Growing the Business through Customer Relationships & Retention Joel Warady Principal Joel Warady Group October 1, 2005

Understanding the Value of each Relationship and Making Sure each Interaction Maximizes that Value What is CRM?

CRM: What is it? How Do I Change My Business Functions: Sales, Marketing, Customer Service Channels: Face to Face, Phone, Direct Mail, Interactive Relationship: Customer, Supplier & Vendor Competency: Process, Technology

Functions: Sales, Marketing, Customer Service

Channels: Face to Face, Phone, Direct Mail, Interactive

Relationship: Customer, Supplier & Vendor

Competency: Process, Technology

What Should CRM Accomplish? I want a company to know what I like I want a company to inform me about offers in which I might be interested I want a company to inventory what I normally purchase I want a company to make my life easier

I want a company to know what I like

I want a company to inform me about offers in which I might be interested

I want a company to inventory what I normally purchase

I want a company to make my life easier

What is the Reality of Most Companies? They really don’t know who I am They sell me what they are interested in selling, not necessarily what I want They won’t let me place an order without transferring me They make my life more difficult

They really don’t know who I am

They sell me what they are interested in selling, not necessarily what I want

They won’t let me place an order without transferring me

They make my life more difficult

CRM & ERM Cut Across Organizations Why Now? Technology!!! Face to Face Telephone Direct Mail Web Site E-mail IM (Skype, GoogleTalk, Yahoo, MSN) Key Chain Wireless Interactive Kiosks Interactive TV

Why Now? Technology!!!

Face to Face

Telephone

Direct Mail

Web Site

E-mail

IM (Skype, GoogleTalk, Yahoo, MSN)

Key Chain

Wireless

Interactive Kiosks

Interactive TV

What Does CRM Provide a Company? It allows for a Central Source of Truth Capture Information at Relationship Touchpoints Marketing Sales Customer Service

It allows for a Central Source of Truth

Capture Information at Relationship Touchpoints

Marketing

Sales

Customer Service

What are the Benefits to the Customer? Better Service One Call Empowerment More Channels for Satisfaction New & Interesting Products Mass Customization Global Company, Local Feel

Better Service

One Call Empowerment

More Channels for Satisfaction

New & Interesting Products

Mass Customization

Global Company, Local Feel

What are the Benefits to the Company? Survival!!! Higher Service Levels Customer Brand Loyalty is fading Customers Expect More Customers Expect Information Immediately Prosperity More Wallet Share Retention Share It costs less than acquiring a customer

Survival!!!

Higher Service Levels

Customer Brand Loyalty is fading

Customers Expect More

Customers Expect Information Immediately

Prosperity

More Wallet Share

Retention Share

It costs less than acquiring a customer

Wallet Share vs. Market Share More Customers vs. More $ from same customers? How deep can a company penetrate its current customer accounts? Don’t find customers for your products Find products for your customer Reduce the cost of doing business Create greater loyalty with your customers

More Customers vs. More $ from same customers?

How deep can a company penetrate its current customer accounts?

Don’t find customers for your products

Find products for your customer

Reduce the cost of doing business

Create greater loyalty with your customers

Common Pitfalls for CRM Cart Before the Horse Companies Purchase CRM Product Products are Expensive Providers are Inexperienced Systems Need Information People Need Training New Processes New Skills Plan First

Cart Before the Horse

Companies Purchase CRM Product

Products are Expensive

Providers are Inexperienced

Systems Need Information

People Need Training

New Processes

New Skills

Plan First

Stages of Company Focus Product Driven Sales Driven Database Driven Customer Driven Collaborative Driven

Product Driven

Sales Driven

Database Driven

Customer Driven

Collaborative Driven

Creating Customers for Life (The Ten Commandments) Ask customers what they want and give it to them again and again Systems, not smiles Underpromise, overdeliver When the customer asks, the answer is always yes. Period. Fire your inspectors and customer relations department Encourage your customers to tell you what you’re doing wrong Measure everything Never charge your customers for something you would not charge your friends Show people respect Borrow, borrow, borrow

Ask customers what they want and give it to them again and again

Systems, not smiles

Underpromise, overdeliver

When the customer asks, the answer is always yes. Period.

Fire your inspectors and customer relations department

Encourage your customers to tell you what you’re doing wrong

Measure everything

Never charge your customers for something you would not charge your friends

Show people respect

Borrow, borrow, borrow