SAP CRM

Customer Relationship in Times of Economic Crisis Customers as the Ultimate Source of Your Revenue

Jon Upton Head of EMEA CRM Ljubljana, October 1, 2009

Rule #1

Rule #1 in Good Customer Service? Always speak your customers language

SAP 2007 / Page 2

Agenda

1. 2. 3. 4. 5. 6.

Introduction What is CRM? How has CRM Evolved? CRM and the Current Economic Climate What Does this All Mean for IT? Summary & Conclusion

Agenda

1. 2. 3. 4. 5. 6.

Introduction What is CRM? How has CRM Evolved? CRM and the Current Economic Climate What Does this All Mean for IT? Summary & Conclusion

What is CRM?

Just in case you didnt know

C = Customer R = Relationship M = Management

What is CRM?

A lot of people think CRM is technology.

What is CRM?

But CRM is actually a Business Strategy.

What is CRM?

The technology simply enables the CRM business strategy.

You heard right ...

So, is Jon telling me that I can have CRM without SAP?

YES!
(but he doesnt recommend it)

 Post-It Note CRM

SAP 2007 / Page 10

Traditional CRM Solution

customer

Website
Paper Complaint Cases

Custom Built Call Center

Reports Server

BIG COMPANY
Customer Index File 2

Legacy Mainframe

Customer Index File 1

SAP 2007 / Page 11

Customer-Centric CRM

The Customer

Through Any Channel

Multi-Channel

Knowing Your Customers

CRM is about knowing your customers

Knowing Your Customers

and adapting your business to better suit your customers needs.

Its Not About the Technology

Historically, everybody has been focused on technology and cost takeout Now a lot of companies are asking, how do I change my organization, how do I change my business processes, how do I use the data I've got? It's changing CRM into a business phrase, as opposed to a technology phrase.
Sajid Usman, Partner, Accenture's Customer Interaction Practice. Customer Relationship Management Article by Colin Beasty

SAP 2007 / Page 16

Knowing Your Customers

nking ne Ba Online Onli Taxes

ia SMS Mo y Bills v bile Ch Pa eck-In

Knowing Your Customers

But Beware of the COOL technology! CRM is not about Paving the Cow Path

SAP 2007 / Page 19

Dont Pave the Cow Path

Ye olde cow path

SAP 2007 / Page 20

Complete Lack of CRM Strategy

PARIS CDG AIRPORT

SAP 2007 / Page 21

Agenda

1. 2. 3. 4. 5. 6.

Introduction What is CRM? How has CRM Evolved? CRM and the Current Economic Climate What Does this All Mean for IT? Summary & Conclusion

The Evolution of the Customer

The Evolution of the Customer

SAP 2007 / Page 23

Early Customer Service

Any customer can have a car painted any color that he wants so long as it is black. - Henry Ford

SAP 2007 / Page 24

And then customers became more intelligent

SAP 2007 / Page 25

And then came the internet, blogs, and social networking

SAP 2007 / Page 26

And today users contributing to product development

SAP 2007 / Page 27

And the power of expression

And making themselves heard

SAP 2007 / Page 28

The Evolution of the Customer

The Evolution of the Customer

SAP 2007 / Page 29

The Evolution of the Customer

SAP 2007 / Page 30

CRM started out as address books, diaries, and ticket dispensers

SAP 2007 / Page 31

Then came CRM software

SAP 2007 / Page 32

Common Evolution of CRM

Marketing

Sales CRM

Service

SAP 2007 / Page 33

CRM The Sum of Transactions

The Customer

Customer Experience Management (CEM)

Enter Customer Experience Management (CEM)

The Customer

 SAP 2007 / Page 36

 SAP 2007 / Page 37

The initial focus of CRM applications was on the who and what of selling. Over the past year or two, however, that has been changing-functionality that supports the how of selling is showing up more and more in CRM systems.
The Next CRM Evolution Customer Relationship Management Jim Dickie
SAP 2007 / Page 38

Agenda

1. 2. 3. 4. 5. 6.

Introduction What is CRM? How has CRM Evolved? CRM and the Current Economic Climate What Does this All Mean for IT? Summary & Conclusion

Along came the economic crisis

POW!
SAP 2007 / Page 40

In the midst of the greatest economic meltdown in living memory, when their portfolios have been decimated and their plans for early retirement jettisoned customers are still talking about how many times they had to call back to get a simple question answered, how rude the person was at the airline check-in counter, and how they got the food order wrong at the restaurant down the street.
Dec. 15, 2008 In the Midst of a Global Economic Crisis, It's Still All About Service By Jim Barnes
SAP 2007 / Page 41

Your Challenge: Balancing Short term needs and long term goals

%38 HANSENG %39 DJIA HANSENG %39 DJIA %35 FTSE CAC40 %42 FTSE %38
CEOs Mandate Mitigate revenue and profitability risk Rapidly reduce operating costs Survive and emerge as a leader in the long-run VP of Sales VP of Marketing VP of Service Immediately: Capture maximum revenue from current opportunities and reduce cost of sales

FTSE

DJIA

Long term Objective: Grow revenue and market share

%35

Immediately: Rapidly develop compelling offers/pricing and launch to market Long term Objective: Increase market share and mindshare

Immediately: Reduce cost of service, revenue leakage and retain high value customers Long term Objective: Transform from a cost to a profit center

HANSENG

%39

Todays customers
Informed and empowered like never before

Price transparency

Democratization of information

Plenty of choices

Social networking and communities

Customer
Implications
Shift in negotiation power from Vendors to Customers Evolution from Relationship Management to Total Experience Management New communications and interaction channels to manage on top of traditional ones Greater needs for adaptability and responsiveness

And Its Not Just SAP Saying This

Stinting on Customer Service

is a common and sometime costly response to economic times. By managing the customer experience more rigorously, companies can maintain quality while still saving money.

Maintaining the Customer Experience McKinsey Quarterly December 2008

And Its Not Just SAP Saying This

51%

of organisations said CRM is

more important to their businesses in the current economic environment

either spend more or maintain the same level on CRM in the current economic environment .

55%

of organisations said they will

Gartner : Dataquest April 2009

Gartner : Dataquest April 2009

 SAP 2007 / Page 46

 SAP 2007 / Page 47

And Its Not Just SAP Saying This

Don't Just Cut Overhead :

Optimize it

streamlining & automation of business process

25%

savings can be achieved in

: The Daily Stat , March 2009 Source : Bain & Company

So, before you let the finance and accounting folks dictate cutbacks in staffing levels, get the marketing and HR folks together and concoct a plan to deliver even better service thereby standing out from a crowd of competitors that in all likelihood is doing exactly what customers are expecting reducing service levels, creating more and more customer frustration, and jeopardizing customer loyalty at precisely the time when companies need all the loyal customers they can get.
Dec. 15, 2008 In the Midst of a Global Economic Crisis, It's Still All About Service By Jim Barnes,
SAP 2007 / Page 49

A crisis is a terrible thing to waste.

Paul Romer Stamford Economist April 2007

SAP 2007 / Page 50

Agenda

1. 2. 3. 4. 5. 6.

Introduction What is CRM? How has CRM Evolved? CRM and the Current Economic Climate What Does this All Mean for IT? Summary & Conclusion

Lots of work for all of us.

SAP 2007 / Page 52

CRM is in many ways the wildcard of this economic downturn ... The CRM applications market is much more robust for a number of reasons, such as usability innovations, delivery model innovations, built-in support for core industry processes
Enter prise Applications Spending Plans: European Investment Reality Check 2009 Bo Lykkegaard

SAP 2007 / Page 53

 SAP 2007 / Page 54

 SAP 2007 / Page 55

 SAP 2007 / Page 56

 SAP 2007 / Page 57

SAP CRM

SAP 2007 / Page 58

M R C

SAP CRM

Interaction Channels / BCM

SAP CRM
Core Industry Processes Banking Public Sector Consumer Products Marketing Key Enabling Engines Sales Service Technology Manufacturing Telecommunications Utilities

Business Intelligence

Introducing SAP CRM 7.0

SAP CRM 7.0

SAP 2007 / Page 60

Introducing SAP CRM 7.0

SAP CRM 7.0

SAP 2007 / Page 61

Introducing SAP CRM 7.0

SAP CRM 7.0

Starring: New Productivity Tools Enhanced Personalization Delivering Service Excellence Building Stronger Relationships with Consumers
SAP 2007 / Page 62

Improved Sales Performance Achieving the Perfect Order Deep Industry Functionality Stable Core with Enhancement Package Concept

CRM Suites Wave (Feb 2007 => August 2008)

Source : Bill Band, Forrester 2008

In 18 Months

What the analysts are saying.

That interface is more intuitive than what Ive seen from any traditional SFA system on the market today
Michael Dunne, VP of Research

SAP has continually enhanced the functionality of SAP CRM the company has focused on improving usability and optimising the support for strategic business processes
William Band, Principal CRM Analyst informationweek

Current product release shows continued improvements and vision for enhancing usability and flexibility of the application interface to meet marketing user requirements
Kim Collins, VP of Research Gartner EMM MQ Research

Leverage Web 2.0 To Enrich Your Enterprise Data

& Co

CRM 1.0: Robustness & Efficiency

Transactional efficiency Interaction excellence Enterprise-driven content Structured data One-to-many relationships

CRM 2.0: CRM + Web 2.0

Enable action based on feedback from direct customer interactions and the social web Leverage collaboration across business processes and beyond business boundaries Structured & unstructured data

Web 2.0:Social Media, Collaboration

Peer-to-peer collaboration Information sharing (product ratings, service feedback) User generated content Unstructured data Many-to-many relationships

SAP 2008 / Page 65

SAP CRM Proof-of-Concept

SAP 2007 / Page 66

Act Immediately, Grow Strategically With SAP

High

Opportunity
Management

Available to Promise

Deal Negotiation

Planned Supply/ Demand

Responsive Networks

End-to-End Process Driven Platform

Flexibility for easy adaptation Modular, plug-and-play Greater responsiveness

Relative Value

Value Gap
Incremental Value (easy to replicate)

Strategic Value (hard to replicate)

Tactical and Siloed Solutions

Very expensive to build N:N integrations Resource intensive and high cost

Low Low

Slow to change and adapt

Business Maturity

High

Agenda

1. 2. 3. 4. 5. 6.

Introduction What is CRM? How has CRM Evolved? CRM and the Current Economic Climate What Does this All Mean for IT? Summary & Conclusion

Summary

1. 2.

CRM is a business strategy, not technology Stay customer-focused, not technology focused (dont pave the cow path) Customers and CRM are both ever-evolving; so your CRM business strategy should be too. The current economic climate brings challenges and opportunities, and IT solutions around CRM will continue to be in demand. SAP CRM offers a comprehenisve, fully-integrated, and easy-to-use solution to address tactical and strategic business goals.

3.

4.

5.

SAP 2007 / Page 69

Polish in Three Easy Steps?

SAP 2007 / Page 70

Contact Me

Jon Upton EMEA CRM Solutions SAP France S.A. 32, rue de Monceau 75008 Paris France T +33/144/45-20-88 M +33/603/91-95-77 jonathan.upton@sap.com

NK HA ! T U YO