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right in front of them, our representatives are
able to develop customized investment strategies and deliver them—along with
every appropriate piece of marketing collateral—directly to the customer, right
from their desks. This system has enabled us to improve our lead conversion
ratio—that is, the percentage of leads that become new accounts—from 40
percent to 60 percent.
Increased Revenue per Sale
CRM can help organizations increase average revenue per sale by facilitating
cross-selling and up-selling. For example, Marriott has developed a program called
Personal Planning Service, powered by Siebel CRM technology, which allows
Marriott to create personalized vacation itineraries for guests at select resorts well in
Why CRM? The Business Case for Customer Relationship Management Page 15
advance of arrival. When a customer makes a reservation for one of Marriott’s
select resorts, the company starts building an itinerary based on the customer’s
requests and stored preferences. When the customer arrives at the hotel three
weeks later, tee times have already been scheduled, dinner reservations arranged,
and recreation itineraries created. Marriott has found that guests who participate in
the program show noticeably higher guest satisfaction scores and spend an average
of US$100 more per day on services beyond the room rate.1 They are also more
likely to generate repeat business because they had a satisfying experience.
CRM technology can also increase average revenue per sale by helping sales
representatives focus on the right deals—those that represent the highest revenue
potential. For example, at Peregrine Systems, a leading provider of infrastructure
management solutions, the combined implementation of a new sales methodology
and Siebel CRM technology helped the company’s large direct sales force act on
opportunities more quickly and close business faster. “Previously, the sales
representatives didn’t have a methodology for going in and really assessing an
opportunity,” says Rick Berzle, Vice President of Corporate Marketing, Peregrine
Systems. “The sales force automation system we were using could not support an
integrated sales and marketing process.”
Since implementing Siebel CRM technology and new sales methodology, Peregrine
has seen dramatic improvements in the effectiveness of its sales efforts. “These
tools have given our representatives a framework for assessing an opportunity,”
says Berzle. “They can now determine the true potential of an opportunity, whom
they need to influence to win the sale, which obstacles they need to overcome, and
how to engage the customer in a process that will close the sale.”
The CRM technology gives sales representatives a comprehensive view of all
activities, opportunities, and service issues associated with any given account,
enabling deeper selling of infrastructure management solutions into the account.
For example, by allowing a sales representative to see that Peregrine is currently
managing a customer’s computer network, the CRM software lets the
representative engage in targeted cross-selling efforts, such as offering the customer
a broader solution that encompasses the procurement of additional networking
equipment.
“The CRM technology and the new methodology have moved our sales
organization to an entirely new level,” says Berzle. “In the first five mont