CRM Fundamentals pdf

www.it-ebooks.info CRM Fundamentals                Scott Kostojohn Mathew Johnson Brian Paulen www.it-ebooks.info CRM Fundamentals Copyright © 2011 by Scott Kostojohn, Mathew Johnson, and Brian Paulen All rights reserved. No part of this work may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopying, recording, or by any information storage or retrieval system, without the prior written permission of the copyright owner and the publisher. ISBN-13 (pbk): 978-1-4302-3590-3 ISBN-13 (electronic): 978-1-4302-3591-0 Trademarked names, logos, and images may appear in this book. Rather than use a trademark symbol with every occurrence of a trademarked name, logo, or image we use the names, logos, and images only in an editorial fashion and to the benefit of the trademark owner, with no intention of infringement of the trademark. 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Although every precaution has been taken in the preparation of this work, neither the author(s) nor Apress shall have any liability to any person or entity with respect to any loss or damage caused or alleged to be caused directly or indirectly by the information contained in this work. www.it-ebooks.info iii Contents at a Glance  About the Authors ix  About the Technical Reviewer x  Acknowledgments xi  Introduction xii  Chapter 1: Introduction 1  Chapter 2: Components of CRM Success 11  Chapter 3: Building a CRM Roadmap 49  Chapter 4: Evaluating Software and Consultants 65  Chapter 5: Planning the Initial CRM Implementation 93  Chapter 6: Executing the Initial CRM Implementation 131  Chapter 7: Maintaining and Evolving CRM 197  Index 175 www.it-ebooks.info iv Contents  About the Authors ix  About the Technical Reviewer x  Acknowledgments xi  Introduction xii  Chapter 1: Introduction 1 Defining CRM 1 Purpose of this Book 1 Sources of CRM Value 2 Supporting a Data-Driven, Learning Organization 2 Wringing out Inefficiencies and Increasing Employee Productivity 3 Providing a Better Customer Experience 5 Informing Business Decisions 6 Preparing for CRM 7 Chapter Summary 10  Chapter 2: Components of CRM Success 11 People 11 Process 21 Technology 28 Expectations 38 Pitfalls 40 www.it-ebooks.info  CONTENTS v Summary 45  Chapter 3: Building a CRM Roadmap 49 Why a Phased Approach to Your CRM Program? 49 It Takes Too Long 50 There Are No Opportunities to Incorporate Feedback 50 Building Your Initial Roadmap 50 Assess Your Current Situation 50 Developing a Roadmap Midstream 63 Summary 64  Chapter 4: Evaluating Software and Consultants 65 The CRM Software Market 65 Functional Scope: Full CRM Suites and Specialty Applications 65 Deployment Models 66 Application Access 67 Licensing Models 68 Selecting the Right CRM Software 70 Evaluation Criteria for CRM Applications 70 The Software Evaluation Process 75 Selecting the Right Consultants 86 Evaluation Criteria 87 Final Thoughts 90  Chapter 5: Planning the Initial CRM Implementation 93 Managing CRM Projects 95 Understanding the Phases of a Project 95 Change Management 106 Project Communication 108 Ongoing Project Management 109 www.it-ebooks.info  CONTENTS vi Resource/Vendor Management 117 Executive Support 123 Summary 125  Chapter 6: Executing the Initial CRM Implementation 131 The Design Stage 131 “As Is” Process Definition 131 “To Be” Process Definition 133 Rules and Escalations 134 Use Case Definition 134 Functional Specification Development 139 Custom Development 140 Managing Custom Development As Part of Your CRM Project 141 Technical Specification Documentation 142 Integration 143 Provide a More Complete Customer Picture 144 Automate Business Processes 144 Types of Integration 145 Integration Tools 146 Managing Data-Level Integration in CRM Projects 146 Developing the Integration 148 Integration Testing 148 Managing User Interface Integration in CRM Projects 148 Linking Data Between Systems 148 Reporting 149 What Makes an Effective Report? 150 The Metric Is Specific 151 The Metric Is Clearly Owned by a Given Department or Group 152 The Metric Is Measurable 152 www.it-ebooks.info  CONTENTS vii The Metric Can Be Produced in a Timely Manner 153 The Quantity of KPIs Must Be Limited to a Manageable Few Items for a Given Scorecard 153 KPIs Must Have Targets 154 KPIs Must Be Aligned with Overall Organizational Goals 154 Report Sources 154 Reporting Tools 155 Designing Reports 156 Report Training 157 Data Migration 158 Do You Need Data Migration for Your Project? 159 Assessing Data Sources 159 Designing the Data Migration 161 Data Migration Tools 166 Testing the Data Migration: The Mock Migration 167 Planning the Actual Data Migration 169 Data Migration Summary and Key Lessons 170 Implementation Testing 170 Types of CRM Application Testing 170 Developing Test Plans 172 Implementation Training 175 Launching the Solution 182 Cutover 182 Initial Application Management 186 Driving Adoption 186 Change Management 187 People Management: New Job Functions 187 Pulling It All Together: Sample CRM Implementation Project Plan 187 Common Project Issues and How to Avoid Them 188 www.it-ebooks.info  CONTENTS viii Over-scoping 188 Overly Complicated Design 189 Software-Driven Projects 189 Lack of Executive Support 190 Managing Differing Priorities 190 Application Adoption 190 Summary 191  Chapter 7: Maintaining and Evolving CRM 197 Role of the Steering Committee 197 Maintaining CRM 201 Supporting Employees and Gathering Feedback 201 Enhancing CRM 207 Change Control Process 207 Roadmap Development and Execution 211 Managing Large Application Enhancements 212 New Application Versions and Upgrades 217 Monitoring the Vendor Ecosystem 219 Conferences 220 New Independent Software Vendors (ISVs) 220 User Groups 220 Blogs and Newsletters 220 Consultants 221 Final Thoughts on Maintaining and Evolving CRM 221 Conclusion 222  Index 223 www.it-ebooks.info ix About the Authors  Scott Kostojohn, Principal Scott acts as sales director and CRM architect for Madrona Solutions Group, a leading Seattle, Washington, CRM consulting firm. Scott leverages his significant experience with various CRM platforms to support Madrona’s clients during complex implementations. Prior to joining Madrona, Scott worked for Microsoft in a variety of roles, including product strategy with the Microsoft Dynamics CRM product development team. Before that, he was a CRM consultant at Equarius (now EMC) helping clients around the country implement CRM software solutions. Scott has a bachelor’s of science degree in mechanical engineering from Cornell University.  Mathew Johnson, CRM Practice Director Mathew joined Madrona Solutions Group in 2007 and currently oversees its CRM practice. He brings a deep understanding of CRM fundamentals and their application to the marketplace, and he works with the rest of the leadership team to ensure that Madrona offers an exciting and challenging environment for its employees. Prior to joining Madrona, Mathew led and delivered business-process improvement and CRM initiatives for Acetta, often using the Microsoft Dynamics CRM and Salesforce.com product platforms. Before Acetta, he was a senior consultant at Onyx Software, implementing sales, marketing, and customer service solutions. Mathew has degrees in business administration (information systems) and communications from the University of Washington.  Brian Paulen, Principal Brian cofounded Madrona Solutions Group in July 2005. He has overall responsibility for the firm’s growing business and for managing client and partner relationships. Brian has extensive project and program management experience and is an expert in delivering strategic sales and marketing solutions on various platforms. Prior to founding Madrona, Brian directed the CRM practice at Slalom Consulting. Earlier, he was a member of the CRM team at Equarius (now EMC), working primarily with clients in the Pacific Northwest. His career began at Accenture (formerly Andersen Consulting), working out of its New York office. Brian has bachelor’s of art degrees in political science and international business from Lehigh University. www.it-ebooks.info [...]... understanding of and experience with your chosen CRM application • Deep understanding of the business processes supported by your CRM application CRM Administrator The CRM administrator is the central figure in maintaining and modifying the CRM application and, with the exception of the CRM developer described next, is typically the most technical member of the CRM administration team This individual handles... make a CRM program successful How these roles will be filled by people depends greatly on your organization and the scope of your CRM program A couple of examples may be instructive: Example 1: Consider a small business using CRM to bring efficiency and visibility to its sales department CRM administrator /CRM trainer: Susan (IT) CRM executive sponsor: Albert (president) Sales department champion /CRM program... change control process for production CRM applications This is the formal evaluation and approval process for configuration changes to the CRM application, used once CRM is in production to ensure that proposed changes do not interfere with any group’s usage of CRM and that they are aligned with the overall CRM roadmap and to communicate these changes to the various CRM constituencies Developing and implementing... into the CRM program Some of the following roles may be held by members of the IT department If not, especially if your CRM application is hosted by your own company, there should be some representation from the IT department on the CRM administration team, even if it is simply as “virtual” team members who are kept in the loop about the work of the CRM administration team CRM Program Lead The CRM program... Management” or CRM In this book, we’ll refer to the CRM program” to describe the people, processes, and technologies a business deploys to increase their customer focus, and the CRM application” to describe the technology element, typically centered on a CRM software package We’ll go into the different elements of the program in detail in the next chapter S Kostojohn et al., CRM Fundamentals © Scott... installation of any product add-ons Key skills of the CRM administrator include the following: • Experience administering an enterprise database-based application (required for on-premises CRM only) • Deep understanding of and experience with your chosen CRM application 18 www.it-ebooks.info CHAPTER 2   COMPONENTS OF CRM SUCCESS CRM Developer Most CRM applications can be modified in limited ways via... contribute to the CRM program • Setting goals for the CRM program and holding individuals and teams accountable • Being the ultimate decision maker for CRM questions within the organization Important qualifications for a CRM executive sponsor include the following: • Must be a CRM “believer.” His or her tone, engagement level, and enthusiasm all have an outsized influence on the CRM program • Should... relationship management (CRM) software within your organization; some of you are completely new to CRM, while others have been through a CRM implementation with varied success This book was written to provide business leaders and stakeholders with a practical playbook that spells out an approach for a successful CRM project and program People often think that success with CRM starts and ends with purchasing... impact the CRM program, as well as coordinate the support provided by the IT organization for the CRM application This role is less critical for software-as-aservice applications, because the IT department’s responsibility for these applications is typically small or nonexistent, and it is more critical for on-premises CRM applications The CRM administration team manages the execution of the CRM roadmap,... may end up with a gap between today’s process and tools and the new CRM solution that is too broad to be bridged 14 www.it-ebooks.info CHAPTER 2   COMPONENTS OF CRM SUCCESS IT Representative Typically the rollout of a CRM program includes a significant technology component: a new CRM application, a set of modifications to an existing CRM application, new application integrations to streamline operations, . www.it-ebooks.info CRM Fundamentals                Scott Kostojohn Mathew Johnson Brian Paulen www.it-ebooks.info CRM Fundamentals Copyright. Johnson, CRM Practice Director Mathew joined Madrona Solutions Group in 2007 and currently oversees its CRM practice. He brings a deep understanding of CRM fundamentals