This is a case recommendation that my team and I put together for a case competition put on by Accenture in 2009. We were given a company overview of a car manufacturer that wanted to get more in-tune with their service centers; we put together a sales presentation to illustrate the company-specific benefits for following through with our solution.

1. Leveraging CRM to Predict
Inventory and Increase the
Customer Experience
8
TEAM
Kishen Parikshak | Matt Blair | Zach Kost

2. Accenture’s History
Accenture has an exceptional past within the automotive industry.
1
 Accenture has been creating custom, enterprise-
wide CRM models for 20 years
 We have time-tested models that are intuitive,
scalable and measurable for exceptional long-term
performance
 We provide automotive consulting, technology and
outsourcing services to leading OEMs and tier one
suppliers

3. Credentials
We have served 27 of the 35 automotive companies in the Fortune 500.
2
Teamed with Accenture to Turned to Accenture to help Chose Accenture to make
create a single, integrated view benchmark performance and meaningful, long-term
of each customer. The result: an create a corporate strategy changes to increase service
unprecedented ability to for developing new customer levels and operational
understand customers and service capabilities. efficiency and decrease
target marketing messages. inventory investment.
Accenture was chosen to help Accenture's High Performance
upgrade its service parts and Business research confirms that
accessories supply chain highly efficient, end-to-end
service to dealers, enabling processes differentiate high-
them to offer customers better performance businesses in the
service. automotive industry from their
competitors.

4. Recommendations
Leverage capabilities of CRM software to increase company value.
3
CAPABILITY
LOW COST
Implement Siebel CRM
HIGH
Software
Attract Customers
STRATEGY
LOYALTY
with Progressive Map Key Dealer
Marketing Schemes Demographics
Inventory Combine Customer/Dealer Holding
Turnover Knowledge to Forecast Demand Costs
Stock
Price
CRM DEALERS CUSTOMERS FORECASTING

5. Siebel CRM Software
Siebel is Oracle’s most complete, industry specific CRM suite.
4
 Automotive manufacturer-
Vendors
focused frameworks assist in
the customization of Siebel to
meet CarCo’s specific needs.
Customers Manufacturers
 Database design incorporates
specific application areas for SIEBEL
expanding on customer and
dealer information. Financiers Distributors
 By using an Oracle product,
Dealers
CarCo will easily be able to
integrate CRM with existing
ERP software
CRM DEALERS CUSTOMERS FORECASTING

6. Current Systems
Upgrading back-office legacy systems into centralized repository.
5
Current State: multiple systems gathering
data from dealers
• For example, dealers are currently using
spreadsheets for gathering customer data.
Desired State: centralized
repository for storing data from all
dealers
• Gather customer information from dealers
through end-customer contract information
CRM DEALERS CUSTOMERS FORECASTING

7. CRM Implementation
Costs will tail-off over the two year implementation period.
6
CRM Implementation
$1,100,000
$1,000,000
$900,000
$800,000
2 Year Cost of
$700,000 Implementation:
$17,310,000
$600,000
$500,000
$400,000
CRM DEALERS CUSTOMERS FORECASTING

8. Dealer Loyalty
Make dealers more successful by using CRM.
7
Decreased
financing and
Offer floorplan costs
incentives for for dealers
low demand
Segment vehicles to
market liquidate
vehicle
demand
Leverage
current existing
data from
legacy systems
CRM DEALERS CUSTOMERS FORECASTING

9. Inventory Reduction
Over 3 years, proper forecasting can reduce inventory by 35%.
8
Inventory Reduction
$12,000,000,000
$11,000,000,000
$10,000,000,000
$9,000,000,000
3 Year Inventory
$8,000,000,000
Reduction:
$7,000,000,000 35% = $3.9B
$6,000,000,000
$5,000,000,000
$4,000,000,000
9/1/2009
3/1/2010
6/1/2010
9/1/2010
3/1/2011
6/1/2011
9/1/2011
3/1/2012
6/1/2012
9/1/2012
12/1/2009
12/1/2010
12/1/2011
CRM DEALERS CUSTOMERS FORECASTING

10. Focused Marketing Schemes
Attention to marketing will help us cut costs and increase revenues.
9
Proactive Customer Return
Marketing Retention value from
Initiatives using CRM
CRM DEALERS CUSTOMERS FORECASTING

11. Proactive Marketing
Understand your customer and forecast demand through CRM.
10
Use the CRM to Forecast sales Create an
study to similar efficient
demographics dealerships product mix
Add value to Reach Relocate
CarCo’s customers products based
business model efficiently on demand
CRM DEALERS CUSTOMERS FORECASTING

12. Retaining Past Customers
A solid relationship with previous customers is critical for cost savings.
11
600%
Attract New
Customer > Retain
Customer
 Use a customer loyalty program to retain customers
 Available to customers who purchase new vehicles
 Special considerations for trade-in
CRM DEALERS CUSTOMERS FORECASTING www.automotive.com/auto-news/02/42239/index.htm

13. Retaining Past Customers
A solid relationship with these customers is critical for cost savings.
13
1/5 of our If half of CarCo
2.5 million those return spends $250
customers for a $1000 per year to
per year rebate maintain
customers
CRM DEALERS CUSTOMERS FORECASTING

14. Retaining Past Customers
Retaining prior customers is more cost efficient.
14
10 – 15% Last Year At 10% This $250
Average Budget
Marketing Allotment
Car Cost Revenue
Affordable Marketing
92 Billion they can Million a
spend 9.2 year leaves
Billion about 63%
of their
marketing
budget
*www.ecademy.com/node/php?id=44965
*http://www.business-standard.com/india/news/acquiring-new-customers-vs-retaining-old-customers/203350/
CRM DEALERS CUSTOMERS FORECASTING

15. Recommendations
Leverage capabilities of CRM software to increase company value.
15
CAPABILITY
LOW COST
Implement Siebel CRM
HIGH
Software
Attract Customers
STRATEGY
LOYALTY
with Progressive Map Key Dealer
Marketing Schemes Demographics
Inventory Combine Customer/Dealer Holding
Turnover Knowledge to Forecast Demand Costs
Stock
Price
CRM DEALERS CUSTOMERS FORECASTING

16. Implementation Timeline
Steps for implementing recommendations over the next three years.
16
 Months 1 - 6
 Customize and implement at CarCo headquarters using
a software engineering staff of 20
 Data cleansing of previously acquired customer
demographic information
 Months 6 - 18
 Implement and port into individual dealer’s systems
 Months 18 - 36
 Benefits of demand forecasting will decrease inventory
CRM DEALERS CUSTOMERS FORECASTING

17. Risks / Mitigating Factors
Measurements of the probability and impact of potential risks.
17
Risk Mitigation Risk
Probability
Lack of dealer
Market forecasting advantages
acceptance of Seibel
of implementation .
CRM software. Impact
Probability
Customers providing “dirty Use effective input controls to
data” in loyalty program. manage acceptable answers.
Impact
CarCo may misapply Accenture supplies assistance
Probability
acquired customer in market analytics and
information. change management. Impact
CRM DEALERS CUSTOMERS FORECASTING

18. Long-Term Potential
By using Siebel, CarCo will be able to later expand it’s CRM offerings.
18
 After addressing current issues, expand offering to take
advantage of CRM potential.
2009 - 2011
Customer Loyalty Inventory Demand Forecasting
2011 - 2014
Dealer E-Purchasing Online Financing
2014+
Scalability Sustainability
CRM DEALERS CUSTOMERS FORECASTING

19. Questions
Comments
8
TEAM
Kishen Parikshak | Matt Blair | Zach Kost

20. T E A M ‐ AM
M 8 October 2, 2009
Kis
shen Parikshak
k | Matt Blair | Zach Kost
CARC
CO: LEV
VERAG
GING CR
RM TO PREDI
ICT INV
VENTORY
AND INCREAS
A SE THE CUSTO
OMER E
EXPERIENCE
INTRODU
UCTION TO C RM
Upon evaluating g the current state of CarCo, our team founnd a great oppo ortunity for gro
owth concerning
manageme ent of the customer experien nce and the pre mand to decrease inventory holding times.
ediction of dem
Although a a CRM impleme entation has been explored i in the past, we
e feel that the e
existence of su
uch software is
s
crucial in e
expanding your r company’s coompetitive market share.
Acccenture unde erstands that m
management is s left with diffic
cult decisions s
surrounding thhe various
approache es to implemen nting systems tto better mana age customer r relationships. W
We believe theese systems ca
an be
scaled to fit your busines
ss as it grows, a
as well as incre
ease the effect tiveness of youur current inter
rnal processes.
.
Today, ourr team aspires to assist you inn arriving at an
n educated dec cision concerni ing your appro
oach to custommer
resource m
management.
CUSTOME
ER RELATION
NSHIP MANA
AGEMENT
Vendors
Veendors typically create CRM software that tends to be industry‐
specific to help organizattions meet theeir potential with as little effo
ort
as possiblee. However, too maximize ROI, an
implement tation must bee properly customized to mak ke it
Cu
ustomers Manufactu
urers
most effec ctive in streamlining businesss processes. If left
uncustomized, a softwar re could actually deter the
furthering of the organization by restricting proper analytics
of data and d providing ine
effective or pot
tentially poorlyy
interpreted d results.
Financiers Distributors
UNDERST
TANDING YO UR CUSTOM
MER
By
y understandinng the custome er, CarCo is better able to
constructivvely respond too their needs. Demand shifts s must be ablee to be Dealers
properly innterpreted for your company y to take neces ssary steps to p
provide
insights int
to potential so
olutions. In tim
mes like this, a s
structured fram
mework is
needed to ensure proper r deployment o of fresh ideas.
PROVIDIN
NG VALUE TO
O DEALERS
Giving incentive
es to dealers fo
or their application of new marketing methodology acts to standardize part
of your business processes. Market seg gmentation is a necessity wh ng the “typical” dealer’s idea
hen approachin als.
We unders stand that dealer demograph hics differ across unique market segments a
and they must t all be conside
ered
appropriat to manage manufacturing wo
tely for CarCo t orkflow.
TAKING T
THE NEXT ST EP
Fo
ollowing through with a CRM M implementation will help bo oost your orgaanization into a
a position of
competitivve advantage reelative to your
r peers. Other manufacturer stry only have indirect ways o
rs in your indus of
targeting their buyers – a
and by pushingg towards the i ng the people who are buyin
idea of knowin ng your products,
you will be
e able to better
r respond to th
heir demands in the future.