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