The Broader Era of CRM

September 19th, 2013

Steve Boily

Interesting Factoids!

“The inability to develop, document, and execute a clear CRM strategy is a leading, if not the leading, cause of CRM failures”

“Approximately 35% of CRM applications were custom built in 2012; some were coded from scratch, and others were build on platform as a service technologies, such as force.com. The remaining 65% used packaged CRM applications.”

“…fewer than 20% of CRM projects in 2012 were enterprise wide, transformational, and cross-departmental….” “..by 2017, only 25% of CRM initiatives will have a scope that is enterprise wide.”

Gartner

What is Customer Relationship Management

“….CRM is a philosophy and a business strategy, supported by a technology platform, business rules, workflow, processes and social characteristics, designed to engage the customer in a collaborative conversation in order to provide mutually beneficial value in a trusted and transparent business environment. It's the company's response to the customer's ownership of the conversation.” -Paul Greenberg

CRM Context

Customer Value

Achieve: - Growth in Sales & Margin - Growth in Market Share - Customer retention - Reduce Operational Costs - Relevance

Number of Customers

Length of Relationship

Share of Spend / Profitability

Lifetime Value of the Customer Base

Do we understand our customer? Customer Management

Banner A

Shop Online

Loyalty A

Banner B

Credit Card

Profitability of customers that shop all banners and online and also have a credit card is 700 % versus those that only shop one store

1000 Customers have not purchased in 365 days

$500

$250

$450

$150

$300

$175

$800

$550

Customer Facets Foundational

and Governance

•Master Data Management

•Account Association and Security

• Privacy and Regulatory

•Customer Voice

•Analytics

• Social

Comms and Marketing

•Market Management

•Campaign Management

•Resource Management

•Loyalty

• Analytics

Sales and Services

•Opportunity Management

•Sales Effectiveness

•Performance Management

•Clienteling

•Sales Management

• Analytics

Customer Service

•Contact Centre

•Web Service

•Workforce Automation

•Peer Support

• Infrastructure

•Account Management

• Analytics

eCommerce

•Storefront

•Product Management

•Online Selling

•Personalization

• Analytics

Field Services

•Optimization

•Mobile

•Parts Planning

•Contracts/Warranty

•Monitoring

•Fleet Mgmt

•Dispatch and Repair

•Depot Repair

Things to consider before project begins

Vision

Strategy

Customer Experience

Organizational Collaboration

Processes

Information and Insight

Technology Metrics

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Why does CRM Fail – Strategy The right leadership is not in place A business leader needs to be in charge of the CRM effort, not IT. Successful CRM is a major business initiative, not a technology initiative. CRM Strategy not clear Your CRM strategy and vision need to define what customers experience at each touchpoint, and how will they be handled at each touchpoint. The vision needs to be clear to everyone. A major pitfall occurs when your business constituents have differing expectations of CRM's benefits. Sharing a common vision is key. The CRM strategy is different from the business strategy CRM is sometimes seen as a lower level automation step or patch, rather than a top level re-thinking of how customers are served. Your CRM strategy and business strategy need complete alignment. Processes not re-designed CRM is an expensive way to automate inefficient or ineffective processes. Companies get better results from CRM when they begin by focusing on sales processes: how do customers need to be approached, convinced, served and satisfied? Only when these questions are answered should steps be taken to plan software or process changes.

Customers not consulted What do your customers think of your company before, during, and after the CRM implementation? What are they happy with, and what are their complaints? How are other suppliers serving them in ways that they like? Too often, surprisingly enough, the "C" in "CRM" is not consulted in all phases of the initiative. Unclear metrics It's critical to review your plan to measure key performance indicators, and ROI. Can your metrics truly determine the real business value of your effort? The quality of metrics has been a deciding factor in making or breaking many CRM projects.

Why does CRM Fail – Implementation Inability to link channels Have you considered ALL customer touchpoints and processes? CRM projects often have focused on some parts of the customer experience, but ran into trouble when they were unable to link with or serve well all parts of the customer experience. Lack of preparedness for continuous improvement Be ready for bumps in the road. Be ready to refine strategies, revise goals, re-set metrics, and learn from feedback. Successful CRM projects are rarely completely successful from the outset.

Why does CRM Fail – PPT Introducing CRM to hundreds of employees at a time It's easy to want to do too much, too fast. Get it right first with a small team of employees chosen to represent a cross-section of your company. Choose an initial project that can make a dramatic difference, with clear key performance indicators. Strong pilot results will help you avoid the next pitfall Changing the system, but not the people It's easy to focus too much on the new technologies and processes rather than focusing first on the people who will use them successfully. You need employee excitement about doing a better job for customers. You need employee feedback and overall buy-in. The entire company needs to own "customer-first." They need to see that the CRM vision you all hold takes them to a better place than where they are now. Instead of enhancing new processes, changing the CRM system to fit old processes To avoid the pain of revision, some companies don't take the opportunity to re-engineer and optimize their processes. They look to CRM as a patch rather than an opportunity from the ground up to increase customer satisfaction, revenue, service and overall productivity. Customer data is in more places than expected As implementation gets underway, key data can turn up in salespeople's PDA's, spreadsheets, handwritten notes, and legacy systems. To avoid surprise integration nightmares, the requirements gathering stage needs to be careful and thorough. Different CRM solutions are in place but do not work well together. Often marketing, sales and service departments already have different types of CRM software, from different vendors, to track the same customers. As a result, these departments can't share data, and have redundant support and administration costs. Customers do not experience new benefits The ultimate test is to be able to demonstrate increased satisfaction among customers, along with increased customer value to your business. This goal can inform every choice you make during planning and implementation. But just like the adage "watch the ball" in sports, it's a fundamental often overlooked.

Thank you