Creating a Customer-Centric EnterprisePresentation Transcript
Creating a Customer Centric Enterprise Mark Newhall , Corporate Express Randy Rodriguez, GMAC Mortgage Eric Gist , Accenture Track: Large Enterprise Deployments
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Mark Newhall Vice President Customer Care / Quality Systems [email_address]
Corporate Express North America at a Glance
Subsidiary of Buhrmann NV (NYSE:BUH)
Leading B2B supplier of essential office & computer products and services
2005 sales of $4.6 billion (NA)
Fully-integrated product offering
Office & Computer Supplies
Office Furniture & Design
Janitorial / Sanitary Products
Imaging & Graphics Supplies
Document & Print Management
2,000 Sales Professionals; 550 Customer Care Advisors
INDUSTRY: Distribution of Business Products & Services EMPLOYEES: 20,000 (global) GEOGRAPHY: Global PRODUCT(S) USED: SFA, Service & Support # USERS: 4,600
Definition of Customer Centricity
Achieving an effective customer cadence across geography and channels
Following integration of acquisitions (500+), a need to consistently focus on, understand, respond and measure customer needs
Differentiate the experience our customers have with CE versus our competition
A centralized point from which each business unit can work to meet all of the customer’s home buying, selling, and financing needs
In the Beginning: “The List” of Opportunities: Salesforce as the Data Repository
GMAC needed a platform for focused sales management – to grow the GM Family, GM Fleet, and GM Supplier relationships
Required maximum data security & way to drive conduct codes across entire sales organization
Enhance professional & unified face to GM's own employee & key business associates' network
Significant increase in sales & lending volume
Connect sales structure
Overview of the Journey
A Business Development System That’s Simple
Receiving and Assigning Accounts
Holding Our Sales Teams Accountable for Accounts Received and Assigned
Our Retail Lending channel—cascading from Divisional, Regional, Branch Management to individual specialized sales reps
Executive VP buy-in; to support accountability of the sales organization
Enterprise Edition – 85 Users for Sales Support
Limited Edition – 224 Users for Account Assignments
Integration points – Future: Home Buyers’ Marketing
Field Management Training
Continuously matching data for corporate linkage and our own production
Key Steps to Embark on this Journey
Evaluating the current sales process
Envisioning the ability to distribute accounts via expanding the current sales process to self-service account assignments
This was the first endeavor to build out a mechanism for field managers to receive and assign out accounts to their branch reps
New executive leadership wanted tangible metrics of business development efforts with conversion to loan production
Roadblocks to Success
Adoption statistics and number of unassigned accounts assigned
Performance was initially impacted by amount of data in S-controls. Integration Services delighted us with their escalation process and performance remedy
External partners are continuously relied upon for data hygiene
Conference calls before the rollout; mass email communication; regional rollouts
This is a journey – we continue to seek new levels of cascading deployment to the hierarchy of additional roles
We are able to self-manage our channel sales force; one repository for data makes for cleaner and more consistent reporting
78% of endorsed opportunities are being managed
Our internal customers (field managers) are more focused on managing accounts they are being held accountable for
Next…deployment to sales reps in the branch network (our loan officers)
Other strategic business units are now embarking upon launching the application:
Eric Gist [email_address] Sales Enablement Practice Lead
Accenture at a Glance
Leading Professional Services Firm
#1 CRM Practice – Global Scale
Dedicated Practice - Salesforce for the Enterprise
$450M Investment in SOA/ Commercial Solutions
INDUSTRY: Professional Services EMPLOYEES: 130,000 GEOGRAPHY: Global
Customer loyalty - The sad facts
Flat and dropping customer satisfaction levels :
Fixed line telephony * 1.4%
Wireless telephony* 3.2%
Electronic appliances* 1.2%
Speciality retail** 1.3%
Life Insurance** 0%
Defection levels increased from 16.9% average in 2003 growing to 19.1% in 2005***
* American Customer Satisfaction Index Q1 2005 compared with Q1 2004 ** American Customer Satisfaction Index Q4 2005 compared with Q4 2004 *** Group 1 Software a division of Pitney Bowes Company
Access to more information
More choice than ever before
Harder to reach and harder to impress
Nominal cost of leaving
Increasing Market Pressure
Difficult to get a holistic view of the customer
Difficult to create relevant messages and offers
Struggle to strategically balance acquisition and retention
Loyal customers are a key enabler of top line business growth
Customer loyalty is important because value can be created more easily from customers who are loyal:
it typically costs less to retain than acquire
It provides pricing power in the marketplace and protection from competitive threat
It provides a platform for stronger, deeper relationships with customers
Our High Performance research highlighted that 5 key marketing capabilities have a central and direct impact on a company’s ability to achieve high customer loyalty.
Customer loyalty in turn has a direct impact on value generation ->> High performers increased revenues by 40% and profits by 38% —leading to an increase in shareholder value of 38%
Many organizations have adopted highly successful differentiating capabilities to become customer-centric Building a superior offer with deep data insights from a Rewards Program Delivering an innovative & branded customer experience Reinventing the brand by focusing on quality despite decades of poor customer perception Imprinting a culture and value system. Starbucks achieved employee turnover of 60% compared to industry average of 150% Branded Customer Experience Deep Customer Insight Services Bundling Excellence in Employees Brand Re-Invention Focusing relentlessly on value for customers Value People with bundles are 10% less likely to switch carriers in search of a better deal.
Our study revealed the strongest factors that customers say will drive them to be more loyal But what do companies have to do to meet those needs? Source: Accenture’s 2005 Loyalty Study of 2010 consumers in the US and UK Create differentiation Excel on core competence Listen and understand Surprise and Delight Recognize and Reward Understand Customers Needs Better Innovate
Customer Centricity is established at many points across the organization
Does the leadership value loyalty?
Is the company culture customer centric?
Are employees seen as assets that can drive loyalty?
Are the products/ services what the markets needs and wants?
Is the quality good enough?
Are the products/ services desirable?
Do customers perceive value for money?
Is the business able to cope with demand?
Are operational measures for productivity and quality driving loyalty?
Do we acquire customers in a targeted way?
Do we retain customers with higher propensity for loyalty?
Is value growth targeted to customer segments?
Do we measure, manage and improve loyalty?
Are we responding to customers appropriately?
Do we win back lost customers?
Do we know why customers leave?
Are Moments of Truth understood?
Is “next best” part of our service?
Loyalty Considerations* *Consideration list is not exhaustive Human Resources Product and Pricing Operations Marketing Sales and Service
Customer Centricity Framework Customer Advocacy Customer Loyalty Customer Satisfaction Employee Engagement Employee Satisfaction Enablers “ right tools” Compelling Value Proposition Strategy “ right action” Customer Experience Execution “ right delivery” Measurement “ right measure” “ right customer” Insight “ to drive”
MARK NEWHALL Vice President Customer Care/Quality Systems RANDY RODRIGUEZ Vice President ERIC GIST CINDY WARNER Senior Vice President Global Integration Services Salesforce.com Moderated By: Sales Enablement Practice Lead QUESTION & ANSWER SESSION
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