Novel and proactive CRM for companies

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The treating of an individual customer of high value purchase as key account and thereby deriving more value by upsell and cross sell opportunities.

The treating of an individual customer of high value purchase as key account and thereby deriving more value by upsell and cross sell opportunities.

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  • 1. INTRODUCTION
    • Through this presentation we present a entire new perspective on customer retention for products and services industry where high value purchase occurs
    • By high value purchase we mean any purchase whose value in rupee terms exceed 5000/- (Five thousand only)
  • 2. INTRODUCTION
    • This Presentation gives the basic bare bones of our idea and is applicable for both products and services companies the only eligible criteria put forward is high value purchase
    • The actual implementation would take into account the industry type, customer base, type of product/service etc into consideration
  • 3. INTRODUCTION
    • The customizations will have to be done by the respective companies based on above mentioned parameters but the basic underlying idea is the same
    • The industries which need this next generation idea will ideally be operating in a B2C environment with huge numbers of customers
  • 4. INDUSTRIES
    • PRODUCT
      • Automobile
      • Appliances (FMCD)
      • Furniture
      • Mobile
      • Computer/ Electronics
      • Real Estate
      • Electrical Goods
      • Gems & Jewellery
    • SERVICES
      • Aviation
      • Hotel
      • Hospitals
      • Insurance
      • Banking
      • ISP’s And Telecom Co’s
      • Travel
      • Spa Beauty Care
  • 5. INDUSTRIES
    • Though not an exhaustive list these are typical industries that would benefit from our approach
    • Every industry has to customize the approach for itself as they give varied offerings
  • 6. INTRODUCTION
    • The idea can be summarized in one sentence
    • “ Make your customer fell very Important like Emperor”
    • Though sounding very clichéd we will in subsequent slides show you literally how it will be done in a novel, simple and cost effective way
    • The idea is based upon customer retention but its benefits are not confined to customer retention but go way beyond
  • 7. Novel CRM
    • The Customer is king and we will exceed his expectations by our service…..
    • This is the common customer service motto for various companies but it remains in letter not in spirit
    • We will ensure that your customers are treated not like kings but like emperors
    • Cost of this extravagance is low but results outstanding
  • 8. INTRODUCTION
    • Every Individual customer should be treated like a key account this is the basic idea of our approach
    • Once you pamper your existing customers then you will have no problems retaining them and consequently you can cross-sell or up-sell them your products
    • These customers will then galvanize others who will then get served by you
  • 9. Relationship Marketing Programs
  • 10. Introduction
    • Our Approach is simple yet far reaching in its benefits the approach is plain common sense but why organizations don’t implement it is an enigma
    • For treating your individual customers like a key account costs as little as 1%(or less) of the purchase value per customer per year
    • The approach just requires few minor process/mindset modifications and a robust IT Infrastructure
  • 11. Customer Relationship Management(CRM)
  • 12. BENEFITS
    • Customer satisfaction is achieved
    • Customer is treated like king hence more brand loyalty
    • Product improvement through customer feedback
    • Better and timely service to customers
    • Simple market researches done on customers
    • Alternate channel for informing customers about new products and promotions
  • 13. BENEFITS (contd)
    • Customer preferences ,demographics for analysis and implementation
    • Socially Relevant messages like energy conservation, safe driving etc communicated to customers
    • Loyal customers rewarded
    • Apart from all these tangible benefits it will enhance your brand image and improve your company’s perception among the people
  • 14. Customer Retention
    • Typically 68% of customers leave a company because of its service and move to its competitors
    • We will ensure that this number will reduce to 30% of the customers in a year because our approach ensures customer satisfaction so more retention
  • 15. Advertising
    • Huge amounts of money are spent on advertisements in order to make customer aware of new product/promotions being launched by the company
    • Our approach ensures that all the new product/promotion information reaches the target audience based on customer profiles
  • 16. Product Review
    • Taking active feedback from your existing customers about the products can reveal a lot about product drawbacks and customer preferences
    • These data are then analyzed and incorporated into any new product or updated version of existing products
    • For service companies the deficiencies in service come home and then subsequently corrective measures undertaken
  • 17. Customer Profiling
    • Very few companies have idea about their customers i.e. demographics, income, education, preferences etc those who have idea usually engage third parties to gather information which they do by sampling
    • Our approach ensures that customer profiling is done along with other functions listed above and across all customer groups
  • 18. CUSTOMER
    • Every other company claims that customers are part of its family but they don't have any idea about their family members i.e. who, where, how, what are they? They also do not take opinion of their family members before embarking on a new venture
    • Our Approach would literally help you to achieve this goal enshrined above
  • 19. Customer Profiling
    • All the existing customers are profiled on the basis of various parameters as decided by the company and arranged into groups
    • After logical segmentation of customers then targeted campaigns are run for various groups for cross sell and up sell campaigns
    • Each group will have a specific campaign for itself so as to derive maximum mileage
  • 20. Analytics
    • Advanced analytics will be run on the data accrued from existing customers
    • Based on the results loyalty schemes can be provided for regular ones while for relatively new entrants some trial schemes are provided
  • 21. ANALYTICS
  • 22. Customer Pampering
    • Once an enterprise pampers its customers it will have more loyalty
    • Whenever in doubt about any product/ promotion consult your existing customers their insights will greatly help in taking crucial decisions
    • Customers are always ready with advice some good some bad some ridiculous but we will select only the best and reject others
  • 23. Single Point of Contact
    • Many a times a customer has no idea whom to contact in case of damage/service etc
    • There should be a dedicated person, website, mail ,number etc for these complaints
    • A name is more valuable than a mail id and whom to escalate when problem doesn’t get resolved after a certain period
  • 24. Corporate Social Responsibility (CSR)
    • A company spends huge amounts of money for a socially relevant cause via advertising
    • By our approach we will ensure that these socially relevant messages are transmitted to the existing customers of the company and they are urged to participate in this change
    • The existing customers will whole heartedly support and participate in this venture
  • 25. ADVERTISING
    • Our approach will help you to get feel of how your advertising is going vis a vis impact and visibility
    • The existing customers of the company will be the decision makers in choosing the brand ambassador concept etc for advertising
    • Our approach in fact opens up a whole new medium for advertising and assessing advertisement impact for various other mediums
  • 26. Product/Brand Experiences Expectations of performance Evaluation of actual performance Evaluation of gap between expected and actual performance Dissatisfaction Satisfaction Expected confirmed performance
  • 27. APPROACH
    • Pain is defined by us as the gap between expectation and reality and the way to relieve pain is to merge expected result with actual result
    • We here are not talking of satisfaction but we will ensure that dissatisfaction doesn’t exist
    • Satisfaction will come into picture subsequently but elimination of dissatisfaction is the primary objective
  • 28. Present CRM
    • Companies today typically invest heavily in a crm package to manage customer relationship and this strategy itself is flawed
    • The CRM gets it input from various purchases that a customer has done ,complaints, queries etc
    • Third party surveys are uploaded into CRM for analysis
  • 29. Present Scenario
    • Some companies call up their customers after purchase to enquire about product’s performance but this is one off measure rather than norm
    • Services companies typically use a feedback form to gather customer information and then upload it
    • Some companies use technology to monitor real time performance of their products
  • 30. Present Scenario
    • Customer connect initiatives are run by various companies by selecting a specified group of customers and finding out their preferences
    • Loyal customers are rewarded by offering them discounts , products, gifts etc
    • Advertising and sales promotion done through established channels and their reach measured by third parties
  • 31. Present Scenario
    • Rarely the existing customers bar a very few are asked for their opinions regarding new product/service offerings
    • Customers belonging to different life cycle phases of products are not treated differently
    • The point of contact for customers is dealers not company representative
  • 32. APPROACH
    • Obtaining feedback is an ongoing process, not a one-time event. The most successful companies change according to their customers' desires and demands
    • Be wary of over-analyzing the data. It's easy to lose sight of your long-term goals when you're foundering in numbers. Survey information is only a guideline for potential change
  • 33. APPROACH
    • Show your clients you appreciate their input and thank them for their efforts. Customers like helping out if they see changes being made per their suggestions
    • Use customer feedback to highlight areas for improvement, not to punish employees.
    • Use customer satisfaction training and policies to motivate and encourage employees, not to discourage them.
  • 34. APPROACH
    • In a nutshell the approach is to treat your individual customers as key account and apply principles of account management to all your individual customers
    • There are two ways of accomplishing this objective i.e.
        • Create a dedicated team of account managers in your company to take care of customers
        • Outsource the account management to a vendor i.e. a third party
  • 35. APPROACH
    • The activities to be undertaken before this initiative can be launched are
    • Phone number of customers to be available
    • Email id and mailing address of customers
    • Centralized database of customers with unique identification number for each customer
  • 36. APPROACH
    • By now you must have a feel that our approach consists of talking/communicating to your existing customers you are spot on
    • We believe that a regular communication channel be available between you and your customers which would be 2 way not 1 way as practiced today
  • 37. APPROACH
    • You have to be proactive in communicating to your customers not wait for mishap to occur at his end and he/she calls you
    • By communicating even after selling product/ service you will have top of the mind recall for existing customers
    • Your customers will also appreciate that you take so much of pain to call them up and take opinion about all and sundry
  • 38. APPROACH
    • Presently we have customer care centers who receive customer complaints and try to solve them that is just a number for many and majority don’t ever call it
    • Have account managers who will help customers and call them from your end periodically
    • These account managers will have a name, email for customer queries and escalation authority for escalation if issue is not resolved in a given time frame
  • 39. APPROACH
    • The Approach is simple after a sale is done call up the customer say after 3 months just to enquire what are his feelings after buying our product
      • Does he feel buyers remorse
      • Does he like aesthetics, features etc
      • Does he need any help give him a contact name , email, mailing address of service representative for assistance
  • 40. APPROACH
      • Identify his preferences and language etc
      • Identify product/service advantages vis a vis competition
    • After this is done upload all the details pertaining to this customer into database and then call him up regularly to feel his pulse
    • Under the guise of taking feedback about products/services extract demographics, usage, income and other valuable data from customers
  • 41. APPROACH
    • After 2-3 calls you will have sufficient data about your family members (Customers)
    • You can then run analytics on the results and then segment your customers on various parameters and then run targeted promotions on different segments taking into variances
    • For any pan-india promotion identify eligible customers call them up and inform them accordingly
  • 42. APPROACH
    • For new product launch identify the target segment and create suitable sample from your customers and take their feedback
    • Inform customers about new product / promotion for those interested in any specific item and those willing to volunteer for new product testing
    • Ask customers about the promotion they are willing to get updated and mail details accordingly DO NOT SPAM
  • 43. APPROACH
    • The approach can be implemented in a phase wise manner for example in a specific region for a specific time period in a no frills manner
    • By no frills we mean only contacting customers randomly to gauge whether they found our products/services satisfactory and their feed back on the same
    • Run this campaign for 5-6 months selecting a target group of customers
  • 44. APPROACH
    • Commission an independent survey to find out changes before and after the campaign both on quantitative and qualitative parameters
    • If the results are encouraging then undertake the full fledged implementation of the same
    • For this no frills approach outsource customer connect program to third party i.e. domestic call centre (BPO)
  • 45. APPROACH
    • The no frills approach will cost you less than .2% of the purchased value of goods/services per customer for calling him twice in 6 month period and there are no fixed expenses except consulting fees
    • The no frills approach will also help to identify typical problems and will help immensely in implementation of full fledged campaign
  • 46. APPROACH
    • The Customers would not mind our calls as they would feel important that a company has taken pains to contact him/her even after selling and is taking their opinion
    • He would readily answer the call and will answer any questions put forward by our account manager and he will be ready with further suggestions and advice for us which will help in catering to tastes of all
  • 47. APPROACH
    • The persons who bought products or availed services from your competitors will feel cheated as your competitors would not call them this would ensure positive image for your company and word of mouth publicity
    • For every service given by you call up your customers and take a feedback which they would readily give and would be sincere
  • 48. APPROACH
    • For every inconvenience faced by your customer apologize to him immediately on behalf of company so that he feels important
    • Every customer will appreciate company’s way of connecting with them even after he has no business with them
    • Imagine having happy customers you will get business from them and the image enhancing benefits that accrue from it
  • 49. APPROACH
    • For loyal customers run a different campaign reward them for their loyalty
    • For customers at various stages of product life cycles customize the campaign suitably to meet their requirements
    • For customers who are close to product replacement time call them to get top of mind recall
  • 50. APPROACH
    • Don’t practice it as one off approach i.e. calling him up once after a sales is done and then forget him
    • Always maintain communication with him and allow him to communicate with you by creating SPOC (Single Point of Contact) for all his troubles
    • The SPOC should be a person not a number
  • 51. APPROACH
    • The SPOC should be the account manager for n number of customers and will be responsible for them
    • He should have a mobile number which would be available from 10am to 10pm a landline number with answering machine available 24x7 a mail id for customers to reach him
  • 52. APPROACH
    • The company cares for its customers is a common refrain if you really care apply this approach
    • The approach can be implemented in many ways but depending upon your industry we will suggest best practices
    • Nowhere this has been implemented and thus its benefits cant exactly be quantified but they are visible to those whose eyes are open
  • 53. APPROACH
    • The approach is cost effective in the sense that for high value purchases you typically spend very low percentage of sales value in retaining your customer
    • For a typical customer with 4 calls per year ,5-10 emails and 5-6 mails to his address you would spend very less i.e. less than 1% of the value of purchase he/she has done
  • 54. APPROACH
    • For this approach to succeed and prosper entire company has to own this process and the success of approach incorporated into KRA’s and KPI’s
    • A special cross functional team would be setup to monitor ,evaluate and improve the whole process
  • 55. APPROACH
    • We don’t have credentials for suggesting you how to give your customers better service but the perspective we have will be your service booster
    • To paraphrase “Even the worst of men can give the best of Advice” Ignore this advice at your own risk
  • 56. COSTS (Indian Rupees)
    • Infrastructure Costs
      • IT Backbone
      • Consulting Fees
    • Management Costs
      • Recruitment/ Training
      • New Division setup
    • Miscellaneous
    • Cost per customer per year
  • 57. IMPLEMENTATION
    • In House
    • Out sourced
    • In house implementation is very costly as the entire infrastructure is set up by us but it is better that it is readily adaptable
    • Out sourced is very cost effective but its drawback is that it is not very adaptable and difficult to monitor
  • 58. Implementation
    • The implementation can be done phase wise and in a planned manner it can either be incremental or big bang depending on the enterprise
    • We suggest enterprises to not incur the fixed costs outright except the consulting fees and try out our recommended no frills strategy
  • 59. Implementation
    • The no frills strategy is implemented in a specific region on a specific population
    • The duration of no frills strategy is of 6 months and majority of the benefits accrue during this period
  • 60. Implementation
    • After the completion of no frills implementation methodology a survey is done either by company or third party to analyze the results
    • Once results are good then it is implemented everywhere along with the IT backbone and other prerequisites to derive long term benefit
  • 61. FUTURE SCENARIO
    • In coming future companies will be distinguished on the basis of those who treat their customers as part of their family and those who don’t
    • Then Gradually all companies will treat their customers as part of their family so for you to take advantage the time is now
  • 62. FUTURE SCENARIO
    • The enterprises who implement this approach will benefit more in the long run though short term benefits will be there
    • The long term benefits will enhance the image brand value of the companies
    • The benefits are measurable and persist for a long time
  • 63. AFTERWORD
    • Hard to believe that so much benefit can accrue from so little an investment
    • Approach is very simple , robust, banal and would open a window for future
    • It has yet not been implemented be the first to try it out if it works persist if it doesn’t leave it and let the herd follow you
  • 64. FOR IT/ITES Organizations
    • The above presentation was for Clients who would need convincing for this initiative
    • For this Initiative I would like to partner with your organization to make it a reality
    • The next few slides will explain what is in for you if you implement this initiative
  • 65. For YOU
    • You have clients in the target segments
    • In house BPO for calling and receiving calls
    • IT Infrastructure for storing customer data
    • Consulting team to convince modify/customize approach for Client
    • Sales / Business Development team to acquire clients
  • 66. For YOU
    • Utilizing these strengths you can take up this new paradigm in CRM and help your clients
    • You can increase your bottom line by a large distance because these are ongoing and long term projects and will be the future of all companies
    • This doesn’t entail any large additional expense from your side as you have all the major capabilities with you
  • 67. For YOU
    • Your Company’s reputation will increase
    • Bottom line will grow
    • First mover advantage will be yours
    • Clients would flock near you
    • Start this initiative before others and enjoy monopoly and delay at your own risk somebody may just pip you
  • 68. Thank You
    • For further discussion and implementation contact
    • Syed Durez Ahmed (Freelance consultant)
    • +91-9658966606
    • [email_address]