Your SlideShare is downloading. ×
0
Customer Relationship Ma nagement (CRM) ATTF Luxemburg Helping you through the learning curve R.J.Claessens & Partners
Key Sources of the course:   Harvard Business Review   CRM by Ed Peelen  Snezana Dra g icevic  Geraldine  Claessens   E ma...
The key message of the course
The key message of the course We are in it, together!
The key message of the course <ul><li>In 2003, according to Harvard Business Review, 82% of interviewed companies  in the ...
The key message of the course <ul><li>The approach changed! </li></ul><ul><li>Rather than use CRM to transform entire busi...
The key message of the course <ul><li>The approach changed! </li></ul><ul><li>CRM today result in highly focused projects ...
The key message of the course <ul><li>« Achieving success with CRM is more difficult than expected and  it is not just a m...
Introduction <ul><li>The philosophy of C ustomer  R elationship  M anagement is this :   </li></ul><ul><li>CRM is about « ...
Introduction <ul><li>The  philosophy of  CRM is:   </li></ul><ul><li>It is a  comprehensive approach  for creating, mainta...
Introduction <ul><li>The  focus is on :   </li></ul><ul><li>What will the customers buy, when, why and for how much?  </li...
Introduction <ul><li>What CRM systems do ! </li></ul><ul><li>The  primary task  of a CRM system consists in supporting or ...
Introduction <ul><li>The concept of CRM is:   </li></ul><ul><li>Customer relationship management (CRM) is a  business stra...
Introduction <ul><li>The concept of CRM is:   </li></ul><ul><li>CRM applications can enable effective customer relationshi...
CRM should the end of the road <ul><li>CRM is a great concept BUT you might wonder if it is worth the effort relative to y...
Introduction <ul><li>Is  the issue we analyse  strategic? </li></ul><ul><li>Where  could we make more money ?  </li></ul><...
Introduction <ul><li>Is it strategic? </li></ul><ul><li>A large and comprehensive CRM program involves complicated busines...
Introduction <ul><li>Is it strategic? </li></ul><ul><li>An example:  A well trained and « proactive » sales force is a str...
Introduction <ul><li>Where  could we make more money ? </li></ul><ul><li>It is possible to use CRM to  manage the entire r...
Introduction <ul><li>Where  can we make more money ? </li></ul><ul><li>Focusing on  weak  points  can not only be an effec...
Introduction <ul><li>Do we need perfect data? </li></ul><ul><li>Perfect real time information comes at a very high cost </...
Introduction <ul><li>What is the next step? </li></ul><ul><li>Narrowly focused CRM system often reveal additional opportun...
Introduction <ul><li>What is the next step? </li></ul><ul><li>In most cases, the opportunities for development lie in the ...
Introduction <ul><li>Customer relationship cycle.  </li></ul>Development Sales Experience Retention Targeting
Introduction <ul><li>Business before technology </li></ul><ul><li>We should look at what CRM should do, not so much on wha...
Introduction <ul><li>Implementing CRM before creating a customer strategy = like building a house without an architectural...
Introduction <ul><li>Introducing CRM before changing your organisation into a customer focused organisation = like paintin...
Introduction <ul><li>Assume that more technology is better =  is like building without foundation </li></ul><ul><li>To sta...
Introduction <ul><li>Define the right customers you want to establish a relationship with = a two way street </li></ul><ul...
Introduction <ul><li>How do consumers define us in terms of competition? </li></ul>
Introduction <ul><li>How do consumers define us in terms of competition? </li></ul><ul><li>Cost </li></ul><ul><li>Time </l...
Introduction <ul><li>Why  might you  consider CRM? </li></ul>
Introduction <ul><li>Why might you consider CRM? </li></ul><ul><li>Gather customer information quickly </li></ul><ul><li>I...
Introduction <ul><li>Why  might you consider  CRM? </li></ul>Integrated image  Knowledge Data Organisation Multi-channels ...
Introduction <ul><li>The ultimate goal of CRM :   </li></ul><ul><li>The goal is to encourage the customer to make its futu...
Introduction <ul><li>CRM is only a part of the sales’ performance! </li></ul><ul><li>How would you assess your overall sal...
Introduction <ul><li>Salespeople’s capabilities </li></ul><ul><li>Finding customers – identifying sales opportunities </li...
Introduction <ul><li>Sales Managers' skills   </li></ul><ul><li>Planning for growing business </li></ul><ul><li>Coaching –...
Introduction <ul><li>Support systems   </li></ul><ul><li>Recruiting and hiring capabilities </li></ul><ul><li>Performance ...
Introduction <ul><li>Sales organisation climate   </li></ul><ul><li>Clarity of goals and expectations </li></ul><ul><li>St...
Introduction <ul><li>The total score for your sales organisation is:……..     </li></ul>
Introduction <ul><li>  </li></ul><ul><li>Average for high-performing organisations°  123 </li></ul><ul><li>Average for low...
The structure of the course CRM Introduction ORGANISATION MARKETING ANALYSIS 1_Elements of CRM 2_Customer-supplier 3_Strat...
1_Elements of CRM
1_Elements of CRM <ul><li>The four cornerstones of  the  «elements of  CRM  »  are: </li></ul><ul><ul><li>Customer knowled...
1_Elements of CRM <ul><li>Customer knowledge </li></ul><ul><li>Customer   loyalty </li></ul><ul><li>Brand Image </li></ul>...
1_Elements of CRM <ul><li>Relationship strategy </li></ul><ul><li>A long lasting customer – supplier relationship </li></u...
1_Elements of CRM <ul><li>Communication </li></ul><ul><li>The issue is to carry on a dialogue with individual customers  <...
1_Elements of CRM <ul><li>The individual value proposition </li></ul><ul><li>The product, service and price are adapted to...
1_Elements of CRM <ul><li>Systems </li></ul><ul><li>If a relationship must be maintained with a large group of customers, ...
Upcoming SlideShare
Loading in...5
×

crm

1,400

Published on

Published in: Education, Business, Technology
0 Comments
2 Likes
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total Views
1,400
On Slideshare
0
From Embeds
0
Number of Embeds
1
Actions
Shares
0
Downloads
67
Comments
0
Likes
2
Embeds 0
No embeds

No notes for slide

Transcript of "crm"

  1. 1. Customer Relationship Ma nagement (CRM) ATTF Luxemburg Helping you through the learning curve R.J.Claessens & Partners
  2. 2. Key Sources of the course: Harvard Business Review CRM by Ed Peelen Snezana Dra g icevic Geraldine Claessens E mail: contact@rogerclaessens.be - Internet: www.rogerclaessens.be R.J.Claessens & Partners
  3. 3. The key message of the course
  4. 4. The key message of the course We are in it, together!
  5. 5. The key message of the course <ul><li>In 2003, according to Harvard Business Review, 82% of interviewed companies in the USA, stated they would introduce CRM, a large jump from the 35% who employed CRM in 2000. </li></ul><ul><li>What changed? </li></ul>
  6. 6. The key message of the course <ul><li>The approach changed! </li></ul><ul><li>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 </li></ul>
  7. 7. The key message of the course <ul><li>The approach changed! </li></ul><ul><li>CRM today result in highly focused projects that are relatively narrow in their scope and modest in their goals. </li></ul><ul><li>There is also an understanding that highly accurate and timely data are not required everywhere </li></ul>
  8. 8. The key message of the course <ul><li>« Achieving success with CRM is more difficult than expected and it is not just a matter of marketing and IT.  » </li></ul>
  9. 9. Introduction <ul><li>The philosophy of C ustomer R elationship M anagement is this : </li></ul><ul><li>CRM is about « Keeping the old-time spirit of customer connection even when you can not shake every hand ». </li></ul>
  10. 10. Introduction <ul><li>The philosophy of CRM is: </li></ul><ul><li>It is a comprehensive approach  for creating, maintaining and expanding customer relationships. </li></ul><ul><li>CRM is a way of thinking about and dealing with customer relationships </li></ul>
  11. 11. Introduction <ul><li>The focus is on : </li></ul><ul><li>What will the customers buy, when, why and for how much? </li></ul><ul><li>What creates value for them? </li></ul><ul><li>What does create a structural bond? </li></ul><ul><li>What service can we provide that does create a premium? </li></ul><ul><li>What about market segmentation? </li></ul>
  12. 12. Introduction <ul><li>What CRM systems do ! </li></ul><ul><li>The primary task of a CRM system consists in supporting or performing the activities involved in customer contact processes </li></ul><ul><li>The secondary task is related to providing customer and management information </li></ul>
  13. 13. Introduction <ul><li>The concept of CRM is: </li></ul><ul><li>Customer relationship management (CRM) is a business strategy to select and manage the most valuable customer relationships. </li></ul><ul><li>CRM requires a customer-centric business philosophy and culture to support effective marketing, sales, and service processes. </li></ul>
  14. 14. Introduction <ul><li>The concept of CRM is: </li></ul><ul><li>CRM applications can enable effective customer relationship management, provided that an enterprise has the right leadership, strategy, and culture </li></ul>
  15. 15. CRM should the end of the road <ul><li>CRM is a great concept BUT you might wonder if it is worth the effort relative to your customer base and expenses involved? </li></ul><ul><li>It is the ultimate phase AFTER a solid market research and a strategic planning process! </li></ul>
  16. 16. Introduction <ul><li>Is the issue we analyse strategic? </li></ul><ul><li>Where could we make more money ? </li></ul><ul><li>Do we need perfect data? </li></ul><ul><li>What is the next step? </li></ul>
  17. 17. Introduction <ul><li>Is it strategic? </li></ul><ul><li>A large and comprehensive CRM program involves complicated business and technology issues and requires investments of time and money. </li></ul><ul><li>Before spending money , key marketing questions need to be addressed </li></ul><ul><li>What are your key marketing questions? </li></ul>
  18. 18. Introduction <ul><li>Is it strategic? </li></ul><ul><li>An example: A well trained and « proactive » sales force is a strategic necessity; this requires the right information! </li></ul>
  19. 19. Introduction <ul><li>Where could we make more money ? </li></ul><ul><li>It is possible to use CRM to manage the entire relationship cycle: that is usually a bad idea! </li></ul><ul><li>Large systems usually do not pay back. </li></ul><ul><li>The focus of CRM should be the weak points that undermine performance </li></ul>
  20. 20. Introduction <ul><li>Where can we make more money ? </li></ul><ul><li>Focusing on weak points can not only be an effective way to build a successful CRM program but can also put it back on track in case you started one. </li></ul>
  21. 21. Introduction <ul><li>Do we need perfect data? </li></ul><ul><li>Perfect real time information comes at a very high cost </li></ul><ul><li>The requirements for real time and good data are quite different </li></ul><ul><li>Example: O utstandings on a current account (real time) versus portfolio management data (good data) </li></ul>
  22. 22. Introduction <ul><li>What is the next step? </li></ul><ul><li>Narrowly focused CRM system often reveal additional opportunities for business improvements. </li></ul><ul><li>All the small improvements taken together, can amount to a broad CRM application that extends across the bank. </li></ul><ul><li>The key is to make sure the step by step approach fits into a defined strategic plan </li></ul>
  23. 23. Introduction <ul><li>What is the next step? </li></ul><ul><li>In most cases, the opportunities for development lie in the activities adjacent to the customer relationship cycle. </li></ul><ul><li>Ultimately, CRM can be the glue that binds together all activities related to a customer. </li></ul>
  24. 24. Introduction <ul><li>Customer relationship cycle. </li></ul>Development Sales Experience Retention Targeting
  25. 25. Introduction <ul><li>Business before technology </li></ul><ul><li>We should look at what CRM should do, not so much on what it can do </li></ul><ul><li>CRM depends more on strategy than on the amount spent on technology </li></ul><ul><li>Strategy is about the way you allocate your resources to create a competitive advantage and superior performance </li></ul>
  26. 26. Introduction <ul><li>Implementing CRM before creating a customer strategy = like building a house without an architectural plan </li></ul><ul><li>Effective CRM is based on segmentation analysis </li></ul><ul><li>Customer strategy is designed to achieve some specific marketing goals </li></ul><ul><li>Technology is not a marketing strategy </li></ul>
  27. 27. Introduction <ul><li>Introducing CRM before changing your organisation into a customer focused organisation = like painting without sanding </li></ul><ul><li>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 </li></ul>
  28. 28. Introduction <ul><li>Assume that more technology is better = is like building without foundation </li></ul><ul><li>To start, see what lower-tech alternatives offer; there may be no need for more in the very near future </li></ul><ul><li>In the future as sequence of individual software solutions may lead to each step reinforcing the next step </li></ul>
  29. 29. Introduction <ul><li>Define the right customers you want to establish a relationship with = a two way street </li></ul><ul><li>Just because managers can contact customers, does not mean they should by all means and for whatever reason. </li></ul>
  30. 30. Introduction <ul><li>How do consumers define us in terms of competition? </li></ul>
  31. 31. Introduction <ul><li>How do consumers define us in terms of competition? </li></ul><ul><li>Cost </li></ul><ul><li>Time </li></ul><ul><li>Quality </li></ul><ul><li>Opportunity </li></ul><ul><li>Information </li></ul><ul><li>Knowledge </li></ul><ul><li>Choice </li></ul><ul><li>Culture </li></ul>
  32. 32. Introduction <ul><li>Why might you consider CRM? </li></ul>
  33. 33. Introduction <ul><li>Why might you consider CRM? </li></ul><ul><li>Gather customer information quickly </li></ul><ul><li>Identify the most valuable customers </li></ul><ul><li>Obtain loyalty by providing customized products </li></ul><ul><li>Possibly reduce cost of serving these customers </li></ul><ul><li>Making it easier to acquire similar customers </li></ul><ul><li>Retention of existing profitable customers </li></ul><ul><li>Getting the maximum out of existing customers </li></ul><ul><li>It can function as an early warning system </li></ul>
  34. 34. Introduction <ul><li>Why might you consider CRM? </li></ul>Integrated image Knowledge Data Organisation Multi-channels Attuned One way Communication Commitment Individual satisfaction Satisfaction Customer perspective Value Increased turnover Turnover Financial perspective Long term Medium term Current situation
  35. 35. Introduction <ul><li>The ultimate goal of CRM : </li></ul><ul><li>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 </li></ul>
  36. 36. Introduction <ul><li>CRM is only a part of the sales’ performance! </li></ul><ul><li>How would you assess your overall sales’ performance? </li></ul><ul><li>Please rate the questions hereafter as follows </li></ul><ul><li>Not effective Extremely effective </li></ul><ul><li>1 2 3 4 5 6 7 8 9 10 </li></ul><ul><li>(Source HBR 08/06) </li></ul>
  37. 37. Introduction <ul><li>Salespeople’s capabilities </li></ul><ul><li>Finding customers – identifying sales opportunities </li></ul><ul><li>Winning customers – converting opportunities into business </li></ul><ul><li>Keeping customers – cementing customer relationships - CRM </li></ul>Not effective Extremely effective 1 2 3 4 5 6 7 8 9 10
  38. 38. Introduction <ul><li>Sales Managers' skills </li></ul><ul><li>Planning for growing business </li></ul><ul><li>Coaching – giving clear direction, expectations and feedback </li></ul><ul><li>Motivating – recognition and rewards </li></ul>Not effective Extremely effective 1 2 3 4 5 6 7 8 9 10
  39. 39. Introduction <ul><li>Support systems </li></ul><ul><li>Recruiting and hiring capabilities </li></ul><ul><li>Performance management systems </li></ul><ul><li>Opportunities management systems </li></ul><ul><li>Strategic account management systems </li></ul><ul><li>CRM systems </li></ul><ul><li>Training and development systems </li></ul>Not effective Extremely effective 1 2 3 4 5 6 7 8 9 10
  40. 40. Introduction <ul><li>Sales organisation climate </li></ul><ul><li>Clarity of goals and expectations </li></ul><ul><li>Staff dedication to achieve challenging goals </li></ul><ul><li>Staff initiative </li></ul><ul><li>Acknowledgment of good work </li></ul>Not effective Extremely effective 1 2 3 4 5 6 7 8 9 10
  41. 41. Introduction <ul><li>The total score for your sales organisation is:…….. </li></ul>
  42. 42. Introduction <ul><li> </li></ul><ul><li>Average for high-performing organisations° 123 </li></ul><ul><li>Average for low-performing organisations° 109 </li></ul><ul><li>We shall put the spot on CRM, but it is only a part of a bigger picture </li></ul><ul><li>(° US based companies) </li></ul>
  43. 43. The structure of the course CRM Introduction ORGANISATION MARKETING ANALYSIS 1_Elements of CRM 2_Customer-supplier 3_Strategy 4_Relationship oriented 1_Customer knowledge 2_Customisation 3_Communication 4_Relationship policy 1_ Relationship Data 2_Data mining 3_Data selection 4_Data reporting SYSTEMS 1_CRM systems 2_Implementation 3_The future 4_Conclusion
  44. 44. 1_Elements of CRM
  45. 45. 1_Elements of CRM <ul><li>The four cornerstones of the «elements of CRM  »  are: </li></ul><ul><ul><li>Customer knowledge </li></ul></ul><ul><ul><li>Relationship strategy </li></ul></ul><ul><ul><li>Communication </li></ul></ul><ul><ul><li>The individual value proposition </li></ul></ul>
  46. 46. 1_Elements of CRM <ul><li>Customer knowledge </li></ul><ul><li>Customer loyalty </li></ul><ul><li>Brand Image </li></ul><ul><li>Brand equity </li></ul><ul><li>Pricing </li></ul><ul><li>Advertising </li></ul><ul><li>Segmentation </li></ul><ul><li>Awareness, Attitude </li></ul><ul><li>Usage </li></ul><ul><li>Concept </li></ul><ul><li>Customer satisfaction </li></ul>
  47. 47. 1_Elements of CRM <ul><li>Relationship strategy </li></ul><ul><li>A long lasting customer – supplier relationship </li></ul><ul><li>The key is not only the stimulation of a transaction </li></ul><ul><li>Success is not measured by market share </li></ul>
  48. 48. 1_Elements of CRM <ul><li>Communication </li></ul><ul><li>The issue is to carry on a dialogue with individual customers </li></ul><ul><li>Shifts should be possible between distribution channels </li></ul>
  49. 49. 1_Elements of CRM <ul><li>The individual value proposition </li></ul><ul><li>The product, service and price are adapted to the individual circumstances </li></ul><ul><li>The organisation has to build up the capacity to supply customisation in one form or another </li></ul>
  50. 50. 1_Elements of CRM <ul><li>Systems </li></ul><ul><li>If a relationship must be maintained with a large group of customers, a portion of which represents a low value to the supplier, the use of IT becomes inevitable. </li></ul><ul><li>Integration is therefore a must between front-mid-back office </li></ul>
  1. A particular slide catching your eye?

    Clipping is a handy way to collect important slides you want to go back to later.

×