Focus on communications and services to deliver a personalised experience
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
Who are they? Do you have usable information?
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
Identifying and understanding customers
Who are the customers of HEIs?
How much do we understand them?
Surveys, campaigns, HCI/IDEO methods
Customer satisfaction (not just surveys - behaviours and metrics)
“ 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 should be based on customer needs not on demographics”
Are customer segments and campaigns targeted to customer behaviour?
“ When segments grow, re-segment”
CRM looks beyond the value of transactions to the value of the customer relationship
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
Traditional CRM Tools
Market Opportunity Management (Leads)
Analytics & Monitoring
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
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 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
In short, to do CRM:
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
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”
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.
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
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
“ 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"