Transcript Storage Decisions 2003

Sales & Marketing ―
What’s CRM got to do
With it?
Lane Michel, Partner
Peppers & Rogers Group
[email protected]
CRM Can Enable Greater Alignment
Across all Customer Touch Points
 Strategy alignment, not just technology
 Guiding principles (1to1, IDIC)
 New tools and techniques that bring
Sales & Marketing together
STRATEGY ALIGNMENT,
NOT JUST TECHNOLOGY
40,000 customers. What if only 80 matter?
CRM in Four Words…
Treat
Different
Customers
Differently
Ask Yourself: What is your firm’s
most unique, non-replicable asset?
 Products?
 Brand equity?
 Sales staff?
 Merchandise?
 Stores?
 Databases and contact centers?
 Marketing programs?
… Or customers?
The “Learning Relationship”
Save
me
time
Customer tells
you what he
wants
FEEDBACK
You tailor your product,
service or elements
associated with it
The more effort the customer invests, the greater
their stake in making relationship work
Now the customer finds it more convenient to remain
loyal, rather than re-teach a competitor
Creating a Competitive Advantage
“We have only two sources of
competitive advantage:
1)the ability to learn more
about our customers faster
than the competition
2)the ability to turn that
learning into action faster
than the competition.”
— Jack Welch, CEO of GE,
outlining his competitive strategy for the 21st Century
Technology & Tools Enable CRM, but…
CRM tools are only:
• as smart and
capable as your
workforce
• get results when
your business
processes change
to harness
customer insight
CRM can’t be installed.
It must be adopted.

The Four Steps of 1to1 Marketing
Identify customers, individually and
addressably
Differentiate them, by value and
needs
Interact with them more costefficiently and effectively
Customize information, messages,
product and service offering based
on learning
GUIDING PRINCIPLES
Cascading Goals:
More profitable growth
Greater share of customer
Differentiated treatment/experience
Analytics on value/needs
Customer knowledge Management
Strategy for Building Customer
Knowledge Management
Intelligence Layer: Customer needs,
feedback, unstructured information fields
360º View
Achieved Over
Time
Associative Layer: Detailed transactions,
complex associations, analytics,
predictive values
Transactional Layer: Basic transaction
and association information direct and
indirect
Foundational Layer: Tools, technology,
business rules, basic customer
identification and address information to
build and maintain profiles
Start with Core
Customer
Profile
NEW TOOLS AND TECHNIQUES
THAT BRING SALES &
MARKETING TOGETHER
• Customer Value and Needs Analysis
• Customer Knowledge Management
• 1to1 Marketing Discipline & Pilots
Customer Metrics
Required Capabilities for Marketing
10 High-Value Marketing
Processes for 21st Century
•Marketing operations management
•Marketing visibility, accountability
and value measurement
•Customer and market insight
generation
•Customer-value-based segmentation
•Portfolio and capacity-based resource
allocation
•Product development and introduction
•Customer-needs-based trigger
identification
•Orchestrated customization–
integrated marketing activities
•Orchestrated cross-channel dialogues
•Customer-value-based network
management
Source: Gartner Group
Insight
Analysis
Customer
Data
Response
Action
Managed Analytics Overview
1. Gather
Customer Data
(both internal and external)
2. Derive Customer
Insight
Analysis
• Contact Information
• Preferences
• Purchasing Behavior
• Customer Interaction
• Demographic and
firmographic
Reporting &
Feedback
Decisionsupport
• Customer Needs
• Customer Defection
• What products customer will
need next
- portfolio analysis
• Look-a-like
• Positive and negative triggers
Action
4. Evaluate
Response
w Increase in customer satisfaction
w Incremental customer contribution
w Increased customer interaction (e.g.,
attendance at events)
w Decrease in defection rate
w Increase in wallet share
w Increase in customer loyalty
3. Suggest Proactive
Action
• Align Marketing & Sales resources to customers based on
opportunity
• Develop customized marketing collateral based on
customer need
• Offer customized content on Internet based on customer
needs
• Design events around, and send invitations to, most
valuable customers and look-a-likes
• Feed customer insights to product development
Customer Value Tiers
Use 1to1 to keep these
customers
Actual Value
…and grow these.
Migrate these
(potential value unknown)
Potential Value
Costs
Spend no resources
marketing to these
MVCs
MGCs
“Migrators”
BZs
Customer “Needs” Groups in Action
 The trick is to find
customers who “look like”
each other in terms of
their needs
 Goal is to organize
strategy and treatments
around portfolios of
customers with similar
needs
 Identifying needs-based
groups among customers
is a first step to
differentiating the
experiences of individual
customers
Defining and Meeting Enhanced Needs
Increases Your Relevance
 Beyond demographics
•
Gender, age, geography, income, company size, title
 Beyond attitudes
•
•
I am status conscious and want to use only the best
products
My company uses technology as a competitive
advantage and we are on the leading edge
 Needs are unique and behavior-driven
•
•
I am an “information-junkie” and a “techie.” I want
you to provide me with as much relevant information
about personal electronics as you can.
I am a “frequent traveler” that spends most of my
time driving from one city to the next. I have very
little time – how can you save me time?
Basic Addressable Client Needs
(B2B example)
 Vertical industry
 Business event or trigger
 Advancement in life cycle
 Stated unmet need (feedback)
 Relationship growth, issue
 Common customer need
Needs are Classified in Different Ways
Needs common to a large majority of customers
Differentiating Needs
Shared Needs
Group
Needs
Group
Needs
Needs shared across two or more
needs groups
Needs shared by customers in one
needs group
Needs specific to one individual
customer
Individual Needs
Increasingly Relevant and Impactful
Interactions Deepening Individual
Customer Relationship
Common Needs
…Serves as the Foundation for a
Customized Interaction Strategy
Mass
Marketing
Common Needs
Shared Needs
Shared Needs
Shared Needs
Shared Needs
Needs
Group
A
Needs
Group
B
Needs
Group
C
Targeted
marketing
messages
Shared Needs
Needs
Group
D
Needs
Group
E
Customized,
Templated
Offerings
Individualized
Learning
Relationships
1to1 Marketing Definition
 Discipline for the enterprise
 Engages the right INDIVIDUAL CUSTOMER
 At the right TIME
 With the right MESSAGE
 In the right WAY
 Enabled through CRM tools
 To drive more profitable revenue growth
Build a 1to1 Marketing Pilot
Define ITSM Interaction Strategy
Step 1.
ITSM
Messaging
Review
• Review
Current State
messaging
materials,
contacts,
vehicles
• Identify gaps
in marketing
and sales
materials and
messages
• Account
Selection
Step 2.
INSIGHT
• Insight
interviews with
Marketing and
Sales
 Review of all
Account related
external sources
such as, Annual
Report, Hoovers,
Audio
Broadcasts, etc.
 Identification of
all Key contacts
and types of
interaction
• Delivery of
INSIGHT
document
detailing all
relevant and key
insights from all
sources
Step 3.
FOCUS
Step 4.
PLAN
 Review INSIGHT
document with
Marketing
 Review FOCUS
document with
Marketing
 Review INSIGHT
document with
Sales
 Review FOCUS
document with
Sales
 Begin building
1to1 plan by
determining
who to focus on
and what
activities need
to surround that
interaction
 Delivery of
FOCUS
document
detailing how
marketing can
Focus their
efforts to
support Sales at
the selected
accounts
• Detail out how
to best deliver
what messages
to achieve the
focus activities
for each
individual
• Delivery of the
PLAN document
which lays out
what has to
happen to
deliver the right
message at the
right time in the
right way
Step 5.
Execute Plan
• Coordinate
activities and
timing with Sales
• Ensure baseline
measures are in
place
• Initiate
interactions
defined in PLAN
• Monitor
responses,
feedback
• Refine
communications
materials as
needed based on
feedback and
responses.
SF TEMPLATING &
PLAYBOOKS
Sales Playbook Description
 Used by sales in preparation for customer
discussions
•
Provides clearer view of customer experience in the
context of understanding addressable needs groups
in the market
•
Delivers scripts and “golden questions” to uncover
customer needs in context of your ability to meet
those needs
•
Packages relevant marketing treatments that include
optimized product & service offerings for grouping of
customer needs
Addressable Needs are Grouped in Different
Ways to Make you More Relevant to Customer
Common Needs
Increasingly Relevant and Impactful
Interactions Deepening Individual
Customer Relationship
Needs common to a large majority of customers
Differentiating Needs
Shared Needs
Group
Needs
Group
Needs
Needs shared across needs groups
Needs shared by customers are
grouped
Needs specific to one individual
customer
Individual Needs
•
•
•
•
•
Business event or trigger
Advancement in life cycle
Stated unmet need (feedback)
Relationship growth, issue
Common customer need
Delivering the Sales Playbook
Segment &
vertical plan
Customer
needs
research
Sample
account
plans
Define addressable
Needs Groups
by segment
Product /
Service
Offering
Develop Golden
Questions & Scripts
to fit customers to
defined Needs
Groups
Align
product/service offer
to meet customer
defined need
Package
marketing
collateral for
selected needs
groups
Produce Sales
Playbook
What can a 1to1 approach to CRM do
for my sales & marketing teams?
1.
Better position my company with our
customers
2.
Replace 1-to-many marketing efforts
3.
Drive additional sales
4.
Enable greater alignment between
Sales and Marketing
5.
Doesn't require any more customer
information than we have today
0%
0%
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0%
0%
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Case Study: Bentley Systems
Illustration of using customer needs
group to create templated offerings for
Sales Force Effectiveness
Bentley Systems Inc. Background
U.S. leading provider of software for
“enterprise engineering modeling”
•
•
•
Annual revenues of $175 million
300,000 professional users
Software manages architecture from design all
the way through a structure’s life cycle
 Software shares info, automates
paper trail
•
•
Core product is MicroStation
CAD program runs on PC
Shanghai World Financial Center
One of Bentley’s Business Challenges
 High market share (second in industry, saturated
market)
 Infrequent sales spikes
Revenue
Historical client
sales
 But not only did this product focus make year-toyear growth projections uncertain ... it created
numerous pitfalls
•
•
•
•
Time
Competitors could imitate MicroStation, eroding margins
If market slows, Bentley must either cut margins or costs
If market grows, competitors may create better product
Independent resellers create unstable sales environment
Bentley’s Business Solution –
Leverage What They Know About Their Customers
 Broaden product line to meet more client needs over time
 Focus on end-user needs instead of market development
•
•
•
Host industry user conferences
Defined and meet enhanced needs through better
information and data gathering, “Drip Irrigation” through
“Golden Questions”
New products and services to increase revenue from each
client
Revenue
Create sources of revenue
by meeting more of each
client’s needs
Time
Sales Playbook Supported Aligning Sales &
Marketing for Customer Growth
 Effectively shifted focus from market share development to
customer share development
• Integrated marketing in front of and behind sales and channel
partners
 Balance between corporate and sales-level customer
relationships
 Marketing delivers value to the customer-facing sales force by
helping identify needs and interactions with most valuable
customers
 Benefits are three-fold:
• A culture of trust and support that further enables the whole
company to develop deep customer relationships
• More effective prioritization of sales efforts
• Improved efficiency and relevance of marketing efforts
 Result: Alignment of sales and marketing efforts resulted in
doubling of revenue and significant decrease in costs
Templating the “Sales” Process
Bentley initially devised 11
“account use scenarios”
Needs
Group 7
 Architects focus on design Needs
Group 1
aesthetics, price, comfort... Needs
 Architectural-engineering
firms build hospitals,
factories...
Group 2
Needs
Group 3
Needs
Group 4
 Engineers put a pipeline in the
desert or a bridge across a river...
Needs
Group 8
Needs
Group 9
Needs
Group 10
Needs
Needs
Group
Group 5
11
Needs
Group 6
Using the Templates…
 Account scenarios derived from grouping of
needs without looking at past transactions
 Bentley mapped 85 products and related
services to the 11 account scenarios
•
Descriptions of environment, customer needs and
objectives of the customers within the scenario
 Account Manager and Marketing team
quickly assembled details on all appropriate
product and service “modules” mapped into
templates
 When a customer or prospect profiles into a
scenario, sales and marketing respond
together with the matching template
Bentley’s Results
 Bentley’s new revenue model
•
By moving MVCs to direct sales
using sales templates and
aligning Marketing behind Sales
•
Bentley in FY 2001 achieved
growth of 66% to $290M
standing out among software
vendors in a poor post 9/11 sales
environment
..for additional information
Lane Michel
Partner
Peppers & Rogers Group
[email protected]