Basics of CRM


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  • CRM is such a broad topicToday is high level surface StuffIf you know it all – you can come help me speak
  • I get really nervous about talking in front of people
  • I sit in a pretty comfortable officeI work long hoursI’m an all around geek – with glasses and no hairI write 95% of the code at Vin65You’ll realize I’m quirkyI shave with a safety razer
  • My goal today is to get you to start thinking about CRM and what you could do better with your customersAs I mentioned previously – this is a very high level view.
  • If it’s boring – let me know (I’m self conscious so don’t tweet if it’s boring)
  • Befor you say “Duh” – of course the answer is yes. Before you think this talk is really “too high level” and you walk out of the room. Let’s explore. We talk customer service but we have voice mail and phone trees. We talk customer service but we have untrained part time employees working our tasting room.I was on the plane last night. Know how I know that airlines get customer experience. They tell me so. Someone AirCanada decided that people really hate have a flight attendent tell them how to fasten a seatbelt – so they replaced them with a monatone voice – “your experience is important to us…”
  • Start with something that is a little bit lighterUnlike David Letterman – I’m counting from 1-10 instead of 10-1
  • How many times have you promised something and then not dealt with it? This is frustrating.
  • The only thing worse than a delay is not being informed of the delay. You order wine – a week later you don’t have it – you call and find out it hasn’t even shipped.
  • This one is particularly maddening. You have sales, you have production – and the pacific ocean is in between.
  • The only time they talk to you is to sell you something.
  • when you've been going to a winery for years and bring your friends, and someone who has never been to the winery is right next to you at the bar getting the same treatment, same prices, etc
  • Its not that they are stupid – it’s just that they don’t have a record
  • Junkmail is pure evil. You can tweet that.It’s really sad when a winery does it.
  • I don’t know about US phone companies – but in Canada they are terrible. My phone stops working – I call support – please enter your 10 digit cell phone number. Technical support – please enter your number. Oh you have a Business Phone I got to transfer you….
  • Nothing like a wine telemarketing service that doesn’t have access to your customer profile.
  • You guys are smart and don’t need to be bedazzeled with big works. So here is my definition.
  • This is the most important thing I’ll say today
  • This is important. So many people pick a technology – and the processes they implement are the processes in the technology. Do not let a technology company dictate your CRM needs. Repeat – Do not let a technology company dictate your CRM needs.
  • This example isn’t self promotion – it’s just a company I know inside out and we talk CRM often.
  • This is how we fired our first bookkeeper. Customers would call with a complaint or a question – and the answer is that’s not my job.
  • If the customer only buys why wine – why put a different offer in front of them/
  • example service issue resolved in 24hrs - email comes up - winery can use CRM tools to assign the time-sensitive task to most suitable customer
  • Generally when I speak, nobody wants to here philosophy – the just want ideas for executing.Choose one or two ideas – don’t do all 10
  • Talk about Tod West
  • Talk about Dustin and the clothes
  • WTN / Kristina / Stats??
  • WTN / Kristina / Stats??
  • WTN / Kristina / Stats??
  • Tammy Boatwrite
  • Tammy Boatwrite
  • Basics of CRM

    1. 1. Basics of CustomerRelationship Management
    2. 2. The Professional MeAndrew Kamphuis  President of Vin65   @andrewkamphuis  Cell: 604-613-5343
    3. 3. The Real MeAndrew Kamphuis
    4. 4. Basics of CustomerRelationship Management
    5. 5. If you like it – tweet it.
    6. 6. Customer Experience
    7. 7. Does the customer experiencematter?
    8. 8. If you know your customers, can youcreate a better experience?
    9. 9. Will a better customer experience leadto more profitability?
    10. 10. Top 10
    11. 11. Top 10 Things That Annoy CustomersPromised return phone calls notmade or information not sent. 1
    12. 12. Top 10 Things That Annoy CustomersNot being informed of a delay. 2
    13. 13. Top 10 Things That Annoy CustomersOne department in the companyhaving no idea what anotherdepartment said. 3
    14. 14. Top 10 Things That Annoy CustomersNo one bothers to call to make surethe wine arrived – probably no callat all until they want to sell yousomething more. 4
    15. 15. Top 10 Things That Annoy CustomersNot being valued for yourrelationship. 5
    16. 16. Top 10 Things That Annoy CustomersNo one knowing what they last soldyou or when. 6
    17. 17. Top 10 Things That Annoy CustomersSpam! 7
    18. 18. Top 10 Things That Annoy CustomersStaff that ask basic questions theyshould know the answer to. 8
    19. 19. Top 10 Things That Annoy CustomersIVRs – InteractiveVoice ResponseSystems. 9
    20. 20. Top 10 Things That Annoy CustomersCustomer support or phone agentswithout access to your profile. 10
    21. 21. CRM is Philosophy Not Technology
    22. 22. What is CRM?It’s Not Pixy Dust You can’t sprinkle some and assume sales will get better.
    23. 23. What is CRM?It’s Not Software
    24. 24. What is CRM?Definition The concepts used by organizations to manage their relationships with customers including capturing leads, storage and analysis of the customers, vendors, partners and internal information. It’s the operational, collaborative and analytical approach to customers.
    25. 25. What is CRM?BORING!!!!
    26. 26. What is CRM?A Better Definition
    27. 27. Why CRM?Objectives Boost sales, retain customers and save money. Enhance business productivity and optimize sales and marketing.
    28. 28. Why CRM?Goal of CRM Bring the company closer to the customer. Increase customer loyalty = more profit.
    29. 29. How to do CRM Right
    30. 30. Philosophy -> Process -> TechnologyPhilosophy It doesn’t start with technology – it starts with philosophy. It’s a ‘customer first’ attitude.
    31. 31. Philosophy -> Process -> TechnologyProcess The process will make a difference, which is noticed by your customers – and your bottom line.
    32. 32. Philosophy -> Process -> TechnologyTechnology Don’t select the technology until you’ve set a philosophy and created a process.
    33. 33. Philosophy -> Process -> TechnologyPersonal Example: Vin65 In Dec 2010 our customer base topped 500 clients. We wanted a CRM solution for our customers.
    34. 34. Philosophy -> Process -> TechnologyAt Vin65 Philosophy  Both sales and customer service should be humanized.  Vin65 should feel like a small family company.  Customer service matters – It’s not just about sales.
    35. 35. Philosophy -> Process -> TechnologyAt Vin65 Process  Humans answer the phone (no phone tree).  Lead inquiry system and support ticket system that is answered by humans.  Staff members’ faces appear on support ticket responses.  Work with staff to develop personality when talking with customers.  Get staff photos on website, Facebook, Twitter, etc.
    36. 36. Philosophy -> Process -> TechnologyVin65 Technology  Initially used SalesForce for sales.  Home-grown support ticket system.  Built-in reporting and analytics to measure how team is doing.
    37. 37. Philosophy -> Process -> TechnologyExample: Vin65 Personalization Efforts
    38. 38. Philosophy -> Process -> TechnologyExample: Vin65 Personalization Efforts
    39. 39. Philosophy -> Process -> TechnologyExample: Vin65 Personalization Efforts
    40. 40. Philosophy -> Process -> TechnologyExample: Vin65 Personalization Efforts
    41. 41. Philosophy -> Process -> TechnologyExamples: Results of CRM Efforts
    42. 42. Philosophy -> Process -> TechnologyExamples: Results of CRM Efforts
    43. 43. Building a Strategic Base
    44. 44. CRM PlanDevelop a Philosophy What’s important? What’s your customer relationship story?
    45. 45. CRM PlanDetermine Process Who’s responsible for testimonials? Who’s responsible for irate customers? How long does it take to respond to a customer? Look at it from a sales, marketing, service, and feedback perspective.
    46. 46. CRM PlanCommitment at all Levels Executive management leads it. Each team member understands their role.  Tasting room staff enters the data into the system.  Billing staff understand how to deal with complaints.  Marketing staff know how to analyze the data.
    47. 47. CRM PlanMeasure Results Each process should have a measurable result. Monitor results over time.
    48. 48. CRM Plan
    49. 49. CRM PlanMarketing Customer knowledge  Usage habits  Demographics Analytical  Market size and opportunity  Customer value equation, CLTV, AOV
    50. 50. CRM PlanMarketing Perspective How much can you afford to spend to acquire new customers? Which new customer sources generate the most profitability? How can you spend to retain/reactive existing customers?
    51. 51. CRM PlanMarketing Perspective Identify the ideal customer.  Spending habits  Visit frequencies  Incentives redeemed
    52. 52. CRM PlanSales CRM puts the right offer in front of the right customer.
    53. 53. CRM PlanSales Perspective Customers with a good experience tell 3 others of their experience. 5% increase in customer retention means 25%-95% increase in profitability.
    54. 54. CRM PlanService & Support Response management  Fielding inquiries  Responding to complaints
    55. 55. CRM PlanService Perspective 95% of customers who have had problems will continue to do business if problems are resolved. For every complaint you receive there are another 20 potential complaints. Customers with a bad experience tell 8 others of their experiences. 68% of former customers left because of poor customer service.
    56. 56. CRM PlanFeedback Listening to social conversations Surveying Active conversations
    57. 57. Execution
    58. 58. Forget Philosophy – Just Want to Execute?
    59. 59. 10 Ideas For Your WineryLearn Your CustomersDog’s Name Really know your customer – their birthday, anniversary date, etc. Find something special about your customer. Use that “special” thing when you communicate with them. 1
    60. 60. 10 Ideas For Your WinerySend a Birthday Card Not a generic card – a personal card (nobody wants your generic card). Remember something special about your customer. 2
    61. 61. 10 Ideas For Your WinerySegment Your Next Email Blast Club vs. non-club. First time vs. repeat buyer. Local vs. out-of-town. Make it relevant. 3
    62. 62. 10 Ideas For Your WineryWhy Segment Your List?  Your response rate increases.  You build deeper connections.  Untargeted email is spam.
    63. 63. 10 Ideas For Your WinerySegmented Examples  – 26,000 inactive buyers  50% received a regular email  50% received targeted “we miss you” email  Results  6.75X greater click-through rate  9X more orders  28X more $$  ½ as many unsubscribers
    64. 64. 10 Ideas For Your WineryBuild a Retention Plan Retention is the new acquisition. Know your retention rate. Understand why customers leave. 4
    65. 65. 10 Ideas For Your WineryGet the Second Order After the customer leaves the tasting room, will they ever get contacted again? 5
    66. 66. 10 Ideas For Your WineryListen and RespondSocially Social monitoring  Vintank  HyperAlerts 6
    67. 67. 10 Ideas For Your WineryEnable Feedback on Your Website 7
    68. 68. 10 Ideas For Your WineryOne Question Survey How likely is it that you would recommend our winery to a friend or colleague? Know your Net Promoter Score. 8
    69. 69. 10 Ideas For Your WineryBuild a Spreadsheet Recalculate KPIs once a month.  Net promoter score  Retention rate  Lifetime value 9
    70. 70. 10 Ideas For Your WineryHire a Consultant Value in giving your data to a third party and getting a fresh perspective. CRM segmentation can be handled off with little internal coordination. Easy to see ROI on this expenditure. 10
    71. 71. Keys to Success
    72. 72. Keys to SuccessKeep it Simple Start small – work your way up. Quick wins.
    73. 73. Keys to SuccessActionable Measurements Each plan should have actionable measurements. At Vin65 we measure:  Support – time to answer, number of tickets per client, satisfaction of client, number of tickets re- opened  Sales – new leads generated, close rate, etc
    74. 74. Keys to SuccessStakeholder Ownership Without buy-in the plan will fail. Need active engagement.
    75. 75. Keys to SuccessKnow the Value The numbers you should know:  Retention rate  Net promoter score  Lifetime value of a customer Nice to know:  Cost to acquire a customer  Money lost on each one-time buyer
    76. 76. Know the ValueRetention Rate The percentage of your customers from your last period that are still your customers this period.  100 customers last year.  80 of the 100 customers are customers this year.  You have a 80% retention rate.
    77. 77. Know the ValueNet Promoter Score Ask One Question: How likely is it that you would recommend our winery to a friend or colleague? Percentage of customers who are promoters subtract the percentage who are detractors.  Total 40 people. 25 people rated 9/10, 5 people rated 7/8 and 10 people rated you 0/6.  25/40 less 10/40 = 62.5% - 25% = 37.5% NPS.
    78. 78. Know the ValueCustomer Lifetime Value Best Way – Google it and download a spreadsheet. The quick and dirty way:  (customer profit/year) * (retention rate/(1-retention rate)).  If you make $40/customer/year and your retention rate is 80%.  $40 * (0.80/(1-0.80)) = $160
    79. 79. Know the ValueCost to Acquire a Customer Add all of your acquisition expenses for the year and divide by the number of new customers you acquired.  If you spent $100,000 in advertising and acquired 4,000 new customers you would have an acquisition cost of $100,000/4,000 = $25/customer.
    80. 80. Know the ValueMoney Lost on Each One-TimeBuyer  Subtract the acquisition cost (previous slide) from the average gross margin on a first time purchase.  If your acquisition cost is $25/customer and you earn $20 profit on each sale – you lose $5 on each one- time buyer.
    81. 81. Keys to SuccessTrain Employees Successful CRM starts with well trained employees. Training ensures consistency.
    82. 82. Questions?