SAP CRM Interview Questions

SAP CRM Interview Questions

1. Explain Customer Relationship Management (CRM)?

Ans: CRM is defined as aligning business strategy, corporate culture and organization, customer information, and supporting information technology so that all customer interactions promote a mutually beneficial relationship between each customer and the enterprise. Primarily, customer relationship management is a business strategy, but it is a business strategy enabled by advances in technology. Widespread implementation of customer information, Enterprise Resource Planning (ERP) systems, sales force automation, and integrated point-of-sale systems have made customer information readily available in large volumes. Reduced costs and higher levels of performance for database management platforms enable us to gain access to this customer information and gain new insights into our customers and their behavior through a variety of analysis methods. Advances in contact management technology and supporting infrastructure allow us to take advantage of this information in increasingly cost-effective and innovative ways. Perhaps most significant, the Internet provides a completely new way for an enterprise to interact with its customer-the electronic channel, or the e-channel. With consumers buying everything from groceries to automobiles on the Internet and businesses beginning to shift their purchasing activities to industry-oriented virtual market spaces, the characteristics of customer interaction are forever changed.

2. What is the difference between CRM and R/3?

Ans:? The difference between CRM and R/3 is R/3 is an integration of different application suits; it has its own architecture and way of functioning. Coming to CRM it is all about maintaining the relationship with a customer. It is supposed to enhance the profit of the company or organization since the ultimate goal of any company is profit. Therefore CRM is one step ahead for their goal achievements.

Whereas SAP R/3 is a 3 tier based on client or server based application. One layer is presentation layer i.e Client which interfaces with the end user. Second layer is application layer for all business-specific requirements i.e program, and third is database which contains all information and records about the system, including transactional and configuration data. SAP R/3 has been developed in its own language called ABAP (Advanced Business Application Programming).

3. What is the definition of CRM?

Ans: CRM stands for Customer Relationship Management. It is a strategy used to learn more about customers’ needs and behaviors in order to develop stronger relationships with them. After all, good customer relationships are at the heart of business success. There are many technological components to CRM, but thinking about CRM in primarily technological terms is a mistake. The more useful way to think about CRM is as a process that will help bring together lots of pieces of information about customers, sales, marketing effectiveness, responsiveness and market trends.

4. What is CRM Software?

Ans: The CRM software contains Sales Force Automation: Contact Management, Contact Management Software Stores, Tracks and Manages contacts, Leads of an enterprise. Lead Management in which enterprise Lead management software enables an organization to manage, track and forecast sales leads. Also helps understand and improve conversion rates. e-CRM or Web based CRM which is self service CRM, Self service CRM (e CRM) software enables web based customer interaction, automation of email, call logs, web site analytics, campaign management. Survey Management Software which automates an enterprise Electronic Survey, Polls, Questionnaires and enables understand customer preferences. Customer Service such as call center software, help desk software and coming to Partner Relationship Management which has contract management software, contract management software enables as enterprise to create, track and manage partnerships, contracts, agreements such as upside software, current software, di-carta, I many, and distribution management software.

5. What is automating the operations?

Ans: The operational side of the CRM equation consists of “customer facing” applications integrated across the front, back, and mobile offices which includes sales automation (SA), enterprise marketing automation (EMA), customer service/support, and miscellaneous components.

6. What are the advantages of CRM?

Ans: The advantages of using CRM, a business can Provide better customer service, increase customer revenues, discover new customers, cross sell, up sell products more effectively, Help sales staff close deals faster, make call centers more efficient and simplify marketing and sales process.

7. What are the Benefits of customer relationship management?

Ans: The Benefits of Customer Relationship Management are:
a. Sell additional products and services
b. Develop new products
c. Increase product utilization
d. Reduce marketing costs
e. Identify and retain profitable customers
f. Optimize service delivery costs
g. Retain high lifetime value customers
h. Enable personal and relevant communications
i. Improve customer loyalty
j. Improve response rates to direct mail
k. Increase product profitability
l. Respond quickly to market opportunities
m. Acquire new, profitable customers

8. How the data was collected in CRM projects?
There are different types to collect data from CRM projects:
1. Responses to Campaigns.
2. Sales and purchase data.
3. Web registration data.
4. Shipping and fulfillment dates.
5. Account Information.
6. Service and support records.
7. Demographic data.
8. Web sales data.

9.Is there any provision directly with CRM to buffer the data or is there any other means?

Ans: The provision directly with CRM to buffer the data is by CRM stores, all orders, products, and prices etc, used in the Internet sales Scenario. It would have R/3 integration and then the order will be forwarded to R/3, but it is also kept in CRM database.

10. How important is Customer Relationship Management?

Ans: The past decade has seen concentrated efforts at integrating enterprise relationship planning (ERP) systems at the same time that organizations eliminated Year 2000 concerns. Now, an increasing number of companies are turning to customer relationship management (CRM) strategies to retain and acquire customers in a worldwide marketplace characterized by heightened competition.