RiskMetrics Group Increases Renewal Revenue and Improves Cross-Selling with Customized and Integrated CRM

Integration and Customization Requirements

The operation of RiskMetrics Group's business spans many processes and related systems. And, as is the case with many companies, the effectiveness of those processes is key to generating value for the business by both creating new opportunities and improving productivity. In selecting Salesforce CRM as the company's customer relationship management (CRM) application, RiskMetrics sought to go beyond traditional sales force automation to create a complete system for managing, optimizing, and providing visibility into a full range of customer-facing activities. To create this system and connect it to the Web of existing internal tools at the company, RiskMetrics took advantage of the flexibility provided by Salesforce CRM's point-and-click customization, and the Force.com API, the application's on-demand integration platform.

With these solutions, and the core CRM capabilities delivered by the Salesforce CRM application itself, RiskMetrics hoped to:

1. Increase sales opportunities by identifying and taking advantage of relationships between its customers.
RiskMetrics has relationships with companies across the financial services value chain, including many types of financial institutions, that are a powerful part of its business model. The company recognized that understanding existing relationships within its prospect and customer accounts could provide an effective, low-cost strategy for increasing sales by selling into its customers' subsidiaries, parent companies, suppliers, and partners. By capturing important data about these relationships with its CRM application, RiskMetrics would be able to make the information instantly available to internal users and promote the strategy as an important part of its sales methodology.

2. Simplify the opportunity-creation process for the sales team.
Creating and managing all of the product details associated with a sales opportunity can add complexity and time to a sales rep's job, especially when a company offers a range of products and services. RiskMetrics planned to customize Salesforce CRM to allow sales reps to easily identify the most appropriate product offerings for customers and prospects. The company also wanted reps to be able to quickly and accurately determine the eligibility of a customer or prospect for specific products.

3. Streamline sales renewals and financial processes.
Because RiskMetrics operates as a subscription-based business, giving the sales team easy and automatic visibility into renewal opportunities is critical to maintaining relationships with existing customers. By integrating renewal information and related billing business processes with Salesforce CRM, the company could provide sales reps immediate access to the data to ensure that opportunities were not being missed.

4. Create visibility into key business metrics for executive management.
While creating effective sales processes was a key requirement for RiskMetrics, giving senior management visibility into those processes was also essential. The company already had a data warehouse and reporting infrastructure. Enabling Salesforce CRM to feed that data warehouse with pipeline and forecast data was an important goal of the deployment. With this integrated system, the company can provide a truer representation of its financial health at any given moment.

Solution Architecture and Technology

After evaluating possible CRM solutions, RiskMetrics chose Salesforce CRM as a comprehensive CRM solution with a flexible platform that would allow the company to easily extend and integrate it into the existing IT architecture. RiskMetrics customized Salesforce CRM without writing any code and deployed the customizations with a single click. And with the Web services-based Force.com API, which both enables integration and provides programmatic access to most of the features and data available via Salesforce CRM's browser-based user interface, the company has been able to meet complex requirements while retaining its investment in existing tools and skills.

Integration and Customization Implementation 

To meet the four business requirements listed above, the RiskMetrics team leveraged the integration and customization capabilities of Salesforce CRM along with the skills of the company's internal technical resources. The company's first two business requirements were met using the Force.com builder, which required no coding, and the second two were addressed by integrating via the Force.com API. With the Force.com builder, RiskMetrics was able to:

1. Increase sales opportunities by exposing relationships between the company's customers.
RiskMetrics created custom objects to support the complex relationships between its network of customers and the company's many levels of product offerings. Using Salesforce CRM's point-and-click customization tool, the company extended the Salesforce CRM data model. Because these new customer- and product-related objects were created in Salesforce CRM, the information critical to RiskMetrics is stored and managed within the application without additional coding. Builder allowed RiskMetrics to expose the complex customer network into which it sells and reveal low-cost cross- and up-selling opportunities to sales reps by creating new objects to track subsidiaries and business partners. These custom objects are associated to the standard customer objects in the application so that the sales team can see the companies in the corporate web as well as the relationships between those companies.

2. Simplify the opportunity-creation process for the sales team (using custom objects).
To allow easy access to managing the products associated with each sales opportunity, RiskMetrics created a custom "shopping cart" object that presents sales reps with valid and appropriate products to present to their prospects. This object gives the sales rep qualifying questions to ask a prospect and uses the answers to present the most appropriate products. The custom object is linked to the opportunity, which now stores information about what a company bought and also the products for which they are qualified. This information feeds marketing and sales activities. RiskMetrics used the Force.com API to:

3. Streamline sales renewals and financial processes (via Force.com API integration with the company's accounting solution).
The integration of Salesforce CRM and the accounting system ensures that opportunity dollar totals accurately reflect the amount billed via invoices and that renewal opportunities are automatically created and accurately reflected in sales forecasts. Using the Force.com API, developers integrated v with RiskMetrics' financial solution:

• Notification from Salesforce CRM. When a sales rep closes a new opportunity in Salesforce CRM, a new task is created for the finance team. This alerts the finance team to approve the sale and create a corresponding invoice in the company's accounting system. During this process, a common invoice ID is created in both systems as a unique identifier for future synchronizations.
• Integration with the accounting system. Each night, a process running on a Resin (a Java application server) queries the accounting system to identify expiring contracts and information about changed, added, or deleted invoices. When an expiring contract is detected, a new renewal opportunity is automatically created and assigned to the appropriate sales rep via the Force.com API. Similarly, new invoice information is automatically copied into the associated Salesforce CRM opportunity, using the common key established in the process described above.

4. Create visibility into key business metrics for executive management (Force.com API integration with the data warehouse).
To complete this requirement, the RiskMetrics team integrated Salesforce CRM with the company's existing Microsoft SQL Server-based data warehouse, leveraging both Force.com API data replication and the same Java infrastructure used for the accounting integrations. As a result of this integration, the data warehouse has access to all relevant Salesforce CRM-based customer information and the company's executive management can access reports that include data from all of the appropriate systems at RiskMetrics:

• Java process retrieves new and changed Salesforce CRM records. Each night, a Java-based process calls the Force.com API to retrieve all new and changed data for the previous 24 hours. Since Salesforce CRM automatically stores all changes, additions, and deletions, retrieving those changes involves only a few simple API calls.
• Data is transformed and inserted into SQL warehouse. After retrieving the appropriate updates from Force.com, the objects are converted into corresponding SQL calls and executed against the local database via JDBC.

With the Salesforce CRM information now reflected in a standard database and schema, reporting tools can be run directly against the data warehouse, combining information from all of the previously disparate systems at RiskMetrics. 

Integration and Customization Results

RiskMetrics was able to achieve four important goals by implementing Salesforce CRM. First and foremost, the company successfully replaced its existing CRM system—with which it was dissatisfied. Salesforce CRM was easily customized to meet the specific needs of users and was live in less than three months.

In addition to supporting a rapid and simple development and implementation process, the application allowed RiskMetrics to realize additional renewal revenue through an automated opportunity-generation process. By deploying the company's network selling model to more easily identify low-cost sales opportunities that were previously untapped, sales reps have been able to discover new customers through cross-sell and up-sell opportunities. The flexible data model and its ability to elegantly share data with other applications in the RiskMetrics network allowed IT to provide accurate, on-demand forecasts that were customized to the complex needs of executive management.

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