0
CRM Strategy 
Dr. Elijah Ezendu 
FIMC, FCCM, FIIAN, FBDI, FAAFM, FSSM, MIMIS, MIAP, MITD, ACIArb, ACIPM, 
PhD, DocM, MBA, ...
Learning Objectives 
At the end of this course, participants should be able to 
do the following: 
i. Explain importance o...
“70% of CRM initiatives fail” 
Source: Cap Gemini Ernst & Young 
“90% of enterprises cannot show a positive 
return on CRM...
A CRM Strategy shows the intent of a firm 
concerning its customer base, pointing out how 
it shall acquire, maintain and ...
CRM Strategy & Implementation Model 
CRM Readiness Assessment 
Process 1: Strategy Development 
ENABLING PROCESSES 
Proces...
Strategy Development 
This involves development of CRM strategic 
options for achieving established CRM 
objectives for ev...
Strategy Development Process 
Source: Elijah Ezendu, CRM Strategy 
Review
Customer Asset Audit 
Protect 
Position 
Invest to 
Protect 
Invest to Win Damage 
Limitation 
Counter 
Competition 
Inves...
CRM Investment Framework 
Real Relevance 
Claimed Importance 
Low High 
High 
Low 
Invest 
Study/ 
Invest 
Maintain 
Effic...
Interoperability of CRM Strategy 
The CRM Strategy must have a high level of 
interoperability with the Corporate Strategy...
Using McKinsey 7S Framework for Testing CRM Strategy 
Strategy 
Systems Structure 
Style 
Staff 
Shared Values/ 
Subordina...
Action Points for Testing CRM Strategy 
• Examine each of the 7S. 
• Identify the key success factors of each ‘S’. 
• Asce...
Aligning CRM Strategy to Business Model 
It’s imperative to align CRM Strategy to a firm’s 
Business Model due to its role...
Business Logic Triangle 
Business 
Strategy 
Business Model 
Business Process 
Planning Level 
Architectural Level 
Implem...
Customer Value Added 
“Customer value added approach is based on 
providing products and services to customers 
that are a...
The CVA Approach 
Customer value added facilitates proper 
customer relationship management through 
identification the su...
Steps for Implementing CVA 
• Identify customer values 
• Identify competitors’ offers 
• Build customer values into firm’...
Branding to Breed Customer Value Proposition 
Source: Elijah Ezendu, CRM Strategy
Customer Loyalty 
Customer loyalty is aggregation of attitudes and 
emotional disposition developed in the course 
of inte...
Ladder of Loyalty 
Partner 
Advocate 
Supporter 
Client 
Purchaser 
Prospect 
 Partner: Someone who has the relationship ...
"There are ducks, and there are eagles. The 
ducks run around the ground quacking all the 
time, stating rules, following ...
What is Customer-Centricity? 
“Customer-centricity involves aligning 
organizational resources for effectively 
responding...
Aligning Organizational Resources 
 Personnel 
 Operating practices and procedures 
 Systems (internal and external) 
...
Aligning Personnel 
• Recognizing and rewarding customer-centric 
behaviour. 
• Training every staff on customer-centricit...
Entrenching Customer-Centricity via 
Training cum Internalization 
Customer-centricity can be embedded 
on organizational ...
Focus of Training 
• Communicating effectively and 
building rapport. 
• Identifying and exploiting 
opportunities. 
• Man...
Requirements for Building Mutually 
Profitable Relationships 
Ascertainment of customer’s request 
Ensuring Profitabilit...
Voice of The Customer Process 
• Obtain customer’s pulse 
• Involve the customer 
• Analyze information 
• Socialize resul...
How to Obtain Customer’s Pulse 
Survey the Customer 
Interview the Customer 
Get information from customer-facing 
pers...
Three Different Faces of a Customer 
• Business decision-maker 
• End-user of product or service 
• Procurement function
Customer Survey 
Transactional Surveys Relationship Surveys 
Focuses on measuring 
customer satisfaction with 
individual ...
Factors that Aid Collection of Inputs 
from Customer-Facing Personnel 
• Environment of trust 
• Establishing expectations...
Involving Customers 
This can be done by means of the following: 
1. Focus Group: For obtaining information through 
discu...
Analyzing information 
Analyze customer feedback 
and information obtained 
Output: 
i. Positive trends 
ii. Challenging t...
Top-level reporting 
for general 
awareness 
Comprehensive 
report for 
sectional, 
departmental and 
project 
action-plan...
Steps for Implementing Customer-Focused Changes 
• Getting management commitment 
• Conducting cross-functional reviews 
•...
Key Performance Indicators Targeted 
for Improvement 
• Customer Satisfaction 
• Customer Retention 
• Churn 
• Revenue an...
Responding to Customers 
1. Immediate Response 
i. Establishment of criteria for ‘immediacy’. 
ii. Implementing ‘immediacy...
Other Methods of Updating Customers 
Newsletter 
E-mail 
Website 
E-zine 
Instituting the update as a component of fi...
Common Pitfalls of CRM 
Accepted as a technical instead of business problem 
Using a top-down approach 
Non-involvement...
From Product-Focused to Customer Centric Firm 
Feature Product-Focused Customer-Centric 
Customer Orientation  Discrete t...
Solutions Advance Customer Value Proposition 
Source: Booz Allen Hamilton 
Industry 
Traditional 
Traditional = Value 
Pro...
Developing Customer-Centric Culture 
Put employees in the customers’ shoes 
Put employees in the shoes of a particular 
...
What is Customer Advocacy? 
It’s a cross-functional role empowered 
to marshal organizational resources 
to resolve troubl...
The Need for Customer Advocacy Function 
To steer customers away from veiled gaps, 
inefficiencies and organizational 
com...
Key Skills for Customer Advocates 
Straight-forward and honest 
Interpersonal management and 
communication 
Good busin...
Customer Advocacy Process Framework 
Customer segmentation 
Engagement process 
Escalation process 
Response planning,...
Factors to Consider When Crafting Message 
Ensure your communication stands alone 
Consider the audience 
Read it “as i...
Do’s of Customer Centricity Don’ts of Customer Centricity 
1. Adjust your mission and vision statement Expect a brand new ...
The Seven Characteristics of Customer-Centric Companies 
i. They conceive of themselves not as a group of products, servic...
Dr. Elijah Ezendu is Award-Winning Business Expert & Certified Management Consultant with expertise 
in HR, OD, Competitiv...
Thank You
Upcoming SlideShare
Loading in...5
×

CRM Strategy

48,033

Published on

Alignment of customer value deliverables to total customer nodes so as to boost corporate performance.

Published in: Business, Technology
4 Comments
43 Likes
Statistics
Notes
  • @Iao sun. I believe customer complaint management is part of CRM. In adopting a CRM strtegy you are tryinhg to know what your customers want and give it to them the way they want it. You must be able to attend to their complaints if it is not well attended to can lead to attrition. Your front offices , that is marketing, sales and customer services department must be able to work together in order to do business from customers' perspective. Learn more @ www.naijacrm.blogspot.com
       Reply 
    Are you sure you want to  Yes  No
    Your message goes here
  • What if the customers are made aware about the CRM initiatives companies take . Would this affect them subliminally ? Think Heuristics ?
       Reply 
    Are you sure you want to  Yes  No
    Your message goes here
  • what's the scope of CRM? include the customer complaints management?
       Reply 
    Are you sure you want to  Yes  No
    Your message goes here
  • Prima concept om je gedachte op te maken betreffende het verlengen van de guest life cycle
       Reply 
    Are you sure you want to  Yes  No
    Your message goes here
No Downloads
Views
Total Views
48,033
On Slideshare
0
From Embeds
0
Number of Embeds
19
Actions
Shares
0
Downloads
3,293
Comments
4
Likes
43
Embeds 0
No embeds

No notes for slide

Transcript of "CRM Strategy"

  1. 1. CRM Strategy Dr. Elijah Ezendu FIMC, FCCM, FIIAN, FBDI, FAAFM, FSSM, MIMIS, MIAP, MITD, ACIArb, ACIPM, PhD, DocM, MBA, CWM, CBDA, CMA, MPM, PME, CMC, CMgr
  2. 2. Learning Objectives At the end of this course, participants should be able to do the following: i. Explain importance of CRM Strategy ii. Explain CRM development and implementation iii.Identify methods for aligning CRM Strategy to business model iv.Explain Customer Value Added and Customer Loyalty v. Conduct proper enterprise-wide implementation of customer-centricity
  3. 3. “70% of CRM initiatives fail” Source: Cap Gemini Ernst & Young “90% of enterprises cannot show a positive return on CRM” Source: META Group “75% of CRM initiatives fail to substantially impact the customer experience” Source: Gartner
  4. 4. A CRM Strategy shows the intent of a firm concerning its customer base, pointing out how it shall acquire, maintain and retain customers through improvement in customer value deliverables as the way to enhance corporate performance.
  5. 5. CRM Strategy & Implementation Model CRM Readiness Assessment Process 1: Strategy Development ENABLING PROCESSES Process 3: Multi-Channel Integration Employee Engagement Process 2: Value Creation Process 4: Information Management Process 5: Performance Assessment CRM Project Management CRM Change Management Source: Adrian Payne & Pennie Frow, Customer Relationship Management
  6. 6. Strategy Development This involves development of CRM strategic options for achieving established CRM objectives for every targeted segment, thereafter the best option shall be adopted as the CRM strategy and the right measures for performance shall be established.
  7. 7. Strategy Development Process Source: Elijah Ezendu, CRM Strategy Review
  8. 8. Customer Asset Audit Protect Position Invest to Protect Invest to Win Damage Limitation Counter Competition Invest to Build Win the Opportunity Careful Management Manage Profitability Build Selectively Manage the Revenue Manage for Revenue Manage Profitability Manage for Profitability Manage the Revenue Consider Divesting Key Large Share of Wallet Some potential Transactional Highly Secure Secure Vulnerable Fragile Strength of Relationship (Value to Customer) Customer Potential (Value to Company) Source: Gartner
  9. 9. CRM Investment Framework Real Relevance Claimed Importance Low High High Low Invest Study/ Invest Maintain Efficiently Trim Adapted from Gartner
  10. 10. Interoperability of CRM Strategy The CRM Strategy must have a high level of interoperability with the Corporate Strategy and Competitive Strategy of the Business Portfolio.
  11. 11. Using McKinsey 7S Framework for Testing CRM Strategy Strategy Systems Structure Style Staff Shared Values/ Subordinate Goals Skills
  12. 12. Action Points for Testing CRM Strategy • Examine each of the 7S. • Identify the key success factors of each ‘S’. • Ascertain the gap between the elements and the strategic fit. • Solution should be either to amend the elements accordingly or to alter the CRM strategy.
  13. 13. Aligning CRM Strategy to Business Model It’s imperative to align CRM Strategy to a firm’s Business Model due to its role. Business Model is the logic behind value generation. The Business Model binds Business Strategy and Business Process together and functions as link between them. The focus of strategy is determination of position and codification of aims and objectives, while business process captures and implements the strategy.
  14. 14. Business Logic Triangle Business Strategy Business Model Business Process Planning Level Architectural Level Implementation Level
  15. 15. Customer Value Added “Customer value added approach is based on providing products and services to customers that are a greater value than they could expect from purchases from competitive companies in similar markets.” Source: John McKean, Customers Are People
  16. 16. The CVA Approach Customer value added facilitates proper customer relationship management through identification the suitable value proposition which is superior to the whole bundle of offering from competitors, and ensuring effective communication of the standard to customers. CVA = Perceived worth of a business’s offer Perceived worth of a competitive offer
  17. 17. Steps for Implementing CVA • Identify customer values • Identify competitors’ offers • Build customer values into firm’s offer to obtain firm’s interim offer • Compare firm’s interim offer to competitors offer • Identify value gaps • Use problem analysis tools to identify root causes • Use quality improvement tools for quality enhancement in order to set new standard of value proposition Source: Elijah Ezendu, CRM Strategy
  18. 18. Branding to Breed Customer Value Proposition Source: Elijah Ezendu, CRM Strategy
  19. 19. Customer Loyalty Customer loyalty is aggregation of attitudes and emotional disposition developed in the course of interaction with value proposition either directly or indirectly, such that a customer would tend to purchase a particular product/service over and over again.
  20. 20. Ladder of Loyalty Partner Advocate Supporter Client Purchaser Prospect  Partner: Someone who has the relationship of partner with you.  Advocate: Someone who actively recommends you to others, who does your marketing for you.  Supporter: Someone who likes your organisation, but only supports you passively.  Client: Someone who has done business with you on a repeat basis but may be negative, or at best neutral, towards your organisation.  Purchaser: Someone who has done business just once with your organisation.  Prospect: Someone whom you believe may be persuaded to do business with you. Source: Christopher, Payne & Ballantyne, Relationship Marketing
  21. 21. "There are ducks, and there are eagles. The ducks run around the ground quacking all the time, stating rules, following orders, doing what they are told and often pecking at other ducks. Eagles soar high above to get the best perspective and decide what is best for the customer." - Ken Blanchard, Leading at a Higher Level
  22. 22. What is Customer-Centricity? “Customer-centricity involves aligning organizational resources for effectively responding to the ever-changing needs of customers, while building mutually profitable relationships.” - Craig Bailey & Kurt Jensen
  23. 23. Aligning Organizational Resources  Personnel  Operating practices and procedures  Systems (internal and external)  Products and services
  24. 24. Aligning Personnel • Recognizing and rewarding customer-centric behaviour. • Training every staff on customer-centricity. • Ensuring that decision-making hinges on customers. • Using communication tools and techniques for highlighting the firm’s progress in customer-centricity
  25. 25. Entrenching Customer-Centricity via Training cum Internalization Customer-centricity can be embedded on organizational processes through adequate training and modeling of interdepartmental transactions as depiction of customer relationships that require optimization.
  26. 26. Focus of Training • Communicating effectively and building rapport. • Identifying and exploiting opportunities. • Managing complex and taxing conversations. • People and communication styles
  27. 27. Requirements for Building Mutually Profitable Relationships Ascertainment of customer’s request Ensuring Profitability Find out repeatability of transaction Determination of feasible term of relationship.
  28. 28. Voice of The Customer Process • Obtain customer’s pulse • Involve the customer • Analyze information • Socialize results • Implement customer-focused changes • Respond to the Customer
  29. 29. How to Obtain Customer’s Pulse Survey the Customer Interview the Customer Get information from customer-facing personnel Observe actions and behaviours of customers Embark on mystery shopping
  30. 30. Three Different Faces of a Customer • Business decision-maker • End-user of product or service • Procurement function
  31. 31. Customer Survey Transactional Surveys Relationship Surveys Focuses on measuring customer satisfaction with individual or collection of Interaction with firm. Focuses on all aspects of the firm such as • Marketing • Product Management • Service and Support • Sales/Account Management • Engineering/Development • Professional Services • Training and Education • Accounting/Finance Survey on many individuals in customer’s firm.
  32. 32. Factors that Aid Collection of Inputs from Customer-Facing Personnel • Environment of trust • Establishing expectations with personnel • Managing anecdotes
  33. 33. Involving Customers This can be done by means of the following: 1. Focus Group: For obtaining information through discussion with a group of participants, taking cognizance of commonality in demographics, attitudes or purchase patterns. 2. Customer Board of Advisors: For holding periodic meetings with selected number of senior executives from firm’s customer database. Factors that determine selection of customers include strategic importance, level of complexity/sophistication in use of products or service, diversity of industries which the firm represents.
  34. 34. Analyzing information Analyze customer feedback and information obtained Output: i. Positive trends ii. Challenging trends iii. Issues raised by customers Compare to other information held by the firm Such information include the following: i. Customer demographics ii. Transactional history This gives rise to development of customer segmentation strategy
  35. 35. Top-level reporting for general awareness Comprehensive report for sectional, departmental and project action-planning Socialize Result
  36. 36. Steps for Implementing Customer-Focused Changes • Getting management commitment • Conducting cross-functional reviews • Voice of customer tracking and reviews • Forecasting
  37. 37. Key Performance Indicators Targeted for Improvement • Customer Satisfaction • Customer Retention • Churn • Revenue and Profitability -Overall -By Customer Segment -By Customer • Product/Service Diversity By Customer
  38. 38. Responding to Customers 1. Immediate Response i. Establishment of criteria for ‘immediacy’. ii. Implementing ‘immediacy’ team. iii. Management reporting. 2. Responding with Account Strategies The six steps for implementing Account Strategies: i. Record account-specific results ii. Involve senior management in customer experience. iii. Prepare for customer review meeting iv. Engage customer in meeting v. Inform the organization and respond resourcefully. vi. Continue the process
  39. 39. Other Methods of Updating Customers Newsletter E-mail Website E-zine Instituting the update as a component of firm’s account management practices Using interactive sessions of forum or board of advisors. Responding immediately to participants during survey.
  40. 40. Common Pitfalls of CRM Accepted as a technical instead of business problem Using a top-down approach Non-involvement of senior management Lack of focus on areas of high adoption Driven by IT department instead of Sales, Marketing and Service. Absence of a cross-functional implementation team Biting more than one can chew Organizational unpreparedness
  41. 41. From Product-Focused to Customer Centric Firm Feature Product-Focused Customer-Centric Customer Orientation  Discrete transaction at a point in time  Event-oriented marketing  Narrow Focus  Customer life-cycle orientation  Work with customer to solve both immediate and long term issues Build customer understanding at each interaction Solution Mindset  Narrow distribution of customer value proposition  Off-the-shelf products  Top-down design  Broad definition of customer value proposition  Bundles that combines products, services and knowledge  Bottom-up, designed on the front lines Advice Orientation  Perceived as outsider selling in  Push product  Transactional relationship  Individual to individual  Working as an insider  Solutions focus  Advisory relationship  Team-based selling Customer Interface  Centrally driven  Limited decision-making power in field  Incentives based on product economics and individual performance  Innovation and authority at the front line with customer Incentives based on customer economics and team performance Business Processes  “One size fits all” processes  Customization adds complexity  Tailored business streams  Balance between customization and complexity Complexity isolated within the system Organizational Linkages & Metrics  Rigid organizational boundaries  Organizational silos control resources  Limited trust across organizational boundaries  Cross-organizational teaming  Joint credit High degree of organizational trust Source: Booz Allen Hamilton
  42. 42. Solutions Advance Customer Value Proposition Source: Booz Allen Hamilton Industry Traditional Traditional = Value Product Proposition Truck Manufacturing  Trucks “We sell and service trucks” Aerospace Components  Aerospace Fasteners “We sell high-performance fasteners” Utilities Electricity “We provide electricity reliability” Chemicals  Lubricants “We sell a wide range of lubricants” Pharmaceuticals  Drugs “We sell pharmaceuticals” Value-Added Customer-Centric + Services = Value Proposition  Financing  Service “We can help you reduce life-cycle transportation costs”  Application/Design support “We can reduce your operational costs”  Energy asset maintenance “We can help you reduce total energy costs”  Usage and application design  Lubricant analysis “We can increase your machine performance and up-time”  Product support  Outcomes-driven information database “We can help you better manage your patient base”
  43. 43. Developing Customer-Centric Culture Put employees in the customers’ shoes Put employees in the shoes of a particular colleague Review your habits and attitude Be evaluated in a 360-degree approach by colleagues you frequently deal with (through a random selection).
  44. 44. What is Customer Advocacy? It’s a cross-functional role empowered to marshal organizational resources to resolve troublesome customer issues and identify root cause while balancing the financial realities and strategic goals of the company.
  45. 45. The Need for Customer Advocacy Function To steer customers away from veiled gaps, inefficiencies and organizational complexities that perturb perception, thereby managing “customer experience” effectively.
  46. 46. Key Skills for Customer Advocates Straight-forward and honest Interpersonal management and communication Good business sense and judgment Organizational navigation Executive Presence Time management Project management
  47. 47. Customer Advocacy Process Framework Customer segmentation Engagement process Escalation process Response planning, analysis and execution Managing customer experience through resolution Internal management review
  48. 48. Factors to Consider When Crafting Message Ensure your communication stands alone Consider the audience Read it “as if” you were the recipient Acknowledge the “bigger picture” Special handling procedures when emotionally charged
  49. 49. Do’s of Customer Centricity Don’ts of Customer Centricity 1. Adjust your mission and vision statement Expect a brand new mission statement to make you a customer-centric company 2. Segment your customer base Overcomplicate the segmentation 3. Align your organization structure with the segmented customer view Reorganize too often and for the sake of it 4. Make good use of technology Expect technology to build customer relationships for you 5. Create new performance measures Throw out the old performance measures 6. Study the behaviours, attitudes and demographics of your customers Confuse behaviours and attitudes with needs 7. Try to understand the true value of your customers Rely on the customers past buying patterns 8. Empower employees, particularly customer-facing staff for proactive relationship-building Allow anyone in the company to say (or think) “this is not my job/responsibility” 9. Set clear goals for achieving a defined state of customer centricity by a certain point in time Assume that your project/ programme were completed, you ‘got there’ 10. Encourage and seek to create customer loyalty Think of loyalty as the tenure of a customer (duration of the relationship) 11. Communicate and engage all stakeholders in the process Limit your change management efforts to the marketing, sales and customer service functions
  50. 50. The Seven Characteristics of Customer-Centric Companies i. They conceive of themselves not as a group of products, services, territories, or functions, but as a portfolio of customers. ii. They know how much money they make or lose with each of their customers or customer segments, and they understand why. iii. They understand the different needs of different customers and group them into operational customer segments and sub-segments based on common needs. They thrill their customers by delivering knockout value propositions that competitors cannot match. iv. They continually innovate by evolving their customer segments and sub-segments, and improve their value propositions as customer needs change. v. They organize their businesses into customer segment business units to establish clear ownership of the customer experience and accountability for the financial performance of each customer business unit. vi. They create a competitively unassailable customer innovation advantage based on a customer R&D model grounded in continual experimentation at key customer touch points. vii. They understand in precise analytic terms exactly how their different customer relationships contribute to or subtract from the total value of the firm; because they manage their customer portfolio on this basis, they know what to manage and where to invest in order to create sustainable, profitable growth and drive outstanding share price performance over time. Source: Wharton Business School
  51. 51. Dr. Elijah Ezendu is Award-Winning Business Expert & Certified Management Consultant with expertise in HR, OD, Competitive Intelligence, Strategy, Restructuring, Business Development, Sales & Marketing, Interim Management, CSR, Leadership, Project & Programme Management, Cost Management, Outsourcing, Franchising, Intellectual Capital, eBusiness, Social Media, Software Architecture, Cloud Computing, eLearning & International Business. He holds proprietary rights of various systems. He is currently CEO, Rubiini (UAE); Hon. President, Worldwide Independent Inventors Association; Special Advisor, RTEAN; Director, MMNA Investments Limited. He had functioned as Chair, International Board of GCC Business Council (UAE); Senior Partner, Shevach Consulting; Chairman (Certification & Training), Coordinator (Board of Fellows), Lead Assessor & Governing Council Member, Institute of Management Consultants, Nigeria; Lead Resource, Centre for Competitive Intelligence Development; Turnaround Project Director, Consolidated Business Holdings Limited; Lead Consultant/ Partner, JK Michaels; Technical Director, Gestalt; Chief Operating Officer, Rohan Group; Executive Director (Various Roles), Fortuna, Gambia & Malta; Director, The Greens; Chief Advisor/Partner, D & E; Vice Chairman, Refined Shipping; Director of Programmes & Governing Council Member, Institute of Business Development, Nigeria; Member of TDD Committee, International Association of Software Architects, USA; Member of Strategic Planning and Implementation Committee, Chartered Institute of Personnel Management of Nigeria; Adjunct Faculty, Regent Business School, South Africa; Adjunct Faculty, Ladoke Akintola University of Technology, Nigeria; Editor-in-Chief & Chairman of Editorial Board, Cost Management Journal; National Executive Council Member, Institute of Internal Auditors of Nigeria; Member, Board of Directors (Several Organizations). He holds Doctoral Degree in Management, Master of Business Administration and Fellowship of Several Professional Institutes in North America, UK & Nigeria. He is an author & widely featured speaker in workshops, conferences & retreats. He was involved in developing Specialist Master’s Degree Course Content for Ladoke Akintola University of Technology (Nigeria) and Jones International University (USA). He holds Interim Management Assignments on Boards of Companies as Non-Executive Director.
  52. 52. Thank You
  1. A particular slide catching your eye?

    Clipping is a handy way to collect important slides you want to go back to later.

×