Mobile CRM

Camponovo et.al (cited in Sinisalo et.al 2007) has defined mobile CRM as “services that (1) aim at
nurturing customer relationships, acquiring or maintaining customers, (2) support marketing, sales or
service processes, and (3) use wireless networks as the medium of delivery to the customers”. However
this has been further revised and mentioned that with regards to mobile CRM the means of connectivity
is not just wireless but also enables mobility while connected. This clarification is specifically
addressed because; earlier when CRM evolved away from traditional paper based systems, desktop
computers with wireless connectivity was used. Now this concept has transformed into use of laptops
and at present precisely deals with hand held devices such as mobile phones (Sinisalo et.al 2007).

Mobile CRM is very much necessary in today's business scenario. Many Businesses has to be
aggressive and assertive on their sales function. Front end sales people should be armed with real time
information and also should be equipped with gadgets which will enable them to close sales deals while
on the field. Mobile CRM on hand held devices are better efficient than the laptop enabled solutions.
There were some practical difficulties in using the laptop enabled services. For instance, those solutions
were designed to synchronize the whole database server with the laptop which consumed lot of time for
the sales representatives in front of the prospective customers. So a simpler solution which performs
the operations just in the front end has to be used. However, for these low intense applications, use of
hand held devices or mobile phones are advantageous rather than the use of a laptop (Eklund 2002).

Characteristics of Mobile CRM

Mobile CRM features some characteristics which are unique to itself; differing from the traditional
CRM.

Personalization is one such characteristic of Mobile CRM. The communications to the user of the
solution will be personalized as the means of communication is a mobile or a hand held device. Also
other information which are specific to that particular customer can be sent which will help the sales
process.

Interactivity is another unique characteristic possessed by Mobile CRM. This kind of interactivity
facilitated by the mobile CRM is referred to as mediated interactivity as there is an active medium used
for communication.

Flexibility is the highly valued characteristic of Mobile CRM. As the device is very handy and can be
carried anywhere, flexibility is very high. It keeps the sales or service representative updated in a real
time basis regardless of the location.

Benefits of Mobile CRM

Mobile CRM benefits the customer strategically in the following ways (Microsoft Dynamics 2011).

Mobile CRM helps an organization’s sales force not only by helping the front end sales employee to
meet the clients with full up to minute information but also helps the back end sales managers to
strategically manage their sales force. This is possible because the managers also will know the status
of each of their sales member so that they can optimize the work of the sales representatives in the
field. This can be compared with 3M ESPE Brazil's usage of their mobile CRM. The sales managers
and the help desk persons were also helped on the same system to reap the strategic benefit if their
mobile system.

Also, Microsoft Dynamics (2011) say that the costs related to sales process can be measured directly
and easily using the mobile CRM, also it gives an insight into the measure of ROI on the marketing
campaigns carried out by the marketing executives. Similarly, 3M ESPE, as mentioned in the case
study attached, says that it uses its mobile CRM to measure various aspects of their sales cycle like,
increase in sales volume and value of customers gained and so on.

The other benefits of Mobile CRM are the direct benefits like improved communication between the
sales and the sales support team, reduced time consumption because of minimal or no paper work and
so on.

Challenges and Disadvantages of Mobile CRM

Despite having all the above benefits, achieving a suitable CRM system is a practical challenge for
many businesses. A few of the prominent challenges are mentioned below.
Sinisalo et.al (2007) has mentioned that the challenges of Mobile CRM can be categorized as

Endogenous – These are the challenges in regards to the company atmosphere. This includes
synchronization of the existing CRM into the Mobile CRM in the perspective of adaptable database,
technology and so on.

Exogenous - Externally a few challenges can arise like the legal compliance of handling crucial
customer data in external environment and secondly the technological barrier if the available
infrastructure of the mobile network.

CRM specific issues- This issue arises specifically in the cases where the CRM needs the involvement
of the customer as well. Customers may not be willing to use the CRM in mobile form due to various
personalized reason including technological aversion. Here it is the role of the marketer to market the
CRM solution along with the actual product.

Another set of issues are mentioned by Front range Solutions (2009).This includes the cost and time
required to develop Mobile CRM solutions which uniquely suit the organizations. Also, strategically
decisions are necessary in the business and also at the Information system level. This will determine the
optimal functionality a sales or service personnel needs and in turn the corresponding technological
requirement in terms of hardware and software. When companies lack this view, they may end up
spending tremendous amount of time and money which may otherwise be avoided.

Strategy
Designing and implementing a CRM solution for the sales team involves tremendous effort from the
business and management team. Business process reengineering is a field of business, which enables
the organization to transform and re-organize itself to new needs. It includes optimizing business
process and implement suitable change management process. [1] An organization needs to devise a
strategy before implementing mobile CRM for their organization. Chen believes, that these are done at
• Strategy Level
At this level organization should clearly be able to state their long-term goal, business model, services
it’s going to provide, and the channel of work.
 • Process Level
At this level, the company should understand its current process. The business process should be
streamlined and needs to be best suited for the strategy developed.
• At IS Level
At the information systems level; process execution is helped by application software which is a form
of information system. The information system is made up of operating systems (Software), the system
network and the hardware (Schierholz, Kolbe & Brenner, 2006).
• Change Management
Implementation of Mobile CRM is a relatively huge task for some companies. This would be the
perfect time for the management of the organization to change their business strategies by becoming
more customers oriented than being product oriented (Schierholz, 2005)
According to Schierholz, Kolbe & Brenner (2006); in order for an organisation to effectively use
mobile CRM; the management must identify core business values, mobility of agents and the choice of
mobile devices and mobile platforms. The management should also define usage policies of the devices
by the agent. The company should allow free flow of transparent information to its business
stakeholders. This would prevent the company committing any kind of mobilization breaches.
• Customer intimacy
Companies must make sure that they offer an uncomplicated service to its customers. This would
directly establish a good relationship with the customer. Companies should always be up-to date with
the current market and customer demands. (Schwarz, et.al, 2004)
• Accessibility
Companies must highly mobilize their process and provide a communication channel in order to try to
reach out to their customers (Sairamesh, Goh, Stanoi, Padmanabhan & Li, 2004).
• Innovation
Companies should look forward to implement revolutionary ideas and technology rather than being
evolutionary. This would help the organization to build up brand reputation.
• Product quality
Companies must always try to provide good service for their product. There is no use in have a good
product and a bad provision service for the customer. (Haugset, 2004)

.
Costs and impacts of mobile CRM:

Companies invest millions of dollars in implementing software over a period of time.

Companies tend to believe mobile CRM as being software tool which is inappropriate. Mobile CRM
integrates people, processes and technology for better customer service and does not manage by itself
(Österle & Blessing, 2005). For corporate profitability all the three elements must come together and
perform efficiently. The initial implementation of the system is very high, but the top level
management must keep in mind that the results and corporate profitability is not instantaneous. The
only costs involved after implementation is only the maintenance of the system and communication
charges form the service provider. With the system companies don’t have to provide a workplace for
the on field sales agents, as the work can be done on field (Österle & Blessing, 2005).

Mobile CRM streamlines the workflow of sales agents by providing free flow and easy to use
information. The sales agents can have a complete view of accounts, leads, contacts, and
responsibilities from a user friendly mobile application. This would empower sales agent with accurate
data and help them make timely decisions. By using the mobile CRM system companies can now
forecast their sales better because all the information is stored in a centralized database. Companies can
now convert a lead to an actual sale more efficiently and cost effectively.
Using mobile CRM sales agents can effortlessly and securely interact with crucial customers, send and
receive business information while in the field. They can also update the head office regarding the sale
and with information.
By implementing the Mobile CRM system the sales team can use their smartphones rather than the
cumbersome laptop and look for external connectivity. This would enable the sales representatives to
respond with customer inquiries quickly and more efficiently. Opportunities can be identified more
easily and more precisely. This would result in much higher sales time rather than mining for
information (Sairamesh, et.al, 2004).
Mobile CRM allows the company to have a completive edge over its rivals, thereby increasing the
brand image of the company.

Conclusion:
References:-

• Schierholz, et.al. (2006). A Journey from Strategy to System Design.Mobilizing Customer

Relationship Management. 1 (1), p2-9.

• Schwarz, A, et.al. (2004). Exploring the role of experience and compatibility in using mobile
technologies . Information Systems & e- Business Management . 2 (4), p337-356.

• Haugset, B. (2004). Mobile Process Support Systems. Mobile Information Systems . 1 (1), p323-
330 .

• Schierholz, R, et.al. (2005). Strategy Alignment of Mobile Solutions in Customer-oriented

Business Processes . Wirtschaftsinformatik. 47 (1), p17-24.

• Sairamesh, J, et.al. (2004). Disconnected Processes, Mechanisms and Architecture for Mobile
E-Business . Mobile Networks and Applications . 9 (6), p651-662.

• Österle, H. (1995). Business in the Information Age . Heading for New Processes . 1 (1), p4-24.

• Österle, H & Blessing, D. (2005). Business Engineering Modell. Business Engineering Modell.
1 (1), p65-85.