CRM Selection Criteria Developing a Decision Matrix Chris

CRM Selection Criteria Developing a Decision Matrix Chris Selland Reservoir Partners, L. P.

CRM is… l An IT project with business benefit? l A business project with IT support. l Key Decision Criteria relate to business alignment. • Technical criteria important, but secondary

Metrics – Soft and Hard Soft Metrics Hard Metrics • Customer Loyalty • Customer Lifetime • Customer Satisfaction Value • Quality of Service • Churn Rate • Sales Effectiveness • Cost of Service • Close Rate

A New Year Indeed

A (Still) Consolidating Market

Developing a Decision Matrix l Key Issues • • • Financial Strength/Market Presence Functional Breadth Integration Vision Management Team

Financial Strength l Revenues? • Trend? l Debt/Equity Ratio? l Investors (VC) or Stock Price (public) • • • How many rounds of financing? Terms of financing? Can you speak with investors? l What is your tolerance for risk?

Market Presence l What is their market share? • • In segment I care most about? In my vertical industry? l What are the industry analysts saying? l Key Customers? • Can you speak with them? l How frequently are they mentioned in the media?

Functional Breadth l Relevant to problem(s) to be solved • • Sales Marketing Customer Support Integrated (useful) customer data Order Management Returns Fulfillment

Integration l What are key current applications? • Which do we intend to keep short- and longterm? l What is the current ‘system of record’ for customer data? • • Is there more than one? Will new CRM system replace? l Web Services support? • • EAI Partners? Own initiatives? (Net. Weaver, UAN)

Technology Vision l What are the vendor’s future development intentions? l How have they met past intentions? l How much customization are you looking for? • • How much do you really need? Level of consensus within your company

The Extended Enterprise Buy Make/Add Value Sell & Service Front Back Suppliers Office Integration Manufacturing Sales Finance Support/Service Engineering Marketing Supply Chain Channels & Customers Front/Back Office Demand Integration Chain

Management Team l What is the management team’s background? l What do the analysts (financial and industry) say? l Who are their key investors?

The Matrix Financial Strength/ Market Presence Weighting Vendor A Vendor B Vendor C Functional Breadth Integration Vision Management Team

Conclusions l Only you can determine weightings • Understanding your corporate risk profile critical l Simplify, don’t complicate • Determine system (not systems!) of record for customer information l Integration strategy is critical • • Solve individual problems Don’t create ‘islands’

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

When you deploy new applications, do you normally view them as replacements or enhancements? 1. Replacements 2. Enhancements

Have you invested in an EAI platform? 1. Yes 2. No

Have you invested in an XML initiative? 1. Yes 2. No

Who makes CRM decisions in your company? 1. IT 2. Line of Business 3. Executive 4. Combination

Questions?