relational knowledge and technological knowledge.StatisticsIn 2003, a Gartner report estimated that more than $1 billion had been spent on software that was notbeing used. More recent research indicates that the problem, while perhaps less severe, is a long way frombeing solved. According to CSO Insights, less than 40 percent of 1,275 participating companies had end-user adoption rates above 90 percent. Additionally, many corporations only use CRM systems on apartial or fragmented basis, thus missing opportunities for effective marketing and efficiency.In a 2007 survey from the UK, four-fifths of senior executives reported that their biggest challenge is gettingtheir staff to use the systems they had installed. Further, 43 percent of respondents said they use less thanhalf the functionality of their existing system; 72 percent indicated they would trade functionality for ease ofuse; 51 percent cited data synchronization as a major issue; and 67 percent said that finding time toevaluate systems was a major problem. With expenditures expected to exceed $11 billion in2010, enterprises need to address and overcome persistent adoption challenges.The amount of time needed for the development and implementation of a customer relationshipmanagement system can prove costly to the implementation as well. Research indicates thatimplementation timelines that are greater than 90 days in length run an increased risk in the CRM systemfailing to yield successful results.Increasing usage and adoption ratesSpecialists offer these recommendations for boosting adoptions rates and coaxing users to blend thesetools into their daily workflow:Additionally, researchers found the following themes were common in systems that users evaluatedfavorably. These positive evaluations led to the increased use and more thorough implementation of theCRM system. Further recommendations include “Breadcrumb Trail”: This offers the user a path, usually at the top of a web or CRM page, to return to the starting point of navigation. This can prove useful for users who might find themselves lost or unsure how they got to the current screen in the CRM. Readily available search engine boxes: Research shows that users are quick to seek immediate results through the use of a search engine box. A CRM that uses a search box will keep assistance and immediate results quickly within the reach of a user. Help Option Menu: An outlet for quick assistance or frequently asked questions can provide users with a lifeline that makes the customer relationship management software easier to use. Researchers suggest
making this resource a large component of the CRM during the development stage.A larger theme is found in that the responsiveness, intuitive design and overall usability of a system caninfluence the users‟ opinions and preferences of systems.Researchers noted a strong correlation between the design and layout of a user interface and theperceived level of trust from the user. The researchers found that users felt more comfortable on asystem evaluated as usable and applied that comfort and trust into increased use and adoption.Help menusOne of the largest issues surrounding the implementation and adoption of a CRM comes in the perceivedlack of technical and user support in using the system. Individual users — and large corporations — findthemselves equally stymied by a system that is not easily understood. Technical support in the form of aqualified and comprehensive help menu can provide significant improvement in implementation whenproviding focused, context-specific information.Data show that CRM users are often unwilling to consult a help menu if it is not easily accessible andimmediate in providing assistance. A 1998 case study found that users would consult the help menu foran average of two or three screens, abandoning the assistance if desired results weren‟t found by thattime.Researchers believe that help menus can provide assistance to users through introducing additionalscreenshots and other visual and interactive aids. A 2004 case study concluded that the proper use ofscreenshots can significantly support a user‟s “developing a mental model of the program” and help in“identifying and locating window elements and objects.” This research concluded that screen shotsallowed users to “learn more, make fewer mistakes, and learn in a shorter time frame,” which can certainlyassist in increasing the time frame for full implementation of a CRM system with limited technical or humansupport.Experts have identified five characteristics to make a help menu effective: “context-specific” — the help menu contains only the information relevant to the topic that is being discussed or sought “useful“ — in conjunction with being context-specific, the help menu must be comprehensive in including all of the information that the user seeks “obvious to invoke“ — the user must have no trouble in locating the help menu or how to gain access to its contents “non-intrusive“ — the help menu must not interfere with the user‟s primary path of work and must maintain a distance that allows for its use only when requested
“easily available“ — the information of the help menu must be accessible with little or few steps requiredDevelopmentThoughtful and thorough development can avoid many of the challenges and obstacles faced in using andimplementing a customer relationship management system. With shifts in competition and the increasingreliance by corporations to use a CRM system, development of software has become more important thanever. Technical communicators can play a significant role in developing software that is usable and easyto navigate.ClarityOne of the largest issues in developing a usable customer relationship management system comes in theform of clear and concise presentation. Developers are urged to consider the importance of creatingsoftware that is easy to understand and without unnecessary confusion, thus allowing a user to navigatethe system with ease and confidence.Strong writing skills can prove extremely beneficial for software development and creation. A 1998 casestudy showed that software engineering majors who successfully completed a technical writing coursecreated capstone experience projects that were more mindful of end user design than the projectscompleted by their peers. The case study yielded significant results: Students who completed the technical writing course submitted capstone projects that contained more vivid and explicit detail in writing than their peers who did not complete the course. Researchers note that the students appeared to weigh multiple implications on the potential user, and explained their decisions more thoroughly than their peers. Those participating in the writing course sought out test users more frequently to add a perspective outside their own as developer. Students appeared sensitive of the user‟s ability to understand the developed software. The faculty member overseeing the capstone submissions felt that students who did not enroll in the technical writing class were at a significant disadvantage when compared to their peers who did register for the course.In the case study, researchers argue for the inclusion of technical writers in the development process ofsoftware systems. These professionals can offer insight into usability in communication for softwareprojects. Technical writing can help build a unified resource for successful documentation, training andexecution of customer relationship management systems.Test users
In many circumstances, test users play a significant role in developing software. These users offer softwaredevelopers an outside perspective of the project, often helping developers gain insight into potential areasof trouble that might have been overlooked or passed over because of familiarity with the system. Testusers can also provide feedback from a targeted audience: a software development team creating acustomer relationship management software system for higher education can have a user with a similarprofile explore the technology, offering opportunities to cater the further development of the system. Testusers help developers discover which areas of the software perform well, and which areas require furtherattention.Research notes that test users can prove to be most effective in providing developers a structuredoverview of the software creation. These users can provide a fresh perspective that can reflect on thestate of the CRM development without the typically narrow or invested focus of a software developer.A 2007 study suggests some important steps are needed in creating a quality and effective testenvironment for software development. In this case study, researchers observed a Danish softwarecompany in the midst of new creating new software with usability in mind. The study found these fourobservations most appropriate: The developers must make a conscious effort and commitment to the test user. Researchers note that the company had dedicated specific research space and staff focused exclusively on usability. Usability efforts must carry equal concern in the eyes of developers as other technology-related concerns in the creation stage. The study found that test users became discouraged when items flagged as needing attention were marked as lower priority by the software developers. Realistic expectations from both test users and software developers help maintain a productive environment. Researchers note that developers began to limit seeking input from test users after the test users suggested remedies the developers felt were improbable, leading the developers to believe consulting the test users would only prove to be more work. Developers must make themselves available to test users and colleagues alike throughout the creation process of a software system.The researchers note that some of the best instances of usability adjustments can be made through casualconversation, and that often usability is bypassed by developers because these individuals never think toconsult test users. Allowing users to test developing products can have its limits in effectiveness, as theculture of the industry and desired outcomes can affect the effect on CRM creation, as a 2008 casestudy suggests that the responsiveness of test users can vary dramatically depending on the industry andfield of the user. Research suggests that test users can rate the importance or severity of potential softwareissues in a significantly different fashion than software developers. Similarly so, researchers note the
potential for costly delay if developers spend too much time attempting to coerce hesitant test users fromparticipating.Additionally, involving too many test users can prove cumbersome and delay the development of a CRMsystem. Additional research notes that test users may be able to identify an area that proves challengingin a software system, but might have difficulty explaining the outcome. A related 2007 case study notedthat test users were able to describe roughly a third of the usability problems.Further, the language usedby test users in many circumstances proves to be quite general and lacking the specific nature needed bydevelopers to enact real change.Privacy and data security systemOne of the primary functions of these tools is to collect information about clients, thus a company mustconsider the desire for privacy and data security, as well as the legislative and cultural norms. Some clientsprefer assurances that their data will not be shared with third parties without their prior consent and thatsafeguards are in place to prevent illegal access by third parties.Market structuresThis market grew by 12.5 percent in 2008, from revenue of $8.13 billion in 2007 to $9.15 billion in2008. The following table lists the top vendors in 2006-2008 (figures in millions of US dollars) publishedin Gartner studies. 2008 2008 Share 2007 2007 Share 2006 2006 Share Vendor Revenue (%) Revenue (%) Revenue (%)SAP AG 2,055 22.5 (-2.8) 2,050.8 25.3 1,681.7 26.6Oracle 1,475 16.1 1,319.8 16.3 1,016.8 15.5Salesforce.com 965 10.6 676.5 8.3 451.7 6.9Microsoft 581 6.4 332.1 4.1 176.1 2.7CRMAmdocs 451 4.9 421.0 5.2 365.9 5.65Others 3,620 39.6 3,289.1 40.6 2,881.6 43.7
2008 2008 Share 2007 2007 Share 2006 2006 Share Vendor Revenue (%) Revenue (%) Revenue (%)Total 9,147 100 8,089.3 100 6,573.8 100Related trendsMany CRM vendors offer Web-based tools (cloud computing) and software as a service (SaaS), which areaccessed via a secure Internet connection and displayed in a Web browser. These applications are sold assubscriptions, with customers not needing to invest in purchasing and maintaining IT hardware, andsubscription fees are a fraction of the cost of purchasing software outright.The trend towards cloud-based CRM has forced traditional providers to move into the “cloud” throughacquisitions of smaller providers: Oracle purchased RightNow in October2011 and SAP acquiredSuccessFactors in December 2011. Salesforce.com pioneered the concept ofdelivering enterprise applications through a web browser and paved the way for future cloud companies todeliver software over the web. Salesforce.com continues to be the leader amongst providers in cloudCRM systems.The era of the "social customer" refers to the use of social media (Twitter, Facebook, LinkedIn, Yelp,customer reviews in Amazon, etc.) by customers in ways that allow other potential customers to glimpsereal world experience of current customers with the sellers products and services. This shift increases thepower of customers to make purchase decisions that are informed by other parties sometimes outside ofthe control of the seller or sellers network. In response, CRM philosophy and strategy has shifted toencompass social networks and user communities, podcasting, and personalization in addition to internallygenerated marketing, advertising and webpage design. With the spread of self-initiated customer reviews,the user experience of a product or service requires increased attention to design and simplicity, ascustomer expectations have risen. CRM as a philosophy and strategy is growing to encompass thesebroader components of the customer relationship, so that businesses may anticipate and innovate to betterserve customers, referred to as "Social CRM".Another related development is vendor relationship management, or VRM, which is the customer-sidecounterpart of CRM: tools and services that equip customers to be both independent of vendors and betterable to engage with them. VRM development has grown out of efforts by ProjectVRM atHarvards Berkman Center for Internet & Society and Identity Commons Internet Identity Workshops, aswell as by a growing number of startups and established companies. VRM was the subject of a cover storyin the May 2010 issue of CRM Magazine.In his 2001 META Group (now Gartner) research note, analyst Doug Laney first proposed, defined andcoined the term Extended Relationship Management (XRM). He defined XRM as the principle andpractice of applying CRM disciplines and technologies to other core enterprise constituents, primarily
partners, employees and suppliers... as well as other secondary allies including government, press, andindustry consortia.The proliferation of channels, devices, social media and the ability to mine "Big Data" has CRM futuriststalking about the shift from 20th Century "Push" CRM to 21st Century Customer Transparency(CT). InJanuary, 2011, The Customer-Transparent Enterprise published by Dennison DeGregor defined this nextgeneration model for CRM.See also Automated online assistant Data mining Business intelligence Database marketing Business relationship management E-crm Comparison of CRM systems Employee experience management (EEM) Consumer relationship system Enterprise feedback management (EFM) Customer experience Farley File Customer experience transformation Help desk Customer intelligence Mystery shopping Customer service – contains ISO standards Partner relationship management (PRM) Data management Predictive analytics Real-time marketing Professional services automation software (PSA)Notes 1. ^ Shaw, Robert, Computer Aided Marketing & Selling (1991) Butterworth Heinemann ISBN 9780750617079 2. ^ Gartner, Inc. (6 June 2009) Whats Hot in CRM Applications in 2009 a b c 3. ^ DestinationCRM.com (2002) What Is CRM? 4. ^ Shaw, Robert, Measuring and Valuing Customer Relationships (2000) Business IntelligenceISBN 9781898085331 a b 5. ^ Desbarats, Gus. 1995. "Usability: form that says function." Industrial Management & Data Systems 95, no. 5:3-6. a b 6. ^ Hart-Davidson, William, Grace Bernhardt, Michael McLeod, Martine Rife, and Jeffrey T. Grabill. 2008. "Coming to Content Management: Inventing Infrastructure for Organizational Knowledge Work." Technical Communication Quarterly 17, no. 1: 10-34 a b c d 7. ^ Desbarats, Gus. 1995. Usability: form that says function. Industrial Management & Data Systems 95, no. 5:3-6.
8. ^ Kostelnick, Charles. "Conflicting Standards for Designing Data Displays: Following, Flouting, and Reconciling Them." Technical Communication 45, no. 4 (November 1998): 473 a b9. ^ Pennington, Lori L. 2007. "Surviving the Design and Implementation of a Content-Management System." Journal of Business & Technical Communication 21, no. 1:62-73.10. ^ Joachim, David. "CRM tools improve access, usability." (cover story). B to B 87, no. 3 (March 11, 2002): 1.11. ^ Mei Lin Fung, "You can learn from Dell Hell, Dell did" customerthink.com a b c12. ^ Goldberg, Harold. "10 ways to avoid CRM pitfalls." B to B 86, no. 17 (September 17, 2001): 11. a b c13. ^ Ka-Ping, Yee. "User Interaction Design for Secure Systems." Information and Communication Security 2513, no. (2002): 278-290.14. ^ Cieslak, David, and Bob Gaby. "Programs Provide Extensive Tools For Adaptability And Customization." CPA Technology Advisor 16, no. 8 (December 2006): 38.15. ^ Whittemore, Stewart. "Metadata and Memory: Lessons from the Canon of Memoria for the Design of Content Management Systems." Technical Communication Quarterly 17, no. 1 (Winter 2008): 88-109. a b16. ^ SAP Insider (15 November 2007) Still Struggling to Reduce Call Center Costs Without Losing Customers?17. ^ Strativity Group, Inc. (2009) Global Customer Experience Management Benchmark Study18. ^ InsideCRM (2007) Get It Together with Collaborative CRM19. ^ DestinationCRM.com (2009) Who Owns the Social Customer?20. ^ Clara Shih, DestinationCRM.com (2009) Sales and Social Media: No One‟s social (Yet)21. ^ TechTarget (2009) Strategy Checklist: Planning for CRM and Customer Service Success22. ^ LiorArussy (2005). "Understanding the Fatal Mistakes". Passionate and Profitable. John Wiley & Sons, Inc.. ISBN 0471721344.23. ^ "Avoid the Four Perils of CRM". Harvard Business Review. a b24. ^ SAP white paper (2003) CRM Without Compromise a b25. ^ Jim Dickie, CSO Insights (2006) Demystifying CRM Adoption Rates
26. ^ Joachim, David. "CRM tools improve access, usability." (cover story). B to B 87, no. 3 (March 11, 2002): 1 a b27. ^ David Sims, TMC.net (2007) CRM Adoption „Biggest Problem‟ in 83 Percent of Cases28. ^ Cappel, James J., and Huang Zhenyu. "A Usability Analysis of Company Websites." Journal of Computer Information Systems 48, no. 1 (Fall2007 2007): 117-123.29. ^ Gefen, David, and Catherine M. Ridings. "Implementation Team Responsiveness and User Evaluation of Customer Relationship Management: A Quasi-Experimental Design Study of Social Exchange Theory." Journal of Management Information Systems 19, no. 1 (Summer 2002): 47-69.30. ^ Roy, Marie Christine; Dewit, Olivier; Aubert, Benoit A. 2001. "The impact of interface usability on trust in Web retailers." Internet Research 11, no. 5:388-398. a b c31. ^ Grayling, Trevor. "Fear and loathing of the help menu: A usability test of online help."Technical Communication 45, no. 2 (May 1998): 168. a b c32. ^ Gellevij, Mark, and Hans Van Der Meij. "Empirical Proof for Presenting Screen Captures in Software Documentation." Technical Communication 51, no. 2 (May 2004): 224-238.33. ^ Grayling, Trevor. "If We Build It, Will They Come? A Usability Test of Two Browser-based Embedded Help Systems." Technical Communication 49, no. 2 (May 2002): 193.34. ^ Desbarats, Gus. 1995. Usability: form that says function. Industrial Management & Data Systems 95, no. 5:3-635. ^ Whittemore, Stewart. "Metadata and Memory: Lessons from the Canon of Memoria for the Design of Content Management Systems." Technical Communication Quarterly 17, no. 1 (Winter2008 2008): 88-109 a b36. ^ Mirel, Barbara, and Leslie A. Olsen. "Social and cognitive effects of professional communication on software usability." Technical Communication Quarterly 7, no. 2 (Spring98 1998): 19737. ^ Pennington, Lori L. 2007. Surviving the Design and Implementation of a Content-Management System. Journal of Business & Technical Communication 21, no. 1:62-73 a b c d38. ^ Høegh, Rune Thaarup, and Janne Jul Jensen. "A case study of three software projects: can software developers anticipate the usability
problems in their software?." Behaviour& Information Technology 27, no. 4 (July 2008): 307-312. a b c 39. ^ Høegh, R. Th. "Case study: integrating usability activities in a software development process." Behaviour& Information Technology 27, no. 4 (July 2008): 301-306. 40. ^ Iivari, N. "„Representing the User‟ in software development—a cultural analysis of usability work in the product development context." Interacting with Computers 18, no. 4 (July 2006): 635-664 41. ^ DestinationCRM.com (2009) CRM Market Grows for Fifth Straight Year 42. ^ "Gartner Says Worldwide Customer Relationship Management Market Grew 23 Percent in 2007" (Press release). Gartner, Inc. 2008-09-12. Retrieved 2008-08-15. 43. ^ "Gartner Says Worldwide CRM Market Grew 12.5 Percent in 2008" (Press release). Gartner, Inc. 2009-06-15. Retrieved 2009-10-27. 44. ^ Buys Cloud-based Customer Service Company RightNow For $1.5 Billion Techcrunch: October 24, 2011 45. ^ Challenges Oracle With $3.4 Billion SuccessFactors Purchase Bloomberg Businessweek: December 07, 2011 46. ^ history of cloud computing Computer Weekly: March 2009 47. ^ Cloud CRM to Work PC World: April, 2010 48. ^ Greenberg, Paul, CRM at the Speed of Light, McGraw Hill 4th Edition, page 7 49. ^ Destinationcrm.com CRM Magazine: May, 2010 50. ^  The Great Enterprise Balancing Act: Extended Relationship Management (XRM), Doug Laney, META Group publication, December 10, 2001View page ratingsRate this pageWhats this?TrustworthyObjectiveCompleteWell-written I am highly knowledgeable about this topic (optional)Submit ratings
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