More than just CRM

According to analysts, the investments of companies in the sales force automation (SFA) and complex CRM continue to grow. In recent years the market has required solutions that combine all processes in a company: the front, middle and back offices all in one.

The CRMVIP system evolves every year following the holding's needs and sometimes even being ahead of them. We talked with Sergei Khmelnitsky, the director of information service development of Vipservice, the manager of VipConnect, how the development team of Vipservice created a complex system from the standard tool of work with clients, and that system became the basis for all operational processes in the subagent and corporate businesses of the holding.

The interview with Sergei Khmelnitsky, the director of information service development:

— Sergei, could you tell us how the CRM development started at the company?

— The basis for the system we are working with now appeared in 2013. Previously, the holding used CRM only for the limited control of commercial conditions and contracts with air suppliers and subagents. At that time the logic of the holding's activity arrangement was tied to ticket transactions. But gradually the market changed. The relations with clients were given the highest priority, and we urgently needed the relevant tool. We started that way in 2010 from the consultation exercise, study of existing solutions and experience of foreign colleagues. In 2012 the project office began to work on the implementation of CRM in the pilot project of VipConnect. In 2014–2015 a new concept of contractor relationship management was really tested in live action at VipConnect: from contracting with suppliers to settlements with subagents. Having made sure that the new system worked well, the company's management decided to transfer our developments stage-by-stage into the holding's operating activities.

— There are lots of various systems in the CRM market. How did you choose the appropriate one?

— We did it very prudently. My experience of work at a large international company and the detailed analysis of the holding's work flow helped me a lot. The choice was preceded by the study of experience of our colleagues from the USA (Picasso) and Germany (AERTiCKET). It was important for me to understand how foreign companies with similar business used CRM, what problems they face and how they solve them. Working meetings with them only strengthened my decision to make a choice on the ground of three factors: 1) the possibility of independent complete adaptation of the platform considering the sector specific features; 2) the possibility of step-by-step integration into the holding's operating systems and processes; 3) a low threshold of entry value with the possibility of subsequent scaling.

— How do you arrange your work on the system?

— Relying on the possibilities of the basic platform, we change and update the functions according to the sector specific features. For example: settlement of claims from air suppliers. On the one hand, it is a part of the communication process standard for CRM. On the other hand, we implemented the sector specific features in the form of information on desks and flight tickets, so that the employees could work quickly and accurately in one information field.

— The provision of business transparency and the possibility to estimate the marginality of particular processes is one of the advantages of modern CRM systems. Could you give an example how it works?

— Among other things, the CRMVIP system helps estimate the scope of work on attracting a new client (the number of calls made, the number of meetings held and so on) and the agent's contracting cost correlating this with the period of compensation for these efforts. Our next step is to develop this block, which, in its turn, depends on the completeness of initial data from sales managers.

— While you are on the subject... What do you think of the CRMVIP future?

— As for applications, the development of SFA (sales management) within CRM is in our immediate plans. The tool will allow selling managers to organise their own work and teamwork more effectively: to systematise the information about the market, clients, and work with it correctly. On the other hand, as more and more employees of different divisions are working in the system, the issue of conceptual framework management — called the reference data — cannot be put off. In this context, the system will play a key role in the process of master data management.

Speaking of technologies, first of all, these are services that will give the users of the system the opportunity to increase their own productivity. In particular, these are the new designer of commercial conditions, the development of integration with internal and external systems (all necessary information is available in a few mouse clicks), predictive analytics, and machine learning.

— Could you please expand the last two terms for non-specialists?

— A client means income. If a company has thousands of clients, sometimes it can be quite difficult to detect their attitude for further cooperation. The predictive analytics for a host of factors (decreasing sales, sales profile changes, legal proceedings, etc.) will inform the employee what subagent should be made a point. But of course this tool will not replace humans. The client will stay or go away — it depends on the manager's work.

I'd like to mention that CRM is not a magic wand, and the fact of its implementation alone cannot change the service level and business marginality. The man and his wish to work effectively is the basis of everything. I am glad that there are many like-minded people who share our wish to create and develop the product unique for the sector, which allows our individual contributors to get free of routine and enables our managers to receive data for making decisions and forming transparent business processes.

— Sergei, the holding's position is to develop high-quality IT products based on its competences and offer it in the market. Is this position applicable to the technological solutions and products of VipConnect?

– Yes, it is. Our division within the holding provides the transport aggregator service according to the XML protocol for the systems that work with the service end users — Portbilet and Biletiks. It also includes such unique content for the Russian Federation as the Belarusian railways or Kazakh railways. In addition, we successfully cooperate with the subagents that serve private clients (tickets.ru) or corporate customers (IBC) and are interested in the extension of their services nomenclature.

We also have progress in the sector business analytics. We expect that the market will duly appreciate our tool when the tourism sector needs for business analytics come close to the needs we see in related sectors.