CRM Seminar 1 2010[1]

SEMINAR 1 2010

MARINO ASSOCIATES, LLC 2010

Best In Class CRM Companies state that profitable growth, rather than growth through aggressive customer, product or business unit acquisition, is the reason to implement a Customer Relationship Management program.


Companies need to align their

processes, employees, and systems towards a customer-centric philosophy.


Is about managing relationships not as an alternative to having a competitive product, high quality and reasonable price-but as a differentiator.

If your competitors are doing the same thing you are product and price won’t give you a long-term sustainable competitive advantage.


A marketing philosophy based on putting the customer first. The collection and analysis of information designed for sales and marketing decisions to support and understand existing and potential customer needs. It includes:

Sales and Marketing

Product Line Managers

Demand Managers

Operations

Service

Finance

Systems


Implemented CRM and are achieving benefits

Started the process of implementing CRM Contemplated the implementation of

CRM and are not sure how to start No plan or strategy for CRM Drive all their processes, planning and

strategy based on customer desire


Open access of all customer information to all employees that are customer facing

Link CRM to corporate goals Select software that enables the users to

apply customer information with speed and accuracy

Build cross functional buy-in and collaboration


Multiple data bases throughout the company too difficult to access

Single data base/accessible and current Customer information is not kept in a data

base no formal system


CRM is a management discipline

CRM blends customer intimacy with economies of scale

CRM is a data base of needs and preferences and this information is available to anyone in the company

CRM is absolute customer focus

CRM is when the strategic thrust of a business is customer focused


Annual Revenues

Customer Acquisitions

Customer retention


General Motors audit on what the Company would have to change to be able to make cars to order. The

answer?

“We’ll have to change everything.”


Who are your customers?

What do they want and expect from your company?

How can they be better served?



Customers Needs

Company Solutions

GAP Benefit

24/7 Service World Wide

24/7 U.S. Only

Large Large

Call Centers Part Time Employees

Large Large

Consignment Inventory

24 Hour Service

Medium Medium

Formal Service Documentation

Informal Large Medium

Delivery to Customer Want date

Ship to promised date

Large Large

100% Quality Poor Quality Large Large

GAP ANALYSIS TEMPLATE

Focus Training Education Technology Energy Product Development Customer Communications E-Mail Fax Internet


Companies who begin to embrace CRM often have no one single strategy.

They are pushed into CRM by a compelling business problem or a series of customer relationship issues.

They may be losing market share even though cost, quality and solutions are equal


Staying ahead of competitors solely through product leadership is becoming more and more difficult.

Be distinctive:◦ In the core product/service offering◦ In the total cost of ownership◦ In the total relationship and customer experience


Top management support is a must when implementing CRM.

Review and value map your business approach before re-engineering.

Build a strong functional CRM team. Outline the information required to affect the

appropriate CRM change. Integrate CRM tools into your system

seamlessly. Review your technology requirements and only

invest in high tech solutions if required.


CRM business strategies must clearly define where the business benefits will come from and how these benefits are distributed and, very importantly, in what priority?


Centralize management of customer information at the corporate level

Utilize both operational and strategic analysis to respond to high value customers

Take a long term approach to growth by defining customer value according to lifetime value models


Do you individualize customers

Do you individualize services by customer

Are all customers treated as equal


CRM solutions should focus attention on the right customers. The most valuable customer might not be the biggest spender or the most frequent buyer. ◦Big Spender (high maintenance)◦ Frequent Buyer (small order quantities, high

fulfillment cost)


The perfect customer value quotient is difficult to obtain, but by tracking:

Discount Rates Product Profitability Customer Acquisition cost Cost of Service Number of Support Calls Fulfillment Cost

It can lead you into knowing and individualizing service based on customer value to your company


- Current Company Process and Business Rules

- Has Management communicated throughout the organization a clear CRM STRATEGY ?

- Is there a ranking of customers that is used when managing the relationship?

- Has Marketing articulated to Management the competitive environment that it is competing in?

- Review existing customer databases

- Conduct internal interviews with management

- Conduct voice of the customer interviews with a cross section of your customer base

Checklist


- Develop a Detailed Project Plan that supports transformation to CRM

- Develop a formal CRM Project Team

- Define Project Scope and Timelines

- Prioritize all Key Elements of the Plan concentrating on competency requirements, education, training and capacity

- Establish quick wins (homeruns). Things that can be complete in as little as 3 months’ time and will provide:

Financial Impact Morale Impact Validate Process Early Success


Customer Retention ◦Rank customer based on ABC◦Concentrate on retention campaign

Customer Service ◦Provide exceptional service in all areas

New Customer Acquisition ◦Manage the cost of obtaining a new customer


◦ Return on Sales Companies that give good service achieve 12%

Return on Sales compared to 1% for companies with poor Customer Service

◦ Market Share Higher market share

Perceived as a Quality Company

Demand premium pricing

◦ Internal Customer Satisfaction

◦ Positive Word of Mouth


- Reduce the cost of customer acquisition- Improve customer retention- Improve the up-selling of additional

products and services- Treat your customer with consistency and

quality- Improve information flow for Sales and

Operations planning- Dynamic information flow for Operations

planning


Increases in annual revenues Improved customer retention Improved acquisition rates Improved accuracy in forecasting

customer requirements Improved stability in the S&OP process Improved utilization of inventory and

capacity Improved supplier management


Modular Approach

VS.

Big Bang


Marketing Sales Logistics / Fulfillment Call Centers

◦ Benefits

Gradual shift of corporate culture from Product-Centric to Customer-Centric

◦ Drawback

Shift of long-term strategy Cost Ongoing Customer data silos continue to exist within company


Benefits◦ All functional areas cut over to the same system

No legacy systems interface Elimination of redundant systems All areas sharing the same information Single source for training and support

Drawbacks◦ Massive Implementation

◦ Massive amounts of:

Support Education Training

◦ Legacy Systems are turned off◦ Culture change required◦ Cost


• Customer Relationship Management Champion

• Executive Sponsor

• I.T. Management

• Management Representative from each department touched :

- Sales

- Marketing

- Customer Service

• External CRM Advisor (consultant)

.


• Top management direction

• Change culture is difficult and change management is not understood

• Poor project management

• The effects of CRM on current business processes

• CRM is not understood

- Lack of a solid strategy

- Lack of clear goals

- Lack of defined objectives

• Lack of training and education

• Existing technology is inadequate


CRM success requires the total committed resolve of a corporation to commit its resources and to change its culture in a continual campaign that results in the optimization of customer and partner satisfaction, revenue, and business efficiency.

Despite the cost and risk, the uncertainty and the noise, CRM is valuable, viable, and real, and it’s not going back in the box.


Documents

CRM Seminar 1 2010[1]