Primo CRM


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Parth\'s in it\'s endeavour to manage sales effectively with real time communication tools ,developed the crm,which will guide companies towards excellence in customer relationship.

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Primo CRM

  1. 2. Business Strategy Marketing Strategy LEVEL 1 Top Management Decisions Figure 2-1 The Primo CRM Decision Sequence Go-to-Market Strategy Supply Chain Management (SCM) Customer Relationship Management (CRM ) LEVEL 2 Strategy Implementation Decisions Product Development Management (PDM) Structure Competencies Leadership LEVEL 3 Sales Force Program Decisions Activities Account Relationship Strategy
  2. 3. BUSINESS STRATEGY <ul><li>Three key phases </li></ul><ul><ul><ul><li>1. Customer Acquisition </li></ul></ul></ul><ul><ul><ul><li>2. Customer Retention </li></ul></ul></ul><ul><ul><ul><li>3. Customer Extension </li></ul></ul></ul><ul><li>Three contextual factors </li></ul><ul><ul><ul><li>4. Marketing Orientation </li></ul></ul></ul><ul><ul><ul><li>5. Value Creation </li></ul></ul></ul><ul><ul><ul><li>6. Innovative IT. </li></ul></ul></ul>
  3. 4. FIGURE 2-2 : FACTORS INFLUENCING STRATEGIC MANAGEMENT Strategic Management Planning Distinct competencies Marketing Financial Technology Information Environmental constraints Legal & regulatory Demographics Economic Conditions Technology Competitive conditions Sociocultural factors Resources Financial R&D Personnel Brand Equity Production Firm’s history management culture
  4. 5. Marketing Strategy
  5. 6. FIGURE 2-3 : HIERARCHY OF SALES OBJECTIVES Major account objective Achieve sales revenues of $95,000 in product A Obtain an average gross margin of 80% Corporate goals Maximize shareholder wealth Business unit objectives 12% revenue growth Grow pre-tax profits by 18% Marketing objectives Increase product A’s market share by 2 points Grow contributions after sales & marketing by 20% Sales department objectives Achieve sales revenue of $210 million Grow contributions after sales expenses by 25% Sales district objective Achieve sales revenue of $10.5 million in product A Obtain $7 million contributions after direct selling Salesperson objective Achieve sales revenues of $1.2 million in product A Obtain $0.8 million in gross margin dollars
  7. 8. 0 10 70 60 50 40 30 20 Building Brand of Company/ product Enhancing credibility of company product Increasing sales/ revenue Investor relations Saving costs Other What Goals are Most Important to You? 29.8% 31.9% 66.1% 7.7% 14.0% 7.8%
  8. 9. 0 100 60 80 40 20 Building Brand of Company/ product Enhancing credibility of company product Increasing sales/ revenue Investor relations Saving costs Other How Successful Were You at Reaching Your Goals? 68% 58% 72% 94% 83% 93% 32% 42% 28% 6% 17% 7%
  10. 12. Build Strategy Expand market share in a high-growth market Harvest Divest Marketing Strategies Sales Strategies Hold Strategy Maintain market share at the lowest costs possible Harvest Strategy Reduce costs and focus on profit, not market share Divest Strategy Reduce inventory at lowest cost possible Figure 2-4: Business Portfolio Analysis and Primo CRM Strategy Secure Added Distribution Add new customers Provide high presale services Provide product & market feedback Focus on volume growth Build current relationships Call on targeted current customers Increase service to current customers Call on targeted new customers Focus on account penetration Call on most profitable accounts only Reduce overall service levels Reduce inventory levels Maintain distribution Invest as little time as necessary Eliminate services Offer exceptional pricing Focus on one time sales Minimize time commitment
  11. 13. A MORE DETAILED LOOK AT MARKETING STRATEGY <ul><li>The Three Major Functions of Marketing: </li></ul><ul><ul><li>Segmentation </li></ul></ul><ul><ul><li>Targeting </li></ul></ul><ul><ul><li>Positioning </li></ul></ul>
  13. 15. <ul><li>What is the best way to segment the market? </li></ul><ul><li>What are the essential activities required by each segment? </li></ul><ul><li>What group of go-to-market participants should perform the essential activities? </li></ul><ul><li>Which face-to-face selling participants should be used? </li></ul>Steps in Developing a Go-to-Market Strategy
  14. 16. Figure 2-6 Essential Activities Interest Creation Purchase Pre-Purchase Post-Purchase
  15. 17. Large Small Low Information, Low Solution Needs High Information, High Solution Needs Buying Process Customer Size and Opportunity A Framework for Defining Essential Activities
  16. 18. Company Customers and Prospects Figure 2-7 Potential Go-to-Market Participants Direct Sales Force Agents Distributors Retailers Integrators Alliances Advertising Promotion Direct Mail Tele- marketing Internet Direct Indirect Non-Primo CRM Options Primo CRM Options
  17. 19. Figure 2-8 Comparing Various Go-to-Market Alternatives Sales Force Effectiveness Efficiency High Sales per Exposure Low Cost per Exposure Advertising Direct Mail Internet Telemarketing
  18. 20. Customer Base Go-to-Market Strategy: A Large Computer Manufacturer Account Teams Geographic Sales Force Direct Sales Force Industry Teams Outbound Inbound Telemarketing Partners Internet
  19. 21. Customer Base Go-to-Market Strategy: A Large Chemical Company Account Teams Direct Sales Force Inbound Telemarketing
  20. 22. Customer Base Go-to-Market Strategy: A Pharmaceutical Company Account Teams Geographic Sales Force Direct Sales Force Inbound Telemarketing Partners
  21. 23. Customer Base Go-to-Market Strategy: An Industrial Distributor Account Teams Geographic Sales Force Direct Sales Force Outbound Inbound Telemarketing Internet
  22. 24. Figure 2-9 Product Development Management Subprocesses Identify customer needs for better solutions Discovering and designing new product solutions Developing new solution prototypes Managing internal departmental priorities and involvement Designing activities to speed-up development process Launching new and redesigned offerings
  23. 25. Figure 2-10 Supply Chain Management Subprocesses Selecting and managing supplier relationships Managing inbound logistics Managing internal logistics Managing outbound logistics Designing product assembly and batch manufacturing Managing process technology Order, pricing, and terms management Managing channel partners Managing product installation and maintenance
  24. 26. Figure 2-11 Customer Relationship Management Subprocesses Identifying high value prospects Learning about product usage and application Developing and executing advertising and promotion programs Developing and executing sales programs Developing and executing customer service programs Acquiring and leveraging customer contact information systems Managing customer contact teams Enhancing trust and customer loyalty Cross-selling and upselling of offerings
  25. 27. Three Steps in Leveraging the Customer Base <ul><li>From P&L to balance sheet: Customers viewed as assets </li></ul><ul><li>CRM;s Task: To increase shareholder value by leveraging the customer base. </li></ul><ul><li>Focus on understanding cash flow effects and risk management </li></ul>Shareholder Value Driver of Cash Flow & EVA <ul><li>CRM integrated in the business process and yearly planning process </li></ul><ul><li>Improving the profitability of customers seen as a driver of business profit </li></ul><ul><li>Focus on customer selection </li></ul>Business Driver of Profits <ul><li>CRM viewed as a tool to achieve a bigger customer share through cross-selling and up-selling </li></ul><ul><li>Typical in multi-product, multi-divisional environments </li></ul><ul><li>Focus on account planning and organizational alignment </li></ul>Sales Driver of Revenue
  26. 29. Sales Force Selling Activities <ul><li>What are their non-selling responsibilities? </li></ul><ul><li>How much customer face-time will salespeople have? </li></ul><ul><li>How will sales leads be generated? </li></ul><ul><li>How much time will be spent with new prospects? </li></ul><ul><li>How will business with existing customers be grown? </li></ul><ul><li>With whom in the customer’s organization will the sales force interact? </li></ul><ul><li>What support will be needed to consummate a sale? </li></ul><ul><li>How will customers be serviced? </li></ul>Primo CRM Program Elements – Cont. Account Relationship Strategy <ul><li>How long is the selling cycle? </li></ul><ul><li>How much time is spent on customer need discovery? </li></ul><ul><li>Will the offering be customized for each customer? </li></ul><ul><li>Will other functional areas be involved in the sale? </li></ul><ul><li>How much will we need to invest in the individual customer relationship? </li></ul><ul><li>How easily can the customer switch to a competitor once the relationship is established? </li></ul>
  27. 30. Primo CRM Program Elements – Cont. Organizational Structure <ul><li>Will the sales force be specialized by product, customer, or function? </li></ul><ul><li>How many salespeople will be needed? </li></ul><ul><li>What is the span of control for management? </li></ul><ul><li>How many levels of management will be needed? </li></ul><ul><li>How will territories by designed? </li></ul><ul><li>What is the location of salespeople and managers? </li></ul><ul><li>Will telemarketing support be needed? </li></ul><ul><li>Experience level of new salespeople? </li></ul><ul><li>Length and purpose of initial training program? </li></ul><ul><li>Nature of continuing development program ? </li></ul>Competency Development Program
  28. 31. “ I hate being transferred from one person to another.” “ It is frustrating to sit on hold for minutes on end.” “ Why can’t everybody know my issue? This is the 10 th time I have call about the same problem. Don’t they value my business?” “ I might not get a timely answer if I email. I’d rather call.” “ I entered my account number and the agent still asks me for it.” “ I just want to talk to a live person rather than enter 1, 2, or 3 on my touchtone phone.” Common customer service complaints
  30. 33. Primo CRM Program Elements – Cont. Leadership Program <ul><li>Mix of salary, bonus, and commission compensation? </li></ul><ul><li>Total compensation level? </li></ul><ul><li>What additional incentive programs will be needed? </li></ul><ul><li>What benefits will be needed? </li></ul><ul><li>Use of quotas? </li></ul><ul><li>How much will be spent on sales meetings? </li></ul><ul><li>Behavioral-based evaluation metrics? </li></ul><ul><li>Performance-based evaluation metrics? </li></ul><ul><li>Required sales force information system? </li></ul>
  31. 34. Different Sales Orientations Sales Argument Profile of Sales Customer Contacts Offering Success Factors Product Sales Best products “ Product Expert” Narrow Space (e.g., purchasing) Best products with a competitive price Product excellence and/ or cost leadership Solutions to your needs “ Solution provider” Function/ department Product and service solutions to customer needs Understanding the customer’s needs Solution Sales Impact on your business results “ business consultant” All levels Valuable solutions to support competitive advantage Driving customer profits and EVA Value Sales
  32. 35. Figure 2-14: Changes in Customer Expectations of Suppliers
  33. 36. PIZZA EXAMPLE <ul><li>Subconscious Expectations </li></ul><ul><ul><ul><li>Pizza with specified toppings </li></ul></ul></ul><ul><ul><ul><li>Take 10 minutes </li></ul></ul></ul><ul><ul><ul><li>Come in a packed box </li></ul></ul></ul><ul><ul><ul><li>Remain warm till you reach home </li></ul></ul></ul><ul><ul><ul><li>Charges – standard and acceptable price </li></ul></ul></ul><ul><ul><ul><li>Pizza will taste reasonably good </li></ul></ul></ul><ul><li>You will come back if all the above are met </li></ul>
  34. 37. PIZZA EXAMPLE <ul><li>If you go regularly </li></ul><ul><ul><ul><li>Rapport with employees </li></ul></ul></ul><ul><ul><ul><li>You forgive if they mess up with one or two expectations </li></ul></ul></ul><ul><li>Degree of confidence determines tolerance </li></ul><ul><ul><ul><li>If using first time, and even one expectation is not met </li></ul></ul></ul><ul><ul><ul><li>You will never go again </li></ul></ul></ul>
  35. 38. PIZZA EXAMPLE <ul><li>Exceeded expectations </li></ul><ul><ul><ul><li>Deliver on all expectations </li></ul></ul></ul><ul><ul><ul><li>Give you a garlic bread FREE ! </li></ul></ul></ul><ul><li>You will tell everyone about it </li></ul>