CRM: A Business Imperative for Companies during the Global Economic Downturn

CRM: A Business Imperative for Companies during the Global Economic Downturn

Mr. Navik NumsiangManaging DirectorSundae Solutions Co., [email protected]

Situation

Companies facing the toughest economic conditions in several generations

Businesses have seen a rapid deterioration in their operational cashflows

Instinctive reaction to cut all strategic projects and wait until things improve

However, this could prove more detrimental in the long-termCompanies that invest wisely in information technology will reap the rewards

Implementing CRM will enable you to:Increase revenue-generating activitiesAchieve significant cost-savings and on-going productivity improvementsDeliver exceptional and personalised service

Why CRM?

CRM is a business strategy designed tooptimise profitability,

revenue and customer satisfaction

Gartner

Management Tools & Trends 2009 by Bain & Co.

Why CRM?

Helps protect revenue streams from your current customers

Provides you with a 360 degree view of customer interaction across sales, marketing, service and finance functions



Gartner

5

360 Degree Customer View

• Sage CRM provides real 360 degree visibility on customers across sales, marketing, customer service and accounts.

• For each individual customer, users have instant access to areas such as:

• Opportunities• Communications• Cases• Invoices

Drill-down to underlying

opportunity


communication


case

Drill-down to underlying Invoice*

Why CRM?

Helps protect revenue streams from your current customers

Provides you with a 360 degree view of customer interaction across sales, marketing, service and finance functions

Enables you to unearth latent revenue opportunities

Equips your sales team to deliver highly focussed business development programmes

Replaces sporadic interaction with true customer lifecycle management



Gartner

CRM and Your Customer Base

CRM enables you to grow revenue with existing customers by:

Understanding true cross- and up-sell opportunities maximising profitability of every customer relationship

Delivering highly targeted marketing messages to specific customers or customer segments dramatically reducing cost per lead

Reducing amount of time and cost it takes to resolve service issues without compromising exceptional service experience keeping your customers loyal

Empowering customer-facing staff while retaining control over headline resource, performance and budget management

CRM and New Business Development

CRM enables you to capture and develop new business at a lower cost by:-

Achieving operational efficiency within sales and marketing functions

Sales team are focussed on opportunities most likely to close

Delivering highly targeted marketing messages to specific prospects or market segments to dramatically reduce cost-per-lead

Introducing marketing accountability to ensure you are achieving right level of return form your marketing spend

Stripping manual administration – less paperwork, errors, repetition and cost

Empowering customer-facing staff while retaining control over headline resource, performance and budget management

Why Now?

“We are at an extraordinary period of history. It is a time of crisis and unprecedented uncertainty, even fear; but it is also a time of opportunity

for change and profound transformation.”

Klaus Schwab, Chairman, World Economic Forum

2009

Why Now?

Your customers and potential customers facing identical cost pressures

Their purchasing behaviour has changed;

Spending less but looking for more value for money

Far more discerning about potential purchases and suppliers

You will need to work harder and smarter to increase revenues

Biggest mistake would be to ‘sit back’ and do nothing

“We are at an extraordinary period of history. It is a time of crisis and unprecedented uncertainty, even fear; but it is also a time of opportunity

for change and profound transformation.”

Klaus Schwab, Chairman, World Economic Forum

2009

Actual Cost of Doing NothingExample Cost

A sales executive spends 6 weeks closing a 50,000 Baht opportunity with a new customer rather than spending 2 weeks closing a similar opportunity with an existing customer

100,000 Baht opportunity cost

A sales executive with a base salary of 300,000 Baht per year spends 10 hours per week on sales administration

75,000 Baht direct salary cost per yr

A sales executive focuses exclusively on a large but poorly-qualified opportunity worth 500,000 Baht rather than pursuing three 60,000 deals with a far higher likelihood of closing

180,000 Baht opportunity cost

At a company with 1,000 customers on 10,000 Baht per year service contracts, a 30% increase in call queuing time translates into a 15% increase in non-renewal of service contracts the following year

1,500,000 Baht in lost revenues

At a company, 25% of customer support requests; equating to 2 FTEs earning 150,000 Baht each per year, could be handled on a self-service basis over the web

300,000 Baht direct salary cost

At a company where an average deal is worth 35,000 Baht and the sales team closes one-in-five leads, lower than anticipated demand generated by traditional marketing activities translates into a 30% net decrease in inbound sales enquiries from 80 per month to only 56 per month

2.02m Baht in lost revenues over the year

Actual Cost of Doing Nothing

Example 1:A sales executive spends 6 weeks closing a 500,000 Baht opportunity with a new customer rather than spending 2 weeks closing a similar opportunity with an existing customer

1,000,000 Baht opportunity cost

Example 2:A sales executive with a base salary of 300,000 Baht per year spends 10 hours per week on sales administration

75,000 Baht direct salary cost per yr

Example 3:A sales executive focuses exclusively on a large but poorly-qualified opportunity worth 5,000,000 Baht rather than pursuing three 600,000 Baht deals with a far higher likelihood of closing

1,800,000 Baht opportunity cost

Example 4:At a company with 1,000 customers on 10,000 Baht per year service contracts, a 30% increase in call queuing time translates into a 15% increase in non-renewal of service contracts the following year

1,500,000 Baht in lost revenues

Example 5:At a company, 25% of customer support requests; equating to 2 FTEs earning 150,000 Baht each per year, could be handled on a self-service basis over the web

300,000 direct salary cost

Example 6:At a company where an average deal is worth 35,000 Baht and the sales team closes one-in-five leads, lower than anticipated demand generated by traditional marketing activities translates into a 30% net decrease in inbound sales enquiries from 80 per month to only 56 per month

2.02m Baht in lost revenues over the year

Business Impact of Inaction

Issues How CRM can Help Difficulty identifying quick win, cross-sell and up-

sell opportunities within your current customer base Enables you to leverage further revenue

opportunities within your current customer base

Lower yields from traditional marketing activities and fewer inbound leads

Ensures your sales, marketing and customer services resources are being used to max effect

Lower lead-to-opportunity conversion Reduces your opportunity cost

Fewer sales opportunities in the pipeline Reduces your cost-of-sale

Too much time spent on poorly-qualified opportunities

Reduces the cost of your marketing leads

Lower sales conversion rates Ensures your meet your customer SLAs

Inaccurate forecasting Minimises administration costs

Too much time spent on administration Protects and grows your revenues

Limited visibility on real-time performance of sales, marketing and customer service functions

Enables you to pinpoint underlying issues and take corrective action accordingly

Shortfalls in customer service delivery Reduces potential for customer attrition

Difficulty identifying which areas of the business are in growth/decline and defining focus accordingly

Ensures that your investments are all aligned to revenue development

Prepares you for the economic recovery

How CRM Benefits Your Business?

How CRM Benefits Sales

Maximises cross- and up-sell opportunitiesImproves team collaboration on opportunities

Sales Team Empowerment

Sage CRM empowers sales staff to sell more effectively • SageCRM provides

sales staff with instant access to the tools and information they need to sell more effectively. These include:

• Customer intelligence

• Calendars• Accounts• Reports• Pipelines• Contacts• Lists• Dashboards The “Quick Look” tab provides sales staff with summary information on

communications history, active opportunities and open casesThe “Calendar” tab provides sales staff with a unified view of upcoming activities and tasks which can be viewed by day, week, month and due-date

The “Invoice”* tab provides sales staff with an overview of the transaction history of their customers along with drill-down to the underlying invoiceSales representatives and sales managers can generate sales performance reports in a few simple stepsThe “Opportunities” tab presents sales representatives and sales managers with a unified view of all current opportunities by value and stageMultiple contacts can be captured, accessed and managed for each company or sales opportunitySales lists can be defined according to multiple criteria, and can be maintained as static or dynamic groups for on-going sales activities

Dashboards provide sales representatives and managers with a single view of key sales information and performance data

Opportunity Management

Opportunity Workflow Improves win rates


Maximises cross- and up-sell opportunitiesImproves team collaboration on opportunitiesImproves prospect targeting

Lead Management

Sage CRM ensures that all leads are captured, allocated and progressed

• SageCRM workflow manages leads seamlessly from capture to opportunity conversion

• Leads can be rated, reassigned, edited or converted to an opportunity, and call-backs can be scheduled with ease

• A full lead audit trail is provided throughout and dashboards ensure transparency


Maximises cross- and up-sell opportunitiesImproves team collaboration on opportunitiesImproves prospect targetingIncreases revenue yield per opportunity and accountProvides real-time visibility on sales KPIs


Shortens sales cycles

Reduces sales training costs

Decreases time spent on administrative tasks

Maximises cross- and up-sell opportunitiesImproves team collaboration on opportunitiesImproves prospect targetingIncreases revenue yield per opportunity and accountProvides real-time visibility on sales KPIsImproves win rates

Back Office Integration

Extensive Workflow

Sales Mobility


Shortens sales cycles

Reduces sales training costs

Decreases time spent on administrative tasks

Reduces sales forecast variance

Maximises cross- and up-sell opportunitiesImproves team collaboration on opportunitiesImproves prospect targetingIncreases revenue yield per opportunity and accountProvides real-time visibility on sales KPIsImproves win rates

Sales Forecasting

Sage CRM makes sales forecasting easy • Forecast information is

automatically consolidated from the sales pipeline

• Individual opportunities can be excluded where necessary

• Sales managers can automatically consolidate the individual forecasts of members of their team

How CRM Benefits Marketing

Enables marketing programmes to be planned more efficiently and effectively

Improves campaign response rates

Enables accurate measurement of marketing campaign RoI

Campaign Management

SageCRM enables multi-wave marketing activity with full resource management • Project manage the

execution of marketing campaigns across multiple channels and multiple resources

• Full drill-down to underlying waves, wave activities, resources and budgets

• Leads are automatically associated back to their originating campaign

Marketing Campaign Report

SageCRM provides comprehensive outbound call management facilities • SageCRM provides for

the full definition of call scripts, daily calling targets and calling teams

• Scripts can incorporate drop-down and free-text boxes for information capture, and can follow dynamic routing according to particular responses

• SageCRM also

supports CTI

Outbound Call Management





Ensures customers and prospects receives the right marketing message at the right time

33

SageCRM enables marketing staff to create and manage marketing lists effectively • SageCRM equips

marketing staff with the tools to target the right companies at the right time, eliminating guesswork and optimizing marketing spend

• Marketing lists can be defined using simple or complex queries, and can be based on transaction history if necessary

• Specific response types automatically generate new lists for follow on activities

Segmentation Management

E-Marketing

SageCRM provides for intelligent E-Marketing solution • Sage CRM allows you to

do electronic marketing including

• Email marketing• Landing zone• Web links• Online Survey

• All e-marketing communication for each customer tracked by Sage CRM including

• Bounce emails• Email open• Survey• Landing zone

British Council - Visitor Registration

Visitors register their details on the website

British Council users use the full range of Sage CRM tools for managing this data and producing targeted marketing

Contact information and details of their interests is saved directly to Sage CRM Company and Person records





Ensures customers and prospects receives the right marketing message at the right time

Reduces marketing administrative overhead and enables marketing budget to be tracked and managedDecreases the cost per customer acquiredReduces marketing campaign lead timesReduces cost per lead

How CRM Benefits Customer Service

Provides web self-service

The SageCRM Self Service Portal allows customer to access CRM functionality over the web

• SageCRM enables customers to securely access CRM functionality over-the-web through the product’s self-service functionality

• Customers can log new support issues and can also review the status of their open cases

• Where appropriate, customers can also access account details

Customer Self Service



Increases productivity of agents

SageCRM provides real-time customer service visibility and workflow • Customer Service staff

benefit from complete visibility on customer interaction including sales, marketing & finance

• Workflow automation ensures that service issues meet service level obligations and are progressed to satisfactory resolution on a timely and efficient basis

Enhanced Customer Visibility with Extensive Workflow




Ensures issues never “get lost between the cracks”

SageCRM provides real-time monitoring of SLAs • Customer Service staff

benefit from real-time visibility on service level performance by customer case

• Full drill-down is provided to the underlying case details across multiple tabs

Traffic Light Monitoring of Cases





Enables agents to capture further sales leads from customer interactions






Improves response times to customer service requests

Increases customer retention

Reduces customer support costsReduces the average time to resolve an issue

Avis Customer Care

• Customer Resolution Time Has Reduced by 2.82 Days and Within SLA

• Productivity Gains of 6% with 7% Less FTE

• Reduction of 4% to Incoming Call Abandon Rate

• Average Cost of Adjustment Reduced by 16%

• More Satisfying Customer Experience

http://www.avis.com/AvisWeb/home/AvisHome

46

Knowledge Base

Centrally store and share customer service knowledge and solutions • SageCRM enables

customer service agents to document, store and share solutions to common issues using the product’s knowledge base

• All potential solutions follow approval workflow before publication

• Once published, all solutions are fully searchable






Improves response times to customer service requests

Increases customer retention

Reduces customer support costsReduces the average time to resolve an issueDecreases the number of customer cases that are re-openedDecreases the number of customer service escalations

Summary

You will have…• A single view of their customers• Reduced inefficiency• Improved cross-sell and up-sell opportunities• Better marketing insights• Improved visibility of operations• Higher customer retention

What is your CRM Strategy?

Thanks You

Mr. Navik NumsiangManaging DirectorSundae Solutions Co., [email protected]

Most of presentation material from Sage CRM Solutions