=Paper=
{{Paper
|id=Vol-2740/20200350
|storemode=property
|title=Analysis of the Effectiveness of Implementing a CRM System in an
Enterprise
|pdfUrl=https://ceur-ws.org/Vol-2740/20200350.pdf
|volume=Vol-2740
|authors=Halyna Ryzhkova,Yuliia Bartashevska
|dblpUrl=https://dblp.org/rec/conf/icteri/RyzhkovaB20
}}
==Analysis of the Effectiveness of Implementing a CRM System in an
Enterprise==
https://ceur-ws.org/Vol-2740/20200350.pdf
Analysis of the Effectiveness of Implementing a CRM
System in an Enterprise
Нalyna Ryzhkova [0000-0002-2874-1797], Yuliia Bartashevska [0000-0002-0300-0693]
Alfred Nobel University, Sicheslavska Naberezhna St. 18, Dnipro, Ukraine
gryzhkova@gmail.com,bartashevska@duan.edu.ua
Abstract. One of the main success factors for any company is the competent
automation of all its business processes, which is impossible without infor-
mation systems and technologies. And if earlier information systems, in particu-
lar CRM, allowed interacting with customers by tracking their orders and ad-
dresses, now this is communication through social networks, almost instant
transfer of their data to an agent for processing, and etc. The purpose of this ar-
ticle is to analyze the production of an information CRM system for the effec-
tiveness of an enterprise. The work measured the working time of sales manag-
ers in order to determine the effectiveness of its use when working with cus-
tomers before and after the implementation of the CRM system, ways to im-
prove the practical activities of the department by automating the customer rela-
tionship management functions of the enterprise are shown. As a result and as a
direction for further research, the expected results are given for monitoring the
work of employees and standardizing work with customers, optimizing and in-
creasing the efficiency of use of working time of employees in the sales de-
partment.
Keywords: Automation of Managerial Functions, Clients, Implementation of a
CRM System, Increasing the Efficiency of Working Time Use.
1 Introduction
The problem statement. In conditions of growing competition, when many manufac-
turers produce almost identical products, and customers are becoming more demand-
ing, organizations need a clear strategic planning of their activities with a focus on the
customer. It is important for the client not only to receive a certain product or service,
but also the speed and quality of service, the ability to quickly resolve its problems.
Therefore, the effectiveness of the relationship with the client comes to the fore.
However, this requires a solution to the problem of processing and storing large
amounts of information with the ability to respond quickly to changes. One way to
solve this is the implementation of information technologies, such as CRM systems,
which can significantly expand the capabilities of enterprise management and cus-
tomer interaction. The difficulty lies in the fact that recently the number of customer
Copyright © 2020 for this paper by its authors. Use permitted under Creative Commons License Attribution 4.0 International (CC BY 4.0).
needs has increased, and customers need a more personalized service, products and
services tailored to their needs [1].
Analysis of recent studies and publications. Both foreign and domestic scien-
tists were involved in the development of CRM systems in the activities of enterpris-
es. For example, V.M. Guzhva [2] and J.M. Zhigalkevich [3] considered the need for
information technology in enterprise management, M. Fatouretchi [5] argued the effi-
ciency of processes and improving customer relationships, Martsinkovskaya O.B. [4]
considered approaches to customer relations management at the stage of decision
making. There are also several studies, namely, O.A. Lehkyy and O.M. Sokhatska [7]
considered the effectiveness of digital marketing communications of enterprises, sub-
stantiated the introduction of CRM-system to improve the process of managerial deci-
sion-making A.O. Malyukina [11].
In the business environment, the need to automate business processes is becoming
commonplace. But for medium and small businesses, customer relationship manage-
ment is often organized without the introduction of automation. As a result, it is im-
possible to track who has worked, what orders have been made, what calls and to
whom they have been made, therefore it has a negative impact on the work of the
company, it loses customers, money and the main irreparable resource - time. To our
point of view, in this situation, the right solution is to automate and standardize the
process of managing customer relationships, that is, to implement a CRM system [6].
The purpose of this article is to analyse the prerequisites for automation of business
processes in the enterprise, substantiation of the necessity of introduction of the in-
formation CRM-system of accounting of clients, which will allow to increase effi-
ciency of activity of the enterprise.
2 Research Methods
To achieve this goal, the scientific development of domestic and foreign scientists on
the problems of automation of the activity of enterprises or individual business pro-
cesses; data of the State Statistics Service of Ukraine; information on the market of
information systems; reporting, regulatory documentation of the investigated enter-
prise; materials of periodicals; Internet resources was applied. In order to achieve the
goal of the study, we used general scientific methods - methods of systematic and
structural analysis of facts and results of research. In addition, factor analysis was
used to determine the effectiveness of the enterprise, including before and after the
implementation of CRM-system.
3 Results and Discussion
To study the implementation of the CRM-system and its impact on the efficiency of
the LLC “Holeaf Company” was chosen. The studied enterprise is a production and
trading company [9] and has the following main business processes: development of
production schedules; development of schedules for the shipment of finished products
of the buyer; reception of finished products from manufacturing workshops and its
preparation for shipment to customers; receiving finished products from suppliers and
preparing them for sale; acceptance of orders for shipment of products; reservation of
products; organization of shipment of products to customers and paperwork related to
shipment; organization of product delivery; monitoring the implementation of cus-
tomer orders and the solvency of customers; control of receivables. They all occur
directly in the sales department which includes 12 sales managers. They have equal
access to information on the availability of goods in the warehouses of the enterprise.
This information is stored in the database “1C Sklad” to which a self-made interface
called “Program Zbyt” is connected. The enterprise customer records are handled
manually in an MS Excel spreadsheet. Software products used by the enterprise do
not allow to create and work with the client base, create tasks and reminders about
them; integration with mail, telephony, access sharing, mobile access, reporting, sales
analysis, customer segmentation, and more. This reduces the effectiveness of sales. In
order to identify the prerequisites for implementing CRM systems in an enterprise, it
is necessary to analyze the organization of work with information and identify the key
problems that need to be solved through innovation (Table 1).
Table 1. Key issues and their consequences when using Excel
Problem Consequences
Keeping a database of leads and their con- Duplication of work by different employees is
tacts in spreadsheets without online support possible due to the lack of centralized base of
Manual process of conducting the client by potential
It clients to understand at what stages
is impossible
stages of sales potential leads are located and why they are
not becoming
Costs a lot ofcustomers
time; inaccurate data leads to
Manual analytics
incorrect forecasts for which the company is
losing
The profits
sales manager cannot influence the pro-
Absence of a single reporting base
cess improvement due to the lack of accurate
data
The table shows that almost every problem leads to a loss of the potential profit
that LLC “Holeaf Company” could gain by keeping the sales process under complete
control. The whole process of accumulation and exchange of information in the sales
department is as follows: potential customers and contact information is stored in
Excel files on the local computers of managers; information about calls made as Excel
files is collected from the manager daily / weekly; a separate file for primary tele-
phone calls is maintained either by the manager or the secretary; every commercial
offer or contract is formed manually on the basis of templates; the internal reconcilia-
tion of discounts, offers and contracts is conducted via email.
Such an organization of the workflow causes significant difficulties in cases when
a sales manager leaves the company or it becomes necessary to transfer the customer
base to another manager. After a preliminary analysis of the work of sales managers,
it was found that there is an uneven spending per client over the past years (Table 2).
Table 2. Calculation of expenses for the content of the sales department
Indicator 2017 2018 2019
The number of employees 12 14 12
Expenses per employee, thousand UAH 12 18 19
Payroll, thousand UAH per year 1 656 3 159 2 861
Cost of sales support, thousand UAH per year 219 281 324
The total value of the sales department, thousand
1 875 3 440 3 185
UAH
Number of regular customers 3 911 3 955 4 210
Costs of supporting one client, thousand UAH 0,479 0,870 0,756
Comparing the data with the number of customers, it was found that costs vary dis-
proportionately with the number of customers and sales. This fact gives reason to
analyze in more detail the effectiveness of the sales department, emphasizing the per-
sonal contribution of each employee of the department to the total sales of the enter-
prise. The analysis revealed a rather large discrepancy (almost in 2 times) in the per-
formance indicators of managers (Table 3). To clarify the reasons for this difference,
monitoring of the use of working time by sales managers was introduced. Within two
working weeks, with the help of a specially designed questionnaire, all the actions of
managers during working hours were recorded. As a result, a postoperative working
day map was obtained (Table 4).
Table 3. The calculation of the effectiveness of managers
Deviation from the average value,
Workers Sales revenue, UAH Share in sales, %
%
manager 1 20 949 360 8,2% -0,13%
manager 2 20 693 880 8,1% -0,23%
manager 3 20 182 920 7,9% -0,43%
manager 4 19 161 000 7,5% -0,83%
manager 5 21 971 280 8,6% 0,27%
manager 6 26 314 440 10,3% 1,97%
manager 7 24 270 600 9,5% 1,17%
manager 8 16 350 720 6,4% -1,93%
manager 9 23 248 680 9,1% 0,77%
manager 10 21 460 320 8,4% 0,07%
manager 11 22 482 240 8,8% 0,47%
manager 12 18 394 560 7,2% -1,13%
Table 4. Working time map
Operation Duration working hours, %
Communication with customers by phone 10
Correspondence with clients (e-mail; Viber, etc.) 11
Acceptance of orders and paperwork for shipment of goods 8
Shipment control 19
Sales analysis 1
Resolving contentious issues with other departments 9
Collection of information, work with directories 4
Entering information in spreadsheets 16
Debt control 1
Copying 2
Attending meetings 6
Discussion with colleagues 9
Daily Reporting 3
This made it possible to establish that about 20% of the working time is spent on
communication with customers, and less than half of the working time is spent on the
main functions (sales) in general. Compiling daily reports that have been generated
automatically takes 15 minutes of time. Also, no work day planning system. But,
according to [7, 8] in enterprises with effective sales management, sales managers
should spend at least half of their working time communicating with customers, at
least 5% of their time finding new customers, and at least 15% preparing for com-
municating with customers. For all other operations - the rest of the time. Considering
the above, the company has already become necessary to switch to modern sales or-
ganization technologies, namely, to introduce a CRM system in sales management.
According to [10] the most common CRM-systems in Ukraine are: Microsoft Dy-
namics CRM (USA) Oracle Siebel CRM (USA) Perfectum CRM (Ukraine); SAP
(Germany); Onebox CRM (Ukraine); Bitrix24 (Russia) Teamwox (Great Britain);
Bloknotapp (Ukraine); Apptivo CRM system (USA) CRM Education (Ukraine); 1C:
CRM(Russia). Based on the goals set by the enterprise’s management to improve
business processes, a list of functions was created that should include a software
product: customer base; contact management; calendar and reminder sales manage-
ment; marketing management; mailing lists; poll; knowledge base; Email client; in-
structions; business processes (BPM) sales funnel; significant events; integration with
MS Word; integration with OpenOffice; filter settings for the desktop; configuration
the possibility of expanding the number of jobs; distributed databases; the ability to
work through a web client; the ability to work through a “thin client”. According to
indicators and own requirements of the LLC “Holeaf Company” was chosen Perfec-
tum CRM (Ukraine). On the next stage, the company was recommended to develop
its own scorecard for determining of the its market activity (Table 5), based on the
most common: the growth rate of the customer base; total number of customers; the
number of regular customers; increase in the number of purchases; increase in the
average cost of the invoice; growth in gross sales of products and the like.
Table 5. Targets of the effectiveness of the implementation CRM
1 year after the
Indicator of efficiency 2019 introduction of Deviation
CRM
Total number of customers 4210 4580 8,8%
Total number of personal contacts 520 610 17,3%
Total number of calls 28800 33860 17,6%
Total number of contacts 29320 34470 17,6%
The total number of new customers per year 267 370 38,6%
Cost indicator for 1 new customer, thousand
-58,3%
UAH 0,756 0,315
Total sales, thousand UAH 255480 314200 23,0%
It was noted above regarding the requirements for information CRM systems and the
importance of adapting them to the particular functioning of the company in relations
with customers, the functionality to solve the tasks posed by the management of the
company. The goal-setting will ensure the successful implementation of the project
and, as a result, will entail changes and improvements both in the near and long-term
prospects. Thus, the short-term effects after the introduction of CRM include: auto-
mated interaction between departments; improving information support for processes;
improving customer satisfaction; sales growth due to focus on profitable customers;
improving the quality and speed of customer service; improving sales efficiency;
improving the quality and speed of customer service; increase staff productivity. And
the long-term effects after implementation CRM include: improving the quality of
working conditions for decision making; improving customer satisfaction, increasing
staff satisfaction; increase profits by identifying the most profitable segments and
offering them the best customer value; increased profits through cross-selling; in-
creasing customer satisfaction; increasing staff satisfaction; increasing profits by in-
creasing the percentage of successful transactions; increase profits by reducing trans-
action costs; profit increase due to the possibility of increasing the number of served
potential customers.
Thus, the consumer is seen as the core of the CRM concept, and the implementation
technology provides for the mutually agreed implementation of the following func-
tions [12-13]: contact management; communication management; forecasting; oppor-
tunity management; order management; sales analysis; document management opti-
mization.
4 Conclusions and Prospects for Further Research
At the end of the article, we consider the expected results and prospects for further
research, which are possible with a further analysis of indicators after the introduction
of a CRM system in the LLC “Holeaf Company”. First of all, not to lose potential
customers, add 430 new contacts per month, 500 new calls to potential customers per
month, which can increase the number of customers by 9% a year after the start of
implementation. Secondly, to control the work of employees and standardize work
with clients. At the same time, information about all incoming and outgoing contacts
will be located in one storage, from where it can be obtained in real time. Thirdly, it
will help the management of the enterprise to analyze the work and plan further more
consciously due to the accumulated statistical base, since under the conditions of us-
ing the CRM system, all working information in a standardized form will be collected
in one common base; optimize the work and increase the efficiency of the use of
working time by employees of the sales department.
5 Acknowledgement
This publication is part of the research work carried out at the Alfred Nobel Universi-
ty jointly by the departments of entrepreneurship, trade and exchange activity and
information technology, commissioned by the management of LLC “Holeaf Compa-
ny”.
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