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May 15, 2000

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CRM Tools:
Match Your CRM Tool To Your Business Model

No tool is a market leader in all areas, but all must fill essential requirements

By Chuck Trepper

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    Rapidly evolving CRM technologies give businesses an array of tools to enhance customer relationships. Hundreds of software providers offer software solutions and services to improve sales and marketing performance and integrate multiple selling channels.

    Specifically, these technologies are designed to automate sales and service functions, aggregate customer information into data warehouses and data marts, and manage collaboration with customers through an expanding number of "points of interaction."

    The CRM universe can be broken down into three discrete but interrelated functional categories:

    • Operational CRM: Customer-facing applications that integrate the front, back, and mobile offices, including sales-force automation, enterprise marketing automation, and customer service and support.

    • Analytical CRM: Applications that analyze customer data generated by operational tools for the purpose of business performance management. Analytical CRM is inextricably tied to a data warehouse.

    • Collaborative CRM: Collaborative services such as personalized publishing, E-mail, communities, conferencing, and Web-enabled customer interaction centers that facilitate interactions between customers and businesses. Collaborative CRM is used to establish the lifetime value of customers beyond the transaction by creating a partnering relationship.

    Customer-relationship management solutions must fulfill three essential requirements:

    • Provide a consistent and unified view of each customer for every customer interaction;

    • Enable a customer to have

    • a complete view of the company regardless of the way the customer contacts it;

    • Let front-office staff perform sales, service, and marketing tasks more efficiently as a team, reducing costs and boosting efficiency.

    Unfortunately, no CRM software product is a leader in all three areas. Each has strengths in one or two of these areas, and they all differ in functionality. The current CRM tools lack high-quality customer satisfaction measurement tools, data analysis tools, and the ability to integrate existing applications.

    The core functionality of a CRM product is its ability to maintain a single, cohesive view of the customer for the customer-facing functions of sales, service, and marketing. This distinguishes them from older and less-functional sales automation, customer service, and marketing automation software.

    Leading Enterprise Front-Office Applications
    Baan Front Office
    Baan
    Santa Clara, Calif.
    408-919-2100
    www.baan.com

    Avenue CRM Suite
    Saratoga Systems
    Campbell, Calif.
    877-272-7286
    www.saratogasystems.com

    Epiphany E.4
    Epiphany
    San Mateo, Calif.
    650-356-3800
    www.epiphany.com


    DATA: Vendors

    eRelationship 2000 and Intelligent eSelling 2000
    Pivotal
    Kirkland, Wash.
    877-748-8625
    www.pivotal.com

    MySAP.com and Business Information Warehouse
    SAP
    Newtown Square, Pa.
    888-596-1727
    www.sap.com

    Oracle FrontOffice
    Oracle
    Redwood City, Calif.
    800-672-2531
    www.oracle.com

    PeopleSoft CRM/Vantive Enterprise
    Vantive/PeopleSoft
    Pleasanton, Calif.
    925-225-3000
    www.peoplesoft.com

    SFA Plus
    PowerCerv
    Tampa, Fla.
    813-226-2600
    www.powercerv.com

    Siebel eBusiness 2000 Suite
    Siebel Systems
    San Mateo, Calif.
    800-647-4300
    www.siebel.com

    CRM software must have the ability to support sales processes, opportunity management, and pipeline management. It examines forecasting, territory management, and team-selling capability. CRM vendors must also focus on sales-productivity tools, including sales configuration and quote generation.

    Marketing performs two functions that require capability from CRM software: campaign management and prospect generation. Companies look for the ability to both manage and execute a campaign at all stages, from planning to determining its success rate. Companies that are evaluating CRM software must examine how prospect generation is linked and related to sales.

    CRM software must have the ability to run a customer-service or -support operation, including the capability to record interactions with the customer, as well as being able to provide differentiated service according to the terms of a contract.

    No single CRM tool meets all these criteria. The vendor that can fulfill these goals will quickly leapfrog to the forefront.

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