CRM becomes XRM

March 17th, 2011

Serge HANSSENSAdvisory - Director

www.pwc.com/lu

PwC

Agenda

1.Introduction

2.C becomes X

3.M stands for Media

4.Conclusions

2

PwC

There is nothing permanent except change (Heraclitus)

“People are very open-minded about new things. As long as they

are exactly like the old one”.

Charles Kettering

Inventor (1876-1958)

3

PwC

Introduction

4

PwC

Introduction

“We will be drowning in information and starved of

knowledge”

John NAISBITT (1982)

5

PwC

Introduction

6

“ We produce today a volume of data in two days that is equivalent

to what humanity has produced until 2003 ”

Thierry BRETONATOS

“ The volume of data will be multiplied by 6 every two years and by 50 for the corporate data

”Dave EVANS

Cisco

PwC

Introduction

7

Web 1.0 Web 2.0

PwC

Introduction

8

PwC

Introduction

9

PwC

Introduction

10

PwC

Introduction

11

PwC

Introduction

12

PwC

Introduction

13

PwC

C becomes X

14

Company X

Clients Suppliers

Partners

Employees

Public Authoritie

s

Shareholders

Tell me how you manage these relationships

and

we will tell you how successful you are !

PwC

M becomes Media

Media are everywhere providing new threats and opportunities !

15

It is reshaping• Strategies/tactics/

business models •Profits generation/pricing•Organizations •Processes & IT• Innovation &

competitiveness approach

PwC

CRM process impacts examples

16

Process Before Today Benefits Risks

Sales • One-to-One

• Push

• Unprecise segmentation

• Many-to-many

• Pull & Push

• Sound segmentation

• Interconnected with Customer Service

• Customer insights

• Shorten sales cycles

• Market

- Reactivity

- Penetration

• Security

• Revenues fluctuations

• Fraud

Customer Service

• Conducted by employees

• Cost centre

• Reactive only

• Superior tailored made multi-channel / services

• 24/7

• Voice of the customer

• Consumer-ambassadors

• Customer

- Intimacy

-Engagement

- Education

• Driver of innovation

• Reputation

• Information

- Accuracy

-Consistency

-Traceability

• Churn rate

PwC

M becomes Media

17

Creative social networking: sales and marketing example

Last year, Hyatt introduced a virtual concierge service on Twitter –#HyattConcierge – on which the company’s staff answers questions 24/7. The best part: Travelers save time, instead of chasing information; the answer is waiting for you on Twitter.

Creative social networking: complaints management example

Mr Norman Boulanger is ordering a capuccino in Montreal Nepresso shop. He is not happy with Nespresso because he had to wait 30 minutes for his coffee. He complains on Nespresso Twitter – few minutes later, the shop manager came to him for expressing his deep excuses. He just received a call from Switzerland…

PwC

M becomes Media

18

Creative social networking: customer targeting

Godiva Chocolatier created a private, invitation-only community so Godiva could better understand its chocolate consumers. The community led Godiva to create an affordable product line, individually wrapped chocolates called Gems, and sell them in a new channel, grocery and drug stores. Gems was the biggest global launch ever for Godiva, ringing up $35 million on a product that may reach 10% of the company’s worldwide sales in its first year.

Creative social networking: customer collaboration

National Instruments has adopted the notion of co-innovation with customers for its LabVIEW product, leveraging its online presence to get product ideas. LabVIEW Idea Exchange is a product feedback forum where users can submit and vote on features concerning topics like user interface enhancements and hardware integration. The NI Labs virtual research center showcases new technologies that aren’t quite ready for release but are ready for comment.

PwC

Conclusions

19

• Managing relationships efficiently becomes more and more crucial. • It could provide a significant competitive advantage.• Social media are driving innovation.

Ready to make it happen...

This publication has been prepared for general guidance on matters of interest only, and does not constitute professional advice. You should not act upon the information contained in this publication without obtaining specific professional advice. No representation or warranty (express or implied) is given as to the accuracy or completeness of the information contained in this publication, and, to the extent permitted by law, PricewaterhouseCoopers S.à r.l. its members, employees and agents do not accept or assume any liability, responsibility or duty of care for any consequences of you or anyone else acting, or refraining to act, in reliance on the information contained in this publication or for any decision based on it.

© 2011 PricewaterhouseCoopers S.à r.l.. All rights reserved. In this document, “PwC” refers to PricewaterhouseCoopers S.à r.l. Luxembourg which is a member firm of PricewaterhouseCoopers International Limited, each member firm of which is a separate legal entity.

• Philippe PIERRE – Advisory – Partner +352 49 48 48 5722 philippe.pierre@lu.pwc.com • Serge HANSSENS – Advisory – Director +352 49 48 48 2189 serge.hanssens@lu.pwc.com