crm capabilities

8/13/2019 CRM Capabilities

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We are dealing with a “New Kind of Customer” (socially networked, well

informed and empowered through ability to interact directly with other

customers) This is a transformational trend that is dramatically changing the way

organizations need to approach customer relationships There is a need to look beyond traditional vendor-determined relationship

management to a community-driven engagement management – both beforesomeone becomes your customer and afterwards too

This is both an opportunity and a threat for companies. Ability to rapidlytransform will be key to success

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Today executives have to balance their long term ambitions with the hardrealities of the market.

Companies need to focus on short term priorities to be able to survive andemerge as a leader in the future.

This environment creates a unique challenge for organizations to actimmediately.

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Here are a couple of key trends related to customer services

According to McKinsey, simply cost cutting on customer service during tougheconomic times is a big mistake. There are more strategic approaches to taketo reduce cost while still maintaining high quality customer service.

In another survey conducted by Accenture in Nov 2008, they found that thenumber one reason that customers switch their vendors, as indicated by 68%of the respondents globally, is the overall poor quality of the customerexperience. The second is price, and the third is specifically the ability ofservice reps to answer their questions.

So, how does your organization compare in these key trends? Are you part ofthe statistics or the exceptions?

Clearly, to win in customer service game is to be able to tackle some of the keychallenges that are preventing you from achieving your goals.

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SAP CRM supports best-in-class front-office CRM capabilities across thebreadth of CRM, including the core capabilities across Marketing, Sales, and

Service, with powerful embedded analytics. In addition, SAP supports allcustomer interaction channels, including mobile, Web Channel, InteractionCenter (Call Center) and the indirect partner channel.

All of this is delivered with end-to-end, industry-specific processes. And onthe proven, scalable SAP NetWeaver technology

In order to promote profitable growth, companies strive to become acustomer-centric enterprise. They design and continuously improve theirbusiness processes and interaction channels to create and deliver superiorcustomer value, and consistently provide exceptional customer experience

across all touch points. SAP enables customer-driven growth.

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The goal of any customer service organization is to reduce cost whileincreasing customer satisfaction. SAP CRM Service does this by providing asolution and platform that enable management and execution of the end-to-endservice process.The solution is comprised of three key components: The first is the solution for Support Reps. SAP CRM provides support agents

with everything they need to answer and respond to requests or issues. On

one screen, they can get information about customer history and context,look for answers and solutions to a customer problem, execute a variety ofprocesses from taking orders to setting up service tickets, and be proactivelyguided to cross-sell and up-sell offers. A single screen interface withconfigurable keyboard shortcuts increases agent productivity. Agents areempowered with tools and information to resolve the majority of the customerissues on the first call.

Customers are empowered to help themselves and get their answers at anytime convenient to them. With the Web channel self-service portal,

customers can find information and solutions to their problems, initiatesupport requests and communicate with support agents, or look up the statusof their request. It is another channel that is available to customers for theirconvenience.

Field technicians are also equipped to finish the job in one visit. With accessto information via a laptop or smartphone, they can receive and accept newservice orders, look up information about specific service orders, installed-base information, past service history, customer contacts, and evendiagnostic data collected remotely. They can track their spare parts inventory

or find ones that they don’t have. They can also make offers and sell relatedparts and services when appropriate, or capture a lead for follow-up by asales rep. And when they complete the job, they can confirm their workonsite within a few minutes, so that follow-on billing process can be triggered.

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Using SAP CRM, you can automate the process of marketing and sellingservice offerings: Create a service catalog of all your service capabilities that you want to offer

to your customers. Identify the various customer segments that you want to target with your

service offerings. Create, plan, and execute your marketing campaigns with your service offers;

targeting the appropriate customer segments. Generate leads from your campaigns; then qualify them and pass them to

your sales team for follow up. With the leads they receive, sales teams identify opportunities, and manage

and develop them into actual customer orders. And finally, when the prospects are ready to order, generate contracts and

quotes; and then convert them into actual service contracts.

Some of the key capabilities that support this process include: Service Marketing & Campaign: Create and execute marketing campaigns

for service offerings, leveraging segmentation capabilities Lead and Opportunity management: Manage and track leads through the

qualification process; manage and develop opportunities into orders Solution-Based Selling: Bundle products and services for more differentiated

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offerings and higher margins Service Catalogs: Manage catalogs of service offerings available to

customers Quotation Management: Generate and manage service order quotations

with prices and delivery conditions; convert to actual service orders easily

The key benefits are:

Market and sell service offerings more effectively Increase visibility of leads and manage pipelines Differentiate your offerings and increase your margin with solution-based

selling Drive more effectively cross-selling and up-selling of services and related

products and parts

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Using SAP CRM, you can manage the complete lifecycle of service contractsas follows: Define and negotiate terms and conditions of service contracts during the

presales stage. When customers sign up, set up contracts in the system to be used to

enforce SLAs and entitlements. As customers call for services, contract information is used to drive priority,

cost allocation, or make cross-sell / up-sell offers. As the service request is being serviced, contract terms are used to drive

SLA compliance; escalation can also be defined. Once the service order is completed, use contract information to determine

what is covered or not covered; invoices are created accurately andaccording to terms of the contracts.

As the contract expires, renew contract with similar or updated terms.

Some of the key capabilities supporting this process include: Service Agreement: Define and manage terms, conditions, and prices of

service offerings Contract Management: Provide and manage multiple types of service

contracts such as basic service contracts, leasing contracts, usage contracts,pooling contracts, and service agreements

Contract Renewal: Renew service contracts automatically to maintain

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Using SAP CRM, you can manage the complete lifecycle of the customerinstalled base by:

1. Starting with the customer purchasing the service contract, you can set upthe installed base structure. Then, capture all relevant information of the installed base, such as

components and equipment structure, their made-and-model, configuration,etc.

As the customer adds new equipment, keep the installed base informationup-to-date.

Use information of the installed base to plan and perform preventivemaintenance.

Continue to monitor usage and health of the installed base. Update the installed base when customers scrap or replace equipment from

the installed-base.

Some of the key capabilities supporting this process include: Installed Base Management: Manage and track customer assets and their

respective configurations by customer, location, and product Configuration and Installation: Store and manage installed base information

such as serial number, warranty assignment, etc., in graphical representation

Counter Readings: Capture and store measurements, system counters, and

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meter readings of installed base, components, or objects used by customers Planned Maintenance: Manage and execute planned maintenance service

orders Historical Installed Base Information: Store installed base information by date

foran accurate depiction of changes over time

The key benefits are:

Always have up-to-date information of the customer landscape Able to offer and deliver proactive maintenance service Able to minimize downtime for customers by identifying problems and solve

them before they become catastrophic Gain inside knowledge into up-sell opportunities as the refresh cycle

approaches

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Using SAP CRM, you can manage the complete customer request-to-resolution process as follows: Capture customer requests or complaints as customer initiates contact with your support center. Assign or route the request to the proper support rep to work on the request; this can either be in real-

time, as is the case when the customer calls your support center, or can be offline when the customersubmits the request on a Website or via e-mail; depending on the request and scenario, escalate asrequired.

The request is then analyzed and the solution determined. The customer rep then follows up with the customer to provide the solution and, if it solves the

customer problem, closes the request. The rep can then add the new information and knowledge to a knowledge database for use by peers

and customers.

Some of the key capabilities supporting this process include: Multi-Channel Service: Deliver customer services via phone, Web, field service, and partners Service Request: Enable the process of creating, categorizing, prioritizing, dispatching, and resolving

service requests Complaints: Track and manage customer complaints through resolution

Knowledge Management: Store and maintain a consolidated repository of knowledge articles and otherdocuments for access via an intuitive search engine Case Management: Manage complex service scenarios using cases to develop the case history, link

the relevant objects, and then specify the further actions required

The key benefits include: Reduce cost of service Increase first-contact resolution rate Retain profitable customers Consistently meet SLAs

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Using SAP CRM, you can manage the complete field service process by: Plan your service execution with service order pipelines and resource information,

such as technician skill sets and part availability. Assign and schedule service orders to technicians and customers. The technicians can then execute the service order at the customer site with all the

relevant information and tools. Once the service order is complete, the technician can confirm the service order. When the service order confirmation is submitted by the technician, the invoice is

generated and sent to the customer.

Some of the key capabilities supporting this process include: Service Order Management: Create and manage service orders

Availability and Qualifications: Maintain availabilities and qualifications of fieldresources, to be used when scheduling customer appointments Resource Scheduling: Schedule available and qualified resources to address

customer demands Onsite Execution and Confirmation: Information and tools to expedite service order

execution and then confirm working times, materials used, and expenses forservices performed

The key benefits include: Maximize field technician utilization Consistently achieve SLAs

Reduce cost of service Minimize day sales outstanding

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Using SAP CRM, you can manage the complete return and depot repair process by: Initiate the process when you receive requests for returns from customers; issue RMA to

track the returned items in the process. Process and track the return items during the process flow. When the returned items are received, perform a technical check to assess their status. Then, plan the repair work. The assigned technicians then conduct the appropriate repairs and perform basic tests. The items are returned to the customers. And, lastly, generate invoices with the appropriate charges, depending on customer

entitlements.

Some of the key capabilities supporting this process include: Repair Order Management: Create and manage repair orders; commonly used to track in-

house repairs Returns Handling & Tracking: Manage actions taken for returns, from return material

authorizations (RMA) to final disposition of the issues Loaner Management: Manage loaner products and process their usage to minimize impact of

lengthy repair times Quality Notification Management: Execute quality notification (product recall) process to

address known product defects in the market

The key benefits include: Reduce future product returns by identifying and resolving product defects proactively Consistently achieve SLAs Enhance visibility of your repair pipeline Increase efficiency of the process, reducing costs of the operations

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Using SAP CRM, you can manage the claim-to-reimbursement process by: Initiate the claim process when customer submits warranty claim; create a claim record and

use it to process the claim. Validate the warranty claim by checking it against the warranty database; ensure that terms

and conditions are met. Issue payment for customer claim. If there is a related vendor warranty, use the same claim to trigger a claim against the vendor

(perhaps against the vendors from whom you sourced the components, etc.); track theprogress and status of this claim

Once payment is received from the vendor, assign it to the related claim. Post credit to record the offset of the claim

Some of the key capabilities supporting this process include: Customer and vendor warranty tracking and identification Customer initiation of warranty terms by warranty registration through self service or

automated processes when warranty is bought as part of the product package Managing product recalls through product service letters Warranty claims management when warranty service is provided by a 3 rd party on behalf of

the OEM Integration to financials for proper credit posting to settle warranty claims with OEMs

The key benefits include: Increase efficiency of claims management and processing Capture rich customer information through the process of warranty registration Maximize recovery from suppliers – this applies towards OEMs Ensure fraudulent claims are not paid out

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Using SAP CRM, you can manage the end-to-end service process with native ERP integrationby:

Accounting & Cost Allocation: Facilitate revenue recognition for service contracts as well astracking accurate cost data for delivering services

Billing/Invoicing: Generate and track bills/invoices, including usage-based billing, for servicesperformed

Purchasing: Procure and track status of spare parts and external resources Van Stock Management: Manage and track spare parts carried on each service vehicle;

technicians have visibility of the availability of parts for consumption Service Parts Management: Manage the extended service parts network from planning,

execution, fulfillment, collaboration, through to analytics

Some of the key capabilities supporting this process include:

Purchasing integration Van stock management by field engineers when using the disconnected laptop product Managing service parts fulfillment and replenishment Integration to ERP for accounting & cost allocation Integration to financials for billing

The key benefits include: Increase fill rates with integration to procurement Improve sourcing with global available-to-promise with substitution of parts and sourcing

locations Maximizing profitability with visibility to margins Reduce days sale outstanding with prompt and accurate billing

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Gain the necessary insight to drive and fine tune your service business Planning & Forecasting: Generate and manage service demand forecasts and plans OLTP Reporting: Track operational status with reports for metrics, such as average response

times and repair times OLAP Analytics: Gain better insights with various built-in analytics, including contract,

installed based, service orders, SLAs, and other KPIs Business Objects: Leverage various Business Objects tools such as Excelcius and Text

Analytics for enhanced analytic capabilities

Some of the key capabilities supporting this process include: Planning and forecasting of demand for parts Real-time transactional reporting of key operational data BW based reports for standard Service metrics Prebuilt integration to best of breed business objects tools

The key benefits include: Key information at your fingertips Improve the performance of business by monitoring key metrics Forecast part demands accurately Tweak key operational processes to be more efficient

Requirements Analyze customer requirements Evaluate technical and business information Enable real-time access to management information Consolidate information coming from different sources Enact individual information provision Simplify access to ensure high usability

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Using SAP CRM, you can collaborate across the value chain improve efficiencies by: Business Communication Management Enable CTI and call routing as well as real-time

collaboration via presence and live-transfer Web Self-Service Empower customers to help themselves with intuitive self-service

capabilities via the web; customers can find solutions, initiate service request, look up status,or look up invoices

Partner Channel Service Management Complement your service capabilities with channelpartners to meet customer demands

SOA Enabled Integrate to legacy or partner applications via service-based interfaces

Some of the key capabilities include: IP telephony based Business Communication Management Internet Customer Self Service Partner Channel Management based self service Service Oriented Architecture

The key benefits include: Flexibility to tweak the processes across the value chain Ease of integration to share key data and processes across the value chain Increase collaboration between the stakeholders Provide 360 degrees of customer data to all employees through communication enabled

business processes

Requirements Seamless integration of internal and external partners Support all communication channels Frictionless internal processes Real-time collaboration with customers and vendors Proven & scalable technology

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We will now take a look at the highlights of the new functionality in SAP EHP1for SAP CRM 7.0.

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Since customer returns do have a lot of business variants the initiation of areturns needs to be initiated out of different objects and roles. So you can start

the complaint process differently – e.g. you can create a complaint directly outof business role “Service Professional” (or “Sales Professional”) or you can

initiate the request as a follow-up action e.g. from an “ERP Sales Order”.

Whether you want to use object “Complaint” or start right away with a returns

request is subject of the implementation process. You can also automate thecreation of the sub-item (with respect to main-item “Complaint”) via an action

profile in case you want to initiate the process with object “Complaint” in all

times (e.g. to analyze customer complaints later on).

Once you maintained, released and saved the return request it will beforwarded to Advanced Returns Management in SAP ERP. Here, the “ultimate”

processing takes place such as creation of the goods receipt, warehouseinspection or refund determination. Depending on theimplementation/customizing of “Advanced Returns Management” the process is

supported by automated system actions and system alerts/warnings.

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The automatic creation of documents in SAP ERP depends on the settings of the sub-item / return request in SAP CRM

customizing for Advanced Returns Management in SAP ERP The following documents are getting created not based on customizing in

SAP ERP but via coding: Returns Order, Returns Delivery and GoodsReceipt (based on flag in field “Product Received”)

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Via the business agreement, the following new search parameters areavailable: Vehicle identification number (VIN) License plate number Alternative ID

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This will create a document flow from the service plan to the service order The service order appears on the service plan display For the next open interval in the service interval, the internal status is set as

„locked“

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Waters, a leading manufacturer and distributor of high performance liquidchromatography, mass spectrometry and thermal analysis products, achievedgreat results taking the similar approach. Waters increase $2 million serviceplan sales through proactive contract renewal. They also reduced theirinvoicing period, the period between the completion of the service order and theinvoice being issued, from 14 days to 1. See the following collateral for more

details:http://download.sap.com/SMIGlobal/download.epd?context=B4E760BBEB3CC0A0248FAA7543B7AD23107E22B5DAFA0499DD55B4AF9A4BBCFA99E5CB4E08A5392BE3E0EB2B0355E2C62EFE7575F6235931

Network Appliance, a provider of innovative storage and data managementsolutions, differentiate their customer experience by providing proactive service,generates majority of their service orders without customer request thusmaximize uptime for their customers. They do using data from device

diagnostics and SAP CRM.

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Only SAP offers a CRM service solution that: Enables end-to-end service management & execution process, through the

native integration amongst SAP applications within the SAP Business Suite Provides complete and consistent service operations across all contact

channels, from interaction call center, e-mail, Web, to field service andpartner channel service

Out-of-the-box integration with a software switch for CTI and other real-timecommunications

Leverages sales and marketing capabilities to drive service revenue Powerful analytics capabilities as well as integration to SAP BusinessObjects

solutions

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SAP CRM is a key element of the SAP Business Suite, a set of solutions thathelp companies optimize and execute business and IT strategies in a world of

accelerating change. The SAP Business Suite provides three key benefits: Insight, improving visibility and empowering better decision-making Efficiency, improving mission critical business processes Flexibility, enabling businesses to expand and innovate without disruption

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