Sage - CRM & Customer Equity_May 2012
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Sage - CRM & Customer Equity_May 2012

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Sage - CRM & Customer Equity_May 2012 Presentation Transcript

  • 1. Back to Basics CRM - the magic of sevenCommunicate, Collaborate, Compete #TFM2012 David Beard Sage CRM Evangelist
  • 2. What’s the evangelist stuff then? 2
  • 3. Sage Overview• Over £1B in revenue• 14,500 employees• Over 6 million customers• Global distribution network – 30,000 reseller partners• Presence in 26 countries• 3rd largest business management software provider worldwide 3
  • 4. About Sage CRMSage CRM offers customersa rapid route to successand value 4
  • 5. What The Analysts Say Gartner on Sage CRM Strengths include: End-user usability Core opportunity management End-to-end business process support, such as "opportunity to cash" Source: Gartner Magic Quadrant for Sales Force Automation 28 July 2010 Forrester on Sage CRM The solution’s primary strengths include a low price tag, strong usability, and quick time-to-value. The solution offers an intuitive admin UI, strong Source: Gartner Magic Quadrant forperformance capabilities, and strong product help functionality. In Sales Force Automation 28 July 2010 addition, the product integrates well with other Sage back-office software products. Source: The Forrester Wave™: CRM Suites For Midsized Organizations, Q2 2010 , Forrester Research, Inc 5
  • 6. What’s the problem ? The case forCustomer Relationship Management 6
  • 7. Common Business Issues Faced by Companies Today “I need a quick “I need to be able and easy way for to calculate the me to see how cost per member the business is easily and performing” accurately” “Acquisition“I need to campaigns areknow what “I want to difficult to managethe revenue maximise the and informationflow looks productivity of can go missing” “It take melike quickly all my ages to roll upand easily” employees” all the line-of- business forecasts”“forecasts aredifficult to “We don’t have an upcreate and to date log of alltime- communications withconsuming” “I want to have members” “Our access to the processes “I sometimes same member are not spend my information the automated whole customer team “I don’t want so issues morning has so I to be sometimes trying to understand any wasting time fall through figure out who issues” re-entering the cracks” I’m meant to the same follow-up with information and when” into multiple 7 places”
  • 8. Why Do CompaniesExperience These Difficulties? User CRM Brings it All Together Information in Disparate Locations Throughout the Company 8
  • 9. So, what is CRM ? What is CRM ? Customer Relationship Management 9
  • 10. Time to define … “A business strategy whose outcomes optimise profitability, revenue and customer satisfaction… CRM technologies should enable greater customer insight, increased customer access, more effective customer interactions, and integration throughout all customer channels and back-office enterprise functions”. -Gartner 10
  • 11. CRM is … a means by which to achieve strategic goals 11
  • 12. CRM for MarketersThe “magic of seven” value drivers for success
  • 13. Finding the value drivers: - the challenges• Big investment with little measurable feedback• Cross company thinking often means a series of stumbling blocks• BUT …. • Successful implementations share common characteristics 13
  • 14. Finding the value drivers: - reset your beliefs• CRM is not an over-arching business salvo• It’s an enabler to achieve improved customer relationships• Measuring the outputs of investments in CRM measures the CRM strategy• A measured CRM strategy, with customers in mind = Happy Customers = Profits 14
  • 15. Finding the value drivers: - some thoughts• What is your CRM initiative - strategic or operational? • Strategic: • How your organisation relates to its customers • Integration of marketing, sales and service to achieve greater effectiveness and efficiency • Operational: • gather customer data quickly • identify most valuable customers • increase loyalty through customised offers Across three stages of customer relationships - acquisition, maintenance & termination 15
  • 16. Finding the value drivers: - focus on the unique characteristics• CRM has a number of unique characteristics.• It’s about • One to one relationships • Interactive processes not simple transactions • Value-added activity based on mutual interdependence • Collaboration between suppliers and customers 16
  • 17. Finding the value drivers: - measuring CRM success• Let’s harden up on what success means• Profitability ? Satisfaction ? Retention ? Share of wallet ?• Customer Equity (CE) • Identifies the value of a customer to a selling firm 17
  • 18. Finding the value drivers: - let’s make sense of Customer EquityRelating CRM to Customer Equity (CE), provides• a common basis on which to measure different customer impacting initiatives• Customer Equity (CE) is • Concerned with identifying value of customer to the business • Provides an indication that margin generated is above & beyond product and selling costs • Focuses on two important concerns for marketers • Customer relationships • Financial accountability 18
  • 19. Finding the value drivers: - the dimensions of Customer EquityCE has three subcomponents Value equity – based on the utility of the brand Value to the customer Brand equity - more concerned with the meaning of the brand to the customer Relationship equity – the relationship above and Brand beyond the other two elements Relationship Customer Equity 19
  • 20. Finding the value: - core benefits of CRM that drive CESeven core CRM components that drive CE 1. Improved ability to target profitable customers 2. Integrated offerings across channels leading to cost savings and consistency 3. Improved sales force efficiency and effectiveness 4. Individualised pricing messages 5. Customised products and services 6. Improved customer services efficiency and effectiveness 7. Improved pricing These do not vary greatly across industries or countries 20
  • 21. Finding the value:- let’s look at each for CE driversFor each of the seven core CRM components that drive Customer Equity Value  Brand U Relationship  21
  • 22. Finding the value:- let’s look at each for CE driversSeven core CRM components that drive CE 1. Improved ability to target profitable customers  Improvements here are positively related to value equity in the customer acquisition stage 22
  • 23. Finding the value: - let’s look at each for CE driversSeven core CRM components that drive CE 1. Improved ability to target profitable customers 2. Integrated offerings across channels leading to cost savings and consistency  U Improvements here are positively related to value equity & brand equity in the maintenance stage 23
  • 24. Finding the value: - let’s look at each for CE driversSeven core CRM components that drive CE 1. Improved ability to target profitable customers 2. Integrated offerings across channels leading to cost savings and consistency 3. Improved sales force efficiency and effectiveness  U  Improvements here are positively related to value & brand equity in the acquisition and maintenance stages as well as relationship equity in maintenance stages 24
  • 25. Finding the value drivers: - let’s look at each for CE driversSeven core CRM components that drive CE 1. Improved ability to target profitable customers 2. Integrated offerings across channels leading to cost savings and consistency 3. Improved sales force efficiency and effectiveness  4. Individualised marketing messages U Improvements here are positively related to value & brand equity in acquisition and maintenance stages. 25
  • 26. Finding the value drivers: - let’s look at each for CE driversSeven core CRM components that drive CE 1. Improved ability to target profitable customers 2. Integrated offerings across channels leading to cost savings and consistency 3. Improved sales force efficiency and effectiveness 4. Individualised marketing messages 5. Customised products and services U  Improvements here are positively related to brand & relationship equity in the maintenance stage. 26
  • 27. Finding the value drivers: - let’s look at each for CE driversSeven core CRM components that drive CE 1. Improved ability to target profitable customers 2. Integrated offerings across channels leading to cost savings and consistency 3. Improved sales force efficiency and effectiveness  4. Individualised marketing messages 5. Customised products and services U 6. Improved customer services efficiency and effectiveness  Improvements here are positively related to value & brand equity in acquisition and maintenance stages & relationship equity in the maintenance stage. 27
  • 28. Finding the value drivers: - let’s look at each for CE driversSeven core CRM components that drive CE 1. Improved ability to target profitable customers 2. Integrated offerings across channels leading to cost savings and consistency 3. Improved sales force efficiency and effectiveness  4. Individualised marketing messages 5. Customised products and services 6. Improved customer services efficiency and effectiveness 7. Improved pricing Improvements here are positively related to value equity during acquisition and maintenance stages 28
  • 29. The value drivers story - the benefits in using CE with CRMWhether you are considering operational or strategic CRM • Focuses CRM initiatives on 7 core components • Provides a broader view of measurement for process & technology change • Provides financial accountability for CRM investments • Measuring changes in customer’s perception of value, brand and relationship equity gives on-going accountability  U  29
  • 30. Back to Basics CRM - the magic of sevenCommunicate, Collaborate, Compete #TFM2012 David Beard Sage CRM Evangelist