CUSTOMER RELATIONSHIP MANAGEMENT FOR RETAIL

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1 The rise of CRM and how it s transforming business interactions CUSTOMER RELATIONSHIP MANAGEMENT FOR RETAIL Why customer loyalty pays dividends Delivering a personal experience Unsurprisingly, a survey conducted by Marketing Charts found that the best way to create customer loyalty is to provide exceptional customer service 24 hours a day, seven days a week. Would you expect anything different? This whitepaper takes a look at how a customer relationship management (CRM) system can do just that, as well as increasing brand loyalty and customer retention. Finding the right CRM solution The first step is to decide on a solution that is powerful and flexible and can be tailored to different industry sectors. The second step, where the real value is felt, is engaging with the right delivery partner. Choosing the best implementation partner for your organisation plays a vital role in ensuring success. An experienced partner will be able to deploy the most appropriate CRM solution for a company based on industry type, size of business and other relevant criteria. Different systems have their own strengths and weaknesses, which can impact on overall functionality. The right partner should have extensive knowledge of the marketplace and a proven methodology to implement a solution that s the right fit for a business a CRM system that will enable them to deliver a truly personalised service. It s widely believed that customers engage with competitors because of pricing or product. Yet a study by The Rockefeller Corporation shows that 82% of customers leave because they think a company doesn t care about them. We all want to be treated as individuals and to feel we matter. A CRM system can automate business processes that nurture customer satisfaction and loyalty. To gain competitive advantage, companies need to make sure every interaction they have with their customers is a personal one. Therefore, choosing a system that automates synchronicity between departments to such an extent that dependable customer service can be guaranteed across an entire organisation, is a must. Word of mouth Customers who receive competent and knowledgeable service not only want to repeat the positive experience they also want to share it with their family and friends. But the same can be said for a bad experience. ClickFox found that one in two people would tell their family and friends about a negative experience, and in the UK that rises to two in three people. The study of 440 consumers also found that 35% would stop doing business with the company altogether. An effective CRM platform helps connect all forms of engagement with the customer so that each touch point feels like it is relevant and adds value. It allows companies to provide customers with a consistently good service.

2 The growth of CRM The rise of mobile CRM The pressure is now on for companies to achieve high levels of service across every sector of their organisation. Implementing a first class CRM strategy that allows companies to reduce costs and increase profitability has therefore become a greater focus for organisations who want to remain ahead of the game. With global mobile device usage expected to reach nearly 2 billion this year (source: Morgan Stanley Research), combined with the growth of mobile workforces and home office workers, companies that embrace the growth of mobile use are benefiting from a number of advantages, highlighted by a Forrester research survey: CRM SOFTWARE REVENUE FORECAST 36,509 (MILLIONS OF U.S. DOLLARS) 31,729 Source: SuperOffice.com 18,090 16,080 13,930 20,797 23,886 27,537 74% increase in customer satisfaction due to faster response to request and inquiries 87% improvement of sales and employee productivity 73% improvement of business process efficiency 77% boost productivity and efficiency of frontline employees 62% increase in usage and adoption of CRM applications A mobile CRM solution that provides real-time access to information is no longer a nice to have but is something that is critical in order for an organisation to remain competitive. In 2008, CRM spend was forecast to reach $18 billion by 2016, yet a recent report by Gartner shows growth has doubled and is now expected to reach more than $36 billion, such is the increase in organisations who have realised a CRM solution is critical to their success. Access from multiple devices The chart below shows that 48% of CRM users now access their software from a smartphone and 45% from a tablet. The rising use of mobiles and tablets means 81% of users are now accessing their CRM software from multiple devices. Why is this important? It means that sales (increased productivity), service (improved delivery), and support (rapid engagement) teams can access customer data from anywhere and therefore serve and fulfil their needs no matter where they, or the customer are. DEVICES USED TO ACCESS CRM: Source: SoftwareAdvice.com Laptop Desktop Smartphone Tablet 0% 20% 40% 60% 80% 100% Percent of sample

3 Cloud-based CRM solutions CRM brings cohesion across teams The increase in accessing CRM software from mobile devices has also led to a rise in cloud-based CRM solutions. CRM is not just about providing excellent customer service - it helps every department within an organisation to communicate with each other. Six years ago only 12% of businesses used cloud-based CRM whereas this has now increased to 87%. Strength in communication So often, an action that demonstrates excellent customer care is followed by an example of poor service. This is often due to a breakdown in communication between departments within an organisation. 88% Cloud-based On Premise A CRM system can bridge those gaps between teams as shared diaries, team calendars and service schedules give everyone clear visibility of individual activities. Users are prompted to follow up on activities and sent automated alerts when important actions occur, enabling them to manage their time more effectively. Sales team mobility 12% 2008 Source: SuperOffice.com 13% 87% 2014 One of the first departments to quickly realise and capitalise on the benefits of implementing a mobile CRM strategy has been Sales. Access to real-time customer information while out in the field has proved invaluable to keeping in touch with customers and prospects, and ultimately closing deals. A recent study by Nucleus Research found that mobile access to a CRM increases salesforce productivity by an average of 14.6%. Three in ten mobile CRM users report an improvement in productivity of more than 20%. The move to cloud based CRM reflects a need to have a relationship management solution capable of quickly ramping up accessibility across any device within multiple locations, delivering the flexibility needed to proactively support customers as a needs arises. Delivering the same level of agility from an on-premise based CRM solution may at times hinder this. 35% 65% 22% 78% The move to cloud based CRM is being driven/supported largely by a number of other benefits: Mobile CRM enabled companies Non-Mobile CRM enabled companies Lower up-front costs through subscription rather than outright purchase Faster ROI as you can be up and running very quickly, shortcutting installation processes Reduced IT overhead as administration is minimal Predictable budgeting as users are on a pay-as-you-consume basis Rapid Scalability allows you to ramp up (or down) the number of CRM users as needed This is not to suggest that a cloud CRM solution is the default solution for everyone, some may prefer the comfort of close control that an on-premise CRM solution offers. Often a hybrid combination of both will provide a desired happy medium. Source: SuperOffice.com Achieved sales quotas Non-achieved sales quotas Research by Innoppl Technologies showed that 65% of sales reps that adopted mobile CRM achieved their sales quotas while only 22% of reps using non-mobile CRM reached the same targets. Targeted marketing campaigns Identifying the needs of your customers and being able to send them relevant content is now crucial to the success of any marketing campaign. Marketing Charts found that six out of ten SMBs are using CRM software for marketing, and this is because they have realised that higher quality leads are generated through continually improving contact segmentation and targeted promotions.

4 The latest in CRM Current CRM systems can organise, automate and synchronise sales, marketing, customer service and technical support so they can work together to achieve coherent and dependable customer relationship management. The latest tools incorporated into some CRM solutions enable informed decision-making that supports real-time data analysis and reporting across all business teams within an organisation. Having CRM online takes this a step further and allows for anywhere, anytime access for staff outside of office walls and hours. Benefits across the business: Five things to look for in a CRM system: Dependable reporting: reliable pipeline reports can be used as the basis for sales and production forecasts to boost efficiency and predictably manage cash flow. Performance indicators: peak performance areas can be identified and capitalised upon, with outstanding results rewarded. Customer prioritisation: understand the value of each customer relationship and deploy resources to protect the most profitable accounts. Customer retention improved by 27% Lead conversion improvements of 300% Source: Benchmark Studies Sales and Marketing costs reduced by 23% Revenue up by 41% per sales person Workflow automation: cut administration by eliminating duplication and replace repetitive manual processes. Anywhere/time access: productivity isn t compromised as staff can work seamlessly with anywhere access to information and applications from mobile devices when on the move. CRM and the retail industry In today s consumer-driven retail world, CRM has become indispensable to the retail industry. Retailers can divide their clients into specific groups according to their purchasing habits and target their marketing campaigns more effectively. In a competitive marketplace, deploying a higher number of well-targeted promotions leads to a greater percentage of market share for that retailer. Once companies have seized those customers, they need to plan how they re going to retain them. CRM takes a long-term customer approach, which has become vital for retailers. Once new customers have been attracted, it s all about keeping them engaged and encouraging them to return as often as possible for more purchases. CRM tools and strategies include: Customer retention: regular communication with customers helps retailers to build relationships; automated prompts remind retailers to contact customers at regular intervals after sales are complete Omni-channel presence: delivers a complete and seamless shopping experience both online and in-store and across social networks. End-to-end capabilities: information is available from store operations, merchandising, e-commerce, call centres, marketing and customer care through to supply chain and financials. Customer data: collect a rich database of customer and transaction information across sales channels to implement focused promotions and campaigns. Maintain communication: integrate social media into your CRM system to hear your customers feedback and let them share their experiences in order to build brand loyalty. CRM for retail is all about managing customer relationships, using strategies to make your customers feel like they re your friends. Effective targeting: segment and manage lists and send relevant information to customers offering more of what they want, leading to increased sales. Client engagement: diverse promotional offers, gifts and additional bonuses help to build and maintain loyalty programmes.

5 Summary In a world where customer service is the driving force to increasing revenue, customer relationship management (CRM) systems give businesses the tools to generate loyalty and retain clients. Enabling salesforce and marketing automation, together with enhanced customer service, means investing in the right CRM software has become a top priority for businesses in every sector, and Microsoft Dynamics AX provides the necessary tools to achieve this. But successful implementation is as much about choosing the right partner as it is about the solution itself. CRM specialists such as Microsoft Gold partner HSO, have developed an implementation methodology that is designed to do 3 key things: Make the implementation and transition process seamless Support a smoother adoption curve Ensure a rapid return on investment Building a consistent retail experience For the retailer, it s all about creating a seamless omni-channel shopping experience and providing a consistent and easy-to-use service for customers wherever they choose to shop. As customers move through social networks to online stores and into shop environments, they expect the same levels of attention and information. It s about engaging with customers and encouraging them to have a relationship with your brand. The overall solution Microsoft Dynamics CRM offers businesses an adaptable solution that drives sales and productivity whatever the industry sector. Providing social insights, business intelligence and campaign management in the cloud, on-premise or with a hybrid combination, it delivers a flexible system upon which to build a company-wide customer relationship programme. We can now tailor unique offers to customers and ensure we are providing relevant & approriate information to them In order to remain competitive in today s marketplace, businesses need to turn their customers transactions into personal interactions with their company. Justin Hampshire, Finance Director, Crew Clothing About HSO HSO is a Microsoft Gold Partner with over 25 years of experience in implementing Dynamics solutions. HSO specialises in implementing, integrating, optimising and maintaining CRM solutions that help organisations deliver higher levels of service, satisfaction and profit. About Microsoft Dynamics CRM Microsoft Dynamics CRM is a customer relationship management (CRM) business solution that drives sales productivity and marketing effectiveness through social insights, business intelligence, and campaign management in the cloud, on-premises, or with a hybrid combination. Microsoft Dynamics CRM can help reduce costs and increase profitability by organising and automating business processes that nurture customer satisfaction and loyalty in the sales, marketing, and customer service fields. Atlantic House, Imperial Way, Reading, Berkshire, RG2 0TD T: +44 (0) E: HSO_UK

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