CRM & IT Tools: Complete Revision Notes

Customer Relationship Management through IT Tools

Understanding how CRM is hosted is a frequent exam topic.

On-Premise CRM:
- Best for: Companies handling sensitive data (Finance, Healthcare).
- Cost: High upfront investment (infrastructure + software development).
- Characteristics: Rigid functionality (expensive to add features).
- Maintenance: Organization handles data security & disaster recovery (or pays a third party).
Cloud-Based / Web-Based CRM:
- Best for: Businesses needing flexibility and a budget-friendly option.
- Cost: Monthly recurring subscription.
- Characteristics: Device-agnostic, maintained by the vendor. One-size-fits-all approach $\rightarrow$ customizations may be limited.
- Risks: You are at the mercy of the vendor if their server goes down.

MCQ Tip: Be able to distinguish between these three core types.

Operational CRM: Runs daily routine operations. Tracks the customer journey.
- Key Activities: Contact management, lead generation, lead scoring, sales/marketing automation.
Analytical CRM: Collects and analyzes heaps of data for data-driven decisions.
- Key Activities: Data mining, sales forecasting, conversion attribution.
Collaborative (Strategic) CRM: Shares data across internal departments and external stakeholders (vendors, partners).
- Primary Goal: Enhance the Customer Experience (CX).

Memorize these definitions and the flow of a customer.

The Flow: Lead $\rightarrow$ Prospect $\rightarrow$ Deal (Opportunity) $\rightarrow$ Customer
Lead: Expressed interest. Status: 1st stage of funnel.
Prospect: A sales-ready lead capable of purchasing.
Deal (Opportunity): A potential sale that has moved to the last stage of the funnel.
Pipeline (Funnel): The 4 stages of the purchase journey: Lead Gen $\rightarrow$ Qualification $\rightarrow$ Proposal $\rightarrow$ Sale.
Lead Conversion: The exact moment a lead becomes a customer.
Lead Management: Nurturing activities to prevent leads from dropping off the funnel.
Contact: An entity (customer, vendor, prospect) storing name, email, phone, etc.
360-degree Customer View: An exhaustive view of all past communications, campaigns, and details.
Dashboard: The landing page displaying crucial analytics upon login.
Integrations: Connecting CRM with the MarTech stack (e.g., Marketing Automation Platforms) for seamless data import/export.

Sales Automation: Eliminates repetitive tasks. Uses triggers/rules (e.g., Auto-send a reminder email if a lead hasn’t replied in 3 days).
Sales Forecasting: Uses historical data to predict future sales, helping reps prioritize “hot” leads.
Pipeline Management: Visual representation of current leads/deals segregated by funnel stage.
Email Management: Send, track, and prioritize emails directly from the CRM interface.

E-CRM uses web-based strategies/software to manage interactions.

Apple: Uses Apple ID to sync devices and gather insights for bespoke, targeted marketing.
Amazon: Uses tracking for tailored campaigns and features One-Click Purchasing to speed up checkout.
Activision (Gaming): Uses Cloud CRM for social media connection & self-service. Result: Resolved 82% of issues via self-service & reduced costs by 25%.
Tesco: Uses Clubcard (Points $\rightarrow$ Vouchers). Leverages data for 4 million targeted quarterly mailing variations.
Coca-Cola: Mobile CRM apps allow field technicians to access history and work orders on the go.
Microsoft Dynamics 365: Combines CRM + ERP (Enterprise Resource Planning) with 200+ apps.
Oracle E-CRM: Known for advanced mailing/e-mailing features and sales forecasting.
Pipedrive: Sales-focused CRM for small businesses with 250+ 1-click integrations.
Salesforce Sales Cloud: Cloud CRM known for individualized workflows, custom graphs, and automatic duplicate removal.

Front Office: The client-facing part of the firm (Sales, Equity Research) that generates income. Usually offers the best pay and exit opportunities.
Legacy Call Centers: Built on owned PBX equipment.
Virtual Call Centers: SaaS (Software as a Service) model. Hosted by vendors, allows agents to work from home via Voice over IP (VoIP).
Cloud Call Centers: Provide APIs (Computer Telephony Integration – CTI) to connect phone systems with CRMs like Salesforce or Oracle.
Inbound vs. Outbound: Inbound = Customer initiates contact. Outbound = Contact center initiates contact.

Important quick-fire facts for implementation questions:

Scoping: Proper scoping of a project reduces and mitigates risks.
Use Case: Outlines the interactions between a user and an application.
Pre-Implementation Stage: Known as the CRM Readiness Assessment stage.
Critical Success Factor: Obtaining top Management commitment is mandatory before implementation.
Alignment: CRM strategy must be in line with the company’s Business strategy.
Prototyping: Types include Proof of Concept, Low-fidelity, and High-fidelity. The major output from a prototype demo is Feedback.
Proposal Generation: Done after prototyping.
Customization: The process of Fine Tuning the CRM solutions. Changing workflows/rules during this phase heavily affects Costs and Schedule.
Project Size: Determined by Interfaces, Workflow, and Functions to be implemented.
Fit/Gap Analysis: Done to evaluate technical specifications and functions of the chosen CRM solution.