crm backwards
DESCRIPTION
CRM is almost always done wrong.Customers vote with their feet and wallets. The absence of describing and designing the best customer outcome has been the fatal flaw of most, if not all, CRM initiatives. Customer relationship management has a forty percent to seventy plus percent project failure rate as reported by major technology analysts firms and business consultants whom have interviewed executive management, IT and system end users. If you ask customers, the failure rate is even higher as customer dissatisfaction ratings climb and customer outrage grows. Customers have become less loyal and more vocal as they spread their disapproval across all media channels from web site reviews, FaceBook slams, product and company review sites. CRM should be built backwards. Define what you want the customer experience to be. Inventory every contact and quantify and the best business outcome. Then script best customer contact across each company contact, system, function and process.TRANSCRIPT
Get Customer Worthy @ Amazon.com
CRM Backwards
What you need to know before you spend another cent on CRM
2010 All rights reserved. ClientXClient 908.350.3012 [email protected]
© 2002. All rights reserved. ClientXClient Inc.Get Customer Worthy @ Amazon.comGet Customer Worthy @ Amazon.com
Every contact matters…
…especially to customers.
2010 All rights reserved. ClientXClient 908.350.3012 [email protected]
© 2002. All rights reserved. ClientXClient Inc.Get Customer Worthy @ Amazon.comGet Customer Worthy @ Amazon.com
Customers measure contacts differently then companies
2010 All rights reserved. ClientXClient 908.350.3012 [email protected]
© 2002. All rights reserved. ClientXClient Inc.Get Customer Worthy @ Amazon.comGet Customer Worthy @ Amazon.com
How Your Customer Measures CRM
Michael Hoffman Investment My Cell Phone Company (rhymes with horizon)
20 minutes preparation20 minutes online20 minutes on hold 20 minutes call hold time = Free11 Minutes Customer Service Rep Interaction Time
11 minutes Customer Service Talk Time
My time @ 3.00 minute Call time @ $0.45 minuteX 71 Minutes Me, The Customer Cost = $210 Wireless Phone Company Cost: $4.95 @ $50 hr = 59.16 @ $10 hr = 11.43
Final Resolution 6 Month CostX 551 Minutes 120 minutes @
$54Me, The Customer Cost = $1,653 Wireless Phone Company Cost: $54
Monetize this:
From Preface, Page XII, Customer Worthy, Why and how everyone in your organization must Think Like a Customer, Michael R Hoffman, Paramount Publishing 2010
The Customer Revolution Starts While Your Customer is on “Hold”
2010 All rights reserved. ClientXClient 908.350.3012 [email protected]
© 2002. All rights reserved. ClientXClient Inc.Get Customer Worthy @ Amazon.comGet Customer Worthy @ Amazon.com
It’s coming…Consider your company warned
CustomerPayback.com a social network for customer self-monetization, Live April 2010
2010 All rights reserved. ClientXClient 908.350.3012 [email protected]
© 2002. All rights reserved. ClientXClient Inc.Get Customer Worthy @ Amazon.comGet Customer Worthy @ Amazon.com
For customers, every contactis part of customer relationship management
=
2010 All rights reserved. ClientXClient 908.350.3012 [email protected]
Customers invest across theentire customer cycle
2010 All rights reserved. ClientXClient 908.350.3012 [email protected]
Yes, every contact has at least twocosts: company $ + customer $
And every contact has potential revenue…2010 All rights reserved. ClientXClient 908.350.3012 [email protected]
© 2002. All rights reserved. ClientXClient Inc.Get Customer Worthy @ Amazon.comGet Customer Worthy @ Amazon.com
So CRM is Everyone’s Job
2010 All rights reserved. ClientXClient 908.350.3012 [email protected]
© 2002. All rights reserved. ClientXClient Inc.Get Customer Worthy @ Amazon.comGet Customer Worthy @ Amazon.com
Figure 12.4 CxC Matrix Systems Include (sample list)Customer Worthy, pg. 151
AccountingAdvertisingBusiness intelligenceBusiness performancemanagementBusiness process managementCall routingCare center inboundCompensationContact managementContent managementCost accountingCredit authorizationCredit modelingCRM (customer relationshipmanagement)Customer serviceCustomer surveyData matchingDevice designDevice managementDigital asset management
SecuritySelf serviceSelf service kioskSelf service mobileSelf service phoneSelf service webShippingSocial mediaStatisticsSubscription managementSupply chain managementTelephonyText to voiceVoice to textWeb analyticsWeb chatWeb hostingWeb presentationWeb securityWork flow
Direct marketingDistributionEmail hostingEmail managementEnterprise marketingmanagementERP (enterprise resourceprocess management)Financial reportingFraud detectionFulfillmentGame managementGeneral ledgerInbound telemarketingIntegrated communicationsInventoryIt operationsLead managementLicensingList managementLocation securityLogistics
MaintenanceMarketing automationMaster data managementModelingNetwork designOffer managementOrder managementOutbound telemarketingPackagingPartner managementPerformance managementPerformance reportingPoint of salePoint-of-purchasePredictive modelingPrintingPublic relationsQuality systemsResource managementReturns processingReverse logistics salesAutomation
…and CRM is “in” Every System
2010 All rights reserved. ClientXClient 908.350.3012 [email protected]
But companies don’t understand CRM
Cost focus hereenflames customerrage
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© 2002. All rights reserved. ClientXClient Inc.Get Customer Worthy @ Amazon.comGet Customer Worthy @ Amazon.com
Companies would “get it” if they monetized every contact
2010 All rights reserved. ClientXClient 908.350.3012 [email protected]
© 2002. All rights reserved. ClientXClient Inc.Get Customer Worthy @ Amazon.comGet Customer Worthy @ Amazon.com
CRM must incorporate customer experience transparency
From Thinkmap®, Visual Thesaurus®
2010 All rights reserved. ClientXClient 908.350.3012 [email protected]
© 2002. All rights reserved. ClientXClient Inc.Get Customer Worthy @ Amazon.comGet Customer Worthy @ Amazon.com
CRM Backwards Summary
• Majority of CRM designs fatally flawed due to lack of focus on customer impact
• Unmeasured expense-to-customer is business & competitive handicap
• Unrealized revenue per contact is enormous • Customers should be focus of system, function, process
integration • Customer experience as described in CxC Matrix quickly
quantifies potential cost savings and revenue opportunities (see next 2 slides; more clarification in Customer Worthy (book) and at Customer Worthy.com)
2010 All rights reserved. ClientXClient 908.350.3012 [email protected]
© 2002. All rights reserved. ClientXClient Inc.Get Customer Worthy @ Amazon.comGet Customer Worthy @ Amazon.com
Start broad
Macro CxC Matrix build in 1 week
2010 All rights reserved. ClientXClient 908.350.3012 [email protected]
© 2002. All rights reserved. ClientXClient Inc.Get Customer Worthy @ Amazon.comGet Customer Worthy @ Amazon.com
Identify & monetize cellscritical to business objective
Prioritize budget, projects based on monetization
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2010 All rights reserved. ClientXClient 908.350.3012 [email protected]
© 2002. All rights reserved. ClientXClient Inc.Get Customer Worthy @ Amazon.comGet Customer Worthy @ Amazon.com
Thank You!
Michael R. Hoffman, 908.542.1134CLIENT x CLIENTclientxclient.com
Think Like a Customer!
CRM & Marketing for the next 10 years.
2010 All rights reserved. ClientXClient 908.350.3012 [email protected]