CRM:
            concepts &
            considerations


            February 2010




 content in the context of the audi...
Customer loyalty is not about how customers
            demonstrate their loyalty to us, it is about how
            we de...
Some misconceptions

                     •       CRM is a marketing database

                     •       CRM is a marke...
Definitions:

              CRM is the core business strategy that
              integrates internal processes and functio...
5 // COMMERCIAL IN CONFIDENCE // © IDEAGARDEN 2010
…really?




6 // COMMERCIAL IN CONFIDENCE // © IDEAGARDEN 2010
…from this….
         Then….




7 // COMMERCIAL IN CONFIDENCE // © IDEAGARDEN 2010
…and now




       …to this….
8 // COMMERCIAL IN CONFIDENCE // © IDEAGARDEN 2010
Customer management delivers
                                                     on businesses 3 core issues:

          ...
The purpose of business is create and keep
              a customer ... to do that, you have to do
              those thi...
CRM is a                                strategy,
              not a tactic.




11 // COMMERCIAL IN CONFIDENCE // © IDEA...
Interestingly, in many cases corporate
              customer management strategy involves
              removing personal...
Customer engagement / management
       strategies cannot exist in a bubble….




       …they co-exist with other busines...
14 // COMMERCIAL IN CONFIDENCE // © IDEAGARDEN 2010
We now deal with the
      digital consumer –
      and they are totally
      connected which will
      impact managemen...
"Technology has given consumers an option to tune businesses out, and tune
              each other in….

              .....
http://www.flickr.com/photos/jm3/98030303



17 // COMMERCIAL IN CONFIDENCE // © IDEAGARDEN 2010
You have to understand the DNA of
                    your customers




18 // COMMERCIAL IN CONFIDENCE // © IDEAGARDEN 20...
Participation
                                                      rather than presentation

19 // COMMERCIAL IN CONFIDEN...
From simple beginnings, technology
              advancement has led to ways we can
              connect with customers o...
… behaviours became more observable
              and communities started to form – that
              made selling produc...
…but what do we choose?




22 // COMMERCIAL IN CONFIDENCE // © IDEAGARDEN 2010
segments began to form…..




23 // COMMERCIAL IN CONFIDENCE // © IDEAGARDEN 2010
Segmentation:

              What brings people                      together, not
              what sets them apart.



...
… channels broadened and things got
              closer and opportunities abound....




25 // COMMERCIAL IN CONFIDENCE /...
“world” of mouth influences customer
                              management activities




26 // COMMERCIAL IN CONFIDENC...
… strategies focused on the replicable....




27 // COMMERCIAL IN CONFIDENCE // © IDEAGARDEN 2010
…but is it differentiation?




28 // COMMERCIAL IN CONFIDENCE // © IDEAGARDEN 2010
… business became too focused on
              acquisition – at any cost....




29 // COMMERCIAL IN CONFIDENCE // © IDEAG...
30 // COMMERCIAL IN CONFIDENCE // © IDEAGARDEN 2010
…and one of the most important things missing….




31 // COMMERCIAL IN CONFIDENCE // © IDEAGARDEN 2010
…was really understanding customers….




32 // COMMERCIAL IN CONFIDENCE // © IDEAGARDEN 2010
Source: Hugh MacLeod - @gapingvoid



33 // COMMERCIAL IN CONFIDENCE // © IDEAGARDEN 2010
People want to be connected




34 // COMMERCIAL IN CONFIDENCE // © IDEAGARDEN 2010
Some fundamental considerations




35 // COMMERCIAL IN CONFIDENCE // © IDEAGARDEN 2010
What defines a good CRM strategy?

                     •       You need to identify and define what makes your customers ...
Foundations of a CRM Strategy

                     •       Determine the business goals that can be supported/delivered b...
CRM Strategy considerations

                     •       Rewards and recognition         •    Loyalty programs

         ...
Defining success metrics

                     •       Depending upon the industry and category of the business, there are...
How can a strategic customer management
                                                          focus become part of you...
…areas to consider….




41 // COMMERCIAL IN CONFIDENCE // © IDEAGARDEN 2010
What’s your
                                                      Organisations
                                          ...
Objectives & Goals




43 // COMMERCIAL IN CONFIDENCE // © IDEAGARDEN 2010
What customer need
                                                      are you meeting?




44 // COMMERCIAL IN CONFIDEN...
What’s the strategy to
                                                      build & leverage
                            ...
How will you engage,
                                                      encourage & reward
                            ...
And finally – take time to look at the
                       program from a customers perspective




47 // COMMERCIAL IN...
Thanks


             email: phil@ideagarden.com.au
             Twitter: twitter.com/phillipsmith
             LinkedIn: ...
Upcoming SlideShare
Loading in...5
×

CRM - Concepts & Considerations 110210

6,480

Published on

Things to consider when heading off on the CRM journey.

Published in: Business, Technology
2 Comments
36 Likes
Statistics
Notes
No Downloads
Views
Total Views
6,480
On Slideshare
0
From Embeds
0
Number of Embeds
2
Actions
Shares
0
Downloads
0
Comments
2
Likes
36
Embeds 0
No embeds

No notes for slide

Transcript of "CRM - Concepts & Considerations 110210"

  1. 1. CRM: concepts & considerations February 2010 content in the context of the audience 1 // COMMERCIAL IN CONFIDENCE // © IDEAGARDEN 2010 www.ideagarden.com.au
  2. 2. Customer loyalty is not about how customers demonstrate their loyalty to us, it is about how we demonstrate our loyalty to them. Sir Ian MacLaurin, Former Chairman, Tesco 2 // COMMERCIAL IN CONFIDENCE // © IDEAGARDEN 2010
  3. 3. Some misconceptions •  CRM is a marketing database •  CRM is a marketing process •  CRM is an IT issue •  CRM is about loyalty schemes •  CRM can be implemented by any company 3 // COMMERCIAL IN CONFIDENCE // © IDEAGARDEN 2010
  4. 4. Definitions: CRM is the core business strategy that integrates internal processes and functions, and external networks, to create and deliver value to targeted customers at a profit. It is grounded in high-quality customer data and enabled by IT (Source: Buttle) 4 // COMMERCIAL IN CONFIDENCE // © IDEAGARDEN 2010
  5. 5. 5 // COMMERCIAL IN CONFIDENCE // © IDEAGARDEN 2010
  6. 6. …really? 6 // COMMERCIAL IN CONFIDENCE // © IDEAGARDEN 2010
  7. 7. …from this…. Then…. 7 // COMMERCIAL IN CONFIDENCE // © IDEAGARDEN 2010
  8. 8. …and now …to this…. 8 // COMMERCIAL IN CONFIDENCE // © IDEAGARDEN 2010
  9. 9. Customer management delivers on businesses 3 core issues: 1. Competitive differentiation 2. Customer intimacy 3. Return on customer investment 9 // COMMERCIAL IN CONFIDENCE // © IDEAGARDEN 2010
  10. 10. The purpose of business is create and keep a customer ... to do that, you have to do those things that will make people want to do business with you. All other truths on this subject are merely derivative. Peter Drucker 10 // COMMERCIAL IN CONFIDENCE // © IDEAGARDEN 2010
  11. 11. CRM is a strategy, not a tactic. 11 // COMMERCIAL IN CONFIDENCE // © IDEAGARDEN 2010
  12. 12. Interestingly, in many cases corporate customer management strategy involves removing personalised service to deliver a more personalised service….. 12 // COMMERCIAL IN CONFIDENCE // © IDEAGARDEN 2010
  13. 13. Customer engagement / management strategies cannot exist in a bubble…. …they co-exist with other business and marketing strategies 13 // COMMERCIAL IN CONFIDENCE // © IDEAGARDEN 2010
  14. 14. 14 // COMMERCIAL IN CONFIDENCE // © IDEAGARDEN 2010
  15. 15. We now deal with the digital consumer – and they are totally connected which will impact management strategy….. 15 // COMMERCIAL IN CONFIDENCE // © IDEAGARDEN 2010
  16. 16. "Technology has given consumers an option to tune businesses out, and tune each other in…. ...on the flip side, technology has given businesses an opportunity to gain greater customer insights at a lower cost." Forrester research director Chris Charron 16 // COMMERCIAL IN CONFIDENCE // © IDEAGARDEN 2010
  17. 17. http://www.flickr.com/photos/jm3/98030303 17 // COMMERCIAL IN CONFIDENCE // © IDEAGARDEN 2010
  18. 18. You have to understand the DNA of your customers 18 // COMMERCIAL IN CONFIDENCE // © IDEAGARDEN 2010
  19. 19. Participation rather than presentation 19 // COMMERCIAL IN CONFIDENCE // © IDEAGARDEN 2010
  20. 20. From simple beginnings, technology advancement has led to ways we can connect with customers outside of the retail / face to face environment….. 20 // COMMERCIAL IN CONFIDENCE // © IDEAGARDEN 2010
  21. 21. … behaviours became more observable and communities started to form – that made selling products and services more focused - perhaps.... 21 // COMMERCIAL IN CONFIDENCE // © IDEAGARDEN 2010
  22. 22. …but what do we choose? 22 // COMMERCIAL IN CONFIDENCE // © IDEAGARDEN 2010
  23. 23. segments began to form….. 23 // COMMERCIAL IN CONFIDENCE // © IDEAGARDEN 2010
  24. 24. Segmentation: What brings people together, not what sets them apart. 24 // COMMERCIAL IN CONFIDENCE // © IDEAGARDEN 2010
  25. 25. … channels broadened and things got closer and opportunities abound.... 25 // COMMERCIAL IN CONFIDENCE // © IDEAGARDEN 2010
  26. 26. “world” of mouth influences customer management activities 26 // COMMERCIAL IN CONFIDENCE // © IDEAGARDEN 2010
  27. 27. … strategies focused on the replicable.... 27 // COMMERCIAL IN CONFIDENCE // © IDEAGARDEN 2010
  28. 28. …but is it differentiation? 28 // COMMERCIAL IN CONFIDENCE // © IDEAGARDEN 2010
  29. 29. … business became too focused on acquisition – at any cost.... 29 // COMMERCIAL IN CONFIDENCE // © IDEAGARDEN 2010
  30. 30. 30 // COMMERCIAL IN CONFIDENCE // © IDEAGARDEN 2010
  31. 31. …and one of the most important things missing…. 31 // COMMERCIAL IN CONFIDENCE // © IDEAGARDEN 2010
  32. 32. …was really understanding customers…. 32 // COMMERCIAL IN CONFIDENCE // © IDEAGARDEN 2010
  33. 33. Source: Hugh MacLeod - @gapingvoid 33 // COMMERCIAL IN CONFIDENCE // © IDEAGARDEN 2010
  34. 34. People want to be connected 34 // COMMERCIAL IN CONFIDENCE // © IDEAGARDEN 2010
  35. 35. Some fundamental considerations 35 // COMMERCIAL IN CONFIDENCE // © IDEAGARDEN 2010
  36. 36. What defines a good CRM strategy? •  You need to identify and define what makes your customers successful •  Create a customer based culture within your organization •  Track any and all correspondence with the customer and prospects •  Develop and clearly define strategy for dealing with customer complaints •  Define and adopt measurements that accurately determine customer response to a product or service. 36 // COMMERCIAL IN CONFIDENCE // © IDEAGARDEN 2010
  37. 37. Foundations of a CRM Strategy •  Determine the business goals that can be supported/delivered by CRM activities. •  Increasing the profit from each customer •  Increasing the acceptance of new products by the customer base •  Increasing customer satisfaction •  Improving response rates to campaigns •  Decreasing costs in campaign development and time to market •  Decrease number of employees and time to develop marketing activities •  Improve the percentage of customer migrating through the value chain 37 // COMMERCIAL IN CONFIDENCE // © IDEAGARDEN 2010
  38. 38. CRM Strategy considerations •  Rewards and recognition •  Loyalty programs •  Transactions to relationships •  Personalisation •  Profit as segmentation •  Customisation •  CRM as a brand builder •  Cross- selling •  Achieving customer intimacy •  Up-selling •  Online customer management •  Migration downward •  Service levels – “tiering” 38 // COMMERCIAL IN CONFIDENCE // © IDEAGARDEN 2010
  39. 39. Defining success metrics •  Depending upon the industry and category of the business, there are a range of metrics that should be considered to assist determine the success of CRM activities. •  These can include: •  Customer profit contribution, cost per acquisition, cost to serve •  Product penetration •  Life time value @ customer level •  Value creation •  Referral and recommendations •  Segment profit contribution 39 // COMMERCIAL IN CONFIDENCE // © IDEAGARDEN 2010
  40. 40. How can a strategic customer management focus become part of your DNA? 40 // COMMERCIAL IN CONFIDENCE // © IDEAGARDEN 2010
  41. 41. …areas to consider…. 41 // COMMERCIAL IN CONFIDENCE // © IDEAGARDEN 2010
  42. 42. What’s your Organisations definition of CRM? 42 // COMMERCIAL IN CONFIDENCE // © IDEAGARDEN 2010
  43. 43. Objectives & Goals 43 // COMMERCIAL IN CONFIDENCE // © IDEAGARDEN 2010
  44. 44. What customer need are you meeting? 44 // COMMERCIAL IN CONFIDENCE // © IDEAGARDEN 2010
  45. 45. What’s the strategy to build & leverage customer data? 45 // COMMERCIAL IN CONFIDENCE // © IDEAGARDEN 2010
  46. 46. How will you engage, encourage & reward participation? 46 // COMMERCIAL IN CONFIDENCE // © IDEAGARDEN 2010
  47. 47. And finally – take time to look at the program from a customers perspective 47 // COMMERCIAL IN CONFIDENCE // © IDEAGARDEN 2010
  48. 48. Thanks email: phil@ideagarden.com.au Twitter: twitter.com/phillipsmith LinkedIn: www.linkedin.com/philsprofile content in the context of the audience 48 // COMMERCIAL IN CONFIDENCE // © IDEAGARDEN 2010 www.ideagarden.com.au

×