crm selection criteria developing a decision matrix chris selland reservoir partners, l.p
TRANSCRIPT
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CRM Selection Criteria
Developing a Decision Matrix
Chris SellandReservoir Partners, L.P.
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CRM is…
An IT project with business benefit?
A business project with IT support.
Key Decision Criteria relate to
business alignment.
• Technical criteria important, but
secondary
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Metrics – Soft and Hard
Soft Metrics Hard Metrics
•Customer Loyalty
•Customer
Satisfaction
•Quality of Service
•Sales Effectiveness
•Customer Lifetime
Value
•Churn Rate
•Cost of Service
•Close Rate
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A New Year Indeed
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A (Still) Consolidating Market
$0
$1,000
$2,000
$3,000
$4,000
$5,000
$6,000
$7,000
$8,000
2002 2003 2004 2005 2006 2007
Worldwide CRM Spending(millions)
Worldwide Hosted CRMSpending (millions)
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Developing a Decision Matrix
Key Issues
• Financial Strength/Market Presence
• Functional Breadth
• Integration
• Vision
• Management Team
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Financial Strength
Revenues?• Trend?
Debt/Equity Ratio?
Investors (VC) or Stock Price (public)• How many rounds of financing?
• Terms of financing?
• Can you speak with investors?
What is your tolerance for risk?
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Market Presence
What is their market share?• In segment I care most about?
• In my vertical industry?
What are the industry analysts saying?
Key Customers?• Can you speak with them?
How frequently are they mentioned in the media?
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Functional Breadth
Relevant to problem(s) to be solved
• Sales
• Marketing
• Customer Support
• Integrated (useful) customer data
• Order Management
• Returns
• Fulfillment
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IntegrationWhat are key current applications?
• Which do we intend to keep short- and long-term?
What is the current ‘system of record’ for customer data?• Is there more than one?
• Will new CRM system replace?
Web Services support?• EAI Partners?
• Own initiatives? (NetWeaver, UAN)
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Technology Vision
What are the vendor’s future
development intentions?
How have they met past intentions?
How much customization are you looking
for?
• How much do you really need?
• Level of consensus within your company
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SuppliersSuppliers Channels &Channels &CustomersCustomers
BackBackOfficeOffice
FrontFrontOfficeOffice
Supply Supply ChainChain
Demand Demand ChainChain
Front/Back OfficeFront/Back OfficeIntegrationIntegration
BuyBuy Sell & ServiceSell & ServiceMake/Add Make/Add ValueValue
ManufacturingManufacturingFinanceFinance
EngineeringEngineering
SalesSalesSupport/ServiceSupport/Service
MarketingMarketing
IntegrationIntegration
IStore credit card processing
The Extended Enterprise
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Management Team
What is the management team’s
background?
What do the analysts (financial
and industry) say?
Who are their key investors?
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The Matrix
Financial
Strength/
Market
Presence
Functional
Breadth
Integration Vision Management
Team
Weighting
Vendor A
Vendor B
Vendor C
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ConclusionsOnly you can determine weightings
• Understanding your corporate risk profile critical
Simplify, don’t complicate
• Determine system (not systems!) of record for
customer information
Integration strategy is critical
• Solve individual problems
• Don’t create ‘islands’
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0%
15%
30%
45%
10%
1 2 3 4 5
How much vendor 'stability risk' is your company willing to take to get best fit?
1. Not an issue – we don’t care about vendor stability
2. A great deal of risk – we’re relatively risk tolerant
3. Some
4. Very little
5. None
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60%
40%
1 2
When you deploy new applications, do you normally view them as replacements or enhancements?
1. Replacements
2. Enhancements
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262%
138%
Have you invested in an EAI platform?
1. Yes
2. No
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250%
150%
Have you invested in an XML initiative?1. Yes
2. No
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14%
27%
18%
41%
1 2 3 4
Who makes CRM decisions in your company?
1. IT
2. Line of Business
3. Executive
4. Combination
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Questions?