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perating budget
Limited/no capital
budget required;
project can be funded
out of operating
budget
Budget
Requirements
Leverage existing inhouse
IT expertise,
hardware & software
Functional application
knowledge, vendor
management and IT
governance required
Limited/no IT
resources required
IT Resources
Required
Two- to four-months on
average
Two- to four-months on
average
Can be immediately
deployed for fast
results in as little as a
few weeks
Deployment Time
Frame
Extended capabilities in
select areas such as field
service and deep industry
support
Extended capabilities in
select areas such as field
service and deep industry
support
Core functionality in
sales, marketing,
service, and analytics
Functional
Requirements
Single-tenant hosted On Premise CRM
CRM (Privately hosted)
Multi-tenant hosted
CRM (Web hosted)
Table 2: Deployment option issues to consider when selecting a CRM vendor.
Support for All Devices
Today’s organizations take advantage of a broad range of information and
communications devices, including desktop PCs, laptops, handheld devices, and
cell phones. A state-of-the-art CRM system must support all of these devices,
whatever the underlying hardware and operating systems, and must work
seamlessly across devices. For example, users of mobile devices (such as laptops
and handheld computers must be able to easily and effectively synchronize
information stored locally on their device with the system’s centralized database.
Without this capability, mobile personnel will be out of sync with the rest of the
organization, a situation that can significantly undermine sales effectiveness.
THE BUSINESS BENEFITS OF CRM
When executed appropriately, a CRM strategy can deliver significant quantitative
and qualitative business benefits. The quantitative benefits are driven by two main
Why CRM? The Business Case for Customer Relationship Management Page 12
factors: reduced costs and increased revenues. Looking at these two factors more
closely, CRM solutions let organizations reduce the cost of acquiring, selling to, and
serving customers, and they help organizations enhance revenue by increasing sales
per representative, sales per customer, average order size, and other revenue-driving
metrics.
Cost Reduction Benefits
By streamlining and integrating customer-facing processes and providing richer
customer data to sales, marketing, and service personnel, CRM can produce
significant cost reduction benefits in a few key areas: cost to acquire customers,
cost of sales, and cost to retain and serve customers.
Decreased Customer Acquisition Costs
Effective CRM strategies help organizations better understand a customer’s
preferences, buying behavior, revenue, profitability, and purchasing frequency.
Having this knowledge can reduce customer acquisition costs significantly. For
example, within one high-tech company, the implementation of a Siebel CRM
system helped the telemarketing group to dramatically lower the number of calls
required to generate leads. The company’s vice president of sales and marketing
explains:
Under our old sales information system, our telemarketing people were
deluged with irrelevant information—free-form, unstructured information that
had been recorded by agents during previo