CRM 2.0 By Guido Oswald

in 20 minutes
MBA Thesis Defense
Docent: Dr. Charles M. Savage and Prof. Dr. Thomas Städter
Author: Dipl. Ing. (FH) Guido Oswald - 178501

Agenda
What is CRM 2.0?
Why should I care?
How can I achieve it?
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Agenda
What is CRM 2.0?
Why should I care?
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Status Quo
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Account Management/Planning
Support
BPM
Contact Management
Call Center
POS
Internet
Rating
Email
Sales Force
Agent Guidance
Ordering
Campaign Management
SFA
360 ° View
Customer Segmentation

Status Quo
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Account Management/Planning
Support
BPM
Contact Management
Call Center
POS
Internet
Rating
Email
Sales Force
Agent Guidance
Ordering
Campaign Management
SFA
360 ° View
Customer Segmentation

CRM 2.0 – A Definition
Customer Relationship Model 2.0 (CRM 2.0) is the advancement of traditional Customer Relationship Management (CRM) caused by the rise of the Social Web (Web 2.0) and the resulting empowerment of consumers. CRM 2.0 will establish a meaningful conversation with customers and thus profoundly change the level of trust on both sides. The result is a fruitful collaboration, co-creation and knowledge sharing community. Customers are becoming real advocates for a product or brand.
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CRM 2.0 Ingredients
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New components to CRM 2.0
Enterprise 2.0
Social Software in business context
Global and Real-Time Collaboration
Web 2.0
New Channels
Empowered customers
Knowledge Sharing
Internally, Customers, Suppliers
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Customer Empowerment
Information Sharing
Collaboration
Word of Mouth
Social Networks
Blogs / Micro-Blogs
Podcasts / Vodcasts
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Customers are not Transactions
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anymore…

Agenda
What is CRM 2.0?
Why should I care?
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We are in the middle of a
Business Revolution
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(R)evolution
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Mobility
1886
1919
16th Century

(R)evolution
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Communications
2400 BC
1876
1973

Evolution in digital communication
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Business Velocity
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Years it took to reach a
market audience of
50 million

Business Velocity
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1896
Radio38 years

Business Velocity
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1928
TV18 years

Business Velocity
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1991
World Wide Web 4 years

Business Velocity
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2001
iPod 3 years

Business Velocity
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2003
MySpace 2.5 years

Business Velocity
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2004
Facebook2 years

Business Velocity
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2006
Twitter ?? years

Twitter Growth
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Twitter.com Quadruples to 17 Million U.S. Visitors in Last Two Months

Business Velocity
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2009
???

Business Velocity
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Algorithmic trading
100 ms
20 ms
Airline operations
20 min
30 sec
Call center inquiries
8 hr
10 sec
Track financial position
5 min
1 day
15 min
1 day
Supply chain updates
Phone activation
3 days
1 min
Refresh data warehouse
1 week
0.5 hour
Trade settlement
5 days
2 hrs.
Build-to-order PC
4 weeks
1 day
mail express fax e-mail Document transfer
Business
Requirement
Reduce
processing time
Design Strategy
STP, zero-latency enterprise
Typical Business SLAs106 105 104 103 100 10 1 0 Seconds
Source: Gartner, Inc.

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The Social Web

The customer in Control
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Barak Obama on twitter
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Hillary Clinton on twitter
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Why care ?
Changing Business Climate and Economy
Shorter Product Cycles (TTM)
Technology Advances (Web 2.0)
Changing Buying Behavior
Increasing number of (Sales) Channels
Products and Services become Commodity
New (free) Alternatives for Buyers
Only loyal customers can ensure profits
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Customers take control of...
Whom they communicate with
What they communicate about
Their buying experience
The information they share
The channel they use
The technology they use
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Agenda
What is CRM 2.0?
Why should I care?
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CRM strategy drives structure and technology
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drives
drives

Enterprise 2.0
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the Customer Experience
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Price of Coffee
$5
$4
$3
$2
$1
$0
Commodity Good Service Experience
Products & ideas can be easily duplicated in the day and age of technology…
But experiences are hard to duplicate,
hence they are the
most powerful
sources of competitive advantage.
Economic Times
"Apple stores generate $4,032 in sales per square foot each year, while jewelry giant Tiffany & Co. sells nearly half that…”
Fortune, 2007

Know who drives the conversation
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Innovation
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Innovation
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R&D
department
Customersas Co-Innovators
Enterprise 2.0

Customers as Innovators
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Customers as Innovators
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Stay away from the Kumbaya Zone
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Business-Driven
Collaboration
Innovation
Technology-Driven

Discover Blue Oceans
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Cobbler, stick to thy last
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Strategy Shift
Put the Customer into the Center
AccepttheCustomer‘sControl
EmpowerCcustomers, makeuseoftheirIdeas, SuggestionsorCritics
Serve (all) newChannels
Share Information & Knowledge
Create an Outstanding Customer Experience
Create Trust and Transparency
Style and Design matter
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Co-Create / Co-operate
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Use new Channels
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Proactive rather than reactive
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Get customers exited
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Do Not Forget...
Copyright
Authorship
Identity
Ethics
Aesthetics
Rethorics
Governance
Privacy
Commerce
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What do you think?
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BakckupSlides
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CRM Components
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Business Process Management
Reporting

Channels
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Channels

New Contact Center channelswith CRM 2.0
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CRM 2.0 Strategy Elements
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Existing Platforms
Web 2.0 creates new opportunities for personalizing the customer experience
Enable multiple types of content creation, sharing & collaboration
Offer a highly interactive user-experience that is near-desktop in responsiveness and usability
Empower users to be the primary content generators and participate actively in its distribution, categorization (‘folksonomy’ or tagging vs. taxonomy) and rating
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Understanding Social Networks
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What is a „Conversation“?
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Customer levels
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The new Technology
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Blogs
Folksonomy
Open Source
AJAX
Mash-Ups
Web-Services
Social Network Services

The new Elements
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Subscribe to RSS-Feeds
Tagging
Rating

Customer Experience Management (CEM)
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(traditional) CRM 1.0
Starts with a (ready developed) product
Strong Focus on SFA
Gathers information about the customer
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(traditional) CRM 1.0
Where is the Customer Relation?
Where is the value (+experience) for customers?
Process focused (Inside-Out view)
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(Social) CRM 2.0
Provide content to engage consumers in a conversation
Collaborate on products and services
Listen to users and customers
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(Social) CRM 2.0
The consumer engagement will lead to loyal customers
This will create a Meaningful Customer Relationship that brings value to both sides!
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WHO should care?
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High VolumeLow Margin
Complex Sales

Business Case
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More visible
Less visible

Convergence (Telco)
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VALUE CHAIN IMPLICATIONS:
Commoditization
Disinter-mediation
Authority shift to customers
CONSUMERS’ DIGITAL LIFESTYLE EXPECTATIONS:
Uniquely Personal
Consistently Simple
Immediately Valuable
“Developing strong partnership skills, focusing on customer user groups, embracing internet services & starting to talk the language of Web 2.0 will enable the carriers to thrive well into the future."
Gartner, 2007

Business Intelligence
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Level of abstraction
Size of data

Let go!
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Customer Centricity
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Operating “Outside-In”
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“80% of services companies say they deliver a ‘superior customer experience,’ but only 8% of customers say they receive one. “ Bain & Company
Intentional Customer Experience: Outside-In
Personal, Simple, Valuable
Discover, Try & Shop
Use, Interact, Create & Share
Get Help
Purchase
Ad Hoc Experience: Inside-Out
Average Handling Time,
Mean Time to Repair,
Average Revenue Per User,
Support& Retain
Target & Sell
Deliver & Assure
Order & Fulfill

Customer Experience
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Innovative
Feeling Luxury
Service + Support
Meet Expectations
Deliver Value

CRM 2.0 Implementation
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Platforms
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Vendor Selection
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Vendor Selection
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Vendor Selection
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Vendor Selection
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Vendor Selection
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Vendor Selection
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Vendor Selection
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Network Evolution
Distribution Networks
Electricity Network
Telecommunication Networks
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The value of a
telecommunications network is
proportional to the square
of the number of
connected users of the system (n2)
Metcalfe's law

Metcalfe's law (1980)
Ethernet
Fax Machines
Internet
World Wide Web
Social Networks
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Twitterstatistics
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Understand Networks
Customers‘ personal (invisible) networks
Important for purchasing decisions
Information Overflow (people need to filter)
Customers are Skeptical
Web 2.0 allows dramatically improved connectivity independent of location
Communities get global
Information (and opinion) Sharing gets easy
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Technology
Wiki Webs
Blogs (internal and external)
Engage in Social Network Platforms
Further integrate data silos
Flexible Business Processes Management
Usability Improvements
Support of Mobile Devices
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CRM 2.0 By Guido Oswald

by Guido Oswald on Sep 21, 2009

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CRM 2.0 By Guido Oswald — Presentation Transcript