Working Model to Assist in the Strategic Design of Customer Relationship Management Helena Durán L. MBA Catholic University of Louvain CRM Independent ConsultantLarge experience in customer management at the automotive sector (Ford,Subaru, Kia) and at the telecommunications sector(Bellsouth S.A.; Telefónica Movistar)
Summarized Cycle of the Commercial Relationship with Customers Sales Ideal Scenario ExperienceExperience Experience with the with the brand product/ service Switch Experience with the brand Sales ExperienceUnwanted Scenario Experience with the product service
Ideal Development of the Relationship with Customers Experience with the brand Customer Care Experience Loyalty and with the Satisfaction product/ Programs, service Product/ Others Service Acquisition Sales Experience
DIFFERENTIATIONAs a result oftechnology progressthere are similar Company A Company Zproducts at comparableprices in differentmarket segments, thenthe differentiatingfactor is no longer inthe product but inpeople and in thecompany’s ability oftaking care of thecustomer
…from Commercialization to Customer Loyalty CUSTOMERLS If the product complies its function then is EXPERIENCE possible to add accessories or services to it in order to increase its perceived value. Top company delights The starting point of the customers’ the customer experience is given by the formal and augmented products’ performance. Excellent The decisive experience (facing indifferent orcompany takes care low switching costs) is given by the efficient of the customer administration, both reactive and proactive, of the customers’ needs Improved augmented product If the product fails, any further effort is futile Basic Also, if the client conflict management is weak, product fulfills the actions aimed at achieving customer loyalty promise may become a negative component.
To take into account • Inside a company, we are all customers and suppliers at some point. • The general direction of the company is a provider of the board of directors and, at the same time, is customer and supplier of different management areas • Every business unit plays the role of a customer as well as a supplier in between its own departments and towards the other units. • All this part of the organization may be called the back office of the first line. The support of the final customer’s delivery. • The first line is the face of the company for our end customers.
• Most of customer contacts are made in the first line, so here are the best “customer profilers“ and those who know best the strengths and weaknesses of our products and services.• When the organization acknowledges the first line as an internal customer, the likelihood of providing a better experience to the end customer, increases.• When the customers information, collected from the different areas, is used as feedback for the organization, the greater it is its ability to design more efficient strategies in the different areas.• If the organization is focused on keeping their customer base, it has a certain chance to increase its perceived value, brand loyalty and ROI.• …. if not, there will always be someone out there, who will have a better offer which, if the switching cost is reasonable for the customer, will trigger his/her switch.
Finance Unit Internal customers Board of General Directors back office Direction Marketing COMPETITION UnitA Corporate View Operations Unit Internal Customer sales and post sales offices front office END CUSTOMER
Value Proposal: CRM Strategic Planning Main Subjects• Evaluation and analysis of the company towards its customer relationship• Diagnosis• Strategic Design
Strategic Design Some components• Defining general guidelines of the company in relation to CRM – General objectives, goals by area/unit – Relationship between areas regarding the goals• Macro Segmentation of the customers’ base – Identification, quantification, characterization and assessment of the segments of the customer base• Micro segmentation of the customers base – Needs identification within each segment – Defining and designing the customers’ cycle for each segment• Budget and Investment – Assessment on potential revenue by segment – First assessment on the investment needs – Analysis of sales cost versus retention costs• Competitive Analysis – Who, What, How, Results – CRM benchmark analysis• Designing a CRM strategy – Segment objectives, program activities, tools definition (hardware, software), measurement and evaluation of results program, adjusted budget• Communication and Implementation of the CRM strategy
Helena Durán L. MBA Catholic University of LouvainIndependent Consultant on CRM Strategic Design firstname.lastname@example.org