22nd – 24th November 2012, Jaipur

http://bit.ly/Imperatives

Customer Loyalty, Sales &

Service

Sachin Seth , IBM Global Business Services, India/South Asia

http://bit.ly/Imperatives 22nd – 24th November 2012, Jaipur

Increasingly

Connected

Economy

The convergence of digital, social and mobile spheres in connecting customers is fundamentally changing the way customers need to be engaged – we need to engage them as individuals

http://bit.ly/Imperatives 22nd – 24th November 2012, Jaipur

Embracing

connectedness

Technology is now driving more organizational change than any other force – even the economy. How are CEOs harnessing this unrealized potential?

http://bit.ly/Imperatives 22nd – 24th November 2012, Jaipur

The Global CEO Study 2012 is the fifth biennial CEO study, building on our insights and findings over the last 9 years

Revenue growth is

the #1 priority

Responsiveness is

key competence

Improving internal

capabilities as first

step to growth

Business model

innovation matters

External

collaboration

Innovation must be

orchestrated from

the top

Hungry for change

Customers as

opportunity to

differentiate

Business model

innovation, global

business designs

Embody creative

leadership

Reinvent customer

relationships

Build operating

dexterity

Empowering

employees through

values

Engaging customers

as individuals

Amplifying innovation

with partnerships

2004

Your turn

2006 Expanding the

Innovation Horizon

2008 The Enterprise of the Future

2010 Capitalizing on

Complexity

2012 Leading through

Connections

456 interviews 765 interviews 1130 interviews 1541 interviews 1709 interviews

http://bit.ly/Imperatives 22nd – 24th November 2012, Jaipur

Source: Q1 “What are the most important external forces that will impact your organization over the next 3 to 5 years?” (Global n=1709) (India n=66)

External forces that will impact the organization

1

2004 2006 2008 2010 2012

2

3

6

4

5

7

8

9

1

2

3

6

4

5

7

8

9

1

2

3

6

4

5

7

8

9

1

2

3

6

4

5

7

8

9

1

2

3

6

4

5

7

8

9

2012

Global India

Technology factors

People skills

Market factors

Macro-economic factors

Regulatory concerns

Globalization

Socio-economic factors

Environmental issues

Geopolitical factors

People skills

Technology factors

Market factors

Macro-economic factors

Regulatory concerns

Globalization

Socio-economic factors

Environmental issues

Geopolitical factors

4

5

3

6

1

2

7

8

9

Forces impacting the organization according to CEOs

http://bit.ly/Imperatives 22nd – 24th November 2012, Jaipur

Source: Q24 “What do you see as the key sources of sustained economic value in your organization?” (Global n=1709) (India n=66)

Key sources of sustained economic value

Human capital

Customer relationships

Products / services innovation

Brand(s)

Business model innovation

Technology

Partnership networks

Data access / data-driven insights

R&D, intellectual property

Price / revenue innovation

Assets (physical, infrastructure)

Corporate social responsibility

Access to raw materials

71%

43%

66%

52%

33%

30%

28%

25%

22%

19%

15%

13%

8%

74%

39%

55%

45%

29%

35%

36%

27%

18%

24%

17%

11%

14%

Global India

Internally, CEO focus is not on technology itself, but how technology facilitates primary sources of sustained economic value

http://bit.ly/Imperatives 22nd – 24th November 2012, Jaipur

Source: Q25 “What are the five most important characteristics that a CEO needs to be successful over the next 3 to 5 years?” (n=1707)

In India/ South Asia’s current rapid change period, a successful CEOship demands customer obsession, leadership and transparency

CEO characteristics for success

61%

Global Customer obsession

Inspirational leadership

Leadership teaming

Global mindset

Competitive instinct

Boldness

Transparent

Risk tolerant

Disruptive creativity

Financial skills

Technology savviness

Diversity-driven Environmentally / socially

devoted

60%

58%

48%

38%

35%

34%

33%

33%

24%

23%

20%

16%

62%

62%

46%

43%

48%

37%

51%

20%

34%

34%

34%

6%

15%

India

http://bit.ly/Imperatives 22nd – 24th November 2012, Jaipur

Customers share insights into what they

value individually, and when and how

they want to interact

Outperformers strongly

differentiate by better data access,

insight, and translation into actions

To connect individually, CEOs plan a

step change in social media interaction

and continuing face-to-face

engagement

So how will CEOs create more economic value by engaging customers as individuals?

http://bit.ly/Imperatives 22nd – 24th November 2012, Jaipur

Drawing insight from information – Areas of improvement

Source: Q23 “In which areas do you plan to improve your ability to draw meaningful and executable insights from available information?” (Global n=1609 to 1658) (India n=55 to 62)

Customers

Operations

Sales

Markets and competitors

Human resources

Supply chain

Risk management

Financials

73%

50%

49%

44%

43%

40%

38%

32%

Substantial investments

Global

71%

60%

57%

51%

56%

55%

56%

33%

India

CEOs identify customer insights followed by insights from operations and sales as their priority investment areas

http://bit.ly/Imperatives 22nd – 24th November 2012, Jaipur

Change required to meet customer expectations (3 to 5 years)

Source: Q9 “To what extent will your organization change to meet customer expectations compared to your industry peers over the next 3 to 5 years?” (Global n=1652 to 1676) (India n=61 to 64)

Improve understanding of individual customer needs

Improve response time to market needs

Harmonize customer experiences across channels

Include customers / citizens across product / service life cycle

Increase transparency and corporate accountability

Increase social and environmental responsibility

72%

55%

48%

47%

44%

72%

Global

77%

59%

49%

56%

46%

83%

India

CEOs want to capitalize by improving response time and by having better understanding of customer requirements

http://bit.ly/Imperatives 22nd – 24th November 2012, Jaipur

Source: Q8 “What are the three most important mechanisms your organization will use with customers over the next 3 to 5 years?” (India n=66) *Face-to-face / sales force / institutional representatives

79%

57%

32% 35%

40%

19%

27%

35%

43% 40%

11%

48%

37%

49%

Face-to-face* Call centers

Traditional media

Advisory groups

Channel partners

Websites Social media

Today

In 3 to 5 years

Industrial Mechanisms to engage customers

To connect individually, CEOs plan a step-change from traditional to social media, while continuing face-to-face engagement

http://bit.ly/Imperatives 22nd – 24th November 2012, Jaipur

Source: Q22 “How good is your organization at driving value from data? [Today]” (n=631 to 636)

Outperformers strongly differentiate their organizations in three key areas

26%

54%

108% more

Access to data

Outperformers

Underperformers

31%

57%

84% more

Translate insight into action

26%

54%

108% more

Draw insights from data

Outperformers are twice as good at deriving value from data – key to engaging customers as individuals

http://bit.ly/Imperatives 22nd – 24th November 2012, Jaipur

1. Let “big data” reveal the

customer you never knew

2. Listen lavishly, respond

with focus

3. Be where your customers

expect you to be

So, how do you win the race to gather and convert data into customer insight and action?

Look outside to complete the view

Connect pieces into profiles

Empower staff with predictive analysis

Listen at an individual level

Capture what employees see and hear

Respond with relevance and speed

Leverage the fact that mobile “changes

everything”

Blend the physical and digital worlds

Offer value that stands out

http://bit.ly/Imperatives 22nd – 24th November 2012, Jaipur

Today’s analytics provide opportunities to explore big data, detect patterns and reveal new insights – knowing how to effectively access, analyze and use data is crucial to understanding and engaging individual customers

Look outside to complete the view Incorporate external sources, especially social media and complementary data sets from partners – blend internal and external views to discover unexpected insights

Connect pieces into profiles Use analytics to distill what’s valuable from an abundance of data – assemble vital pieces into holistic profiles of individual human beings

Empower staff with predictive analytics Embed insights where front-line decisions are made – ensure data-driven decision making is part of everyday processes

14

Let “big data” reveal the customer you never knew

Purpose

Unleash the power of data by generating actionable insights to maximize individual customers share of wallet

Activities

Deployed CRM analytics to enable micro segmentation of customers based on their shopping pattern and life stage

Engaged with customers at an individual level with customized offerings

Improved revenue by effectively increasing individual customers frequency of visits and width of purchase

Large Retail

Company, India

http://bit.ly/Imperatives 22nd – 24th November 2012, Jaipur

In exchange for more insight, customers want organizations to interact selectively and responsibly – offering what they want, when and where they want it

Listen at an individual level Look beyond aggregate customer information based on market segmentation – use sources that allow you to hear directly from individual customers

Capture what employees see and hear Establish easy ways to channel clues employees observe in their customer interactions – incorporate these insights into your analysis

Respond with relevance and speed Study each customer touch point and find ways to respond more selectively and create deeper connections that build loyalty and advocacy

15

Listen lavishly, respond with focus

Purpose

To build business in a growing market with a large young consumer base

To provide an effective platform to address queries

Activities

Active in 6 social media platforms to communicate with consumers

Uses social media for new announcements & insurance tips

Company has a Facebook page with ~ 17464 fans and the highest mention on Twitter

Large

Insurance Co,

India

http://bit.ly/Imperatives 22nd – 24th November 2012, Jaipur

Mobility is elevating customer expectations: organizations have a tremendous opportunity to create value out of immediacy – to be ready with relevant services and information in the context of the moment

Leverage the fact that mobile “changes everything” Take advantage of location-based services and new forms of e-commerce

Blend the physical and digital worlds Exploit augmented reality to make mobile part of integrated, multichannel customer experiences

Offer value that stands out Interact in ways that are attention-grabbing, meaningful and tailored to the individual

16

Purpose

Reaching a larger cross-section of its customers

Usage of evolving technology and social media to engage with guests and for instant updates.

Activities

First airline to launch a number of self service options in India

First airline to Mobile QR code. This disseminates more information

Successfully implemented social media strategy by creating communities on Facebook, Twitter and Linkedin

Be where your customers expect you to be

Jet Airways,

India

http://bit.ly/Imperatives 22nd – 24th November 2012, Jaipur

What does it mean

for the CIO & the

CMO

The Digital Revolution has forever changed the balance of power between the customer and the organization, putting customers in charge of the relationship

17

http://bit.ly/Imperatives 22nd – 24th November 2012, Jaipur

Provide a consistent and relevant experience across all your customer/prospect interactions leveraging technology

The „New Front-Office‟ for the services industry

More Connected

Back Office

New

Imperatives

Increase Business Partner

Visibility Improve Order Management &

Fulfillment

Improve digital, social & mobile

presence

Create best-

in-class digital marketing

capabilities

Engage based on deeper, more

actionable Customer Insights

Enable collaboration and

innovation

Physical Web Social Mobile Call Center Broadcast

ERP Systems Legacy Applications Data Warehouses

Front Office Digitization

Information & Analytics

New/ Integrated

Channels

http://bit.ly/Imperatives 22nd – 24th November 2012, Jaipur

Create a digital journey to enable the “Moment of Truth” with customers & other stakeholders

http://bit.ly/Imperatives 22nd – 24th November 2012, Jaipur

Thought Leadership

Develop Strategy Develop / Improve business processes

Design, Build, Implement a solution

Run applications, processes, IT

GBS integrates business insight, best practices and innovation in order to tackle our client’s most difficult issues…

IBM Alliance

Solutions IT Services

Component Business Modelling

IBM Research Services

Cloud Delivery Models

IBM Global Financing

Smarter Commerce Consulting

“Full Equation” Services

Small & Med.

Business Solns.

Green: Energy & Sustain-

ability

Global CEO

Study

Global CFO

Study

Global CIO

Study

Global CHRO Study

Global Chief Supply Chain Officer Study

Application Innovation Services

Enterprise Applications Services

Application Management Services

Business Analytics & Optimization

Strategy & Transformation

Differentiating Capabilities

Business Insight

IBM Smarter Planet

Executive Exchange

Expertise in 20+

Industries

Functional Expertise

Global Delivery

Business Analytics and Optimization strategy Advanced analytics and optimization

Business intelligence and performance mgmt. Enterprise Content mgmt. Enterprise Information mgmt.

Innovation & Growth

Operations & Finance

Organization & People

IBM Interactive Security and privacy Portals and e-Commerce

Application Development Emerging technologies and architecture

Business application modernization services Application Outsourcing

Application Assembly Optimization IBM Testing Services

SAP ORACLE Microsoft

http://bit.ly/Imperatives 22nd – 24th November 2012, Jaipur

Case Study 2 : Sales & Service Solution for a Leading Paint Manufacturer

• Berger wanted to increase dealer / customer satisfaction • Reduce order cycle times

• With this objective in mind, Berger wanted to set up centralized call centre for dealers and end customers with both inbound and outbound call capabilities.

• Berger needed a comprehensive CRM solution which could support the call centre operations, Dealer Management and direct customer interface for home painting solutions.

• 2 call centers and other users at office and depot

• Replacing of legacy applications • Home painting Solution- VB + Access

• Painter Activity System- .NET + MS SQL

• BS Tracker - .NET + MS SQL

• Lead Management System- .NET + MS SQL

• Prolinks- .NET + MS SQL

• Daily Activity Reporting- >NET = SQL

• Color Bank System

• SMS Integration

Reduction in order handling time – 70%

Increase in dealer response times by 50-70%

Removed complexities of multiple legacy systems

Created platform for Social CRM

Business Need – (Engagement & Business Challenge)

Client Solution

Business Impact Customized service to dealers resulted in better satisfaction levels

Streamlined order processing

Customer profiling and segmentation, complaint management – Direct interface with customer

Opportunities to cross-sell and up-sell dealers identified, and scheme entitlements visibility improved

www.electrolux.com

Project achievements:

http://bit.ly/Imperatives 22nd – 24th November 2012, Jaipur

Business Objective

The General insurance company wished to Implement Customer Relationship Management for its business with the following

objectives

Create the base CRM capabilities that address immediate needs and provide building blocks for an integrated CRM

delivery in the long-term

Focus on delivering the „Peace of Mind‟ value proposition to customers

Continue to grow & strengthen the existing focus customer segment to drive “Profitable Growth”

Create Advanced CRM Framework to have better customer insights, acquire new customers

Project Approach

IBM worked on a eight week engagement divided in three phases to define a CRM

Strategy.

PHASE 1 Define CRM Objectives a) Stakeholder Assessment – Interviewed Key Stakeholders b) Voice of Customer Survey – Generated Outside In View c) CRM Capability Maturity Model – Defined current state Vs Proposed State in next 3 years

PHASE 2 Create Operation Blueprint a) Organization readiness assessment and change management plan b) Proposed to be processes for Sales, Marketing, Service and Partner Management

PHASE 3 Implementation Roadmap a) Vendor Evaluation Framework b) Guidance on Project Implementation

Client Benefits

Reduced dependency on agency channel for sourcing

business

Reach the final consumers through direct channels

like call center, internet etc.

Enable the company to expand its base across India

and augment its top line growth.

Case Study 1: CRM Strategy for a start up General insurance company

http://bit.ly/Imperatives 22nd – 24th November 2012, Jaipur

Questions and Discussion

23

http://bit.ly/Imperatives 22nd – 24th November 2012, Jaipur

24

Thank You

Merci Grazie

Gracias

Obrigado

Danke

Japanese

French

Russian

German

Italian

Spanish

Brazilian Portuguese

Arabic

Traditional Chinese

Simplified Chinese

Hindi

Tamil

Thai

Korean

http://bit.ly/Imperatives 22nd – 24th November 2012, Jaipur

Data is at the heart of everything & BUSINESSES to stay competitive will need to put their heart into Data

http://bit.ly/Imperatives 22nd – 24th November 2012, Jaipur

IBM Global Business Services will SERVE as the partner most committed to the success of the CEOs and their Leadership team

Key consulting offerings

Main Offering Sub-offering Description

1. Customer Experience & Market Strategy

1. Customer centric strategy

2. Channel transformation strategy

3. Social media strategy

4. Digital brand & presence strategy

5. Smarter sales & marketing

1. Strategies to help you focus on customer experience and care

2. Strategies and approaches to help implement experience and care activities across all channels

3. Strategies and approaches to create meaningful customer experiences and drive deeper customer relationships in the social web space

4. Strategies and approaches to better leverage and manage your brand in the digital world

5. Consulting offerings to help you better improve and manage the sales & marketing organization

http://bit.ly/Imperatives 22nd – 24th November 2012, Jaipur

IBM Global Business Services will SERVE as the partner most committed to the success of the CEOs and their Leadership team

Key consulting offerings

Main Offering Sub-offering Description

2. Enterprise Marketing Management Solutions

1. Customer awareness solutions

2. Centralised decisioning solutions

3. Cross-channel execution

4. Integrated marketing operations

1. Web and digital analytics, event detection, predictive analytics and visual exploration

2. Segmentation, offer management, interaction history, behavioural targeting and contact optimisation

3. Email, inbound integration, distributed marketing, lead routing and monitoring and online ad/search bid management

4. Collaboration, cross-channel planning, design, execution and measurement

http://bit.ly/Imperatives 22nd – 24th November 2012, Jaipur

Thank You