CRM – optimize your company: Benefits and downsides of implementing CRM systems

Table of Contents

1 Aims and Objectives

2 Definition

2.1 CRM

2.2 MSE – Medium-sized Enterprises

3 CRM

3.1 CRM – Life cycle

3.2 CRM-Systems

4 CRM technologies

4.1 Operative CRM (oCRM)

4.1.1 eCRM

4.1.2 mCRM

4.1.3 EAI

4.2 Analytical CRM (aCRM)

4.2.1 Data Warehouse

4.2.2 Online Analytical Processing (OLAP)

4.2.3 Data Mining

4.3 Collaborative CRM

4.4 Goals of CRM

4.4.1 Customer-related objectives

4.4.2 Business-related objectives

4.4.3 Strategic, product-specific and financial goals

4.5 CRM market

5 Requirements for a successful CRM implementation

5.1 Change Management

5.2 Business process optimisation (organisation)

5.3 Customer Relationship Strategy

5.4 Corporate Culture

5.5 Employees

5.6 CRM system

6 CRM – Rent or Buy

6.1 CRM OnDemand

6.2 CRM OnPremise

6.3 Cost and decision criteria

7 Customer - The meaning of customer satisfaction

7.1 Aspects of customer loyalty

7.2 The change in consumer behaviour

8 Downsides and Risks

8.1 Downsides of CRM implementation

8.1.1 Strategic and conceptual Resistors

8.1.2 Management resistance

8.1.3 Employee’s resistance

8.1.4 Customer resistance

8.1.5 Other downsides

8.2 Risks of CRM implementation

9 Benefits and Chances

9.1 Benefits of CRM implementation

9.2 Chances of CRM implementation

10 Trends of CRM

10.1 mCRM

10.2 CRM 2.0 (Social CRM)

10.3 eCRM

10.4 CRM on Demand

11 Conclusion

12 Recommendation

Project Goals and Scope

The primary objective of this project is to provide a comprehensive guideline for medium-sized enterprises to navigate the complexities of implementing Customer Relationship Management (CRM) systems. The report investigates the technical, strategic, and human requirements for a successful implementation, while evaluating the economic trade-offs between purchasing and renting CRM solutions.

• Understanding the definition and lifecycle of CRM within a medium-sized enterprise context.
• Comparing different CRM technologies, including operational, analytical, and collaborative approaches.
• Evaluating the strategic requirements and necessary organizational changes for successful CRM implementation.
• Analyzing the economic decision-making process between CRM "Rent" (OnDemand) versus "Buy" (OnPremise) models.
• Investigating the core components of customer satisfaction, loyalty, and changing consumer behavior.
• Identifying common risks, downsides, and potential benefits of CRM initiatives.

Excerpt from the Book

Summary of Chapters

1 Aims and Objectives: Defines the purpose of the report as a guide for medium-sized companies regarding CRM implementation and strategy.

2 Definition: Explores various CRM definitions and establishes clear criteria for classifying medium-sized enterprises.

3 CRM: Details the CRM lifecycle and the technical necessity of consolidating isolated applications into integrated CRM systems.

4 CRM technologies: Examines operational, analytical, and collaborative CRM components and their respective goals and technological requirements.

5 Requirements for a successful CRM implementation: Discusses the importance of change management, organizational alignment, and the role of corporate culture.

6 CRM – Rent or Buy: Compares the "OnDemand" (SaaS) and "OnPremise" deployment models based on cost and strategic decision criteria.

7 Customer - The meaning of customer satisfaction: Analyzes the psychological drivers of customer loyalty and shifting consumer behaviors.

8 Downsides and Risks: Outlines potential pitfalls, including resistance from management and employees, data protection issues, and implementation risks.

9 Benefits and Chances: Highlights the long-term competitive advantages and organizational improvements gained through effective CRM.

10 Trends of CRM: Discusses future developments like mCRM, Social CRM (CRM 2.0), and the growing SaaS market.

11 Conclusion: Summarizes that CRM is a vital long-term philosophy rather than just a software tool, requiring careful, phased implementation.

12 Recommendation: Provides a final strategic recommendation to prioritize a step-by-step implementation approach tailored to specific corporate needs.

Key Terms

Customer Relationship Management, CRM, Medium-sized Enterprises, MSE, Operational CRM, Analytical CRM, Collaborative CRM, Data Warehouse, Customer Loyalty, Change Management, SaaS, TCO, Customer Satisfaction, eCRM, mCRM

Frequently Asked Questions

What is the primary goal of this management project?

The primary goal is to provide a comprehensive guide for medium-sized enterprises to understand CRM, evaluate its risks and benefits, and make informed decisions regarding implementation strategies.

What are the core thematic fields covered in this report?

The report covers CRM definitions, technological classifications (oCRM, aCRM, collaborative), implementation prerequisites, deployment models (Rent vs. Buy), and the analysis of customer loyalty.

Which scientific methods or frameworks are used?

The project uses a mix of market analysis, comparative studies of deployment models, and the "Confirmation/Disconfirmation" paradigm to explain customer satisfaction.

What does the "CRM lifecycle" entail?

The lifecycle consists of three distinct phases: acquisition, enhancing, and retaining, each requiring unique strategic approaches to maximize customer profitability.

What distinguishes "OnDemand" from "OnPremise" CRM?

OnDemand CRM is hosted externally and paid via subscription, offering lower upfront costs. OnPremise CRM involves purchasing licenses and hosting the software on internal company servers.

How is a "medium-sized enterprise" (MSE) defined in this report?

The report synthesizes various definitions, concluding that an MSE typically has a headcount of up to 250 employees and defined limits on annual turnover and balance sheet totals.

Why is "Change Management" critical for CRM?

CRM implementation is more than an IT project; it is a fundamental shift in business philosophy. Change management is necessary to align corporate culture and reduce resistance from employees.

What is the role of the "Data Warehouse" in Analytical CRM?

The Data Warehouse acts as the central repository for integrating internal and external data, forming the necessary foundation for strategic analysis and reporting.

How does the report address the "costing iceberg"?

The "costing iceberg" illustrates that software licenses represent only a small fraction (approx. 9%) of the total cost, with the majority of expenses hidden in customization, implementation, and personnel training.

What is the author's final recommendation regarding CRM rollout?

The author strongly recommends a phased, step-by-step implementation across departments rather than attempting a complete company-wide rollout at once to minimize risk and cost.