Top 30 SAP CRM Interview Questions and Answers

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Undoubtedly SAP CRM is going to remain in full demand for the next couple of years, and there will be no dearth of SAP CRM jobs. The young job seekers want to understand the terms used in SAP CRM and the definitions thereon, before going to face any interview. SAP CRM jobs can be as good as a Technical Consultant, a Program Analyst, a Functional Developer, a Core Marketing Developer, a Sales Tester, or a Package Consultant.

Top 30 SAP SRM Interview Questions and Answers

Q1. What is SAP CRM?

 

In SAP CRM, CRM stands for Customer Relationship Management. It is a software tool provided by SAP, one of the key modules in an organization. SAP CRM deals with the handling of customers and taking care of all the key activities related to customer services. SAP CRM involves all the steps through which a company interacts with its customers involving activities like invoicing, delivery, decision making, accounts receivable, etc.

It allows an organization to achieve customer satisfaction by providing service expectations and product quality required by customers.

Q2. What is Master Data in SAP CRM?

The Master Data in SAP CRM is the basic data about your customer which can be shared amongst different modules. Master Data is basic data that is mandatory for creating Org, e.g. address and contact details & CP, e.g. names and contact details, in a CRM system. 

One can create Master Data in SAP CRM for configurable products, and then use this data in the configuration engine. This happens in the Web Client User Interface on the product overview page.

Q3. What is the standard Transaction Type for quotations and Item Category in SAP?

In SAP CRM, the standard transaction type for quotation is AG, and the item category is AGN.

Q4. What is CRM Marketing?

 

CRM (Customer relationship management) marketing is a term that refers to the tactics, strategies, and technologies supporting its execution. Marketers use this to manage the relationship with their customers throughout the customer lifecycle.

In other words, SAP CRM is a technology for managing a company’s relationships and interactions with customers and potential customers. A CRM system helps companies to stay connected with their customers. This further streamlines the process and improves profitability. Even sending out a simple thank you card to a customer when a customer makes a purchase is an example of CRM marketing. It helps in making an upsell or cross-sell to the clients if they purchase a particular product. Offering a birthday greeting with a promo code, sending an attractive discount to a customer that hasn’t made a purchase recently can be other examples of CRM Marketing.

Q5. What is the difference between CRM and ERP?

The difference in CRM and ERP are as follows:

• SAP CRM is part of SAP ERP (Enterprise Resource Planning) and is used to implement customized business processes. It Broadly deals with Marketing Integration. In CRM the center of focus is on increasing sales with an emphasis on channel management. On the other hand ERP deals with accounting. Its center of focus is on reducing costs in a supply chain.
• A CRM manages the relationship between the business and the customer while an ERP is used to manage the entire company. This can sometimes be including customers. Therefore, an ERP is a system built to improve the efficiency of all business processes through automation and the reduction of manual paper handling.
• A CRM focuses on the sales side of the organization while an ERP is integrated and implemented across multiple departments. At its core, an ERP system offers interconnected management of specific business processes and one can get standardized information throughout every department in real-time.

Q6. What are the key components of the SAP CRM software Tool?

The key components of SAP CRM software Tool are:

• SAP CRM Sales
• SAP CRM Analytics
• SAP CRM Marketing
• SAP CRM Service
• SAP CRM Interaction Centre IC
• SAP CRM Web Channel like CRM Mobile and E-Marketing, etc.
• SAP Hybrids

Q7. What are the important module functions under the CRM Service?

The important module functions are:

• Service Order Management
• Service Ticket Management
• Complaint Management
• Case Management
• Product Registration
• Knowledge Search

Q8. What is Partner Function in SAP CRM?

Partner Function describes the organization and the people with whom the business is done and the transactions are materialized. This includes any kind of business transaction between them. 

In SAP CRM, the partner functions include complete information on what is sold, shipped, billed to the party and payer.

Partner function is a term that is used to give a detailed account of people with whom the business process is carried out. Partner function is a kind of relationship which defines which partner performs what actions to a connected customer.

Q9. What is the difference between a CRM lead, and an Opportunity?

• CRM Lead is an account or contact, with little or very little information.
• Opportunity is a contact or account, which has been certified and qualified.

Leads are likely to convert into an opportunity at a later stage, with strategic marketing.

Q10. What are the different standard transaction types for sales?

The standard transaction types are:

• LEAD: Lead
• AG: Quotation
• Opt: Opportunity
• OPSM: Sales Methodology, and
• TA: Telesales

Q11. What are Actions in SAP CRM?

‘Actions’ in SAP CRM is a way to add functionality. If you want to send a quotation to the customers from the quotation document, you will use the feature ‘Actions’. Another use of actions is to create an in-follow on a document.

As such, ‘Actions’ are pieces of logic that are related to a transaction that is executed either automatically, or manually.

Q12. What is text determination in SAP CRM?

In SAP CRM, texts are used to exchange information. It can be between the customers, between the partners, or between the users. This is called text determination and can be created for customer master, sales document header & item, billing document header & item, etc.

Thus, the text determination Procedure is essentially a collection of Text Types. This procedure is assigned to CRM Objects. This way the Objects in CRM are associated with Text Types. An access sequence has been assigned for each text type in the Procedure.

Q13.  What is BDoc in CRM and what are the types or classes of BDoc?

BDoc or Business Document consists of all data or information used by CRM middleware to transfer or exchange data with clients.

BDoc messages are used in SAP CRM systems as containers for the data that constitute a business process (application message, transaction). The business data is packed into these containers during BAPI calls.

The main BDoc types or classes are:

• Messaging BDocs
• Synchronization BDocs
• Mobile Application BDocs

Q14.  What are logical links in SAP CRM?

The top-level menus in the navigation bar of SAP CRM are referred to as work centers, which contain logical links.  These logical links point to the actual CRM application and enable the CRM user to directly create the CRM business object. These links are sometimes referred to as direct links and allow navigation to different pages.

In some cases, we have the same logical link ID and a different logical link ID pointing to the same Target ID. We should be able to differentiate between them based on the name or type of the links in the Web UI. In such a situation we can make use of the options parameter class while creating the logical link ID.

Q15. What are the important components of IPC?

The important components of IPC are:

• Sales Pricing Engine (SPE)
• Sales Configuration Engine (SCE)
• Listing
• Free Goods Engine (FGE)

Q16. What is IPC in SAP CRM?

IPC stands for “Internet Pricing and Configurator.” The IPC carries a set of engines that execute product configuration and pricing. Its functionality is versatile in different SAP applications.

SAP. CRM uses IPC to determine pricing information when creating a business transaction. Examples may be a quotation, sales order, service process, or a contract in a web-based environment.

Q17. What will you do to delete a business partner?

A business partner can be deleted from our database as follows:

• In Single-Step Procedure: Using transaction BUPA_DEL.
• In Two-Step Procedure:

1. First, determine the records for deletion 
2. Set relevant system in transaction BUPA_PRE_DA

Q18. What are the distinguishing factors between Normal Texts, Log Texts, and Logs? Mention a few.

• Normal Texts are the text types that need not be logged. They are there logged in and are saved in the database with the “Normal text” name.
• Log Texts are the texts which have been written to the log. These are also referred to as “loggable long texts”. Log texts are saved in the database with both “Normal text” and a timestamp.
• A Log is a different text type and it is essentially not saved in the database. It is set up dynamically and cannot be modified. The Log is also known as “History”.

Q19. What do you think of integrating SAP CRM with Social networking?

It surely is a good idea and by doing so, it will enhance customer engagement. For this, a document will be created to list down relevant materials for SAP CRM Social Media Integration for use of SCN (Security Cargo Network) members in one place. 

Q20. How do you manage customer complaints in the CRM module? 

Complaints are part and parcel of both in service and sales and can be significantly created and used for many advantageous reasons. The in-house repairs, billing-related issues, deliveries issues, and returns, etc. are a few examples. 

Q21. Please explain CRM Marketing, Market Plan, and Marketing Calendar.

• CRM Marketing is one of the key components of customer relationship management. It is widely used to plan all marketing-related activities. After implementing CRM Marketing successfully across the organization, the marketing function starts analyzing the market segments. Once it is done the identification of the leads and the valuable customers start.
• A Market Plan is an extremely important element in the market project hierarchy. It is considered to be an important parameter to implement the market policy of an organization. It is a tool for planning budgets and fixing targets in the marketing strategy.
• Marketing Calendar is an integrated tool to get and use the information as a calendar activity, scheduled with date and time. The marketing activities, vice versa, within a defined period, are known as the Marketing Calendar. It helps to create new activities, change, or display the scheduled activities directly from the calendar.

Q22. Are the terms “Opportunity” and “Lead” in SAP CRM the same? If not, then what are the differences?

The terms Opportunity and Lead in SAP CRM are more or less the same.

The first stage is known as Lead in a sales process. This is mainly represented by a person who has shown great interest in buying a product. Cold leads are converted into Hot leads for pushing towards a sale.

A Hot lead becomes an Opportunity and is very likely to become a customer in due course.

Q23. How can we integrate R/3 with CRM?

We need proper connectivity for both systems to integrate and exchange data between ECC (R/3) and CRM. Following configuration will be required to do this:

Keep RFC destinations in both systems as pointing to each other and maintain the number ranges as mirror images, in both the systems.

We can follow the steps given below for the integration between R/3 & CRM:

In ECC (R/3)

1) Define logical system for ECC (Name) 

2) Define logical system for CRM (for cross-connection)

3) Identify the data which you wanted to copy to CRM 

4)Assign a logical system to the client

In SAP CRM

1) Define logical system for CRM 

2) Define logical system for ECC

3) Assign logical system to client

4) Copy the required data from ECC

Q24. What is the Activity management feature in SAP CRM?

The Activity Management feature comes into the picture when the organization has to administer the activities assigned to employees. This feature is very helpful in recording sales activities. Some other activities like sending emails, making telephone calls, etc. can also be recorded.

In Activity management in CRM, the data in an activity is a very important source of information for all the employees that are relevant for that information. Activities in CRM are used to record sales activities.

Q25. Why does customer experience matter in SAP CRM?

1. Understanding and anticipating the needs of your customer can provide unique insights to help you serve your customers better. 

2. A unified customer profile from every data source across the enterprise and looking deep into customer insights are very helpful in sales in the long term.  Keeping and tracking customer experiences, you can deliver the right message at the right time and in the right place to inspire customers to act. 

Fulfilling your brand promise is critical to customer satisfaction.

Q26. What is an outline agreement?

An outline document is a list of previously agreed conditions before the release of any product or service. The outline agreement lets you define conditions like price, terms of delivery, etc. The outline agreements are used for customer retention and can be applied to all sales orders that the customer creates. 

Q27. What is the term in SAP CRM that can be used for keeping track of the sales project?

When we track sales projects, we use “Opportunity Hierarchies”. This term is particularly used when the main sales project splits into other sub-projects and is used for linking them all. 

“Opportunity Hierarchy” is different from normally related documents as it helps build a full structure of opportunities. A typical example is a construction project for which we are trying to sell things to different build phases and then we create one top-level opportunity to group all others. An Opportunity Hierarchy allows the users also to visualize the hierarchy structure as an opportunity.

Q28. Quotation Transaction type comes under which functionality in CRM?

Quotation Transaction type is AG and the functionalities are:

1. Creating or Generating leads with a marketing campaign.

2. Tracking, qualifying, and closing OPPT.

3. Managing and tracking ERP quotations.

4. Processing ERP Sales Orders.

5. Fulfilling logistics needs.

6. Processing invoices.

7. Managing account payables.

Q29. What is the relationship between CRM and SAPR3 architecture?

CRM is Customer Relationship Management and R3 is a Three-tier architecture.  R1 (1st Tier) was launched at the time of SAP’s inception. R2 (2nd Tier) & R3 (3rd Tier) came later as advanced and the latest is SAP CRM. We need proper connectivity for both systems to integrate and exchange data between R3 (ECC) and CRM

ECC (Enterprise Central Component) acts as a central server attached to external systems. If a client has installed SAP ECC (R3) and wants to upgrade with SAP CRM, he has to integrate his data related to Sales, Pricing, Conditions, etc. through R3 (ECC).

Q30. What is the role of a functional consultant in SAP CRM?

As a candidate for a SAP CRM job, the role of a functional consultant comes on top. A functional consultant evaluates all the requirements, after talking with the customers or their representatives. He then transforms the information into an abstract and algorithmic business model. He then identifies similar cases and transforms them into logical and technical data. The functional consultant then customizes the respective business area and makes sure the system reacts in the manner according to the constraints of the requested use case.

The consultant documents the settings and prepares proper guidelines that allow other consultants to do further changes or repairs with due effort.

The consultant takes care that proper training is given to the users and that the system is usable, performing appropriately and the business flow is complete and correct. During go-live, he assists the technical staff by testing the behavior of the system.

After go-live, he guarantees that the procedures remain usable and consistent in real-life situations and proposes enhancements.

Conclusion

The above are the most frequently asked SAP CRM interview questions that have been provided with answers. These are very helpful for SAP CRM job seekers. There can be many more formations of questions, but the root questions and answers will remain more or less the same as cited above.

An interview is broadly seen as a formal meeting to evaluate prospective employees by obtaining their qualifications and work experience. For applicants, it is an opportunity to elaborate on certain components of their resumes and talk about their areas of expertise.

For getting a SAP CRM job the candidate must prepare himself for all types of questions like Case Questions. Role-play questions, Industry-specific questions, behavioral as well as traditional questions.

Recommended Reads

• SAP CRM courses in India

FAQs

Q1. What is SAP CRM and SAP C/4 HANA?

The SAP CRM applications have integrated software, targeting business requirements for marketing, sales, and service. It is cloud-based and known as SAP Cloud for Sales. Now SAP has consolidated all of its cloud-based marketing, sales, service, and commerce applications as SAP C/4HANA.

Q2. What is AET in SAP CRM?

AET (Application Enhancement Tool) is used to add fields to standard SAP objects in a safe and flexible way. It is also possible to create new relations with 1-to-many relationships to standard SAP Objects with the AET.

Q3. How do I add a field to AET in SAP CRM?

Proceed as follows:
SPRO >SAP Reference IMG >Customer Relationship Management >UI Framework >UI Framework Definition >Application Enhancement Tool >Define System Settings. Once the settings are done, you have to enable the AET tool from the WEB UI front end screen.

Q4. What is middleware in SAP CRM?

Middleware is a tool that is inbuilt within SAP CRM and enables the SAP CRM system to interact with various other SAP (R/3, BW, APO, etc.) and non SAP systems, 3rd party web channels, etc. 
Using middleware we can control what data should flow in and out of the CRM system and also monitor the same.

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