PROJECT REPORT ON

CRM PRACTICES AT DELL By

SAURABH SHARMA PG20112202

IILM Institute for Higher Education GURGAON

DELLVISION DELL is committed to being a good neighbor in the communities we call home. We must continue to grow responsibly- protecting our natural resources and practicing sustainability in all its forms and improve the communities where we live and work through our financial and volunteer efforts. MISSION- To be the most successful computer company in the world at delivering the best customer experience . Dell is in the business of manufacturing computers and servers. Bearing the name of its founder, Michael Dell, the company is one of the largest technological corporations in the world, employing more than 96,000 people worldwide. Dell Inc. is a multinational information technology corporation based in Round Rock, Texas, United States that develops, sells and supports computers and related products and services. The company sells personal computers, servers, data storage devices, network switches, software, and computer peripherals. Dell also sells HDTVs, cameras, printers, MP3 players and other electronics built by other manufacturers. The company is well known for its innovations in supply chain management and electronic commerce. The corporate structure and management of Dell extends beyond the board of directors. The Dell Global Executive Management Committee sets strategic directions. Dell has regional senior vice-presidents for countries other than the United States. Segmentation has been the reason for Dells success. Dell positions itself on the basis of segmentation and modifies its offerings to for each segments customers . Its competitors are Hewlett Packard/Compaq, IBM, Apple, Gateway, Sony, Lenovo etc. Dell has one simple concept: to sell computer systems directly to customers. Dells customers are global wide and range from individuals, small businesses, large businesses, and institutional organizations, such as schools, colleges and hospitals. Such a huge customer base makes Dell one of the leading technological corporations of the world today. Dell is also known for its CRMSCM strategy. CRM-SCM integration has been a major reason why Dell stands as one of the leading corporations today.

WHAT IS CRM?
CRM- customer relationship management

Customer Relationship Management or CRM is a new approach in managing customer relationships at the level of corporate and business so as to maximize communication, marketing through the management of a variety of different contacts with customers. It is a broadly recognized, widely-implemented strategy for managing and nurturing a companys interactions with customers, clients and sales prospects. It involves using technology to organize, automate, and synchronize business processesprincipally sales activities, but also those for marketing, customer service, and technical support. CRM can be defined as a business strategy that aims to understand, anticipate and manage the needs of an organisations current and potential customers. CRM is a shift from traditional marketing as it focuses on the retention of customers in addition to the acquisition of new customers. CRM implementation will be optimal only if assisted by technology. Because, the technology will increase the depth of knowledge about customers, improve access for customers, create customer interactions more effective and integrated through all channels. Without the right technology, CRM solutions will not be optimal. It helps enterprise to- Give it a 360 view of each customer and increase the opportunities for sales and the effectiveness of customer service. - To enable customers to have a consistent view of the enterprise. This improves customer satisfaction and customer retention. To enable front office staff to perform sales, service and marketing tasks more efficiently as a team, increasing expertise and reducing costs. PURPOSE OF CRM The focus of CRM is on creating value for the customers and the company over the longer term. When customers value the customer service that they receive from suppliers, they are less likely to look to alternative suppliers for their needs. CRM enables organisations to gain competitive advantage over competitors that supply similar products or services. TYPES OF CRM Sales force automation Marketing

Customer service and support Appointments Small business Social media Non-profit and membership-based

ADVANTAGES OF CRM Reduced costs Customer Lifecycle Management

Increased customer satisfaction Business Intelligence Growth in numbers of customers Maximisation of opportunities Long term profitability and sustainability

DISADVANTAGES OF CRM Overhead costs Training issues Unstable CRM application leads to loss of thousands of dollars

CRM IMPLEMENTATION AT DELLDELL is one of the leading companies that uses CRM to a good effect. One of the Dell Companys ways to optimize its CRM is through interaction with consumers on the internet. Concrete example is the making of a fan page on social networking which is very popular today, Facebook. Dell company had nearly 377,922 people liked this page. This fan page was named "Dell". With this page, Dell enables its customers to find out what new products, latest information, tips and tricks of Dell, and others that can be a source of information for its customers. On this page, Dell also inform customers that if they are likely to receive information about special offers and the latest product Information by e-mail the customers can ask to sign up for Dell emails at: http://dell.to/ewyQUb. DELLS DIRECT MODEL Dell goes- Dell.com (July 1996) Served its online customers with 12 sales reps and 2 order processors

Cost cutting by eliminating the retail stores and spend those saved dollars on customer service and other after sale services in order to build great relationships with customers 500 million page visits per quarter to www.dell.com

DELLS DIRECT MODEL AND CRMThis model helped Dell to eliminate middlemen and thus Dell was able to talk to customers directly. They tried to understand the needs of their customers. They then started to build computers based on its customer needs. All this resulted into a greater customer satisfaction and in turn benefited the company. It also gave them an understanding of what a customer expects from them. Thus it resulted into customer loyalty and increase in sales.

DELLS CRM STRATEGYEarlier people went to an electronic or retail store to buy computers. There was no interaction with the manufacturer, only with the salesperson of that particular store. These salespeople were not as knowledgeable about the product since they were not involved in building the computers. Dell brought this concept of interacting with the customers by phone or by Internet to custom-build a computer specific to that customers needs and delivering that computer to the customer on time. Dell created a supply chain management (SCM) system that ensured that the right computer parts were always available to the customers. Dell has developed a strong relationship with both its suppliers and customers that allow it to ensure that computer components are available from suppliers to meet customer demands. It also ensured that a system was in place to get the product shipped and delivered to the customer effectively and efficiently. This direct customer focus has resulted in Dells competitive advantage. Dell utilizes database software, which is effective and efficient with customer relationship management. These particular databases store tables of data that can be mined for information about clients and used to generate promotional campaigns. The databases would include customer information, their interests, and products. The customer database helps increase profits because the database contains client information that helps determine effective and efficient ways to target and segment the customers. Thus it makes segmenting and targeting easy and effective. The bottom line to CRM systems is that it directly impacts its customer base, ensuring that better service is offered. Dells CRM strategy: Segmentation and identifying customers. Listen to their customers.

 Also to learn from their customers. Each member acts a student and learns from the customers. Thus it can be said that Dells CRM strategy revolves around its customers and their basic strategy is to understand their customers as well as possible and the CRM softwares are also designed keeping in mind the customers as their focal point. They give utmost importance to their customers.

TYPES OF CRM SOFTWARES AT DELLBefore the use of CRM people went to an electronic or retail store to buy computers and there was no interaction with the manufacturer. Interaction was only with the salesperson of that particular store. But the sales person were not that efficient and knowledgeable. Thus the need arose to implement CRM. The various types of CRM Softwares in Dell are PRESENT ON ALL LEADING SOCIAL NETWORKING SITES- One of the Dell Companys ways to optimize its CRM is through interaction with consumers on the internet. They have fan pages on all leading social sites like Facebook, Twitter, Flicker etc. I2 PLANNER SOFTWARE FOR SUPPLY CHAIN NEEDS- I2 planner is a software which helps them to meet their day in day out supply chain needs. It includes i2 supply chain planner, i2 collaboration planner and factory planner. It helps to track backlog numbers, stock status and supplier commitments. Also helps them to meet the needs of customers on time. PROCLARITY- Proclarity is another important CRM Software for Dell. It helps to check the success and failures of each and every sales team and thus benefits sales, marketing and finance departments largely. It also highlights the good and not so good areas for business. Also benefits the company by providing details about customers. HOTLINK- Hotlink is the marketing automation software for Dell. It aids e-marketers in effective targeting, efficient marketing and real-time monitoring of customers and market trends. It also helps Dell to have free advertising. It is mainly to target right audience and helps in improving efficiency of Dells marketing department. PREMIER PAGES (CUSTOMISED WEB PAGES)- It offers easy ordering, tracking and control. It is basically a transparent online system which uses custom designed web pages. It helps them to know about customers and create a direct relationship with them. It is mainly for corporate customers, allowing these customers to simplify and accelerate procurement and support processes.

 SAAS PORTFOLIO- Provides customers with cloud-based applications that help simplify and automate IT management. Dell is also trying to close with its customers through making polls, discussion forums, links bar, notes bar, YouTube bar, events bar, video bars, and photos bar, all of which can be accessed by customers. In the "info" bar, Dell mentioned the other websites which are can be visited to know deeply about Dell, websites for their product, and certainly their fan page on Facebook. Dell has been very committed to CRM. They have responded to nearly every comment and postings whether good or bad. Thus they have fully optimized social networking sites for CRM. CRM-SCM integration strives to satisfy and promptly deliver products to customers, ensuring availability of the product and maintaining profitability of the manufacturer.

IMPLEMENTATION OF CRMPRE-SALES CUSTOMER SUPPORT- Dell provides a lot of help to customers who are considering buying Dells products and offers them interaction with their experts. Custome rs can either chat live with a product expert or they can even talk with the product expert. This helps customers to know fully about the product which they are considering buying. They also allow users to make an account on Idea storm to share their ideas if any and help them make products even better. Dell has also been very open to innovation and R&D. Innovation leads to latest technologies and therefore it is hard for customers to migrate to some other companys products. They also offer education programs for customers to educate them about various products. Expert opinions are always available to know the smallest of details about a product. They also give stars to every product. They also provide amazing finance options. In few countries it is fixed to 3.25% prime rate. POST SALES SUPPORT- Dell support offers drivers, technical support and other resources online. It includes Support for home users Support for small businesses Support for enterprise IT

Dell also provides additional resources support like warranty extension, parts and upgrades , Dell download store etc. Hardware Warranty Support is designed to diagnose and fix defects in Dell products.

They also have experience sharing support on their website. Experience sharing includes owners club, alienware club, xps club etc. where users can share their different experiences of using Dells products. They also have given support for hardware diagnostics and automated troubleshooting. Some additional resources include Warranty information Search for my problem Support forum Return parts after service Order pay as you need services like software, networking, anti virus etc.

EFFECTIVENESS OF CRM IN DELLThe CRM has proved to be an effective tool for Dell in gaining competitive advantage over others. It has helped Dell to achieve objectives like-gaining customer loyalty and satisfaction -higher sales -improved marketing efficiency -stronger brand -more cost effective customer service All this has given them a upper hand over its competitors and the sales have increased considerably since the implementation of CRM. For large corporate customers, Pre-sale: the Company works with the customer to plan a strategy to meet that customers current and future technology needs. Post-sale: direct relationship by establishing account teams, consisting of sales, customer service and technical personnel. For small-to-medium businesses and individuals, through internet. telephone sales representatives.

Domestic customers, Spare-parts ordering system. direct access to technical support data.

This has led to the success of Dell. Dell has become an industry leader in service and reliability. Dell has used CRM to its advantage. This has built trust into their customers. By custom-building a computer that the customer desires, this has created a very strong relationship with the customers. Also cooperative research and development with technology partners is another reason for the success. Also 24*7 phone and online support and mail-in service for notebooks have given them an edge over its competitors. The main reason for the improved market condition for Dell has been the value they have given to their customers through Efficiency and optimized operating expenses with Hardware Monitoring and Alerting. Automated Diagnostics to detect and diagnose for fast recovery. Accurate warranty status with customizable Warranty Expiration Notifications Reduced complexity with a single warranty tracking. CRM has resulted in net revenues of between $30 and $60 million over the last five years. Also Dell company had nearly 377,922 people who liked their page on Facebook. This shows that it has proved to be a very effective tool for Dell in gaining customer loyalty and satisfaction resulting into higher sales. Also it can be said that Dell has won the hearts of people with their supreme customer service and is here to give its competitors a run for their money. Dell has made the best use of CRM when compared to other technological enterprises. It can be concluded that Customer Relationship Management (CRM) admittedly provides organizations a significant assistance in creating and maintaining long-term relationships with their customers, as well as making customer-centric decisions by providing a foundation of knowledge in the form of a customer database. Thus it can be said that Dell has made great use of CRM and has gained competitive advantage over others. It has set an example for its competitors on how to effectively use CRM. Its competitors need to learn from it on how to effectively use CRM to gain an edge in market.

Dell has been able to successfully create and maintain substantial trust from their target customers and was ranked No.28 by Forbes 500. There are definite reasons why Dell is known as the worlds leading organization in terms of customer satisfaction, reliability and technology advancement.