Transcript CRM Presentation

Customer Relationship
Management
Week 9
CRM Framework
Source : Andersen Consulting
Customer Relationship
Management
Technology
Marketing
Direct, Interactive
Dialog, Real time
Warehousing
Online data store
User tools
Analytics
Business
Customer
Financial
Buzzword Alert
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CRM: Often used to describe any business or marketing approach that claims
to target customers, not transactions. Sometimes confused with Customer
service, account management, sales force automation, e-commerce, predictive
modeling, data mining, data warehousing, database management, database
marketing, direct marketing, and wide variety of marketing activity. Used here
to describe a systematic business approach using information and on-going
dialogue to build long lasting mutually beneficial customer relationships.
Customer centric: Sometimes used to refer to any awareness that a business
has of its customers. Used here to describe an approach to business that uses
the customer (not the transaction) as the building block of data management,
reporting, goal setting and measurement as well as business and marketing
strategy organization and technical infrastructure, and corporate culture and
values over time and across sales, marketing, IT, analysis, service,
management and support business units.
CRM working definition
• CRM is the
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Systematic use of information
To attract and keep customers
Through on-going dialogue
To build long lasting mutually beneficial
relationships
Systematic Use of Information
• Database of customer information
– The customer is the base level of data for
storage,reporting,analysis and measurement
• Analysis of customer data to predict likely future
behavior
– Modeling uses past behavior to predict future behavior
and identifies other predictors as well.
• Identifying and evaluating each relationship
– CR are identified, evaluated reevaluated and
continually managed according to current information
To attract and keep customers
• Cost efficient customer acquisition
– Profiles used to select likely new customers and offers
for specific customer segments
• Retention efforts focused on most profitable and at
risk customers
– Continuous process of solidifying relationship with
profitable customers, converting less profitable
customers to more profitable and attempting to convert
at risk customers before they are lost.
• Shared information across channels for consistent
communications
– Customer receives consistent offers, service and
messages across sales and service channels
With or Without
• Without CRM
– Customer re-enters information
about music preferences every
time at log-in
– Customer re-identifies CI every
time at CS
– Call center and stores have
different pricing from web site
– Customer must return defective
CD through the delivery channelcannot switch between electronic
channels and stores.
• CRM in practice
– Customer logs onto the Internet
and finds information on favorite
music group, advertisements
featuring specials on new CDs and
dates with ticket offers to next
concerts in local area, plus emails
telling them about new groups
with a similar style or from the
same record company.
– Customer reads about CD’s on the
Internet, orders through the
CS,exchanges at a local record
store if CD is defective.
Through on-going dialogue
• Continuous interaction with customers based on analysis
– Interactions,offers and messages are
planned,personalized and delivered according to
analytic insights
• Real time response on the Internet
– Immediate changes in advertising, information,
recommendations, product features and even pricing
based on web or email behavior
• Listening to create a sense of intimacy with the customer
– 1:1 dialogue through appropriate responses delivered
real time
Web Telephony Integration
Email Integration Capability
To build long-lasting mutually
beneficial relationships
• Success measured in customers and customer
value
– Goals, results even incentives measured in terms of
customers and customer value,not transactions
• Continual reevaluation of customer relationships
– On-going measurement to identify profitable, at risk
and underserved customers
• Continual learning about customer needs
– Satisfied customers make good business sense
Customer Strategy should be defined and driven by Customer needs
Shopping
Buying
Is it easy to
find what I am
looking for?
Was the offer
just right for
Me?
Do I want to
come back
here?
Was it easy to
buy?
Did I learn
anything
new?
What should I
expect after
this sale?
Do I trust this
Company?
Is it safe to
buy here?
What made
them
different from
everyone
else?
If I tell them
about myself
will they
make their
product
better?
Using
Did they
follow up?
Did they use
information
made during
the sale to
make the
after-sale
experience
pleasant?
Did they add
value to the
product with
information?
Repeat
Purchasing
Do they
remember
me?
Did I have to
answer the same
questions
again?
Was the
information I
gave them
last time used
with integrity?
Did it add value?
Evangelizing
Can I trust
them to
provide a
consistent
experience?
Do they know
when I have
made a
referral?
Do they care?
Complaining
Was my
complaint
satisfied?
Did they
remember
that I
complained
when I called
next?
Did they
annoy me
with
additional
marketing
after I
complained?
At its simplest
• CRM refers to the use of information about
a customer to make decisions about how to
treat the customer.
The Learning Loop
Customer Strategy
Track and Learn
Collect and Distribute
CI
Dialogue and
Personalized
Campaign
Analyze and mine
CI
Making the Business Case
Building the CRM Organization
At it is most complex CRM comprises an
interconnected web of sophisticated, high tech
hardware software, strategies and processes designed
to help business quickly, efficiently and
voluminously determine how to treat each customer
in order to create a valued experience for both the
business and the customer.
Analytics
Sales Force
Automation
Call
behavior
analysis
Distribution
Campaign Partner
Management
Customer
Valuation
Monitoring
Quality of
Service
Analysis
Integrated
Customer View
Segmentation
And profiling
Customer
Service Behavioral
Risk
Analysis
Modeling
Web
Intelligence
Sales
analysis
E-commerce
Web
Profitability
analysis
Needs
analysis
Call Center
Operations
A data warehouse builds a strong foundation for
CRM infrastructure
Call Center
Sales Force
Automation
Web
Applications
Profitability
Legacy
Systems
Prospect Lists
Data transformed and loaded in MD
Information from legacy sources normalized
Into member and household tables.
Time series information kept for historical analysis
Real time data feeds
Real time data feeds
Site
Real-time
Database
Staging area for data
Daily batch reporting
Real time campaign
management
Newsletters
Personalization&Decisioning
Profiling/Segmentation
Opportunity Identification
Campaign management
Performance measurement
Predictive modeling
Adhoc and DSS reporting
Marketing
Database
Results from P, S
DM, M loaded into MD and RT DB
To enable real time personalization
and decisioning. Single repository for
Business
Intelligence
Campaign
Management
Contact History
Tracking
Reporting
Log
Files
Data Mining
Example of warehouse processes architected for CRM
Customer data should be moved into the warehouse in an consistent and efficient manner
Extract, Transfer, Load (ETL)
Extract data from legacy
systems, other sources
Sources: Surveys,response
history,online behavior
Transform data into consistent,
clean, customer-level,
knowledge according to pre-set
data definitions
Data dictionary designed during
warehouse design through
enterprise-wide participation and
made available enterprise-wide
Load and manage data
efficiently
Batch processing during offhours,predefined queries
Condition Data
Examples: Standardize addresses
set aside an untouchable control group
What Customers Want
• Treat me as an individual (not a number)
• Demonstrate that you can use information about
me in a way that makes working with you valuable
( don’t abuse my information)
• Show me that you really know me no matter where
I talk to you.
• Care about my needs/try to anticipate them.
Creating the CRM organization
Buzzword Alert
• Politics
– The result of opposing business priorities across
different units that compete for a finite pool of
resources
• Change Management
– Guiding an organization and its members through
significant alterations in organizational direction and
individual responsibilities as quickly and effectively
possible
• Organizational design
– Managing human systems and hierarchies, with
supporting technical and process infrastructure, in order
to most effectively deliver on the mission of the
enterprise
Organizing around the Customer
•Who thinks about the customer?
•Who advocates the customer?
•Who doesn’t think about the customer?
Competing
Distribution
Competing
Products
Competing
Sales Territories
Competing
Business Units
Competing
Channels
• Everyone in an organization needs to think
about the customer. To achieve this, an
organization must encourage change by
providing the tools to make the changes
steadily and surely
Changing how an organization thinks
Customer centric metrics
Changing organizational processes
Pilots,business rules and business case
Changing organizational structure
Evolutionary not revolutionary
Changing culture
Short term and long term success
Customer Centric Metrics
Volume Metrics
• Call Duration
– Encourages TSRs to make
calls as short as possible,
keep costs low
– Creates dissatisfaction
• Sales Volume
– Encourages cannibalization
– Encourages short term
product pushes instead of
long term CR
Customer Centric Metrics
• Customer Retention
– Encourages TSRs to satisfy
customers
– Creates loyalty
• Customer Value Impact
– Increases customer value
following interaction
– Includes additional
information gathered which
is useful for future
campaigns
Changing Processes
• There are several ways to change processes
without creating fear within an organization
– Pilot projects: Enable teams to test processes in an
atmosphere that fosters innovation and resourcefulness.
– Business rules:
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Privacy: Do not share names with third parties
Fatigue: Do not call customers more frequently than “n” times.
Channel preference: Do not force a customer to a channel
Dialogue: Record every question that a customer answers and
do not ask the same question more than once every two years
– The business case
• Through questions and expectations, it is possible to drive
existing organizational units to use customer data in decision
making
Evolutionary Not Revolutionary
• Why not just reorganize everyone from
Marketing, IT and other teams contributing
resources to the CRM effort?
– Why the evolutionary small step approach?
– Why not revolution?
• Power may continue to reside in areas without the
data, without the metrics or even without the C
• Focus on bureaucratic issues detracts from C focus
– Gives time to build infrastructure for:
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Centralized data
Tools that make data easy to access
Skilled analysts who can mine the data
Metrics that validate C centric programs
Training to bring staff up to speed
Setting senior management expectations and
educating them
• Winning kudos for early successes
• Creating external enthusiasm rather than
resistance.
Changing Structure
• To maintain the momentum of a CRM
initiative:
– Continually demonstrate value to all
stakeholders
– Create a hunger among senior managers for
customer centric and customer value
information
– Use input from anyone thinking about the
customer.
Forms follows Function
Let structure experts worry about structure which CRM specialists
focus on cross functional initiatives.
• Constructing data centers from pilot databases to an enterprisewide data warehouse
• The data warehouse is accessible and easy to use across
organization
• Fielding campaigns that includes tests and data mining
• Sharing results across channels,units and levels of management
• Creating more and more complex campaigns involving more and
more areas of the enterprise.
• Monitoring and reporting results all along the way.
E-channels
•
E-channels both complicate and simplify CRM execution:
Complicate
- Stability
- Maintenance
- Real time
- Personalization
- Collaborative filtering
- B&M to the web
- Branding
- E-strategy
- Competing channels
- Privacy
- Security
Simplify
- Loyalty
- Information
- Real time
- Cost saving
- Interactive
- Profit driver
- Convenience
- Customer tracking
- Services
- Transaction/sales tracking
Are we there yet?
• You know you have a CRM culture when:
– Everyone in the organization thinks about
the C
– Everyone in the organization listens to the
customer
– Reliable service is delivered to C consistently
across all channels
– Success is measured in terms of C relationships
( Value, duration, acquisition )
Where Are You on the Road to
CRM?
Short term goals
Organizations
Transitioning to
CRM culture
Organizations
With existing
CRM culture
Long term goals
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Think like a customer
Be a customer
Build infrastructure to centralize data
Analyze customer data
Determine C centric program goals and strategies
Educate senior management and set expectations
Identify bottlenecks
Have owners over customers
Have centralized customer centric business rules
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Listen to the customer
Track C behavior across all channels
Show consistent reliable service across all channels
Assign value to each customer
Create loyalty programs
Have established C centric incentives
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Think like a C
Listen to the C
Provide consistent reliable service across all channels
Track C behavior across all channels
Assign value to each C relationship
Create loyalty programs
Reduce bottlenecks
Have owners over customers
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Real-time personalized dialogue with customers
Anticipate customer needs
Measure success of each relationship
Share C information with all areas of the enterprise
Build and maintain long term profitable relationships
with C
Summary
• Organizational change is an evolutionary process, not
a revolution.
• Choose the parts of the organization that can be
changed to focus on first.
• Implementing CRM program also means changing
thinking, processes, structure and engraining a
customer centric culture in an organization.
• Depending on where your organization stands, there
are short and long term steps to take to transition to a
CRM company.
Long Term Planning
• Develop a two year plan for making your
company more customer centric.
• Include measurable deliverables every three to six
months.
• Change from product centric to customer centric
metrics.
• Create cross functional teams to develop and
manage customer strategy.
• Implement tools that allow people from all areas
to access the same CI.
Obstacles
• Getting participation from all areas
• Technical problems centralizing data in a
data warehouse
• Inter-unit conflict (Marketing-IT)
• Managing anxiety and resistance in an
environment change
• Focusing resources on new developments
and existing responsibilities.