The CRM Barometer

According to a Gartner report, almost 42% of executives are not even aware of

the RoI on their CRM investments. Based on market irregularities and the

increasing need to evaluate the effectiveness of CRM projects, Cap Gemini Ernst

& Young (CGEY) has recently introduced the ‘CRM Index’, which operates

as a barometer to help companies clarify their CRM objectives with claims that

this would help them assess their initiatives better. Dataquest spoke to Arnab

Dasgupta, head of CRM at CGEY, to find what this Index is all about

How exactly does this ‘Index’ propose to clarify CRM objectives of a

company?

The ‘CRM Index’ is a product that acts as a barometer to help

companies of CRM capabilities from strategy to implementation. It helps

the company to understand their business model and accordingly plan their

CRM initiatives. Based on two sets of criteria, mindset and connectivity,

the Index determines a ‘score’ that reflects the company’s business

model.

The index consists of nine such models, ranging from companies with low

connectivity-whose systems are not well integrated across departments and

a market focused rather than a customer focused philosophy to companies

with well integrated systems and which emphasize individual relationships

with their customers.

The Index is applicable for companies who have already implemented CRM

and as well as those which are planning to implement CRM.

What was the rationale behind using ‘mindset’ and ‘connectivity’

as the defining factors? Doesn’t the business model consist of other

important elements?

We conducted a survey wherein we analyzed more than 100 variables that

characterize an organization’s practices relating to marketing, sales

and customer service. Based on these variables, CGE&Y created the CRM

Index, a first step for companies in assessing the potential role of CRM

in supporting their business model. The study revealed that there are in

fact two key dimensions that define a company’s current-state CRM

business model-Mindset and Connectivity. "Mindset" refers to

your corporate philosophy of CRM-how you value customer relationships,

your business strategy, organizational structure, and business

intelligence. "Connectivity", on the other hand, is the process

and technology infrastructure that connects the business with the

customer. What kinds of channels and touchpoints do you provide - and are

they integrated? How do your tools allow you to segment, view and serve

the customer? Are you collecting information constantly, in real time?

The higher up the "Mindset" axis a company operates, the more

it orients its business toward one-on-one customer relationships. The

"Connectivity" axis reflects the degree to which customers

figure in a company’s process model and infrastructure.

Besides calculating a score, does it also suggest specific

strategies or initiatives that the company should take?

CGEY’s CRM Solutions fall into two major categories: Point offerings

and integrated solutions. Whether delivering a standalone CRM point

solution (e.g. Sales Force Automation) or an integrated eCRM solution, our

approach begins with an appreciation for the desired customer experience.

Shweta Verma in New Delhi