crm customer relationship management rich dubose, arnold kelly, mellisa thom and ben wylie
TRANSCRIPT
CRMCustomer Relationship
Management
Rich DuBose, Arnold Kelly, Rich DuBose, Arnold Kelly, Mellisa Thom and Ben WylieMellisa Thom and Ben Wylie
Outline General elements of CRM Spending and trends CRM ROI Why some company succeed and others fail at
CRM Industry uses 12 key applications Top 5 providers of CRM Mini case studies - Square D and Graybar Argosy Gaming case study Don’ts of CRM Best practices
CRM Defined
“CRM is a technology-enabled business strategy whereby companies leverage increased customer knowledge to build profitable relationships.”(1)
CRM is first and foremost a business strategy, not merely a software package.
(1) A Strategic Framework for CRM, by Patrick Sue and Paul Morin. February 2001
Marketing
• Market Research
• Product Development
• Market Assessment
• Market & Customer Segmentation
• Product Lifecycle Management
• Product Pricing and Profitability
Sales
• Sales Automation and Management
• Customer Profiling
• Account Management
• Opportunity Management
• Product, Price, and Contract Negotiation
• Sales Alignment and Incentives
Customer Service • Customer Inquiry
• Customer product support
• Customer Information Management
• Call Center Effectiveness
• Trouble Analysis & Resolution
• Billing
• Data Warehouse Management and Decision Support• Integrated Customer Management Systems
Customer Relationship Management Solutions
Functional Elements of CRM
"Half the money I spend on advertising is wasted; the trouble is I don't know which half." John Wanamaker, the department store pioneer, stated in 1886
A CRM can greatly enhance a company’s marketing efforts in the areas of :
Market research Price planning Product development Market assessment Customer segmentation Product lifecycle
Marketing Functionality
Marketing Functionality Cont... Example: Hewlett-Packard
Previously, HP sent out mass emails to update customers on sales offers, new products, technical support, etc.
After implementing a CRM, these efforts become much more customers specific
85% of customers said they were satisfied with the content of the emails and additional revenue increase by $15M
Sales Functionality Common functions implemented:
Provide the sales force with detailed and current information, such as:
Buying preferences Pricing Inventory levels Billing information
Automate the sales processing activities (SFA).
Sales Functionality Cont...
Example: Empire Blue Cross and Blue Shield Extremely complex and highly manual sales
process 33 redundant audit checks and took
approximately 27 days On-line quote system developed Sales processing steps streamlined and
automated
Service Functionality
CRM can be used to capture such things as: Customer’s complaint history Outstanding customer services requests Billing information Customer preferences Tracking unresolved issues
Service representatives are much more prepared to service their customers
Service Functionality Cont... Example: Marriott International
Collect data on customer preferences and spending
Data shared by all Marriott Hotels nationwide
Once you check in they already know your smoking preference, which floor you prefer, any allergies, complaint history, whether you drink, etc.
Enable Enterprise-wide Information Integration
Marketing and Sales Support
Customer demographic and purchased services data.
Marketing campaign tracking and offer development
Customer and profitability data matched for service development and pricing
Attrition data for retention modeling
Customer value and preference information for customized experience.
CustomerSales Support
Front line
Phone
BranchMobile Sales
ForceInternet
Collecting and integrating data from every point in the organization will allow customer Collecting and integrating data from every point in the organization will allow customer relationship, life cycle and event information to be analyzed and driven through the relationship, life cycle and event information to be analyzed and driven through the marketing organization to the front-line, enhancing sales and retention. marketing organization to the front-line, enhancing sales and retention.
Enable Enterprise-wide Information Integration
Collecting and integrating data from every point in the organization will allow customer Collecting and integrating data from every point in the organization will allow customer relationship, life cycle and event information to be analyzed and driven through the relationship, life cycle and event information to be analyzed and driven through the marketing organization to the front-line, enhancing sales and retention. marketing organization to the front-line, enhancing sales and retention.
CustomerSales Support
Front line
Phone
BranchMobile Sales
ForceInternet
Back Office Operations
Customer relationship information and contact history available for issue resolution
Information gathering follow-up or alert messaging to front line
Rules development for value-based decisioning for all product support
Enable Enterprise-wide Information Integration
Collecting and integrating data from every point in the organization will allow customer Collecting and integrating data from every point in the organization will allow customer relationship, life cycle and event information to be analyzed and driven through the relationship, life cycle and event information to be analyzed and driven through the marketing organization to the front-line, enhancing sales and retention. marketing organization to the front-line, enhancing sales and retention.
Customer Touch Points Customer relationship data
gathering Delivery of customized
service delivery or sales offers
Customer value information available for decisions
Product information and sales process automation enables effective targeted sales efforts
Relationship and contact information allows sales reps “know” each customer
CustomerSales Support
Front line
Phone
BranchMobile Sales
ForceInternet
Based on report by Aberdeen Group entitled “Worldwide CRM Spending: Forecast and Analysis 2001 - 2005”.
-
5,000,000,000
10,000,000,000
15,000,000,000
20,000,000,000
25,000,000,000
30,000,000,000
2001 2002 2003 2004 2005
Years
Worldwide CRM Spending
Forces Driving Spending
“Only 7% of global companies have reached mature CRM deployments, indicating more spending to come.” (1)
According to Gartner Group “CRM remains one of the top three, if not number one, business priorities in 2001.”
“The average company loses 20% of their customers each year and the number is rising.” (2)
(1) Data Warehouse Institute survey. CRM is Anything but Dead CRM Industry. June 2001(2) Maximizing CRM Performance with Strategic Performance Measurement by James Brewton
Forces Driving Spending Cont... “It costs up to 10 times as much to
acquire a new customer as it does to keep an existing one.”
Reasons growth is not higher: Hard to prove ROI Expensive customization High failure rate Slow economy has force IT budgets to
tightenMaximizing CRM Performance with Strategic Performance Measurement by James Brewton
Trends in CRM
Mobile CRM (mCRM) PalmPilots, web phones, and pagers are
becoming less expensive and more widely used
Siebel and Sprint recently signed a join venture selling wireless CRM
Domestic businesses are expected to spend $74B on wireless service by 2005
Wireless CRM: Strings Attached by Marc Songini Computer World, November 2001
Trends in CRM Cont...
Netsourcing - Application Services Providers (ASPs) ASP work better in smaller organizations -
less customization CRM applications are the second largest
segment of hosting sales, led only by E-commerce applications
By 2003, Forrester predicts hosted CRM applications will account for almost $2.5 billion in revenue
The Forrester Report by Stacie S. McCullough. December 1999
CRM ROI
Source: Swift, “Accelerating Customer Relationships: Using CRM and Relationship Technologies
CRM ROI Cont… Possible Returns
Up to 10 X’s more costly to generate revenue from new customer than existing customer
5% Increase in retention rate can increase company profits by 60-100%
6 X’s more costly to service customer through a call center than via the internet
Loyal customer referrals generate business at little or no cost
Source: Swift, “Accelerating Customer Relationships: Using CRM and Relationship Technologies”
CRM ROI Cont…
InvestmentsUpfront costsTakes timeNeed to create measuring metrics
It is marketing rather than sales Switching from product focus to
customer focus
Source: Swift, “Accelerating Customer Relationships: Using CRM and Relationship Technologies”
Succeeding VS Failing
Keys to Success Managing the data Managing the customer Business process before
implementation All levels must buy in Flexibility on the company’s side Relationship vs database
Source: Rigby, Reichheld and Schefter, “Avoid the Four Perils of CRM”
Succeeding VS Failing Cont… CRM Mistakes
Implementing CRM before creating a customer strategy
Rolling out CRM before changing your organization to match
Assuming that more CRM technology is better
Stalking, not wooing, customers
Source: Rigby, Reichheld and Schefter, “Avoid the Four Perils of CRM”
BMC “Learning from Failure” BMC Software
Systems-management software provider
Based in Texas Failed Two Times Before
Succeeding
Source: Rigby, Reichheld and Schefter, “Avoid the Four Perils of CRM”
BMC’s Failures
No research No top-management involvement Software would change culture
Source: Rigby, Reichheld and Schefter, “Avoid the Four Perils of CRM”
BMC’s Successes
Recreated the strategy Communicated benefits across the
company Changed the culture not just the
process
Source: Rigby, Reichheld and Schefter, “Avoid the Four Perils of CRM”
Industry Uses
Airlines AA Aadvantage Frequent Flyer Program
Banks Barclays Realize profitability of customers
Car Rental Companies Enterprise ECARS System
Source: Swift, “Accelerating Customer Relationships: Using CRM and Relationship Technologies”
Enterprise Computer Assisted Rental System (Ecars) - introduced in 1992 now supports 1.4 million transactions logged every hour Locates cars, tracks customer preferences,
measures customer satisfaction ratings Uses Enterprise Service Quality
Index(ESQI)to measure satisfaction - compensation for management is tied to results
Enterprise uses its Automated Rental Management System (ARMS) to allow insurance companies to access rental information Allows agent to book reservations, EFT, and
reporting to support claims processing Allows electronic monitoring of repair shop
progress(CIO Magazine - Nov 2000)
Gartner’s 12 Key Application Components
Opportunity Management System (OMS)
Sales Configuration System (SCS) Partner Relationship
Management (PRM) Interactive Selling Systems(ISS)
Gartner Nov 2001
Gartner’s 12 Key Application Components
Incentive Compensation Management
Content Management E-Service Call Management
Gartner Nov 2001
Gartner’s 12 Key Application Components
Field Service and Dispatch(FS/D) Personalization Data Mart/Analytical Campaign Management System
Gartner Nov 2001
Today, for a B2B CRM application suite, three vendors can deliver features across all 12 key functionality components:
Siebel, Oracle and SAP
•Gartner Nov 2001
The scores in Figure 1 are based on vendors scoring 1 point for a 1/4 circle rating, 2 points for a 1/2 circle, 3 points for a 3/4 circle and 4 points for a full circle with 48 points equal to 100 percent. In the past year, SAP's scores improved the most, followed by Amdocs/Clarify, Siebel, PeopleSoft then Oracle (see Figure 2). Today, Gartner estimates that Siebel still provides almost twice as many features as the next closest competitors; and Siebel remains the only vendor to meet more than 50 percent of the horizontal functionality requirements for a B2B large enterprise CRM application suite.
Feature ratings are based on the current shipping versions of the following vendors' CRM suite offerings:
•Clarify eFrontOffice v.10 by Amdocs (i.e., an agreement for Amdocs to purchase Clarify CRM products from Nortel E-Business is expected to close by February 2002.)
•E.5, release 5.5 by E.piphany
•Kana iCARE by Kana
•Oracle CRM 11i v.5 by Oracle
•PeopleSoft 8 CRM by PeopleSoft
•SAP CRM 3.0 by SAP
•Siebel 2000 by Siebel Systems
•Gartner Nov 2001
North American CRO Magic Quadrant - Gartner March 1,
2002
http://www.gartner.com/reprints/ncr/104847.html
CRO stands for customer relationship optimization, and it is the alleged potential new direction for customer relationship management (CRM). "It's no longer about managing your customers," the NRF session description stated. "It's about strategically investing in customer segments that will make the most money."
http://www.computerworld.com/itresources/rcstory/
0,4167,STO67518_KEY51,00.html
Leading provider of enterprise applications that tie together customers' back-office operations
Software addresses such tasks as accounting, human resources, manufacturing, and supply chain management
Services such as consulting, maintenance, and training account for about two-thirds of sales
Customer relationship management software has rekindled licensing sales growth and helped offset a slowdown in the broader enterprise software market, but it has also exposed PeopleSoft to more direct competition with companies such as Oracle and Siebel Systems. (www.hoovers.com)
Headquarters: Headquarters: Pleasanton, CA Pleasanton, CA
2000 revenue: $1.7 2000 revenue: $1.7 billion billion
Customers: 4,600 Customers: 4,600
Employees: 8,000 Employees: 8,000 WorldwideWorldwide
World's leading provider of eBusiness applications software
Provides an integrated family of eBusiness applications software, enabling multichannel sales, marketing, and customer service systems to be deployed over the Web, in call centers, in the field, through reseller channels, and across retail and dealer networks
Sales and service facilities are located in more than 32 countries.
Founded: 1993 Founded: 1993
2001 revenue: 2001 revenue: $2.05 billion $2.05 billion
2001 net income: 2001 net income: $255 million $255 million
Employees: 7,400+Employees: 7,400+
29 Years in the Business of E-Business
10 Million Users, 44,500 Installations, 1,000 Partners, and 21 Industry Solutions.
Founded in 1972 - recognized leader in providing collaborative e-business solutions
Headquartered in Walldorf, Germany
World's largest inter-enterprise software company, and the world's third-largest independent software supplier overall
Employs over 27,800 people in more than 50 countries
2000 Sales (mil.): 2000 Sales (mil.): $5,881 $5,881 1-Yr. Sales Growth: 1-Yr. Sales Growth: 14.3% 14.3%
2000 Net Inc. (mil.): 2000 Net Inc. (mil.): $596 $596 1-Yr. Net Inc. Growth: 1-Yr. Net Inc. Growth: (1.6%) (1.6%)
2000 Employees: 2000 Employees: 24,480 24,480 1-Yr. Employee 1-Yr. Employee Growth: 12.8% Growth: 12.8%
World's leading supplier of World's leading supplier of software for information software for information management, and the world's management, and the world's second largest independent second largest independent software companysoftware company
Headquartered in Redwood Headquartered in Redwood Shores, CaliforniaShores, California
First software company to First software company to develop and deploy 100 percent develop and deploy 100 percent Internet-enabled enterprise Internet-enabled enterprise software across its entire product software across its entire product line: database, server, enterprise line: database, server, enterprise business applications, and business applications, and application development, and application development, and decision support tools. decision support tools.
2001 Sales (mil.): $10,860 1-Yr. Sales Growth: 7.2%
2001 Net Inc. (mil.): $2,561 1-Yr. Net Inc. Growth: (59.3%)
2001 Employees: 42,927 1-Yr. Employee Growth: 3.9%
(CVG) is a provider of outsourced billing and customer management solutions, which encompass activities such as targeting, acquiring, serving and retaining customers on behalf of its clients.
Employees:Employees: 46,000 46,000
Market Cap (Mil) $ :Market Cap (Mil) $ : 5,155.2265,155.226
Complete Financials:Complete Financials: Dec Dec 20012001Updated:Updated: 04/05/2002 04/05/2002
Revenues For the FY ended Revenues For the FY ended 12/31/0112/31/01, , increased 6% to increased 6% to $2.32B. $2.32B.
Net incomeNet income decreased 27% to decreased 27% to $138.8M$138.8M..
Began in 1902 , is a market-leading supplier of electrical distribution, industrial control and automation products
A new safety switch with the company's new logo, a "D" (for Detroit) inside a square became the industry standard and many customers began asking for "the square D switches." The trademark was developed in 1915 and the name Square D Company was formally adopted in 1917. To this day, Square D is one of the few companies ever named by its customers.
On May 24, 1991, Square D Company merged with Schneider Electric of Paris, France the world's leading manufacturer of electrical distribution and industrial control and automation products and systems, and the only manufacturer dedicated to the distribution and control of electricity.
(www.squared.com)
Information Technology Web server-enabled equipment for the plant floor
Equipment, including power monitors and PLCs, can automatically alert plant officials to emerging problems by audible alarm or e-mail
Built-in server technology allows plant personnel to remotely monitor, diagnose and correct equipment problems and remotely change set points
E-Way Online quote and order management system for distributor network Check pricing, stock availability, and obtain shipping information
Digest Plus Selector Online product selection with more than 66,000 part numbers Search an electronic version of Square D's catalog based on the
electrical characteristics of the application Generates a bill of materials to send to the distributor of choice for
pricing and ordering
(http://www.controleng.com/archives/news/2000/july/gm0720a.htm)
An employee Intranet Powered by an Infoseek Corp. search engine. The site includes
everything from employee telephone directories to spec-writing tools and news on customer-segment marketing activities. Employees can access the site remotely
Customer Information Center Uses sophisticated customer relationship management (CRM)
technology to give technicians instant access to a complete customer history, and knowledge management and case management tools to access a database of technical solutions to almost any question
Links customer service representatives and technical experts around the country in a virtual technical support center through Soft Phone technology from Lucent.
Extended nationwide in late 1999, the CIC now answers more than 13,000 calls each week from customers, distributors and employees.
(http://www.controleng.com/archives/news/2000/july/gm0720a.htm)
Information Technology
Began in 1993, after Schneider Electric acquisition Reorganized the company’s three basic business units
around customer segments - Industrial, Residential, Construction, and OEM
Only after internal systems were refocused on the customer did Square D start using high-tech applications to upgrade its customer-facing processes
According to Chris Curtis, VP of US marketing, managers were taken out of their line jobs for months at a time to understand issues involved in implementing the software
In 1996, $75 million was invested in an order-management system that let sales engineers create proposals for customers based on what the factory floor could deliver
(Harvard Business Review - Feb 2002)
Successful CRM Implementation
•World leader in collaborative (CRM) solutions that increase customer revenue, profitability, and customer loyalty
•Transformed how organizations support their customers, partners and associates at more than 500 organizations representing over 100,000 users.
•Relavis eBusinessStreams - CRM automation that allows an organization to efficiently and effectively interact with their customers, prospects, partners and internal associates
•Received the 2001 IBM Beacon award for "Greatest Business Impact," and the 2001 Lotus Beacon Award for "Best eBusiness CRM Solution." Relavis is honored to have won the Beacon Award seven times
(www.relavis.com)
"A tremendous benefit from using OverQuota is that we are able to use existing infrastructure for workflow communications. We have been using Lotus Notes in our worldwide operations since 1998," said Lee Chong Leong, telecommunications manager, Asia Pacific, Schneider-Electric.
In 2001 Graybar selected the mySAP.com(R) e-business platform to run its business systems applications
One of the largest ERP projects in U.S. industry Will deploy the entire suite of mySAP.com
solutions including mySAP(TM) Customer Relationship Management mySAP(TM) Supply Chain Management mySAP(TM) Human Resources mySAP(TM)Enterprise Portals mySAP(TM) Business Intelligence
Graybar’s new platform will run on IBM hardware DeLoitte Consulting is assisting in implementation
A Fortune 500 service provider of wholesale distribution of electrical and comm/data equipment and integrated supply services
Serves contractors, industrial plants, telephone companies, power utilities and commercial users
One of the largest employee-owned companies in the US, with approximately 9,500 employees and 275 stocking locations
In business 131 years Annual sales in 2001 - $4.7 billion
Graybar plans to go live with “just a sliver of mySAP CRM,” Graybar VP Beatty D'Alessandro told CRMDaily. “We were advised by our implementation partner, SAP and other companies in our industry that CRM implementations can be a bear.”
"We seriously considered both companies," (Siebel) Beatty D'Alessandro, vice president IT strategy for Graybar Electric, told CRMDaily.com. "But in the final analysis we bought the whole mySAP suite."
D'alessandro added: "Our feeling was that a completely integrated solution was preferable to a bolt-on (CRM) strategy."
Another consideration, he added, was that SAP appeared to be committing a significant amount of corporate resources to its CRM product.
"So, in whatever areas there were perceived inequities between SAP and Siebel, it was clear to us that SAP was spending the money to catch up with Siebel," D'Alessandro said.
(http://www.crmdaily.com/perl/story/16309.html)
Company OverviewCompany OverviewCEO: James PerryCEO: James PerryRevenue: $595 MillionRevenue: $595 MillionStock: NYSE Symbol-AGY Stock: NYSE Symbol-AGY
$40.65$40.65Employees:4,900Employees:4,900
Source: www.argosycasinos.com
Current System
Player Tracking System Built primarily as accounting/slot
system, not marketing Only provide us with transactional
data Not customer centric, slot machine is
center of universe Not flexible
Difficult ad-hoc queriesSource: Argosy Marketing Report
2001
CRM Strategy
Use knowledge of customers profiles
to develop offers and programs
which appeal to our most
profitable customersSource: Argosy Marketing Report
2001
How Argosy’s Goal was Defined Committee
Property Operating Committees Executive Committee Legal Staff Marketing Staff MIS Staff (including IT Supplier
Representation)Source: Interview with Jeff Poure, Argosy Gaming Co. MIS
Director
Argosy Partners with NCR Terradata for CRM Development
Why NCR? “Value Added Supplier”
Harrahs (1998) Application Server Evaluation Model
(ADEM) Evaluates IT Supplier on the basis of
Technology, Market Momentum, Best Practice, & Database
NCR won Technology & Database, and was second in Best Practices – Overall highest scoreSource: Interview with Jeff Poure, Argosy Gaming Co. MIS
Director
CRM Application Scope
7,724 Hours (3+ Man years) Only NCR Applications and Database
Developers time Estimated Cost = $849,640
Not including Software Licenses or Servers
Two new full time MIS positionsSource: Interview with Jeff Poure, Argosy Gaming Co. MIS
Director
CRM Application Operation Data collection during registration
– Data Card Player Data
Name Address SSN License No Age And More! Source: Interview with Jeff Poure, Argosy Gaming Co. MIS
Director
CRM Application Operation Data collection during the visit
Wins / Losses Tables vs. Slots
Preferences / History Restaurants Smoking vs. Non-Smoking Magazines
Source: Interview with Jeff Poure, Argosy Gaming Co. MIS Director
CRM Application Operation•Prior to CRM Application
•Archaic Marketing campaigns based on recent nature of ones visit
Group A(280+) Group B(200-279) Group C(130-199)Number of Patrons Mailed To 5,821 4,144 8,205Number of Patron Coupons 1,973 1,140 1,511
Mail Response Rate 34% 28% 18%
Slot Patrons 1,537 979 1,301Table Patrons 419 177 202Total Patrons 1,956 1,156 1,503
Casino Revenue $736,376 $218,550 $205,715Win Per Patron $373 $192 $136
Source: Argosy Marketing Report 2001
CRM Application Operation•Allows a more granular view at customers
•Greater Market Segmentation to identify most profitable customers
•Redirect Resources away from marginal customersFemale Unknown Male Female Unknown Total Total
Age Total Male Female Unknown Male Slot Slot Slot Table Table Table Slot Table21-24 835 405 417 13 179 311 7 226 106 6 497 33825-29 852 423 409 20 191 277 6 232 112 14 494 35830-34 934 449 467 18 219 326 12 230 141 6 557 37735-39 966 448 496 22 261 377 15 187 119 7 653 31340-44 1,043 446 561 36 290 438 20 156 123 16 748 29545-49 1,004 403 573 28 254 446 18 149 127 10 718 28650-54 958 391 540 27 261 395 20 130 145 7 676 28355-59 708 285 403 20 174 298 18 111 105 6 486 22260-64 520 216 291 13 137 215 20 79 76 3 362 15865+ 1,060 399 624 37 209 321 14 190 303 9 558 502
TOTAL 8880 3865 4781 234 2175 3404 150 1690 1357 84 5749 3132
Source: Argosy Marketing Report 2001
CRM Application Operation Better understanding of Customers and Revenue Sources Customer Lifetime Value = CONFIDENTIAL Identification of most profitable customers
40 to 50 + Years Old with disposable income and time – retirement age
Average player spends $25-$30 a time and comes frequently, at least once a week…seeking social setting
80 percent of Argosy’s Revenue comes from slot machines
Source: Argosy Marketing Report 2001
CRM Application Operation Rewards Programs
Customized for individual market segments
Right Offer, Right Customer, Right Time, Right Decision
Targeted mailings
Based of points Incentive Programs
Source: Argosy Marketing Report 2001
Implementation Argosy is implementing CRM
Package in two phases Phase I – June 4, 2001 to October 4,
2001 Phase II – October 5, 2001 – June 8,
2002
Source: Interview with Jeff Poure, Argosy Gaming Co. MIS Director
October 2001,Lawrenceburg, IN
February 2002,Sioux City, IA
March 2002,Alton, IL
December 2001,Riverside, KS
March 2002,Baton Rouge, LA
Property Implementation TimelinePhase I
Source: Interview with Jeff Poure, Argosy Gaming Co. MIS Director
Implementation Phase I Criteria for Success
Have increased ability to view, analyze and act upon detail player data down to the transaction level by individual player, player segments or groupings.
Develop and agree to a methodology and calculation for the “Lifetime Value” of a player.
Have the ability to analyze and evaluate Argosy customers’ hotel, restaurant, entertainment, and offer preferences at the customer level.
Source: Interview with Jeff Poure, Argosy Gaming Co. MIS Director
Implementation Phase I Criteria for Success - cont.
Capture and maintain customers’ needs and preferences for the purpose of determining offers/programs, which will appeal to out most profitable customers.
Increase analytical capabilities to drive more complex segmentation and communication strategies for the purpose of increasing customer trips/rate-of-pay, frequency of visits, and for finding new/profitable opportunities.
Ability to have a unified/consistent customer reward program across the enterprise.
Source: Interview with Jeff Poure, Argosy Gaming Co. MIS Director
Is Phase I a Success?“Yes, this phase has been considered a success. It(the
CRM package) has given us the ability to more efficiently identify our key customers, anticipate their needs and respond to them quickly.”
“…the application has allowed us to better serve our customers”
“…give us the ability to improve customer retention”
-Jeff Poure, MIS Director
Don’ts of CRM
Data is ignored Politics rule IS organization and business users
do not work together No plan exists CRM is implemented for the
enterprise, not the customer
Source: Gartner, “Seven Key Reasons Why CRM Fails – And How to Avoid Them”
Don’ts of CRM Cont…
Flawed process is automated No attention is paid to skill sets
Source: Gartner, “Seven Key Reasons Why CRM Fails – And How to Avoid Them”
CRM Best Practices
Customer Involvement Involve the correct sources early to develop
CRM Strategy Understanding of Information Technologies
place CRM Organizational Culture Incremental Implementation
CRM Best Practices consists of the following:
CRM Best Practice
Focus Groups Prior to, during, and after CRM implementation
Customer Survey If Feedback being passed to Top Management is
being acted on, then change will happen Concentrate on your customer Lifecycle value
Which Customers repay investment? Which Customers just take up resources and should
be considered competitors? Segmentation Analysis
Customer Involvement
Source: www.CRM-forum.com
CRM Best Practices
Marketing Provide means of determining our
customers? Business Strategists
What are our organizational goals (i.e. growth)?
Involve the “Right” People
Source: www.CRM-forum.com
CRM Best Practices
“Value-Added” IT Suppliers (If required) Practical experience in CRM CRM experience in same/similar industry
Can provide knowledge of CRM application(s) to allow Marketing and Business strategists to evaluate the opportunities
To often companies allow technology vendors to dictate the manner they manage customers because the vendor has implemented CRM CRM is to be customized, not for software but for
strategy
Involve the “Right” People
Source: “Avoid the Four Perils of CRM,” Darrell K. Rigby, Frederick F. Reichheld, Phil Schefter; Harvard Business Review, Feb 2002
CRM Best Practices
Involve TOP MANAGEMENT from the start For CRM to be successful, Top Management must…
Clearly communicate a vision for the future of the organization that indicates the benefits of CRM
The will power to make CRM work across functional boundaries
Without Top Management participation or a Strong Top Management A common result is that a strong-willed committee
member will shape the final implementation that will address their desires and not the organizations as a whole
Involve the “Right” People
Source: “Avoid the Four Perils of CRM,” Darrell K. Rigby, Frederick F. Reichheld, Phil Schefter; Harvard Business Review, Feb 2002
CRM Best Practices
Should not expect to be able to implement CRM in one major undertaking Implement CRM in increments
Each Increment should have…• Its own business case• Measures of success• Evaluation of how customers perceive the results
of this step
Implementation
Source: www.CRM-forum.com
CRM Best Practices While Top Management successful within
ones organization, employees make CRM successful with your customers Companies serious about CRM tie employee
incentives to customer indicators such as retention and satisfaction. The more serious a firm is about CRM, the sooner they will adjust the compensation plan.
No less than 100 percent user buy in is acceptable..
Source: www.CRM-forum.com
Conclusion
Expect a continuing evolution of CRM As it evolves, customers will become more and
more familiar with what it can do for them If we an organization adopts CRM they must
understand that the strategy will not be delivered by IT alone
The primary CRM objective is to improve the interface between an organization and its’ clients. In doing so, for a CRM initiative to be successful substantial re-organization of the organization dealing with customers may occur
What must we understand?
Source: www.CRM-forum.com