gruppo aster
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TLS Summit, LA Customer Centricity SummitTRANSCRIPT
© 2009 Aster Group – Confidential and Proprietary
From Dealership to CRM Leadership Managing Customer Equity
Dr. Domenico Greco, MKTG Director Aster Group
June 17, 2009
Confidential and Proprietary
From Dealership to CRM Leadership Managing Customer Equity
June 17, 2009 © 2009 Aster Group – Confidential and Proprietary
« Corporate Overview « Key Business Challenges « Challenges to Drive Customer Relationship Management (CRM) Strategy
« Aster Group vs. Italian Benchmark: Sales/Services Market Share
« Strategic Vision « Customer Knowledge Management = Opportunity
« Tactical Approach To Implementation « Aster Group Results « Future Plans
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Outline
Challenges to Drive Customer Relationship Management (CRM)
Aster Group vs. Italian Benchmark: Sales/Services Market Share
Customer Knowledge Management = Opportunity
Tactical Approach To Implementation
June 17, 2009 © 2009 Aster Group – Confidential and Proprietary
Corporate Overview
« Aster Group founded In 2000 « Located In Cosenza, Italy (Southern Part of Italy) « Brands « Audi, Volkswagen (VW), Seat, Skoka, and Toyota
« 1 st CRM Project (Italy) « VW Dealership
1983 Start Start • Traditional Dealership Business Model • Key Brands Portfolio Enrollment
1998/2000 Change Change Management Management • Change Vision/ Mission/ Governance • Strategy • Investment • New Brands
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Corporate Overview
Aster Group founded In 2000 Located In Cosenza, Italy (Southern Part of Italy)
Audi, Volkswagen (VW), Seat,
1998/2000 Change Change Management Management Change Vision/ Mission/ Governance Strategy Investment New Brands
2000/2006 CRM Strategy CRM Strategy • New Technology Assets, Hardware, Software • Multi Service Center • CRM System • Customer Care Office
Today CRM CRM Leadership Leadership • Competitive Advantage Based on Knowledge • Expertise in CRM and HR • IT Partners Specialized • Commercial Partners • CRM Projects with Partners
June 17, 2009 © 2009 Aster Group – Confidential and Proprietary
Key Business Challenges ‘Lateral Thinking’ *
« Performance – Selling Services « Driving Business Areas to Hit Key Performance Indicators (KPI) Metrics to Sell Services § Services Towards the ‘Car’
« Competitive Positioning « Gaining A Stronger Competitive Position § Value Proposition Is Services
« Corporate Growth « Adding New Collateral/Growing A Multitude of Profitable Businesses
« Financials « Finding A Better Economical and Financial Balance § Less Focus On Just Selling A Car
* * “ ‘Lateral thinking’ “ ‘Lateral thinking’ is concerned not with playing with the existing pieces but
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Key Business Challenges ‘Lateral Thinking’ *
Selling Services Business Areas to Hit Key Performance Indicators (KPI)
‘Car’ and the ‘Driver’ – Individual Mobility
A Stronger Competitive Position Value Proposition Is Servicesbased
New Collateral/Growing A Multitude of Profitable Businesses
A Better Economical and Financial Balance Less Focus On Just Selling A Car
is concerned not with playing with the existing pieces but with seeking to change those very pieces with seeking to change those very pieces…” Edward de Bono
June 17, 2009 © 2009 Aster Group – Confidential and Proprietary
Car Service Market (2008) Italian Benchmark
« Base: 56 Service Operations « In the last 12 months, there have been 8.29%, on average, service operations performed, for a single car
Circulating Park
30,697,317
Average Operations, per Car
8.29%
Total Operations (In 2008)
254,359,428
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Car Service Market (2008) Italian Benchmark
Base: 56 Service Operations In the last 12 months, there have been 8.29%, on average, service operations performed, for a single car
Circulating Park
30,697,317
Average Operations, per Car
8.29%
Total Operations (In 2008)
254,359,428
Data 2008 by
June 17, 2009 © 2009 Aster Group – Confidential and Proprietary
Services Market Share (2008) Italian Benchmark
GDO = IAM = OES =
+1.0%
0.5%
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Services Market Share (2008) Italian Benchmark
Data 2008 by +1.5%
+2.3%
+1.0%
0.3%
0.1%
1.0%
0.5%
0.5% 0.5%
+1.1%
June 17, 2009 © 2009 Aster Group – Confidential and Proprietary
Age of Car Market Share Italian Benchmark
« Average Time of Car Substitution is « Less than 20% of Those Drivers Frequently Visit the Dealership
After sales services MKT Share for age of car profiles
1 2 3 Old
MKT
Share
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
48%
38%
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Age of Car Market Share Italian Benchmark
Average Time of Car Substitution is 56 years of Those Drivers Frequently Visit the Dealership
After sales services MKT Share for age of car profiles
4 5 6 7+ Old age of car
26%
19% 17% 19%
8%
Data 2006 by
June 17, 2009 © 2009 Aster Group – Confidential and Proprietary
Business Decision Making Questions Driving the CRM Strategy
« How do we retain retain our Customer market? « Dealers are losing Marketing (MKTG) share and customers year by year
« How do we increase increase the Customer Lifetime Value (CLTV) for both car sales and car services?
« How do we add add new services to the core business? « How do we implement effective implement effective « How do we acquire acquire new Customers by selling services?
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Business Decision Making Questions Driving the CRM Strategy
our Customerbase in the car services
Dealers are losing Marketing (MKTG) share and customers year
the Customer Lifetime Value (CLTV) car services?
new services to the core business? implement effective implement effective crossselling processes?
new Customers by selling services?
June 17, 2009 © 2009 Aster Group – Confidential and Proprietary
Strategic Vision
« Customer Relationship = Services Opportunity « Focus On Customer Equity Management « Build a Competitive Strategy Based on Three Strategic Goals
Positioning Services based
Customer Equity Management
New Customer Logistic
Oriented
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Strategic Vision
Customer Relationship = Services Opportunity On Customer Equity Management a Competitive Strategy Based on Three Strategic Goals
Positioning Services based
New Customer Services
Oriented Customer Driven Organization and
Processes
June 17, 2009 © 2009 Aster Group – Confidential and Proprietary
Customer Knowledge Management
« Customer Profile Attributes « Attended Cash Flow « Potential Value (High) « Loyalty « Lifetime Value (LFTV) State
« Customer Profile Attributes Drive Both Outbound Processes, For Any Customer
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Tactics Customer Knowledge Management
Customer Profile Attributes
Attributes Drive Both Inbound and Processes, For Any Customer
June 17, 2009 © 2009 Aster Group – Confidential and Proprietary
Customer Profiling Example Potential Value and Loyalty
« The Aster Group CRM provides the capability to profile customers based on potential value
Loyalty
Potential Value
Σ of Loyalty, Per Value
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Customer Profiling Example Potential Value and Loyalty
The Aster Group CRM provides the capability to profile potential value and loyalty
Loyalty
Σ of Value, Per Loyalty
Priority
June 17, 2009 © 2009 Aster Group – Confidential and Proprietary
Tactical MKTG Approaches Examples In Driving the MKTG Mix
« Value Proposition Differentiation « By Customer Profiling
« Customer Benefits Differentiation « For Different Loyalty Value Levels
«MKTG Budget and Methods Differentiation « For Different Customer Value Profiles
«MKTG OtoO* Campaign Objectives Differentiation « Acquire Customers « Retain Customers « Addon Value Services
OtoO = One on One
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Tactical MKTG Approaches Examples In Driving the MKTG Mix
Value Proposition Differentiation
Customer Benefits Differentiation For Different Loyalty Value Levels
MKTG Budget and Methods Differentiation For Different Customer Value Profiles
O* Campaign Objectives Differentiation
June 17, 2009 © 2009 Aster Group – Confidential and Proprietary
Tactical MKTG Mix Example Customer Driven Value
Add Add Value Value Services Services
Customer Customer Acquisition Acquisition
Actual Campaign Examples Used In Italy
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Tactical MKTG Mix Example Customer Driven Value
Customer Customer Retention Retention
Add Add on on Value Value Services Services
June 17, 2009 © 2009 Aster Group – Confidential and Proprietary
Customer Profiling Example By Customer Lifetime Value (CLTV) Status
Loyalty
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Customer Profiling Example By Customer Lifetime Value (CLTV) Status
Potential Value
Status in LTV
June 17, 2009 © 2009 Aster Group – Confidential and Proprietary
Tactical Approach Customer Driven Organization and Processes
« Introduce the Usage of CRM Software to New Sales Processes « In Any Business Area, Focus on Customer Care Needs
« Define A Customer Care Corporate Department for Inbound Customer Care and «More than 20,000 Inbound Contacts, per Year «More than 10,000 Outbound
« Integrate CRM System and VoIP System Software « All Calls To Be Redirected To Increase § Customer Value § Existing CRM Processes § Customer Satisfaction
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Tactical Approach Customer Driven Organization and Processes
the Usage of CRM Software to New Sales
In Any Business Area, Focus on Customer Care Needs
Customer Care Corporate Department for and Outbound MKTG OtoO Contacts, per Year
Outbound Contacts, per Year
CRM System and VoIP System Software All Calls To Be Redirected To Increase
June 17, 2009 © 2009 Aster Group – Confidential and Proprietary
Critical Success Factors
« Competitive Benefits « Customer Profile Evaluations « Via Aster Group CRM Analytics
« Assets Outcome « Results Outcome
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Critical Success Factors
Customer Profile Evaluations Via Aster Group CRM Analytics
June 17, 2009 © 2009 Aster Group – Confidential and Proprietary
Competitive Benefits Actual MKTG Position, Car Services Market
Car services MKTG share per car profiles
1 2 3
Old age of car
MKT Share
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
48%
38%
26%
benchmark ASTER
91%
Italian Benchmark
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Competitive Benefits Actual MKTG Position, Car Services Market
Car services MKTG share per car profiles
4 5 6 7+
Old age of car
26%
19% 17% 19%
8%
65%
35%
10%
June 17, 2009 © 2009 Aster Group – Confidential and Proprietary
Customer Profile Evaluations Customer Acquisition Analytics
« Acquisition Profiles and Equity « Index of Customer Equity (ICE), Per Profile
Start BPR
customer driven
Start MKTG
Knowledge Based
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Customer Profile Evaluations Customer Acquisition Analytics
Equity Dynamics Index of Customer Equity (ICE), Per Profile
Start MKTG
Knowledge Based
New Logistic service based
Current and
Prediction Modeling
June 17, 2009 © 2009 Aster Group – Confidential and Proprietary
Start MKTG
Knowledge Based
Start BPR
customer driven
Customer Profile Evaluations Customer Retention Analytics
« Retention Profiles and Equity « Index of Customer Equity (ICE), Per Profile
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MKTG Knowledge Based
New Logistic service based
Customer Profile Evaluations Customer Retention Analytics
Equity Dynamics Index of Customer Equity (ICE), Per Profile
Current and
Prediction Modeling
June 17, 2009 © 2009 Aster Group – Confidential and Proprietary
Start BPR
customer driven
Start MKTG
Knowledge Based
Customer Profile Evaluations AddOn Selling Services Analytics
« AddOn Selling Services Profiles and « Index of Customer Equity (ICE), Per Profile
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New logistic service based MKTG
Knowledge Based
Customer Profile Evaluations On Selling Services Analytics
Profiles and Equity Dynamics Index of Customer Equity (ICE), Per Profile
Current and
Prediction Modeling
June 17, 2009 © 2009 Aster Group – Confidential and Proprietary
Key Assets Outcome Corporate Growth Results
2000
2008 Employees
Brands in portfolio
8
3
90
45
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Key Assets Outcome Corporate Growth Results
Brands in portfolio
New service Competences
Structures
0
0,5 1
1,5
2
2,5
3
3,5
4
4,5
5
3
12
10,000 m2
50,000 m2
June 17, 2009 © 2009 Aster Group – Confidential and Proprietary
Key Results Outcome Sales and Services Growth Results
2000
2008 Service purchase X day
Cars sold per year
800
80
30
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Key Results Outcome Sales and Services Growth Results
Cars sold per year ROS
1
2
3
1,800
2.00%
4.50%
June 17, 2009 © 2009 Aster Group – Confidential and Proprietary
Aster Group Recommendations What Every Dealership Should Know
« Understand the Dynamics of the Actual Customer Base « Understand the Effect of Brand Portfolios On the Customer Base
« Research/Placement of Frontline Resources Which Impact Customer Dynamics
« Continuous Customer Evaluation « Previous Customer Experience Within Dealership
« Utilize Real Organizational Process Drivers « Changes Will Impact Customer Equity, Customer Relations and Customer Behavior
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Aster Group Recommendations What Every Dealership Should Know
the Dynamics of the Actual Customer Base the Effect of Brand Portfolios On the
of Frontline Resources Which Impact Customer Dynamics
Customer Evaluation Previous Customer Experience Within Dealership
Real Organizational Process Drivers Changes Will Impact Customer Equity, Customer Relations
June 17, 2009 © 2009 Aster Group – Confidential and Proprietary
«MKTG Campaign Evaluation, by ICE « Sales Force Evaluation, by ICE « Dealer Evaluation, By Customer Profile Dynamics ICE
Future Plans Growth/Expansion of the CRM Strategy
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Evaluation, by ICE Evaluation, by ICE
Evaluation, By Customer Profile Dynamics and
Future Plans Growth/Expansion of the CRM Strategy
© 2009 Aster Group – Confidential and Proprietary
Thank You! Any Questions?
Dr. Domenico Greco, MKTG Director Company: Aster Group Website: http://www.gruppoaster.com/ Email: [email protected]
Confidential and Proprietary
http://www.gruppoaster.com/ [email protected]