Name: Abdul Nafi Sarwari

Batch : 17 B
Roll No: 82

1. What is life time value of a customer? How is it calculated?

Right from the first interaction to getting converted into a final transactional customer
for business, a visitor/ consumer goes through several conversion stages and the action
taken during this process defines the customer life cycle value.

How to calculate CLV?

(Annual revenue per customer * Customer relationship in years) – Customer acquisition cost

for example:

Saffron company generates $3,000 each year per customer with an average customer lifetime
of 10 years and a custormer acquisition cost of $5,000 for each customer.

The company could calculate CLV like this:

$3,000 * 10 - $5,000 = $25,000

2- How to collect data in CRM ? What is high level Data Lake architecture?

You should explore every ethical method to get customer data. With a combination of
incentives (fill up the form to get 10% discount) and better customization of preferences you
can convince the customer to voluntarily give a bunch of data.

1. Sign up forms.
2. Messages from communication channels such as email – In B2B this is the most
important source of customer data.
3. Facebook connect and other social media connections through special apps.
4. Surveys
5. Competitions – you can start a competition in social media and can collect some
personal details for it.
6. Web analytics – this will help you track user’s browser environment, location and
time spent on the site.
7. Calls made to the help desk.
8. Purchase transactions.

high level Data Lake architecture

A data lake stores large volumes of structured, semi-structured, and unstructured data in its
native format. Data lake architecture has evolved in recent years to better meet the demands of
increasingly data-driven enterprises as data volumes continue to rise.
And, the modern data lake environment can be operated with well-known SQL tools. Since all
storage objects and required compute resources are internal to the modern data lake platform,
data access is rapid, and analytics can be run efficiently and quickly. This differs significantly
from legacy architectures, where data was stored in an external data bucket and had to be copied
to another storage-compute layer for analytics, affecting both speed to insights and overall
performance.

3- Which are 5 important steps in CRM implementation

STEP 1: Understand your business’s needs

Before you can put together an effective CRM, you need to understand what you organisation
actually does and, more importantly, how it does it.

Map the workflows and how your departments interact around the customer and with each
other. What information do they need to collect? What channels do you utilise? How can you
differentiate between different prospect and customer groups? How do you deliver your
products? Who’s involved and when?

STEP 2: Understand users’ needs

The difficulty in the past has been being able to customise interfaces to meet each user’s
needs. The range of reasons that someone might want to store some snippet of information
and what he or she wants to do with it is different for each role.

That’s not even to mention Project Managers, Call Centre Staff, Technical departments and
anyone else within your business who might need access to customer information.

The point is that, to make sure that a CRM is used and that’s it’s efficient and effective to do
so, there needs to be an interface that enables that person to easily store and use the
information that they need, simply.

STEP 3: Understand your future customers’ needs

It’s essential to remember why you’re using a CRM, as it’s not just about providing an
effective and efficient platform for tracking sales performance - it’s about being able to meet
your clients’ needs.

If someone is exclusively looking at certain services on your website and has previously
spoken to a member of your Customer Services team, then no matter how they reach out to
your business again, they shouldn’t have to go through the same questions and procedures
again. Even if they’re visiting your website, it should be dynamic and deliver them the
content that you know they’re interested in and could convert them into a client.

STEP 4: Define your vision and pick the right system

After collecting all the information in your previous steps, you should be in a position to
define the future vision for your system: what you want it to achieve and how it will integrate
with your business.

With this vision defined you can take a look at the market and what solutions are available -
there are many options out there with different merits, all with widely ranging price tags and
technology requirements.

STEP 5: Make a plan and share it

So you should have a map of your systems, have explored how they integrate, decided what
sort of experience you want to give your customers and have selected the right CRM system
for your business - you can now define the strategy:

• Who will be involved?

• What systems will you integrate?
• How will you test it?
• How will you roll it out?
• What staff training do you require?
• What are the metrics to identify success?
• When will you review its performance?

4- What are top reasons for failure of CRM ?

Poor Objectives

A lack of clear and measurable goals results in an aimless project, questionable completion
and fictitious ROI. It’s also helpful to recognize software features and functions are not
business objectives.

Poor CRM Strategy

A CRM strategy is a lot like a map. You need to understand where you are starting from,
where you want to go and the shortest route to get there. Your company’s business strategy
architects the competitive advantages and go to market plan that strive to make the company
successful. Your CRM strategy should engineer customer facing outcomes that align and
support the company’s business strategy.

Scope Creep

We all know that scope creep kills all projects, so we must actively manage scope in a
disciplined way and at a detailed level. Sometime certain scope items were completely
missed in the planning and estimating process. Scope omissions, not poor estimates, cause
the most significant project overruns.

User Adoption
Resistance to change is a given in most CRM implementations. When that resistance fails to
be quickly and properly addressed, and spreads from a few challengers to defiance by groups,
you can quickly pass a tipping point whereby recovery is lost and the CRM system is
destined for failure.

Poor Business Process Design

On average, businesses change their strategies and operations every 20 months, but only
change their business processes every four to five years. Without business process
improvement, you’re just creating another place to enter data.

Missing Executive Sponsorship

Missing, inactive or inadequate executive sponsorship closely correlates to CRM failure.

Staff and management take their queues from the executive team so it is imperative the
executives deliver visible, vocal and active project sponsorship.

Lack of Systemic, Predictable Project Execution

Agile and Scrum have replaced waterfall implementation methods and become the de facto
CRM deployment methodology for good reasons – they accelerate time to value, bring
systemic execution that delivers predictable results and reduce project risk.

Lack of Continuous Process Improvement

Your company’s quest to acquire more customers, increase customer share and improve
customer retention never ends, so neither should your enabling technology.

5- What is Analytical, Operational, Collaborative CRM systems ?

Operational CRM

An operational CRM provides you with a complete view of every customers’ communication
record with your organization. This helps you directly manage your relationship and
interaction with your customers. This CRM acts as a problem solver in the business-customer
relationship.

Features and benefits of the Operational CRM type:

Sales automation: It helps businesses to automate their sales process. By setting service
standards through sales automation, you can ensure that you gain new customers and deal
with the existing ones.

Marketing automation: The system mainly focuses on automating the marketing process. It
enables marketers to find the best way to advertise and offer their products/services. The
operational CRM helps you automate how you approach leads and potential customers. It lets
you choose the most effective channel i.e., email, social media, phone call, SMS, etc.
Service automation: This is all about serving your customers. This system is designed to
help you support your customers in order to achieve better satisfaction rates Customers use
emails, FAQs, toll-free numbers, social media, etc. if they are facing any issues.

Contact management: Gone are the days when you have to keep track of leads in your head
or record them manually. With Operational CRMs, you can manage client data in a
centralized platform. Your entire team is able to track every interaction that takes place.

Lead scoring: Operational CRMs are capable of automating the process of lead scoring and
predicting lead qualification through machine learning and AI. Thus, you can get to know
which leads are worthy enough to nurture with a personal touch.

Analytical CRMs

An analytical CRM will collect, organize, and analyze the data that is involved in the
business process. This usually consists of marketing, sales, service, and customer data.

Moreover, Analytical CRMs can also integrate with your invoice software to generate
detailed reports so you can have a detailed view of your cash flow.

Features and benefits of the Analytical CRM type:

Customer acquisition and retention: With an analytical CRM’s insights, you can know
about your customers’ and prospects’ behavior and purchasing patterns.

Data extraction: An analytical CRM is like a data storehouse. It will store the data in a
centralized location in an organized manner so that it’s easy to analyze.

Profiling customer personas: You are already aware that CRM tools collect your customer
information when they interact with your company.

Employee performance tracking: Analytical CRMs don’t only track customer interactions
and complaints. These systems are also capable of tracking how well your employees are
dealing with your customers and their support issues.

Attribution: This is another useful feature of an analytical CRM. It will assist you in sorting
out what exactly prompted someone to become your customer.

Collaborative CRM systems

As the name implies – allow you to establish communication between various entities that
are related to customer service. This might include different departments of your organization
(i.e., marketing, sales, customer reps, technical support), external stakeholders, vendors,
suppliers, and distributors.

Interaction management: The better you know your customers, the better you will be able
to serve them, and a collaborative CRM makes that possible.

Channel management: Customers will connect or contact your company through many
different channels. So it becomes essential to keep track of their preferred method of
communication.
Document management: Collaborative CRMs also support document management systems,
so that you don’t have to worry if any of your team needs to access any formal documents
like contracts, technical docs, proposals, etc.

6- Write a short note on applying AI in CRM

There are many new developments in CRM software, such as face and voice recognition.
Salesforce’s Einstein and Zoho CRM’s Zia are two examples of an AI-powered CRM that
uses voice commands to access information.

In addition, as a company grows, collecting, storing and providing data can become a huge
task, and your clients won’t wait around for you to offer them exactly what they’re looking
for. Nowadays, CRM needs the support of Artificial Intelligence to achieve a more efficient
data management. .

But with digital transformation and improvements in technology, AI assists businesses with
finding new customers and keeping the loyal ones happy.

Integrating these two technologies delivers more predictive and personalized customer
information in all areas of your business. Here are some reasons why you need to start
thinking about an AI-driven CRM.

1. Virtual assistants and bots.. You can also improve lead generation by having more
accurate marketing campaigns. Integrating AI into CRM can also automate customer
reports, emails, data capture, and more.
2. An AI-powered CRM will be able to learn from past decisions and historical patterns
to score the best leads for sales. Artificial Intelligence will also be able to predict
future customer behavior.
3. Segmenting customers becomes easier. AI won’t take away jobs, but will actually
help team workers to be more productive.
4. Increase customer engagement with AI-driven CRM. This technology can help you as
well to get an emotional insight from the customer.

Case Study 1

22- What is the link between CRM implementation and Knowledge management ?

KM is essential for CRM because it can help the organizations to enhance their services, and
respond rapidly to their customers’ need. Additionally, customer knowledge and customer
satisfaction are being very important for tracking the success of CRM applications

The function of KM in Customer Relationship Management (CRM) is important for achieving

customer satisfaction.
3M has adopted CRM/KM solution to capture, create, and apply knowledge to make the CRM
process successful. Concerning this notion, KM has been considered as an expertise that is
widely recognized as having a significant impact on business performance.

Both KM and CRM are of prime significance for every business decision maker and
Information Technology (IT) professionals. Consequently, the availability of large data on
customers due to new technology tools has created opportunities as well as challenges for
businesses to leverage the data and gain a competitive advantage

23- What look potential errors in CRM implementation?

There are four potential errors that company made while implementing CRM system.
1- Not Getting Business Problems Right

Many organizations neglect the need of determining their business problems. In case of 3M,
the company was able to identify the main problems that company is facing which are reducing
training time and abandoning rates 2 and improving solution accuracy and problem resolution
speed. As result, the company was able implement best KM/CRM solution.

2- Taking The Wrong Approach to Change

Many companies failed in getting ‘right’ people on board. If CRM is not in hand of right people
it will not deliver favorable result at all. In the case of 3M, there were able to identify a task
force customer service manager, call center agents, IT analysts and documentation developers.
These are the right people to have on board in developing CRM system. This task force led the
company to adopt good CRM system that can address to the need of organization and customer.

3- Keeping Your Budget in Mind at All Times

Although budget is certainly an important aspect of CRM implementation, some businesses

tend to underscore its importance too much. In the case of 3M, they have well considered this
issue by introducing customize CRM system. 3M human resources, purchasing and
procurement departments were the first ones to adopt the technology to help answer questions
posed by employees and business partners.

4- Not having a plan at all

It’s important to remember that a CRM implementation is a long-term strategy – not a one-
time easy fix. In the case of 3M, the company has well planned for implementing the CRM
system, initially they did their research and by the end of the 1930s, 3M had established a
central research laboratory to pursue research in technologies with long-term potential.
Enthused by the success of the CRM/KM solution, 3M decided to implement it throughout
the organization.

Case Study 2

Q24) What data can be collected by CRM systems in BMW Germany & US ? What
decisions will be taken with this data ?

In the case of BMW Germany and US, they would require customer information (personal
customer information, demographic data, service call, warranty information), wholesaler
information (employee and commission information and sales force), contract information
(customer under contract and vendor information) and purchasing information (customer
purchasing habits and buying trends). This data will help BMW to understand customer
satisfaction, market trend, new leads and market competitiveness both in Germany and US
market. To take decision whither to go for direct dealer system Or wholesaler the BMW in
Germany and US they has to compare the output for both strategies, and accordingly take the
decision. The CRM is helping BMW in provide all the information instantly that is require for
decision making.

Q25) How can BMW incentivize its wholesalers (distributors) , Direct Resellers and Smaller
resellers buying from wholesalers ? How CRM can measure it

BMW could give announce incentive to customer buying from wholesalers, this will give
incentive to direct reseller and smaller resellers to buy from wholesalers automatically and it
will eventually heat up wholesalers marketing efforts to acquire new customer and retain the
current one. This one shot strategy will protect the commission of each party and will reduce
the competition between wholesalers, direct resellers and smaller resellers. CRM can measure
this through customer satisfaction, customer retention, revenue expansion, business growth
acquiring new customer, new leads and market trend.