Chapter Six Chapter Six Integrating Processes to Build Relationships: Customer Relationship Management www.ebstrategy. com 2 - © e-Business Strategies, Inc. Introduction Introduction Customer dissatisfaction with service widespread – Expectations of customers higher than ever – “Does your company deserve my patronage and loyalty?” – Starting point today: What was exceptional yesterday Organizations with long-standing customer bases find they lack the info and data to make good service decisions – 90% companies don’t have sales and service integration Companies must view their service encounter through the eyes of their customers – To maintain ongoing relationships strong – Acquisition and selling costs of new customer very high – Dissatisfied customers primarily due to lack of customer service – 70% of complaining customers will do business again if their complaint quickly addressed www.ebstrategy. com 3 - © e-Business Strategies, Inc. The Basics of CRM The Basics of CRM Timely delivery of excellent service Combination of business process and technology When competition is fierce, companies go back to basics: create value for customer Execs must ask – Can their companies’ infrastructures allow value creation? – Can their companies’ existing CRM infrastructures support doing business in the e-world Only by integrating sales and service infrastructure with all aspects of operations can management see change in customer relationships www.ebstrategy. com 4 - © e-Business Strategies, Inc. Top Demand Drivers in CRM Verticals Top Demand Drivers in CRM Verticals Telecommunications – Primary CRM applications include: – Multi-channel contact centers – Business intelligence – Customer data integration and analysis – Web-based billing systems – Marketing automation/campaign management systems – Mobile CRM Banking and Financial Services – Primary CRM applications include: – Profitability analysis – Target marketing – Data mining – Product personalization Source: Gartner Group, 2001 www.ebstrategy. com 5 - © e-Business Strategies, Inc. Top Demand Drivers in CRM Verticals Top Demand Drivers in CRM Verticals Retail – Primary CRM applications use e- commerce transaction and point-of-sale data to drive: – One-to-one marketing – Cross selling – Personalized content management and merchandizing Source: Gartner Group, 2001 Few retailers are providing improved interaction but many customers are demanding it --- this is an opportunity for companies to distinguish themselves. www.ebstrategy. com © e-Business Strategies, Inc. Strategic Business Drivers Strategic Business Drivers Are these “hot buttons” that influence your business? – Customer-driven businesses – 360-degree customer view – Personalization/one-to-one marketing – Complex and more diverse channels – Automated sales – Shrinking margins due to product commoditization – Scattered global customers These are strategic level questions aimed at CxO and other senior level executives to uncover CRM opportunities. www.ebstrategy. com 7 - © e-Business Strategies, Inc. Strategic Business Drivers Strategic Business Drivers This chapter – Clarify the concept of multi-channel organization – Discuss apps supporting customer-focused business model – Discuss how marketing practices and systems must be reworked to support ecommerce environment Service levels on the Web today often leave a lot to be desired. As buyers jump from site to site -- only to ultimately abandon the shopping cart without buying anything from anyone -- revenues slip away. www.ebstrategy. com 8 - © e-Business Strategies, Inc. Defining CRM Defining CRM Integrated sales, marketing, and service strategy – precludes lone showmanship – depends on coordinated enterprise-wide actions CRM software suite – Helps better manage customer relationships by tracking customer interactions of all types – Automates selling and customer service cycle • direct-mail marketing campaigns, telemarketing, telesales, lead qualification, response mgmt, lead tracking, opportunity mgmt, quotes and order configuration www.ebstrategy. com 9 - © e-Business Strategies, Inc. Defining CRM Defining CRM Business Goals – Using existing relationships to grow revenue – Using integrated information for excellent service – Introducing consistent, replicable channel processes and procedures CRM is an integrated framework and strategy, not product www.ebstrategy. com 10 - © e-Business Strategies, Inc. Managing the Customer Life Cycle: Managing the Customer Life Cycle: The Three Phases of CRM The Three Phases of CRM Differentiation • Innovation • Convenience Acquire E n h a n c e R e t a i n Bundling • Reduce Cost • Customer Service Adaptability • Listening • New Products Metrics • Direct and indirect sales • Customer service improvements Metrics •Tangible and intangible benefits •Brand equity gains Metrics • Lifetime value • Share of wallet [...]... prefer to be contacted? Are you prepared to support your customers if your customer base doubles? Is your sales force prepared to scale effectively as growth occurs? © e-Business Strategies, E-Business Strategies, Inc www.ebstrategy.com contact@ebstrategy.com 67 8-3 3 9-1 2 36 x201 Fax - 67 8-3 3 9-9 793 ... Shoppers is very challenging-requires highlevels of coordination! © e-Business Strategies, Primary Reasons for Tri-Channel Shopper Displeasure •Late delivery •Poor product information •Product out-of stock •Product misrepresentation •Website performance issues •High shipping and handling charges How can CRM applications help address these issues? © e-Business Strategies, Roadmap for Managers • Involve top... readiness © e-Business Strategies, Roadmap for Managers • Evaluate appropriate applications with an uncompromising focus on ease of doing business • Identify and target quick wins • Put ownership of the end-to-end project in the hands of a single manager • Implement in stages • Be sure to create a closed-loop CRM environment • Create concrete measurement goals © e-Business Strategies, Roadmap for Managers... multi-channel shoppers The role of the catalog has never been more important (Sears recently bought Lands-End) Analytical CRM Segmentation and personalization capabilities are becoming more critical © e-Business Strategies, Multi-Channel Shopper Profiles Store Online + Store Store + Catalog Catalog Online Online + Catalog • Tri-Channel Shoppers are demanding (well-informed) consumers; • Servicing Tri-Channel... care – Call centers • Automated transaction management capabilities • Personalization and one-to-one marketing • Customer analytics and business intelligence • Field sales automation © e-Business Strategies, Portfolio of CRM Process Competencies Customer Service and Billing Sales Cross-sell Up-sell TeleSales © e-Business Strategies, ail r Em to ec er p os m Pr usto C Telephone Field Sales and Service... integration of website and call center 42% of top-ranked Web sites took longer than five days to reply to customer emails or never replied at all Source: Cisco Systems © e-Business Strategies, Next Generation CRM Trends Customer CRM portals, sales force ASPs, and hosted applications © e-Business Strategies, Web Partners Marketing Billing Sales Cross-sell Up-sell TeleSales E Mailrs W eb a il or Em ct pe... architecture © e-Business Strategies, The New CRM Architecture: Organizing around the Customer Customer Lifecycle Partial Functional Solutions Acquire { Complete Integrated Solutions Direct Marketing Enhance Cross-Sell & Up-Sell Sales Force Automation Retain Proactive Service Customer Support Integrated CRM Applications Cross-Functional Processes Breaking Down Departmental Walls © e-Business Strategies,... equipped with the information they need to understand your customers’ preferences, needs and interests? How effective are your marketing efforts compared to your competitors? © e-Business Strategies, Tell Us More Are your product life cycles shrinking and are you getting new products to market faster? Can you provide real-time customer data to your sales force? Have you found a cost-effective method... Obtaining information that can be shared with business partners © e-Business Strategies, Measuring Success or ROI • Accelerated revenue growth • Fewer product returns • Increased sales conversion per sales channel (the ratio of leads to customer sales) • Reduced cost per customer order • Increased profit per sales person • Reduced technical support time © e-Business Strategies, CRM Assessment – Gather Information... chain and fulfillment integration © e-Business Strategies, A Analytical Operational O Collaborative C Integration Requirements of Next Gen CRM Infrastructure Closed loop CRM infrastructure must integrate – Customer content – Customer contact information – End-to-end business processes – The extended enterprise or partners – Systems Less than 2% of companies provide on-demand crosschannel integration of . com 15 - © e-Business Strategies, Inc. How it Fits Together How it Fits Together Source: Microsoft Corporation, 20 00 www.ebstrategy. com 16 - © e-Business. to site -- only to ultimately abandon the shopping cart without buying anything from anyone -- revenues slip away. www.ebstrategy. com 8 - © e-Business