1 May 3, 2023

SAP CRM Overview • What is mySAP CRM?

CRM stands for Customer Relationship Management. It is a process or methodology used to learn more about customers needs and behaviors in order to develop stronger relationships with them. 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. CRM helps businesses use technology and human resources to gain insight into the behavior of customers and the value of those customers.

2 May 3, 2023

What is the relation between CRM and SD? • CRM- It is being customer relationship management, it mainly focuses on pre sales

& post sale activities to improve on customer relationship. • CRM Sale, it uses Opportunities management for creation of opportunities

available with prospective customers. there is also quotation management & order management available for order creation. But it is optional as it can be created in SD too.

• CRM Marketing includes Lead creation, Campaign management for publishing material to customers or for lead generation, creation Target group of customers

• CRM also uses Activity management by creation of customer interaction Activities with customer.

• CRM service uses Complaints & returns, Warranty Management, i base management, Service Order management.

• It also uses Account Management for managing vast data of customers & it is flexible compared to SD customer data.

• CRM also offers Interaction center capabilities to handle call center activities which is not available with SD. Also, it offers internet Sales & Service for channel partner management & self service.

• All these above functionalities are not in SD as SD mainly being logistic module it is mainly used for order & delivery management

Why CRM?• In the commercial world the importance of retaining existing

customers and expanding business is paramount. The costs associated with finding new customers mean that every existing customer could be important.

• The more opportunities that a customer has to conduct business with your company the better, and one way of achieving this is by opening up channels such as direct sales, online sales, franchises, use of agents, etc. However, the more channels you have, the greater the need to manage your interaction with your customer base.

• Customer relationship management (CRM) helps businesses to gain an insight into the behaviour of their customers and modify their business operations to ensure that customers are served in the best possible way. In essence, CRM helps a business to recognise the value of its customers and to capitalise on improved customer relations. The better you understand your customers, the more responsive you can be to their needs.

Benefits of CRM • CRM can:• Develop better communication channels • Collect vital data, like customer details and order histories • Create detailed profiles such as customer preferences • Deliver instant, company-wide access to customer histories • Identify new selling opportunities • How can you measure CRM benefits?• CRM benefits can be measured and quantified. Using CRM applications can lead to

increases in revenue from:• Reductions in operating costs - it cost around £25 to handle a customer call via a call

center but only £2 via a website • A higher percentage of cross-selling due to offering a single point of contact with your

company • More success in attracting new customers and closing deals faster, through quicker

and more efficient responses to customer leads and customer information • Simplification of marketing and sales processes by understanding customer needs • Better customer service - through improved responsiveness and understanding that

builds customer loyalty and decreases customer "churn"

Potential drawbacks of CRM• There are several reasons why implementing a CRM solution might not have the desired results.• There could be a lack of commitment from people within the company to the implementation of a

CRM solution. Adapting to a customer-focused approach may require a cultural change. There is a danger that relationships with customers will break down somewhere along the line, unless everyone in the business is committed to viewing their operations from the customers' perspective. The result is customer dissatisfaction and eventual loss of revenue.

• Poor communication can prevent buy-in. In order to make CRM work, all the relevant people in your business must know what information you need and how to use it.

• Weak leadership could cause problems for any CRM implementation plan. The onus is on management to lead by example and push for a customer focus on every project. If a proposed plan isn't right for your customers, don't do it. Send your teams back to the drawing board to come up with a solution that will work.

• Trying to implement CRM as a complete solution in one go is a tempting but risky strategy. It is better to break your CRM project down into manageable pieces by setting up pilot programs and short-term milestones. Consider starting with a pilot project that incorporates all the necessary departments and groups but is small and flexible enough to allow adjustments along the way.

• Don't underestimate how much data you will require, and make sure that you can expand your systems if necessary. You need to carefully consider what data is collected and stored to ensure that only useful data is kept.

• You must also ensure you comply with the eight principles of the Data Protection Act that govern the processing of information on living, identifiable individuals. For more information, see our guide on how to comply with data protection legislation.

• Avoid adopting rigid rules which cannot be changed. Rules should be flexible to allow the needs of individual customers to be met.