The Future of CRM
Upcoming SlideShare
Loading in...5
×

Like this? Share it with your network

Share

The Future of CRM

  • 1,332 views
Uploaded on

A 2013 presentation on the future of CRM technology. I presented this for the Carl-Benz Academy students while they visited Woodbury University

A 2013 presentation on the future of CRM technology. I presented this for the Carl-Benz Academy students while they visited Woodbury University

  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Be the first to comment
No Downloads

Views

Total Views
1,332
On Slideshare
632
From Embeds
700
Number of Embeds
3

Actions

Shares
Downloads
12
Comments
0
Likes
1

Embeds 700

http://profgarrett.com 698
http://feeds.feedburner.com 1
http://www.excite-webtl.jp 1

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
    No notes for slide
  • Patrick McMullen, (2013)“Online Strategies for Capturing Gen X and Gen Y Car Shoppers.” Automotive News Power Training Webinar, May 8, 2013Earnest & Young. (2012)“This Time It’s Personal: From Consumer to Co-creator”Retrieved from http://www.ey.com/Publication/vwLUAssets/This_time_it_is_personal_-_from_consumer_to_co-creator_2012/$File/Consumer%20barometer_V9a.pdfConsumerGoods.Edgl.com, “US Cusumers Ditch Brand Loyalty for Personalized Service” 3/27/13, Retrieved from http://consumergoods.edgl.com/trends/U-S--Consumers-Ditch-Brand-Loyalty-for-Personalized-Service85518
  • Kelly, N. (2013) “The Death of the Sales Funnel as We Know It.” Social Media Explorer, February 19, 2013. Retrieved from http://www.socialmediaexplorer.com/digital-marketing/the-death-of-the-sales-funnel-as-we-know-it/
  • $220,000,000,000between 2000-05$100-150b waste between 2000-05, Ford, Daimler GermanyKrigsman, Michael. (2009) “CRM Failure Rate: 2001-2009.” ZDNet.com. August 3, 2009. Retrieved from http://www.zdnet.com/blog/projectfailures/crm-failure-rates-2001-2009/4967
  • Social CRM is a response to the newer engagement patterns.
  • Lieberman, M (2012). “Gartner Social CRM MQ Missed Big.” Mitch Lieberman – A Title Would Limit My Thoughts. (Oct 1, 2012). Retrieved from http://mjayliebs.wordpress.com/2012/10/01/gartner-social-crm-mq-misses-big/
  • Purchases systems, but kept existing processes. Assumption that CRM will automatically translate into higher returnsWhich come first?
  • See http://aboutus.enterprise.com/Enterprise Service Quality index.“Completed satisfied” are 3x more likely than “somewhat satisfied customers”Up in 80%s, some as low as 50% (in profitable areas)Top raters were 3x likely to return as others.Redesign organizationFollow-up calls, not as survey.“Overall, how satisfied were you…”80% to 50%Shoot the messenger?Design: Survey: granular, timely, summativeCallbacks: root cause analysis, probingResult:Lower: 12% to 5%Top scores 3x
  • Carder gives the example of a customer who called to find shoes for a wedding. The agent asked about her location and found out she had a friend who was married in the same place. That’s creating a PEC, as opposed to just saying “OK, great.” Now for the wow.Zappos didn’t have the shoe in stock, so the agent looked at four other sites. They didn’t have them, either. So, she called a mall, talked to the manager and found a store that had the right pair. She purchased the shoes and personally mailed them to the customer. She received 100 points for that interaction.http://www.netpromoter.com/netpromoter_community/blogs/jeanne_bliss/2010/09/10/how-zappos-does-nps
  • Purchases systems, but kept existing processes. Assumption that CRM will automatically translate into higher returnsWhich come first?

Transcript

  • 1. The Future ofCustomer RelationshipManagementor how IT changes the way youengage with customersNathan Garrett, PhDCreative Commons by-sa 2.0.
  • 2. Do people wait in line for the latest releaseof your product?http://www.flickr.com/photos/naotori/2657010927/sizes/o/in/photostream/
  • 3. The problem is that brandloyalty is decliningMature markets have reduced loyalty (E&Y, ‟13)– Cars are currently an exception (E&Y, ‟13)– But, only 40% of car buyers buy same make or model(McMullen „13)– Young buyers have 2/3rds of older customer‟s brandloyalty (Edgl, ‟13)
  • 4. The sales funnel is changing“Buyers don’tfollow alinear path”(Kelly 2013)
  • 5. Generation X& YEngagementPattern(McMullen ‘13)49%21% 17% 13%0%10%20%30%40%50%60%Biggest Influence on Specific Vehicle Purchased
  • 6. Do CRM systemsimprove brand loyalty?
  • 7. Studies of CRM failure rates0%10%20%30%40%50%60%70%80%2001 2002 2005 2006 2007 2007 2009Around 50% of CRM systemsfailed to reach expectations(Krigsman, 2009)
  • 8. Social CRM?Social CRM isn’tenough of a response
  • 9. “…[Social CRM] needs to start with anoutside-in view. The focus should be on theneeds of the customer, … the outcomethey want and their experience – it isabout the customer, not the company…- Lieberman 2012
  • 10. What separates successfulprojects from failures?MeasurablegoalReshape yourbusinessDoes it work?Establishrequire-mentsBuy systemPlaninstallationInstallsystemBuild anorganization’scustomer focusDon’tjust buya systemCompanyMission
  • 11. What markssuccessfulapproaches?1. Sell experiences2. Measure rigorously3. Reward appropriately
  • 12. Rent a Car Approach• Largest rental car company in US: 18brev., 68k people• Awards– 7th on Business Week top 25 customer servicecompanies– 7x JD Powers highest customer satisfaction• 1994 ESQi Approach1. Satisfaction  retention. (completely =somewhat/3)2. Data2. Quantitative: monthly, %, and granular data
  • 13. Img: http://www.businessweek.com/magazine/content/10_02/b4162057120453.htmHow do you run a call center?80% time talking to customer (1 or100)Happiness Experience Form“Did the agent try twice to makea personal emotionalconnection (PEC)?“Did they keep the rapportgoing after the customerresponded to their attempt?“Did they address unstatedneeds?“Did they provide a “wowexperience?”Net Promoter Score“On a scale of 0-10, 10 beingthe highest score, how likelyare you to recommend Zapposto a friend or a family
  • 14. How do we record good data?• Goals– Accurate– Available– Reduce costs• Types– Quantitative ($, #)– Qualitative (preferences)
  • 15. How do we record good data?• Survey– Formal sampling– Informal sampling– Automated follow-up / analysis– Not trivial!• Micro-Experiments• Usability groups / task oriented• Focus group• Estimated metrics for competitors
  • 16. How do we analyze data?• Sales automation– Emails– Self-service portal– Notecards– Targeted marketing materials– Service reminders• Personalized Relationships– Sales staff follow-up– Service information• Value-added Events– Event invitations– Clubs– Up-sell / cross-sell
  • 17. How do we analyze data?• Average• Separate by groups• Excel
  • 18. A/B TestingSource: http://www.optimizely.com/static/img/whatisabtesting/howitworks.jpg
  • 19. Regression Analysis
  • 20. Decision Tree
  • 21. Cook HospitalHow can you reliablypredict heart attacks?http://www.e-reading-lib.org/chapter.php/85953/25/Gladwell_-_Blink__The_Power_of_Thinking_Without_Thinking.htmlhttp://requirements.seilevel.com/blog/2013/01/visual-models-save-lives-how-a-decision-tree-revolutionized-heart-attack-diagnosis-2.htmlMD: 75-90% accuracyChart: 95% accuracy
  • 22. Neural Network
  • 23. Fashion DesignInterdisciplinaryArchitectureHistoryArt HistoryFilmWritingGraphic DesignAnimationBusinessPsychologyMarketingPolitical Sci.Comm. TheoryLibraryScienceMathNatural Sci.Comp. Sci.EconomicsInterior Arch.PhysicsBiologyAccounting
  • 24. http://www.flickr.com/photos/ehktang/6298004648/sizes/o/in/photostream/Reward staff• Develop a company culture• Provide training• Give Rewards– Financial– Non-financial• Last case, firing underperformingpeople
  • 25. http://www.flickr.com/photos/ehktang/6298004648/sizes/o/in/photostream/Lewin Cycle: UnfreezeBurning Platform: Expose or create a crisis.Challenge: Inspire them to achieve remarkablethings.Command: Just tell them to move!Evidence: Cold, hard data is difficult to ignore.Destabilizing: Shaking people of their comfort zone.Education: Learn them to change.Management by Objectives (MBO): Tell people whatto do, but not how.Restructuring: Redesign the organization to forcebehavior change.Rites of Passage: Hold a wake to help let go of thepast.Setting Goals: Give them a formal objective.Visioning: Done well, visions work to create change.http://changingminds.org/disciplines/change_management/lewin_change/unfreezing.htm
  • 26. http://www.flickr.com/photos/ehktang/6298004648/sizes/o/in/photostream/Lewin Cycle: TransitionBoiling the Frog: Incremental changes may well not be noticed.Challenge: Inspire them to achieve remarkable things.Coaching: Psychological support for executives.Command: Tell them what to do.Education: Teach them, one step at a time.Facilitation: Use a facilitator to guide team meetings.First Steps: Make it easy to get going.Involvement: Give them an important role.Management by Objectives (MBO): Tell people what to do, butnot how.Open Space: People talking about what concerns them.Re-education: Train the people you have in newknowledge/skills.Restructuring: Redesign the organization to force behaviorchange.Shift-and-Sync: Change a bit then pause restabilize.Spill and Fill: Incremental movement to a new organization.Stepwise Change: breaking things down into smaller packages.Whole-System Planning: Everyone planning together.http://changingminds.org/disciplines/change_management/lewin_change/transitioning.htm
  • 27. http://www.flickr.com/photos/ehktang/6298004648/sizes/o/in/photostream/Lewin Cycle: RefreezeBurning Bridges: Ensure there is no way back.Evidence Stream: Show them time and againthat the change is real.Golden Handcuffs: Put rewards in their middle-term future.Institutionalization: Building change into theformal systems and structures.New Challenge: Get them looking to the future.Rationalization Trap: Get them into action thenhelp them explain their actions.Reward Alignment: Align rewards with desiredbehaviors.Rites of Passage: Use formal rituals to confirmchange.http://changingminds.org/disciplines/change_management/lewin_change/refreezing.htm
  • 28. Marketing is…
  • 29. • Most valuable• Most expensiveThe right customer• What do we offer?• How does it compare?The right valueproposition• Unique value chain• Good linkagesThe best processes• Resources and training• CompensationMotivatedemployees• Churn root causes• Metrics and learningLearning to retaincustomers
  • 30. and…. What separates successfulCRM projects from failures?Buy a System Build CapabilitiesLeadership IT Departmental ManagersFocusLarge-scaletechnological systemimplementationPain points.Understanding customerneeds and aligningorganizationVisibilityHighly visible largeprojectsSmall and tacitResources Capital TimeTime Once Repeatedly
  • 31. References• Patrick McMullen, (2013) “Online Strategies for Capturing Gen X andGen Y Car Shoppers.” Automotive News Power Training Webinar, May8, 2013• Earnest & Young. (2012)“This Time It’s Personal: From Consumer toCo-creator” Retrieved fromhttp://www.ey.com/Publication/vwLUAssets/This_time_it_is_personal_-_from_consumer_to_co-creator_2012/$File/Consumer%20barometer_V9a.pdf• ConsumerGoods.Edgl.com, “US Customers Ditch Brand Loyalty forPersonalized Service” 3/27/13, Retrieved fromhttp://consumergoods.edgl.com/trends/U-S--Consumers-Ditch-Brand-Loyalty-for-Personalized-Service85518• Kelly, N. (2013) “The Death of the Sales Funnel as We Know It.” SocialMedia Explorer, February 19, 2013. Retrieved fromhttp://www.socialmediaexplorer.com/digital-marketing/the-death-of-the-sales-funnel-as-we-know-it/• Krigsman, Michael. (2009) “CRM Failure Rate: 2001-2009.”ZDNet.com. August 3, 2009. Retrieved fromhttp://www.zdnet.com/blog/projectfailures/crm-failure-rates-2001-2009/4967• Lieberman, M (2012). “Gartner Social CRM MQ Missed Big.” MitchLieberman – A Title Would Limit My Thoughts. (Oct 1, 2012).