C.R.M Scott Wilson JISC-CETIS

CRM areas Analytics Contacts Sales Campaigns Service Design

Analytics

Contacts

Sales

Campaigns

Service Design

What is CRM? Customer Relationship Management Focus on communications and services to deliver a personalised experience Aims: increase understanding of customers enhance relationships with customers effect business change e.g. upsell, cross-sell, re-sell

Customer Relationship Management

Focus on communications and services to deliver a personalised experience

Aims:

increase understanding of customers

enhance relationships with customers

effect business change e.g. upsell, cross-sell, re-sell

How is CRM applied? “ CRM 2.0 is a philosophy & a business strategy, supported by a technology platform, business rules, processes and social characteristics, designed to engage the customer in a collaborative conversation in order to provide mutually beneficial value in a trusted & transparent business environment. It's the company's response to the customer's ownership of the conversation." CRM is a perspective on business, not a single system or set of tools CRM is implemented through policy, design of services and products, processes, and staff development, assisted by technology

“ CRM 2.0 is a philosophy & a business strategy, supported by a technology platform, business rules, processes and social characteristics, designed to engage the customer in a collaborative conversation in order to provide mutually beneficial value in a trusted & transparent business environment. It's the company's response to the customer's ownership of the conversation."

CRM is a perspective on business, not a single system or set of tools

CRM is implemented through policy, design of services and products, processes, and staff development, assisted by technology

Key Challenges Customer information Who are they? Do you have usable information? Customer orientation Not products, finances, or markets. Not departments, business units, or cost codes. Actual customers! Customer relationship and retention has to be the concern of everyone in the organisation Coherent communications Customer language Consistency

Customer information

Who are they? Do you have usable information?

Customer orientation

Not products, finances, or markets. Not departments, business units, or cost codes. Actual customers!

Customer relationship and retention has to be the concern of everyone in the organisation

Coherent communications

Customer language

Consistency

Identifying and understanding customers Who are the customers of HEIs? Enterprise? Students? Employers? Funding councils? Research councils? How much do we understand them? Surveys, campaigns, HCI/IDEO methods Customer satisfaction (not just surveys - behaviours and metrics)

Who are the customers of HEIs?

Enterprise?

Students?

Employers?

Funding councils?

Research councils?

How much do we understand them?

Surveys, campaigns, HCI/IDEO methods

Customer satisfaction (not just surveys - behaviours and metrics)

De-Averaging “ When you’re trying to target profitable segments, averages obscure a lot, and aggregate financial statements are pretty meaningless. Our approach to segmentation is to take really big numbers and “de-average” them. Until you look inside and understand what’s going on by business, by customer, by geography, you don’t know anything.” - Michael Dell

“ When you’re trying to target profitable segments, averages obscure a lot, and aggregate financial statements are pretty meaningless. Our approach to segmentation is to take really big numbers and “de-average” them. Until you look inside and understand what’s going on by business, by customer, by geography, you don’t know anything.” - Michael Dell

Segmentation “ Segmentation should be based on customer needs not on demographics” Are customer segments and campaigns targeted to customer behaviour? “ When segments grow, re-segment”

“ Segmentation should be based on customer needs not on demographics”

Are customer segments and campaigns targeted to customer behaviour?

“ When segments grow, re-segment”

Customer Value CRM looks beyond the value of transactions to the value of the customer relationship E.g.: Lifetime revenue potential on repeat sales and cross/up sales Customers selling your products for you through their personal networks Customers promoting your brand Value of customers increases over time due to high acquisition cost versus initial margins

CRM looks beyond the value of transactions to the value of the customer relationship

E.g.:

Lifetime revenue potential on repeat sales and cross/up sales

Customers selling your products for you through their personal networks

Customers promoting your brand

Value of customers increases over time due to high acquisition cost versus initial margins

Thinking about value Managing customer relationships so that the customers can provide value to the company based on the company’s value to the customer ( quid pro quo ) Engaging customers in collaborative activity for mutually created value

Managing customer relationships so that the customers can provide value to the company based on the company’s value to the customer ( quid pro quo )

Engaging customers in collaborative activity for mutually created value

Traditional CRM Tools Account Management Contact Management Market Opportunity Management (Leads) Campaign Management Sales Management Service Management Analytics & Monitoring

Account Management

Contact Management

Market Opportunity Management (Leads)

Campaign Management

Sales Management

Service Management

Analytics & Monitoring

The Risk Temptation to go for a big system and massive data management exercise rather than focus on pain points and capturing strategic information “ Comprehensive” CRM is difficult, expensive, and yields big systems Need to focus on high-yield interventions

Temptation to go for a big system and massive data management exercise rather than focus on pain points and capturing strategic information

“ Comprehensive” CRM is difficult, expensive, and yields big systems

Need to focus on high-yield interventions

The Payoff Effective CRM engages customers, and can make them passionate ambassadors for your organisation Effective CRM turns one-off purchases into relationships that deliver increasing value to both customer and provider

Effective CRM engages customers, and can make them passionate ambassadors for your organisation

Effective CRM turns one-off purchases into relationships that deliver increasing value to both customer and provider

CRM 2.0 CRM 1.0 focussed on company-customer relationship CRM 2.0 recognises the importance of customer networks

CRM 1.0 focussed on company-customer relationship

CRM 2.0 recognises the importance of customer networks

Social CRM Tools Brand presence management Customer network analysis Customer intelligence capture Customer support networks Feedback and participation channels

Brand presence management

Customer network analysis

Customer intelligence capture

Customer support networks

Feedback and participation channels

In short, to do CRM: Identify High-Value Customers Build Customer Loyalty to grow Revenues Reduce Costs through Micromarketing Create a Customer-Focused Organization

Identify High-Value Customers

Build Customer Loyalty to grow Revenues

Reduce Costs through Micromarketing

Create a Customer-Focused Organization

Applying CRM in HE From data silos to customer information files From student surveys to campaign management Redesigning services as coherent set of touchpoints using customer language Analytics From course-oriented to student-oriented processes?

From data silos to customer information files

From student surveys to campaign management

Redesigning services as coherent set of touchpoints using customer language

Analytics

From course-oriented to student-oriented processes?

Mapping CRM challenges to HE “ I don’t know who my customers are” Data fragmentation, poor intelligence capture from operations, static surveys, “ We don’t have contact with customers because we sell via channels” Initial engagement and pre-sales engagement, e.g hi.edgehill.ac.uk “ Our internal systems don’t provide a single unified view of our customers” Joining up enterprise systems around customer data “ I don’t know which customers are most valuable and deserve special attention” Profiling, revenue optimisation, identity marketing “ I don’t know why my customers defect” Exit interviews, pre-defection profiling, retention modelling

“ I don’t know who my customers are”

Data fragmentation, poor intelligence capture from operations, static surveys,

“ We don’t have contact with customers because we sell via channels”

Initial engagement and pre-sales engagement, e.g hi.edgehill.ac.uk

“ Our internal systems don’t provide a single unified view of our customers”

Joining up enterprise systems around customer data

“ I don’t know which customers are most valuable and deserve special attention”

Profiling, revenue optimisation, identity marketing

“ I don’t know why my customers defect”

Exit interviews, pre-defection profiling, retention modelling

Offering single point of contact Major complaint addressed by CRM Join-up of all customer touchpoints to handle ALL enquiries, not bounce customers between departments Focus on consistency and quality of interaction and maintenance of relationship at ALL touchpoints and ALL channels Your organisation structure shouldn’t be your customer’s problem Examples: integrated helpdesks, 1:1 support model, etc.

Major complaint addressed by CRM

Join-up of all customer touchpoints to handle ALL enquiries, not bounce customers between departments

Focus on consistency and quality of interaction and maintenance of relationship at ALL touchpoints and ALL channels

Your organisation structure shouldn’t be your customer’s problem

Examples: integrated helpdesks, 1:1 support model, etc.

JISC CRM study - use of CRM in BCE Operational Using the information to manage contacts Logging of relationship transactions (e.g. projects, visits, telephone calls, events, customer needs, customer satisfaction) Tactical Using the information to inform service delivery and Improvement Interrogating the data to enable customer segmentation, targeted marketing, key account management, market analysis, cross-selling etc. Strategic Using the information to make better informed strategic decision on an institutional wide basis Interrogating the data to enable market analysis, product/service appraisal, information management/reporting (internally/externally) etc

Operational

Using the information to manage contacts

Logging of relationship transactions (e.g. projects, visits, telephone calls, events, customer needs, customer satisfaction)

Tactical

Using the information to inform service delivery and Improvement

Interrogating the data to enable customer segmentation, targeted marketing, key account management, market analysis, cross-selling etc.

Strategic

Using the information to make better informed strategic decision on an institutional wide basis

Interrogating the data to enable market analysis, product/service appraisal, information management/reporting (internally/externally) etc

Business Transformation What would a customer-focussed HEI really look like? What would you give away, what would you monetize, who would you create relationships with? How would you create long-term customer relationships delivering increasing value?

What would a customer-focussed HEI really look like?

What would you give away, what would you monetize, who would you create relationships with?

How would you create long-term customer relationships delivering increasing value?

An Extreme Case

NIN CRM “ Reznor has pioneered a new, fan-centered business model that radically breaks with the practices of the struggling music industry. His embrace of "freemium" pricing, torrent distribution, fan remixes and social media seem to be paying off financially even as they have helped him forge deeper connections with the Nine Inch Nails faithful.” "Anyone who’s an executive at a record label does not understand what the internet is, how it works, how people use it, how fans and consumers interact - no idea," he declares. "I’m surprised they know how to use e-mail. They have built a business around selling plastic discs, and nobody wants plastic discs any more.” “ So everything we’ve tried to do has been from the point of view of, ‘What would I want if I were a fan? How would I want to be treated?’ Now let’s work back from that. Let’s find a way for that to make sense and monetize it.” "I doubt I’ll ever pay someone to do a remix again"

“ Reznor has pioneered a new, fan-centered business model that radically breaks with the practices of the struggling music industry. His embrace of "freemium" pricing, torrent distribution, fan remixes and social media seem to be paying off financially even as they have helped him forge deeper connections with the Nine Inch Nails faithful.”

"Anyone who’s an executive at a record label does not understand what the internet is, how it works, how people use it, how fans and consumers interact - no idea," he declares. "I’m surprised they know how to use e-mail. They have built a business around selling plastic discs, and nobody wants plastic discs any more.”

“ So everything we’ve tried to do has been from the point of view of, ‘What would I want if I were a fan? How would I want to be treated?’ Now let’s work back from that. Let’s find a way for that to make sense and monetize it.”

"I doubt I’ll ever pay someone to do a remix again"