output crm 1
TRANSCRIPT
-
8/2/2019 Output CRM 1
1/50
Customer RelationshipCustomer Relationship
MaManagementnagement
(CRM)(CRM)
ATTF LuxemburgATTF Luxemburg
Helping you through the learning curve
R.J.ClaessensR.J.Claessens&&PartnersPartners
-
8/2/2019 Output CRM 1
2/50
Key Sources of the course:Key Sources of the course:
Harvard Business ReviewHarvard Business ReviewCRM by EdCRM by Ed PeelenPeelen
Snezana DraSnezana DraggicevicicevicGeraldineGeraldine ClaessensClaessens
E mail: [email protected] - Internet: www.rogerclaessens.be
R.J.ClaessensR.J.Claessens&&PartnersPartners
-
8/2/2019 Output CRM 1
3/50
The key message of the courseThe key message of the course
-
8/2/2019 Output CRM 1
4/50
The key message of the courseThe key message of the course
We are in it, together!
-
8/2/2019 Output CRM 1
5/50
The key message of the courseThe key message of the course
In 2003, according to Harvard Business Review,
82% of interviewed companies in the USA, statedthey would introduce CRM, a large jump from the
35% who employed CRM in 2000.
What changed?
-
8/2/2019 Output CRM 1
6/50
The key message of the courseThe key message of the course
The approach changed!
Rather than use CRM to transform entire
businesses, companies using CRM successfully
have directed their investments toward solving
clearly defined problems within their customer
relationship base
-
8/2/2019 Output CRM 1
7/50
The key message of the courseThe key message of the course
The approach changed!
CRM today result in highly focused projects that
are relatively narrow in their scope and modest
in their goals.
There is also an understanding that highly accurateand timely data are not required everywhere
-
8/2/2019 Output CRM 1
8/50
The key message of the courseThe key message of the course
Achieving success with CRM is more difficult than
expected and it is not just a matter of marketing
and IT.
-
8/2/2019 Output CRM 1
9/50
IntroductionIntroduction
The philosophy of Customer Relationship
Management is this :
CRM is about Keeping the old-time spirit of
customer connection even when you can notshake every hand .
-
8/2/2019 Output CRM 1
10/50
IntroductionIntroduction
The philosophy of CRM is:
It is a comprehensive approach for creating,
maintaining and expanding customer
relationships.CRM is a way of thinking about and dealing
with customer relationships
-
8/2/2019 Output CRM 1
11/50
IntroductionIntroduction
The focus is on:
What will the customers buy, when, why andfor how much?
What creates value for them?
What does create a structural bond?What service can we provide that does create a
premium?
What about market segmentation?
-
8/2/2019 Output CRM 1
12/50
IntroductionIntroduction
What CRM systems do!
The primary taskof a CRM system consists in
supporting or performing the activities involved
in customer contact processesThe secondary taskis related to providing
customer and management information
-
8/2/2019 Output CRM 1
13/50
IntroductionIntroduction
The concept of CRM is:
Customer relationship management (CRM) is a
business strategy to select and manage the most
valuable customer relationships. CRM requires a customer-centric business
philosophy and culture to support effective
marketing, sales, and service processes.
-
8/2/2019 Output CRM 1
14/50
IntroductionIntroduction
The concept of CRM is:
CRM applications can enable effective
customer relationship management, provided
that an enterprise has the right leadership,strategy, and culture
-
8/2/2019 Output CRM 1
15/50
CRM should the end of the roadCRM should the end of the road
CRM is a great concept BUT you might wonderif it is worth the effort relative to your customer
base and expenses involved?
It is the ultimate phase AFTER a solid marketresearch and a strategic planning process!
-
8/2/2019 Output CRM 1
16/50
IntroductionIntroduction
Is the issue we analyse strategic? Where could we make more money?
Do we need perfect data?
What is the next step?
-
8/2/2019 Output CRM 1
17/50
IntroductionIntroduction
Is it strategic?
A large and comprehensive CRM programinvolves complicated business and technology
issues and requires investments of time and
money.
Before spending money, key marketing
questions need to be addressed
What are your key marketing questions?
-
8/2/2019 Output CRM 1
18/50
IntroductionIntroduction
Is it strategic?
An example: A well trained and proactive sales force is a strategic necessity; this requires
the right information!
-
8/2/2019 Output CRM 1
19/50
IntroductionIntroduction
Where could we make more money?
It is possible to use CRM to manage the entirerelationship cycle: that is usually a bad idea!
Large systems usually do not pay back.
The focus of CRM should be the weak pointsthat undermine performance
-
8/2/2019 Output CRM 1
20/50
IntroductionIntroduction
Where can we make more money?
Focusing on weak points can not only be aneffective way to build a successful CRM
program but can also put it back on track in case
you started one.
-
8/2/2019 Output CRM 1
21/50
IntroductionIntroduction
Do we need perfect data?
Perfect real time information comes at a veryhigh cost
The requirements for real time and good data are
quite different Example: Outstandings on a current account
(real time) versus portfolio management data
(good data)
-
8/2/2019 Output CRM 1
22/50
IntroductionIntroduction
What is the next step?
Narrowly focused CRM system often revealadditional opportunities for business
improvements.
All the small improvements taken together, canamount to a broad CRM application that extends
across the bank.
The key is to make sure the step by stepapproach fits into a defined strategic plan
-
8/2/2019 Output CRM 1
23/50
IntroductionIntroduction
What is the next step?
In most cases, the opportunities for developmentlie in the activities adjacent to the customer
relationship cycle.
Ultimately, CRM can be the glue that bindstogether all activities related to a customer.
-
8/2/2019 Output CRM 1
24/50
IntroductionIntroduction
Customer relationship cycle.
Development
Sales
ExperienceRetention
Targeting
-
8/2/2019 Output CRM 1
25/50
IntroductionIntroduction
Business before technology
We should look at what CRM should do, not
so much on what it can do
CRM depends more on strategy than on the
amount spent on technology Strategy is about the way you allocate your
resources to create a competitive advantage
and superior performance
-
8/2/2019 Output CRM 1
26/50
IntroductionIntroduction
Implementing CRM before creating a customer
strategy = like building a house without an
architectural plan
Effective CRM is based on segmentation
analysis
Customer strategy is designed to achieve some
specific marketing goals
Technology is not a marketing strategy
-
8/2/2019 Output CRM 1
27/50
IntroductionIntroduction
Introducing CRM before changing your
organisation into a customer focused
organisation = like painting without sanding
CRM will succeed only AFTER the organisation
and its processes job descriptions, performance
measures, compensation systems, training
programs, and so on- have been structure to
provide superior customer value
-
8/2/2019 Output CRM 1
28/50
IntroductionIntroduction
Assume that more technology is better = is like
building without foundation
To start, see what lower-tech alternatives offer;
there may be no need for more in the very near
future
In the future as sequence of individual software
solutions may lead to each step reinforcing the
next step
-
8/2/2019 Output CRM 1
29/50
IntroductionIntroduction
Define the right customers you want to establish
a relationship with = a two way street
Just because managers can contact customers,
does not mean they should by all means and for
whatever reason.
-
8/2/2019 Output CRM 1
30/50
IntroductionIntroduction
How do consumers define us in terms of
competition?
-
8/2/2019 Output CRM 1
31/50
IntroductionIntroduction
How do consumers define us in terms ofcompetition?
Cost
Time
Quality
Opportunity
Information
Knowledge
Choice
Culture
-
8/2/2019 Output CRM 1
32/50
IntroductionIntroduction
Why might you consider CRM?
-
8/2/2019 Output CRM 1
33/50
IntroductionIntroduction
Why might you consider CRM?
1. Gather customer information quickly
2. Identify the most valuable customers
3. Obtain loyalty by providing customized products
4. Possibly reduce cost of serving these customers5. Making it easier to acquire similar customers
6. Retention of existing profitable customers
7. Getting the maximum out of existing customers
8. It can function as an early warning system
-
8/2/2019 Output CRM 1
34/50
IntroductionIntroduction
Why might you consider CRM?
Integrated
image
KnowledgeDataOrganisation
Multi-
channels
AttunedOne wayCommunication
CommitmentIndividual
satisfaction
SatisfactionCustomer
perspective
ValueIncreased
turnover
TurnoverFinancial
perspective
Long termMediumterm
Currentsituation
-
8/2/2019 Output CRM 1
35/50
IntroductionIntroduction
The ultimate goal of CRM :
The goal is to encourage the customer to make
its future purchases from you and reduce the
share of purchases being made from the
competition DUE TO THE FACT customer
knowledge has been accumulated and
therefore it will be more difficult for the
competition to offer a similar package
-
8/2/2019 Output CRM 1
36/50
IntroductionIntroduction
CRM is only a part of the sales performance!
How would you assess your overall sales
performance?
Please rate the questions hereafter as follows
Not effective Extremely effective
1 2 3 4 5 6 7 8 9 10
(Source HBR 08/06)
-
8/2/2019 Output CRM 1
37/50
IntroductionIntroduction
Salespeoples capabilities
Finding customers identifying sales
opportunities
Winning customers converting opportunities
into business
Keeping customers cementing customer
relationships - CRM
Not effective Extremely effective
1 2 3 4 5 6 7 8 9 10
-
8/2/2019 Output CRM 1
38/50
IntroductionIntroduction
Sales Managers' skills
Planning for growing business
Coaching giving clear direction, expectations
and feedback
Motivating recognition and rewards
Not effective Extremely effective
1 2 3 4 5 6 7 8 9 10
-
8/2/2019 Output CRM 1
39/50
IntroductionIntroduction
Support systems
Recruiting and hiring capabilities
Performance management systems
Opportunities management systems
Strategic account management systemsCRM systems
Training and development systems
Not effective Extremely effective
1 2 3 4 5 6 7 8 9 10
-
8/2/2019 Output CRM 1
40/50
IntroductionIntroduction
Sales organisation climate
Clarity of goals and expectations
Staff dedication to achieve challenging goals
Staff initiative
Acknowledgment of good work
Not effective Extremely effective
1 2 3 4 5 6 7 8 9 10
-
8/2/2019 Output CRM 1
41/50
IntroductionIntroduction
The total score for your sales organisation is:..
-
8/2/2019 Output CRM 1
42/50
IntroductionIntroduction
Average for high-performing organisations 123
Average for low-performing organisations 109
We shall put the spot on CRM, but it is only a partof a bigger picture
( US based companies)
Th f hTh t t f th
-
8/2/2019 Output CRM 1
43/50
The structure of the courseThe structure of the course
CRMCRM
IntroductionIntroduction
ORGANISATIONORGANISATION MARKETINGMARKETING ANALYSISANALYSIS
1_Elements of CRM1_Elements of CRM
2_Customer2_Customer--suppliersupplier
3_Strategy3_Strategy
4_Relationship oriented4_Relationship oriented
1_Customer knowledge1_Customer knowledge
2_Customisation2_Customisation
3_Communication3_Communication
4_Relationship policy4_Relationship policy
1_1_RelationshipRelationship DataData
2_Data mining2_Data mining
3_Data selection3_Data selection
4_Data reporting4_Data reporting
SYSTEMSSYSTEMS
1_CRM systems
2_Implementation
3_The future
4_Conclusion
-
8/2/2019 Output CRM 1
44/50
1_Elements of CRM1_Elements of CRM
l f
-
8/2/2019 Output CRM 1
45/50
1_Elements of CRM1_Elements of CRM
The four cornerstones of the
elements of CRM are:
1. Customer knowledge
2. Relationship strategy
3. Communication4. The individual value proposition
1 El f CRM
-
8/2/2019 Output CRM 1
46/50
1_Elements of CRM1_Elements of CRM
1. Customer knowledge
Segmentation Awareness, Attitude
Usage
Concept Customer satisfaction
Customer loyalty Brand Image
Brand equity
Pricing Advertising
1 l f C1 El f CRM
-
8/2/2019 Output CRM 1
47/50
1_Elements of CRM1_Elements of CRM
2. Relationship strategy
A long lasting customer supplier relationship
The key is not only the stimulation of a transaction
Success is not measured by market share
1 El f CRM1 El t f CRM
-
8/2/2019 Output CRM 1
48/50
1_Elements of CRM1_Elements of CRM
3. Communication
The issue is to carry on a dialogue with
individual customers
Shifts should be possible between distributionchannels
1 El f CRM1 El t f CRM
-
8/2/2019 Output CRM 1
49/50
1_Elements of CRM1_Elements of CRM
4. The individual value proposition
The product, service and price are adapted to the
individual circumstances
The organisation has to build up the capacity to
supply customisation in one form or another
1 El t f CRM1 El t f CRM
-
8/2/2019 Output CRM 1
50/50
1_Elements of CRM1_Elements of CRM
Systems
If a relationship must be maintained with a largegroup of customers, a portion of which
represents a low value to the supplier, the use of
IT becomes inevitable.Integration is therefore a must between front-
mid-back office