Transcript Document

Rules of
Engagement
Tools and Technologies for Managing
the Customer Relationship
December 18, 2001
Agenda
1.
Overview

2.
Guiding Principles

3.
What are the main components of a CRM architecture?
Tools of the Trade

6.
What are the business requirements of a CRM solution?
Solution Components

5.
What are the main principles of CRM?
Core Requirements

4.
What does CRM mean? Why is it a corporate priority?
What are the various categories of tools?
Trends and Trepidation

How is CRM technology likely to evolve?
Overview
“What is
CRM?”
“We ignore the
entire discipline
of CRM.”
Customer Disservice
They have turned a simple order into a month
long ordeal.
All these people had to do was ship my order
and apply a $20.00 coupon. Not only was my
$20.00 coupon not applied … Not only was my
credit card billed for the full amount of $45.48
…Not only was my first order rejected … Not only
did I find this DVD at Future Shop for $5.00 less
minus shipping …Not only was my order over 2
weeks arriving and your cue times for support
over 20 minutes,
BUT the DVD was defective!
This is not the end of my problem with chapters.
After a total of 4 calls to customer service and 6
or 7 emails, I managed to have 14.90 credited
back and then 9.80 recharged to my card. All
together my experience with chapters online has
been one of disgust.
A New Marketing Model
OLD MODEL
 INTRUSIVE …
heavy reliance on print
and broadcast media
 INFERENTIAL…
generic messaging
based on “best guess”
 INCONSISTENT …
no memory of past
customer interactions
eCRM
eCRM
CRM
CRM
Dbm
Dbm
DM
DM
SEGMENT
NEW MODEL
 COLLABORATIVE…
customers given a
greater voice through
interactive channels
 CONSENSUAL …
customers shape
terms of relationship
 CONSISTENT …
INDIVIDUAL
customers treated with
the respect due them.
No Pain No Gain
DRIVERS
 Recognition of
customers at all
touchpoints
 Consistent
application of
treatment rules
 Personalization
of interactions
CONSTRAINTS
 Cost and pain of
integration
 Lean marketing
staffs
 Complexity of
managing
interactions
across multiple
channels
 Instantaneous
response to
events
 Lack of
infrastructure
 Reciprocal
exchange of
information
 No experience
base
 Cultural barriers
Guiding
Principles
The Value Equation
Cultivate
relationships...





Establish
trust
Exchange
learning
Anticipate
needs
Recognize
preferences
Improve
satisfaction
... Enhance
profitability
VALUE
 Buy more
products
 Buy more
often
 Buy more
easily
 Buy at a
higher
margin
 Buy over a
longer period
The Value Chain
Value Proposition
Interaction
Product
Delivery
Service
What value is
provided in
interactions
with
customers?
What value is
provided in
product
features?
How easy is it
to obtain
products and
information?
How
responsive is
customer
service?
 Ubiquitous
 Convenient
 Fast
 Courteous
 Proactive
 Empathetic
 Personalized
 Consistent
 Current
 Functional
 Flexible
 Customizable
Dynamic Segmentation
VALUE
VULNERABLE
ADVOCATES
UP AND COMING
NEWBIES
DORMANT
LOYALISTS
INTENSITY
Information
Track and
Measure
Results
Solicit
Feedback
Define
Customer
Segments
Virtuous
Cycle
Engage
Customer
Interaction
Analysis
Develop
Customer
Base
Develop
Management
Plan
Develop
Investment
Strategy
Create
Business
Rules
Planning
Core
Requirements
Customer Value Management
SEGMENTS
VALUE QUADRANTS
MOST
POTENTIAL
MOST
VALUABLE
LEAST
VALUABLE
MODERATE
VALUE
INVESTMENT
STRATEGY
How much should you
invest in the relationship?
CONTACT
STRATEGY
How often do you contact
customers?
CHANNEL
STRATEGY
What is the appropriate
channel mix?
BEHAVIOUR
LIFECYCLE
LIFESTAGE
BROADCAST
MASS
PRINT
Campaign Management
WEB
DIRECT MAIL
CHANNELS
E-MAIL
PHONE
DIRECT
Treatment Rules
If…
SEGMENT
STATUS
TREND
EVENT
REWARD
ACTION
RESPONSE
OFFER
then…
MESSAGE
CHANNEL
else…
Campaign Management
• Even Split
• Absolute Count
CONTROL
OFFER
TEST
OFFER
SORT
RECORDS
SAVE AS
NEW LISTS
LIST
LIBRARY
SELECT
LIST(S)
SUB-GROUP
SPLIT
LIST
DESCRIBE
OFFERS
CAMPAIGN
DEFINITION
LOG
ASSIGN
CELL CODES
SPLIT
INTO
OFFER CELLS
• Nth Selection
• Percentage
• Absolute Count
SPECIFY
OUTPUT FIELDS
DEFINE
OUTPUT MEDIA
SPECIFY
DESTINATION
SUB-GROUP
PRODUCE
FILE(S)
Event Triggers
EVENT
TRIGGER
Send e-mail
requesting
registration
Receive
e-mail
(POP3)
NO
ACTION
DECISION
Yes
WAIT
EVENT
No
Check
database
Create new database
record with e-mail
address and text
YES
High value
customer?
YES
Re-route e-mail to
Priority Service
NO
Send e-mail to
Contact Centre
Prescribed Paths
New?
EVENT
YES
Web
Registrant
Contest
Entry
Profile
Current?
YES
NO
On-line?
YES
E-alert
>3 Dosage?
YES
RSVP
Response
1-800
Caller
NO
Heavy
User?
NO
No Action
Heavy
User?
E-Mail?
YES
E-MAIL
NO
MAIL
STREAM
Invitation to
Create
On-Line Profile
YES
Survey
NO
Survey
Online Relationship Building
Content
Repository
•
•
•
•
FAQs
Knowledge Base
Online chat
Personal portal
Rules
Engine
View-Based
Navigation
Profile db
Dynamic
Content
Delivery
Subscribe
Enroll
CRM
Tools
•
•
•
•
•
•
E-mail filtering
E-mail routing
Autoresponse
Rule creation
List creation
Response tracking
Personalized
E-mail
E-zines
Survey
Deployment
Dynamic Content Versioning

Objective is to dynamically align content
with defined customer groups and
subscriber opt-in preferences.
CUSTOMER
DATABASE
CUSTOMER
SEGMENT
SUBSRIBER
LIST
PERMISSION
GROUP
Variable Substitutions
 Name, email, etc.
Section Substitutions
 Content variations (e.g.
subject, product, etc.)
Template
 Design variations (e.g.
different newsletters)
Channel Management
Interactions & Transactions
ANALYSIS
RULES
CONSUMER
Database
Strategy
Program
Concepts
PERSONALIZED
CONTENT
RESEARCH
RICH
EMAIL
HIGHSPEE
D
VARI
ABLE
WEB
IMAGI
SITE
NG
PAGE
VIEW
S
A CRM Framework
Valuate
• Responses
• Feedback
• Transactions
• Groups
• Profiles
• Metrics
Segment
Aggregate
Model
UNDERSTAND
Reinforce
Evaluate
Inform
Calibrate
MANAGE
DEVELOP
Promote
Customize
Reward
Personalize
INTERACT
• Contacts
• Issues
• Complaints
Anticipate
Respond
Recognize
React
• Rules
• Triggers
• Campaigns
Solution
Components
The Information Evolution
1990s
1980s
• Batch update
• Mainframe
dependent
• Quarterly cycle
times
• Proprietary
databases
• Inverted file
structure
• Direct mail
management
• List focus
TODAY
• Batch update
• Client/server
• Monthly cycle
times
• Open systems
• Relational
databases
• Campaign
management
• Segment focus
• Real-time update
• N-tier
architecture
• Daily cycle times
• Web-based
• Customer
management
• Customer focus
Functional Clustering
Interaction
Management
RESPOND
SERVICE
SELL
INFORM
Customer
Management
PROMOTE
SURVEY
REWARD
EDUCATE
SOLVE
CUSTOMER INTERACTIONS
ACTIVITY PLANNING
Predictive
Analysis
ESTIMATE
INFER
Descriptive
Analysis
DEDUCE
GROUP
TRANSFORM
SUMMARIZE
COMPARE
RANK
FORECAST
MEASURE
Current Ecosystem
BACK OFFICE
Orders
Inventory
Distribution
General Ledger
Extract / Transform / Load
FRONT
OFFICE
ORDER
HISTORY
Enterprise
Warehouse
CRM
CUSTOMER
PROFILE
CONTACT
HISTORY
PROMOTION
HISTORY
Web
Metadata
SFA
CAMPAIGN
MANAGEMENT




Campaign creation
List creation
Event scheduling
Task scheduling





EMAIL
MARKETING
Content Creation
Personalization
Merge/send engine
Response tracking
Survey Deployment
QUERY &
REPORTING
TOOL
DATA MINING
TOOLS
ROLAP
TOOL
MAPPING
TOOL
Solution Spectrum
CUSTOMER
ANALYTICS
CAMPAIGN
MANAGEMEN
T
Used to analyze customer behavioural
transactions as well as clickstream data.
Used to create lists of customers for
promotional campaigns delivered through
multiple channels.
INTERACTION
Used to interpret, respond to and route
e-mail communications from customers.
MANAGEMEN
T
SALES &
Used to support customer-facing functions such
as contact management, sales and support.
SERVIC
E
Used to tailor Web content to like-minded
SITE
visitors based on explicit rules or
PERSONALIZATION
inferences.
Defining Attributes
Component
Applications

“Drag-and-drop” interfaces and component
architectures compress development times
and allow users to build applications
without IT intervention.
“On the Fly”
Scoring

Embedded data mining functionality
enables smoother integration of scoring
models.
Workflow
Rules

Complex treatment rules can be graphically
depicted using global logic that controls
contact timing and intensity.
“Always On”
model

Campaigns can span multiple channels
and be executed in real-time through job
scheduling and event triggers.
Tools of the
Trade
Campaign Management

Supports the setup and execution
of contact programs over multiple
channels.






Campaign Definition – Set up
standalone, continuous or wave
campaigns with associated costs.
Campaign Scheduling – Specify
start dates and event triggers.
List Creation – Define target lists
and save stored values or selection
criteria in a library.
List Scoring – Perform “on the fly”
predictive scoring of eligible records.
List Splitting – Split lists into
multiple cells using random and Nth
selection. Assign keycodes.
Contact Rules – Specify
promotional intensity rules governing
message frequency and contact
intervals.
DEFINE CAMPAIGN
OBTAIN FAST COUNTS
DEFINE LISTS
SAVE LISTS
REFINE LISTS
ASSIGN PROMO CODE
SPLIT LISTS
CREATE OUTPUT FILE
Opt-In E-Mail Campaigns

Supports the setup, execution
and tracking of e-mail campaigns.






List Creation – Select opt-in groups
based on targeting criteria.
Content Management – Import and
merge e-mail content.
Personalization – Customize
messaging with variable text
substitutions based on individual
characteristics and preferences.
Broadcast Execution – Distribute
export files amongst multiple SMTP
servers.
Automated Redirection – Track
click-throughs to harvest customer
data prior to routing.
Event Tracking – Monitor
messages sent, bounced and
opened as well as unsubscribes.
Inbound E-Mail Management

Supports efficient handling of large
volumes of inbound e-mail.

Message Categorization - Analyzes
message content to determine subject.

Auto Respond – Sends automatic
acknowledgement to customer with
unique case tracking reference number.



FILTER
CATEGORIZE
Routing – Directs e-mail to appropriate
agent based on content.
AUTO REPLY
Ticket Escalation – Escalates message
based on time in queue or other factors.
ROUTE
Message Templates – Suggests
appropriate responses based on
message category and content.
RESPOND
Contact Management

Supports integrated call centre
management activity.






Screen Pops – Inbound calls are
routed to agents with pre-populated
customer information screens.
Consolidated View – All prior
interaction and incident history is
available for viewing .
Contextual Treatment – Agents are
guided by prompts driven by
treatment rules.
Incident Management – Service
and support calls are tracked in an
incident queue.
Co-Browsing – Web pages can be
pushed out to callers for
simultaneous browsing.
Text Chat – Agents can interact in
real-time with Web visitors in a chat
session.
Web Personalization

Supports the dynamic delivery of
targeted content and offers to
individualize the Web experience.




Service Portal – Provides
customers with a profile page to
register preferences and obtain
relevant product and account
information.
Offer Optimization – In response to
a real-time interaction, selects and
presents the optimal offer based on
probability of acceptance.
Collaborative Filtering –
Recommends appropriate products
based on preference patterns of
similar customers.
Scenario-Driven Rules –Targets
content based on pre-defined
business rules derived from user
profiles or behavioural data.
Data Mining

Supports the analysis of
customer transactional data to
help explain or predict behaviour.






Classification – Classifies records
into discrete groups .
Estimation – Estimates a
continuous value.
Prediction – Calculates a
probability score based on a set of
input variables.
Affinity Analysis – Finds the most
common associations between
items.
Clustering – Segments records into
distinct subgroups or clusters.
Decision Trees – Displays the
variables that best explain the
behaviour in the form of a decision
tree.
DESCRIBE
PREDICT
AFFINITIES
ACTIONS
SEQUENCES
VALUES
CLUSTERS
DISTRIBUTIONS
Web Traffic Analysis

Supports the analysis of log
file data to measure Web
site performance.

Site Activity – Tracks
number of visits, most
requested pages, activity by
time of day, errors and
abandonments, length of visit,
top entry pages, navigation
paths, referring URLs.

Merchandising Analysis –
Tracks products selected and
removed from shopping carts.

Lead Generation – Tracks
leads generated from
registered visitors.

Banner Ad Analysis –
Tracks clickthroughs to
banner ads on third party
sites.
Trends and
Trepidation
The Major Players
Bridging the Gap
RELATIONSHIP INTELLIGENCE
DIALOGUE
MANAGEMENT
CONTEXTUAL
SELLING
CONTACT
MANAGEMENT
CHANNEL
MANAGEMENT
INTERACTION MANAGEMENT
Real-Time Interaction
CDB
CDB
ERP
ERP
SYSTEM
SYSTEM
EE-COMMERCE
-COMMERCE
SYSTEM
SYSTEM
LOG
LOG
FILES
FILES
PROFILE
DATABASE
Preferences
Demographics
ANALYTICAL
SERVER
DECISION
ENGINE
Rules
Estimations
LEGACY
LEGACY
SYSTEMS
LEGACY
SYSTEMS
LEGACY
SYSTEMS
SYSTEMS
TREATMENT
EVENT
CUSTOMER TOUCHPOINTS
PROMOTION
PROMOTION
HISTORY
HISTORY
INTERACTION
INTERACTION
HISTORY
HISTORY
THIRD
THIRDPARTY
PARTY
DATA
DATA
CRM Trends

Expanding Domains


Common Treatment Rules


Organizations will strive to develop common enterprise workflow
methods and treatment rules that are consistent across interaction
channels and tools.
Collaboration Push


Vendors will continue to seek the strategic high ground of CRM in an
effort to control all interaction channels. Best-of-breed solutions will be
displaced by modular suites. Niche vendors will continue to be
absorbed by larger competitors. SMEs will opt for ASP solutions.
Conventional market research methods will merge with transactional
analysis to invite a reciprocal exchange with customers, bringing them
into the product development process.
Consensual Dialogue

To overcome market attention deficit (MAD), all communications will
need to be permission-based offering highly personalized content
driven by explicit preferences and behaviour-derived rules.
?
Questions?
STEPHEN SHAW
416-695-4286
[email protected]