Computerworld Briefing

SAP CRM 2007

Enabling Customer Driven Growth

Jennifer C. Reyes
Solutions Architect Lead
SAP Philippines
The Common Denominator Across Different
Companies

"Without customers, you don't have a business.”

Customers are the only reason you build factories,

hire employees, schedule meetings, or engage in
any business activity.
Source: Peppers & Rogers
Customers Before and Now

Before:
“Any customer can have a car painted any color that
he wants so long as it is black“- Henry Ford, Ford
Motors

Now:
“In the world of Internet Customer Service, it’s important to
remember your competitor is only one mouse click away.” – Doug
Warner, General Electric Company
Businesses are facing new challenges

Increased
Margins and
Increased Pricing Pressures Channel
Competition Proliferation
Product Empowered
Commoditization Customers
So, What Is Customer Relationship
Management (CRM) ?

"The alignment of a company's resources to

effectively meet the ever-changing needs of its
customer base, while creating mutually profitable
relationships “
Source: Customer Centricity Inc.

“Customer relationship management (CRM) is a term applied to

processes implemented by a company to handle its contact with its
customers. CRM software is used to support these processes, storing
information on current and prospective customers.”

Source: Wikepedia.com.
How Important Is CRM ?

Source: Gartner 11/2007

Source: “Trends 2007: Customer Relationship

Management“, Forrester
SAP CRM: Solution Map

Channel Management

Marketing Resource Segmentation & List Campaign Trade Promotion Lead Management
Marketing
Interaction Center

Management Management Management Management

E-Commerce
Enterprise

Analytics
Field

Sales Quotation & Incentive &

Territory Accounts & Opportunity Pricing & Time &
Sales Planning & Order Commission
Management Contacts Management Contracts Travel
Forecasting Management Management

Service Service Installed

Complaints In-House Case Warranty Resource
Service Order Contract Base
& Returns Repair Management Management Planning
Management Management Management
 SAP CRM – Customer Strategy

Early adopters of customer relationship management systems were often disappointed

by high costs and elusive benefits. Now some companies are reaping strong returns on their CRM benefits.

Kimberly-Clark’s CRM Path Brother’s CRM Path Molex’s CRM Path

Campaign Interaction management Pipeline
management and help desk management

Promotion Loyalty program Lead Cross

management management selling

Segmentation Campaign Sales

management forecasting

Pricing Feature and function Budgeting Supply chain

prioritization management
SAP CRM 2007 is Simple and Powerful

Easy to Use

Simplified, Personalized
User Experience
Easy User Interface Configuration

Easily add, re-position or

re-label fields
Visual Editor - what you
see is what you get
Checklist for success
SAP CRM:
Customer Driven Growth

Delight Empower Grow

your customers your team your business
SAP CRM 2007 is Simple and Powerful

Delight Solves Real Business Problems

your customers
Consistent customer experiences

Relevant context for all customer interactions

Robust end-to-end processes

Empower Easy to Use

your team
Enable adoption with intuitive and interactive user interface

Drive action with comprehensive, real-time visibility

Foster collaboration across your business network

Grow Makes the Complex become Simple

your business
Capitalize on customer insight

Deliver customer value by streamlining complex processes

Focus on your unique business value

SAP CRM 2007 is Simple and Powerful

Delight
your customers Solves Real Business Problems

Empower
your team Real-Time Offer
Management

Grow
your business
Business Communications Service Parts
Management Management
SAP CRM 2007 is Simple and Powerful

Delight
your customers Easy to Use

Empower
your team Simplified, Personalized
User Experience
Pipeline Performance
Management

Grow
your business
Microsoft Office Adobe
Integration Interactive Forms
SAP CRM 2007 is Simple and Powerful

Delight
your customers Makes the Complex Simple

Empower
your team
360°
Customer View

Grow
your business
Industry-Relevant End-to-End Processes
(TPM & MDF)
SAP CRM 2007 is Simple and Powerful

Delight
your customers

Real-Time Offer Business Communications Service Parts

Management Management Management

Empower
your team

Simplified, Personalized Pipeline Performance Microsoft Office Adobe

User Experience Management Integration Interactive Forms

Grow
your business

360° Industry-Relevant End-to-End Processes

Customer View (TPM & MDF)
SAP CRM benefits
Proven, robust solution, providing real value

30 - 50% expanded marketing campaign reach

Up to 20% enhanced cross-selling and up-selling
8 - 10% higher close rates

15 - 25% decreased service resolution time

10 - 20% reduced order errors
Up to 20% shortened order-to-delivery cycle times

Up to 20% improved margins

10 - 15% reduced cost-to-serve
5 - 10% increased customer retention rates
How SAP CRM Helped Audi
How SAP CRM Helped Audi

CRM OBJECTIVE
Innovate customer experience
360° view on customer & vehicle information
Close collaboration with the dealer network
Increase visibility of business through indirect channels
With a history of excellence
that spans nearly a century,
Audi is one of the world’s CUSTOMER PAIN POINTS
leading luxury automobile Expansion of brand relevance beyond product innovation
manufacturers. Much of Audi’s
success was founded on Leveraging customer and vehicle information spread over multiple
databases
technological ingenuity.
Deregulation of the market requires new channel concepts
Following its entry into the
luxury sector in the early
1990s, Audi capitalized on its WHY SAP SOLUTION WAS SELECTED
ingenuity and has competed
well on the luxury automotive Integration of customer and vehicle data from multiple sources
sector’s defining elements of Rich industry-specific capabilities of SAP CRM
innovative design, safety and
Multi-channel management to integrate all customer touch points
performance. Since that time,
Audi has enjoyed record
setting results.
How SAP CRM Helped Audi

CRM OBJECTIVE
Innovate customer experience
360° view on customer & vehicle information
Close collaboration with the dealer network
Increase visibility of business through indirect channels
With a history of excellence
that spans nearly a century,
Audi is one of the world’s CUSTOMER PAIN POINTS
leading luxury automobile Expansion of brand relevance beyond product innovation
manufacturers. Much of Audi’s
success was founded on Leveraging customer and vehicle information spread over multiple
databases
technological ingenuity.
Deregulation of the market requires new channel concepts
Following its entry into the
luxury sector in the early
1990s, Audi capitalized on its WHY SAP SOLUTION WAS SELECTED
ingenuity and has competed
well on the luxury automotive Integration of customer and vehicle data from multiple sources
sector’s defining elements of Rich industry-specific capabilities of SAP CRM
innovative design, safety and
Multi-channel management to integrate all customer touch points
performance. Since that time,
Audi has enjoyed record
setting results.
How SAP CRM Helped Audi

INDUSTRY
Automotive (Sales & Service)

SOLUTION SCOPE & SCENARIOS

Geography: Pilot Germany, Worldwide rollout
Users: 1500 +
CRM Interaction Center 4.0, live since 04/2002
“Regardless of how our
CRM Marketing 4.0 (with Channel Integration), live since 10/2003
customers reach us,
our internal processes
run entirely FUNCTIONAL HIGHLIGHTS
electronically.” Marketing & Brand Management
Multi-wave campaigns for new model launch
–
Christoph Wargitsch, Lead sharing with dealers (DMS-Integration)
Manager CRM at AUDI Personalized customer newsletter
Interaction Center
Multi-channel customer support (phone, email, fax. letter)
Integrated customer and vehicle information
CTI integration
How SAP CRM Helped Audi

INDUSTRY

Benefits: Automotive (Sales & Service)

“Maximize profitability” by generating

SOLUTION SCOPE & SCENARIOS €2.3 Mio via
intelligence based campaigns generated
Geography: Pilot Germany, Worldwide rollout
Users: 1500 +

“Delivering
“Regardless of howCustomer
our Value” by increasing loyalty
CRM Interaction Center 4.0, live since 04/2002

and quality
customers reach of
us, dealers, resulting in €3.4 Mio of
CRM Marketing 4.0 (with Channel Integration), live since 10/2003

revenue
our internal processes
run entirely FUNCTIONAL HIGHLIGHTS
electronically.”
“Improve performance” Marketing &by saving
Brand Management€400K by
streamlining – processes and replacing
Multi-wave legacy
campaigns for new model launch
systems
Christoph Wargitsch, Lead sharing with dealers (DMS-Integration)
Manager CRM at AUDI Personalized customer newsletter

Resulted in an IRRInteraction
Of 15%
Study Done By Peppers & Rogers
Center
Multi-channel customer support (phone, email, fax. letter)
Integrated customer and vehicle information
CTI integration
Reach the right customers
Closed loop marketing campaigns deliver improved results

Generated $2M in additional

revenue through 100% cleaner
mailing lists

Improved marketing response rate

“mySAP CRM has allowed us to by 50% with better targeting
make several important strides
and that has resulted in
continued growth for Waters.”
Increased efficiency of lead
qualification process, generating
Mike Harrington
additional $800K
Senior Director of U.S. Sales

Waters is the world’s leading supplier of

high-performance liquid chromatography
instrumentation and consumables.
Drive improved sales productivity
Increase effectiveness and focus of 1,200 person sales force

22,000 additional customer

conversations each month

3.5 more productive hours each

“We’ve profited from mySAP week per sales person
CRM Sales with more time in
the field, more control in our
headquarters, and simpler
administrative processes in
Instant access to customer and
our offices.”
product data enables better decision
Wolfgang Hoffmanns
making
Director, Sales and Support Coordination

AstraZeneca is one of the world’s top five

pharmaceutical companies.
Enhance customer relations
Uniform access to data enables a consistent customer response

Shortened campaign process from

80 hours to 2, allowing more
frequency and targeting

Reduced time to service end users

“The valuable customer feedback by 40% and dealers by 50%
that we can now report and
analyze… allows us to recognize
quality issues and take corrective
action sooner to reduce returns
and customer calls.” Reduced rate of returns by 15.8%
while increasing unit shipments
Charles Stadtler
VP of National Service

Brother International has over 330,000

customers for its office products and machinery
Outsell the competition on the web
Better customer understanding to increase efficiency

Growth of online sales to contribute

$7M to the bottom line

Order automation to save an

“mySAP CRM enables us to estimated $7.5M
deliver the optimal shopping
experience for customers, while
growing revenues, building
lifelong brand loyalty, and
lowering the cost of sales.” 26% Internal Rate of Return (IRR)
Alexander Bakkeren expected through 2007
Director, Global CRM, Customer
Service & E-Business

Philips is one of the world’s top consumer

electronics companies.
Grow your business by focusing on customers

Innovate and differentiate across

customer-facing processes

Evolve and adapt customer

strategies as needs change

Collaborate across the

organizations to serve customers

Turn industry changes into

growth opportunities

Leverage Enterprise SOA to

increase agility and manage
complexity
Take Aways

Enable customer-driven growth through SAP CRM 2007.

It‘s available. It‘s for everyone.

Simple and Powerful:

cornerstones of the SAP CRM strategy

Smart and end-to-end product innovations

SAP CRM Proven With ROI!

Independent Studies Confirm the Value mySAP CRM

Delivers to Our Customers:

97% IRR 56% IRR 15% IRR 32% IRR 144% IRR

68% IRR 26% IRR 15% IRR 26% IRR 15% IRR 15% IRR

129% ROI 35% IRR 74% IRR 129% IRR 7% IRR

26% ROI 23% IRR 20% IRR 30% IRR 56% IRR

272% IRR 52% IRR 26% IRR 16% IRR 23% IRR 70% IRR

Please visit: http://www.sap.com/solutions/business-suite/crm/customersuccess/index.epx to download reports

Independent studies evaluated by: Peppers and Rogers Group, Gartner Consulting, Scalea & Associates, IDS Scheer AG
Thank you!

If we don’t take care of our customers, someone else will.

UNKNOWN