SAP CRM Interview Questions and Answers

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1. What is Customer Relationship Management (CRM)?

CRM is defined as aligning business strategy, corporate culture and organization, customer information, and supporting information technology so that all customer interactions promote a mutually beneficial relationship between each customer and the enterprise. Primarily, customer relationship management is a business strategy, but it is a business strategy enabled by advances in technology. Widespread implementation of customer information, Enterprise Resource Planning (ERP) systems, sales force automation, and integrated point-of-sale systems have made customer information readily available in large volumes. Reduced costs and higher levels of performance for database management platforms enable us to gain access to this customer information and gain new insights into our customers and their behavior through a variety of analysis methods.

2. What is the difference between CRM and R/3 ? The difference between CRM and R/3 is R/3 is an integration

of different application suits; it has its own architecture and way of functioning. Coming to CRM it is all about maintaining the relationship with a customer. It is supposed to enhance the profit of the company or organization since the ultimate goal of any company is profit. Therefore CRM is one step ahead for their goal achievements.

Whereas SAP R/3 is a 3 tier based on client or server based application. One layer is presentation layer i.e Client which interfaces with the end user. Second layer is application layer for all business-specific requirements i.e program, and third is database which contains all information and records about the system, including transactional and configuration data. SAP R/3 has been developed in its own language called ABAP (Advanced Business Application Programming).

3. What is the use of CRM? CRM stands for Customer Relationship

Management. It is a strategy used to learn more about customers' needs and behaviors in order to develop stronger relationships with them. After all, good customer relationships are at the heart of business success. There are many technological components to CRM, but thinking about CRM in primarily technological terms is a mistake. The more useful way to think about CRM is as a process that will help bring together lots of pieces of information about customers, sales, marketing effectiveness, responsiveness and market trends.

4. What is the goal of CRM? The operational side of the CRM equation consists of

"customer facing" applications integrated across the front, back, and mobile offices which includes sales automation (SA), enterprise marketing automation (EMA), customer service/support, and miscellaneous components.

5. What is an automating operation? The operational side of the CRM equation consists of

"customer facing" applications integrated across the front, back, and mobile offices which includes sales automation (SA), enterprise marketing automation (EMA), customer service/support, and miscellaneous components.

6. What are the Benefits of customer relationship management?

The Benefits of Customer Relationship Management are:a. Sell additional products and services b. Develop new products c. Increase product utilization d. Reduce marketing costs e. Identify and retain profitable customers f. Optimize service delivery costs g. Retain high lifetime value customers h. Enable personal and relevant communications i. Improve customer loyalty j. Improve response rates to direct mail k. Increase product profitability l. Respond quickly to market opportunities m. Acquire new, profitable customers

7. How the data was collected in CRM projects?

There are different types to collect data from CRM projects:

1. Responses to Campaigns.2. Sales and purchase data.3. Web registration data.4. Shipping and fulfillment dates. 5. Account Information.6. Service and support records.7. Demographic data.8. Web sales data.

8. How long will it take to get CRM in place? A bit longer than many software salespeople will lead

you to think. Some vendors even claim their CRM "solutions" can be installed and working in less than a week. Packages like those are not very helpful in the long run because they don't provide the cross-divisional and holistic customer view needed. The time it takes to put together a well-conceived CRM project depends on the complexity of the project and its components

 

9. Can CRM and ITS server maintained in one system?

CRM and ITS servers can be maintained in one system, but it is technically possible and whereas it is not recommended since it would not allow for good security if both are implemented in one server.

 

10. What is the importance of Customer Relationship Management?

The past decade has seen concentrated efforts at integrating enterprise relationship planning (ERP) systems at the same time that organizations eliminated Year 2000 concerns. Now, an increasing number of companies are turning to customer relationship management (CRM) strategies to retain and acquire customers in a worldwide marketplace characterized by heightened competition.

11. What is the action profile in sap CRM? How to use complaints and returns life cycle in service process?

Action Profile is a Post Processing Frame work (PPF) which gives some output (like as smart form, fax, document) on given conditions. And this is used in every place in SAP CRM where we define the Conditions for the successful implementation of the activity. Like in Opportunity Management, Monitoring the Activity of the enterprise employees etc.

 

12. What is master data in sap CRM? Master Data is org & CP basic data which are

mandatory for creating org & CP in CRM system. EX: Org Name & address details & Contact details

and CP related Names and contact details.

13. Is there any provision directly with CRM to buffer the data or is there any other means?

The provision directly with CRM to buffer the data is by CRM stores, all orders, products, and prices etc, used in the Internet sales Scenario. It would have R/3 integration and then the order will be forwarded to R/3, but it is also kept in CRM database.

14. How to integrate R/3 with CRM?To exchange data between ECC ( R3 ) and CRM systems we

need to maintain connectivity for both systems. They areMaintain Logical Systems in both systems and link with

respective clients.Maintain RFC destinations in both systems pointing to each

other system.Maintain Number ranges as mirror images in both systems.Ex: Maintain same number range in ECC as Internal and inBelow are the steps for the integration between R 3 & CRM : SAP ECC : 1) Define logical system for ECC ( Name ) 2) Define logical system for CRM ( To establish the cross

connection )SAP CRM : 1) Define logical system for CRM 2) Define logical system for ECC

15. What is the Use of R/3 condition in CRM? We are trying to replicate SAP R/3 pricing conditions to

CRM. Initial download of pricing customizing has been done. R/3 pricing conditions are displayed in CRM customizing well (pricing, rebates and free goods). Though when I go in customizing (in CRM) to use these R/3 conditions in condition maintenance under “marketing planning and campaign management”, I can see my rebates conditions, the free goods conditions but not the other conditions applying directly in the sales order. I have checked the configuration for the conditions not shown. They are categorized in: Application = CRM; Usage ‘PR’ for pricing; Source R/3. Conditions created in R/3 and replicated to CRM can only be maintained in R/3. If your middleware is set properly, any changes (VK11, VK12) will replicate to CRM. - 7 - Only conditions created in CRM are maintained in CRM (most likely documents that do not replicate back to R/3, if that scenario exists for you).

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