PowerPoint Presentation
How much do you really know about creating an effective KCRM
Organization?
Chapter: 4 Doing the right things before doing things
right2Analyzing the customer mixIdentifying key customers is not
difficult in some businesses because the customers are
self-evident.In order to determine how best to use sales and
customer support resources to implement customer management
strategy, there are seven steps in the process3Step 1: Prepare a
Pareto analysisThe Pareto analysis is complied by listing all
customers in decreasing order of sales and plotting the cumulative
sales related to the number of customers.4Pareto
If all the customers were in same size then the straight line
would occur The steeper the ascent of the actual line, the greater
will be the concentration of sales
5Step2: Project future sales for top customersTake top customers
and try to make an individual projection of yearly sales for each
customers for the next three years
Then calculate the percentage of total company sales contributed
by each individual customer, both currently and end of the year 3
forecast.6Step 3:Project future sales for development customersList
any additional customers or potential customers that have been
identified as target development customers, both currently and at
the end of year 3 projection.Make an individual projection of
yearly sales for each customer over the next three years and
calculate the percentage of total sales contributed by development
customers7Step4:Project future sales for development
customersGeneral business customers should be divided in to two
categories:Customers who have existing or potential business which
can justify direct sales callsCustomers where there is not enough
business to justify individual sales calls but where collectively
there is enough business to warrant other forms of sales coverage.
8Step 5:Estimate resource requirementResource requirement will be
quantified in terms of: Minimum number of sales calls needed to
achieve forecast level of business.Minimum number of technical
support calls needed for projected levels of businessMinimum number
of deliveries needed for projected levels of business
9The Standard CallIn assessing sales call workloads, it may be
useful to think in terms of a Standard Call of average time
duration.Depending on type of Business, this workload analysis may
be extended to technical support calls.The workload analysis should
be extended on the basis of the sensitivity of distributions (size,
distance, no. of unit, no. of delivery etc.)10Step 6: Calculate
total sales workload resource available and check against
requirements:Equation:Total Sales Workload = No. Of Working Days X
No. Of Sales People X No. Of Standard Call/ DayHaving calculated
the sales call resource workload required in step 5 we now have
four figures to juggles with the following:Key customer workload
resource needs (KCR).Development customer extra workload resource
need (DCR).General business resource needs (GBR).Available resource
workload (AR).
11Cont (Figure)
12Step 7: allocating the recoursesIn evaluating the
appropriateness of the Organization,Four factors should be
considered13PLANNING FOR INTERNAL RESOURCSFIXEDActivities that
require fixed amount of time irrespective of the number of
customers, order or salespeople.Example: Reports , Departmental
meetings. VARIABLEworkload is directly related to the size of
customers, order, or salespeople.14INTERNAL RESOURCE CALCULATION
CHECKLIST15Cautions about telecommunicationsCustomers perception of
a supplier is based on their experience with telecommunications.
For this reason: Don't be afraid to over-staff your reception
facility.No incoming call should exceed four rings before being
answered.16How can improve sales forecast Repeat end-users Sales to
distributors Contract or capital goods sales17Repeat end-users
Tabulate past figures of customer total usage Tabulate past sales
figures Calculate share of the customers business Estimate changes
in the customers future business Estimate changes share of the
customers total business Translate estimates into numerical
forecast Consult with and check out forecasts and mutual
expectation18Sales to distributors Final user market Final user
share19Contract or capital good sales Divide the year into four
quarters. Estimate the likely sales value. Estimate the probability
of getting the contract. Estimate the probability of securing the
contract. Calculate the forecast value per quarter20A method for
forecasting contract salesEstimatedValue tk (000)
ContactProbabilityTiming Probability
Q1 Q2 Q3 Q4Tk 000 value
Q1 Q2 Q3 Q4Contact A20075%20%60%20%--309030--Contact
B20020%50%50%----2020----Contact
C40050%--10%50%40%--2010080Forecast per quarterTk
000501301308021How do customer teams work?Team members and their
responsibilities:Regional sales if the customer has widespread
geographical locations or international operations.Customer service
if there are specific service complications and emergencies with
major implications for the customers operations.22Team members and
their responsibilitiesTechnical if there are possibilities of
special product application.Training if there is a significant
education element to ensure the customer gets the full benefit of
your products.Product experts if there are highly specialized
product involved.23Team members and their responsibilitiesInternal
sales if there is a high incidence of direct customer-supplier
communication by telephone and fax.Distributions if the schedule of
deliveries is complicated and exceptional degrees of flexibility
and responds are paramount.24Team members and their
responsibilitiesAdvertising if creative merchandizing and promotion
are major aspects of the customer relationship.Production if
product availability, inventory or fluctuations in demand are
sensitive areas of the customer relationship.25Team members and
their responsibilitiesFinance if there are significant financial
implications in negotiation, such as leasing, capital investment or
taxation.Senior management if high-level company politics are
significant relationship factor 2626
