Wednesday 13 April 2011 CIM CRM Workshop 1
Customer relationship management,  databases & the web <ul><li>Thom Poole </li></ul><ul><ul><li>Global Product Manager </l...
Agenda <ul><li>Introductions </li></ul><ul><li>Knowledge Management and Marketing </li></ul><ul><li>BREAK </li></ul><ul><l...
Introductions <ul><li>Just to warm us up a little </li></ul><ul><li>Who you are and what your organisation does </li></ul>...
Why are we doing this <ul><li>Competitive advantage lies in deploying what companies know </li></ul><ul><li>This involves ...
What is Marketing? <ul><li>Marketing is about  EXPLOITATION </li></ul><ul><ul><li>You learn about your customers </li></ul...
CRM is about customer interaction <ul><li>A good definition is “A management approach that enables organisations to identi...
The Key Word is profitable <ul><li>You need to know who your most profitable customers are </li></ul><ul><li>What their li...
It is a balance of art and science <ul><li>A good salesman does this intuitively  </li></ul><ul><li>But one to one , face ...
However it must support the key brand values <ul><li>The client must feel  </li></ul><ul><ul><li>Cared for </li></ul></ul>...
Effective Implementation needs an integrated approach <ul><li>Strategy </li></ul><ul><ul><li>What are you doing this for <...
CRM is Knowledge Management <ul><li>The how vs the why - knowledge management is the process that builds intellectual capi...
What does this involve for small companies <ul><li>Three main areas of activity </li></ul><ul><ul><li>Up-skilling staff an...
Themes to establish <ul><li>Need to focus on systematically deploying staff abilities </li></ul><ul><li>Need to establish ...
Strategy - What you must know <ul><li>What your clients want, where they are, and where they are in the sales cycle </li><...
Information needed to plan <ul><li>Income by meaningful category </li></ul><ul><li>Gross Margin </li></ul><ul><li>Customer...
Marketing Strategy - the issues <ul><li>What markets are attractive? </li></ul><ul><li>What competitive advantages have yo...
What you must know about your clients <ul><li>Lifetime value of the client </li></ul><ul><li>What do they  want </li></ul>...
Exercise 1 <ul><li>Is it correct? </li></ul><ul><li>Would you correct the data? </li></ul><ul><li>Why? </li></ul><ul><li>W...
What you must know about your marketing processes <ul><li>Activity to generate leads </li></ul><ul><li>Cost per lead gener...
CRM is not just about sales <ul><li>It is aimed at retention </li></ul><ul><li>In many business to business environments i...
To be successful consider the business as a whole <ul><li>The respective aims of company and client </li></ul><ul><li>The ...
Strategic Framework for CRM
The definition of the Sales and Service pipeline <ul><li>Acquisition of Customer </li></ul><ul><li>Consolidation of custom...
The Nature of Customer Encounters
CRM becomes critical for companies as the web brings more interaction <ul><li>There is more to capture </li></ul><ul><li>Y...
What does the Web bring to the party <ul><li>It allows communication, structured offers and instant response </li></ul><ul...
Exercise 2 <ul><li>The Web Experience   assisted by Alan Rae </li></ul>
BREAK <ul><li>We’ll break for about 5 minutes </li></ul><ul><li>Tea, coffee available </li></ul><ul><li>Can we be back at ...
Methods of communication from web site include <ul><li>Web chat - interactive conversation in real time </li></ul><ul><li>...
Ovum study <ul><li>Only 33% of companies who invited response by email or form responded to them AT ALL </li></ul><ul><li>...
What would getting it right mean? <ul><li>Integrating front office, back  office & analytic systems </li></ul><ul><li>Inte...
How are other companies using the web now? <ul><li>Recent HP study showed </li></ul><ul><ul><li>Business to consumer </li>...
Think about it … <ul><li>Wouldn’t it be great to customise information from database according to customers web site + oth...
Other HP findings <ul><li>Most are not happy with their companies response and integration capabilities </li></ul><ul><li>...
Why this is important <ul><li>Companies lose half their customers in 5 years </li></ul><ul><ul><li>Harvard Business review...
CRM depends on overall perception of the company
So where does it fit?
Management <ul><li>Needs to identify which segments are working and which need attention </li></ul><ul><li>Needs to be int...
INFORMATION Technology
The Architecture of eRM
A good CRM system can <ul><li>Capture info from any source - email, web site call centre, trade show or referral </li></ul...
Sales management <ul><li>Opportunity management - tracking the milestones to the sale </li></ul><ul><li>Should handle comp...
Sales Pipeline
Customer Service and Support <ul><li>The customer wants to be looked after </li></ul><ul><ul><li>I want to be me </li></ul...
Sales can see service logs
Service team can see Sales logs
Monitoring activity
Large vs small solutions <ul><li>Key players  - entry level £50k </li></ul><ul><li>But entry level players such as goldmin...
Goldmine Example
Internet support <ul><li>provides a complete intranet solution for distribution of collateral </li></ul><ul><li>in future ...
Imperatives of E-relationships <ul><li>Create a dynamic customer context </li></ul><ul><li>Generate Consistent Custom Resp...
Rules to succeed <ul><li>Companies that treat business buyers uniquely and consistently will build loyal clients fastest <...
Conclusion <ul><li>Take this seriously - it’s the lifeblood of your company </li></ul><ul><li>Integrate  with Web and othe...
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CIM CRM Workshop

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CRM Course delivered to CIM members 2003

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CIM CRM Workshop

  1. 1. Wednesday 13 April 2011 CIM CRM Workshop 1
  2. 2. Customer relationship management, databases & the web <ul><li>Thom Poole </li></ul><ul><ul><li>Global Product Manager </li></ul></ul><ul><li>Dr Alan Rae </li></ul><ul><ul><li>Business Adviser </li></ul></ul>
  3. 3. Agenda <ul><li>Introductions </li></ul><ul><li>Knowledge Management and Marketing </li></ul><ul><li>BREAK </li></ul><ul><li>CRM , Databases & the Web </li></ul><ul><li>Conclusion </li></ul>
  4. 4. Introductions <ul><li>Just to warm us up a little </li></ul><ul><li>Who you are and what your organisation does </li></ul><ul><li>Why you have come to our seminar </li></ul><ul><li>I will start … </li></ul>
  5. 5. Why are we doing this <ul><li>Competitive advantage lies in deploying what companies know </li></ul><ul><li>This involves getting to grips with 3 sorts of information </li></ul><ul><ul><li>The knowledge that exists in people </li></ul></ul><ul><ul><li>The know-how that exists within the processes of the company </li></ul></ul><ul><ul><li>The information that exists about how the company interacts with its customers </li></ul></ul>
  6. 6. What is Marketing? <ul><li>Marketing is about EXPLOITATION </li></ul><ul><ul><li>You learn about your customers </li></ul></ul><ul><ul><li>You understand their desires, ambitions and expectations </li></ul></ul><ul><ul><li>You discover their stimuli </li></ul></ul><ul><ul><li>You Exploit your knowledge for competitive advantage </li></ul></ul>
  7. 7. CRM is about customer interaction <ul><li>A good definition is “A management approach that enables organisations to identify, attract and increase retention of profitable customers by managing relationship with them” - Bradshaw and Brash- Ovum </li></ul>
  8. 8. The Key Word is profitable <ul><li>You need to know who your most profitable customers are </li></ul><ul><li>What their lifetime value is going to be </li></ul><ul><li>What the prospective lifetime value of new clients is going to be </li></ul><ul><li>What service offers build in switching costs to the client </li></ul><ul><li>How to construct offers that support and extend the brand. </li></ul>
  9. 9. It is a balance of art and science <ul><li>A good salesman does this intuitively </li></ul><ul><li>But one to one , face to face selling is too dear </li></ul><ul><li>CRM gives us the opportunity to use a variety of channels - particularly the new interactive media to automate low level personalisation of interactions </li></ul><ul><li>This automated information can be captured, analysed and used to formulate new offers that increase customer retention </li></ul>
  10. 10. However it must support the key brand values <ul><li>The client must feel </li></ul><ul><ul><li>Cared for </li></ul></ul><ul><ul><li>In control </li></ul></ul><ul><ul><li>Able to influence the process </li></ul></ul><ul><ul><li>Able to have his needs customised </li></ul></ul><ul><li>Web sites such as Amazon and Dell have achieved this effectively </li></ul><ul><li>They put the client in control while getting her to do the work & externalising transaction costs </li></ul>
  11. 11. Effective Implementation needs an integrated approach <ul><li>Strategy </li></ul><ul><ul><li>What are you doing this for </li></ul></ul><ul><ul><li>Who are your customers </li></ul></ul><ul><ul><li>What do they want </li></ul></ul><ul><li>Structure </li></ul><ul><ul><li>Front & back office databases, web sites & IT </li></ul></ul><ul><ul><li>Your business processes </li></ul></ul><ul><li>Skills </li></ul><ul><ul><li>Behaviour, IT & leadership skills </li></ul></ul>
  12. 12. CRM is Knowledge Management <ul><li>The how vs the why - knowledge management is the process that builds intellectual capital </li></ul><ul><li>Any investment in knowledge must have a strategic purpose </li></ul><ul><li>It involves an analysis to identify where are the key leverage points in the business </li></ul><ul><li>Anything that isn’t of major strategic importance should be ignored </li></ul><ul><li>It must fit the existing capability of the business </li></ul>
  13. 13. What does this involve for small companies <ul><li>Three main areas of activity </li></ul><ul><ul><li>Up-skilling staff and encouraging them to share knowledge </li></ul></ul><ul><ul><li>Making sure that processes and news are shared using intranet technology </li></ul></ul><ul><ul><li>Making sure that key information about customers is located, refined and used to achieve a competitive edge </li></ul></ul><ul><li>It needs to be simple, practical and use industry standard software and hardware </li></ul>
  14. 14. Themes to establish <ul><li>Need to focus on systematically deploying staff abilities </li></ul><ul><li>Need to establish that there is a critical infrastructure level both physically and in people’s understanding of IT </li></ul><ul><li>Need to tie what you know into to what builds competitive advantage </li></ul><ul><li>What measures are appropriate to know that organisation is on track </li></ul>
  15. 15. Strategy - What you must know <ul><li>What your clients want, where they are, and where they are in the sales cycle </li></ul><ul><li>How can you capture it </li></ul><ul><li>How can you track it </li></ul><ul><li>What changes to your business processes are necessary to make this work </li></ul><ul><li>What staff behaviours you need to institutionalise </li></ul>
  16. 16. Information needed to plan <ul><li>Income by meaningful category </li></ul><ul><li>Gross Margin </li></ul><ul><li>Customer and Product Profitability </li></ul><ul><li>Sales Plan vs Forecast </li></ul><ul><li>Sales Pipeline </li></ul><ul><li>Strategic and Tactical Marketing Analysis </li></ul>
  17. 17. Marketing Strategy - the issues <ul><li>What markets are attractive? </li></ul><ul><li>What competitive advantages have you </li></ul><ul><li>What else should you consider </li></ul><ul><ul><li>how much of total market is available </li></ul></ul><ul><ul><li>where in the product life cycle you are </li></ul></ul><ul><ul><li>what is the decision structure of the market </li></ul></ul><ul><ul><li>how do you stack up against the competition across the whole product </li></ul></ul>
  18. 18. What you must know about your clients <ul><li>Lifetime value of the client </li></ul><ul><li>What do they want </li></ul><ul><li>How likely are they to buy </li></ul><ul><li>What behaviours do they want </li></ul><ul><li>What behaviours do they display </li></ul><ul><li>How does this relate to your brand values </li></ul><ul><li>What control of the process can you give them </li></ul>
  19. 19. Exercise 1 <ul><li>Is it correct? </li></ul><ul><li>Would you correct the data? </li></ul><ul><li>Why? </li></ul><ul><li>Why is/could the data be wrong? </li></ul><ul><li>Other methods of collection </li></ul>
  20. 20. What you must know about your marketing processes <ul><li>Activity to generate leads </li></ul><ul><li>Cost per lead generated </li></ul><ul><li>Cost per close </li></ul><ul><li>ratios including close ratio </li></ul><ul><li>average value per close </li></ul><ul><li>retention rates by segment </li></ul>
  21. 21. CRM is not just about sales <ul><li>It is aimed at retention </li></ul><ul><li>In many business to business environments it is important link sales with service data </li></ul><ul><li>This can give great results and can help develop new products and offerings </li></ul><ul><li>It can extend to true collaborative working in supply chains - buzzsaw.com </li></ul>
  22. 22. To be successful consider the business as a whole <ul><li>The respective aims of company and client </li></ul><ul><li>The Value creation process </li></ul><ul><li>The multi-channel nature of business today </li></ul><ul><li>The assessment of performances </li></ul><ul><li>The IT analysis and communication infrastructure </li></ul><ul><li>These form the strategic framework for CRM </li></ul>
  23. 23. Strategic Framework for CRM
  24. 24. The definition of the Sales and Service pipeline <ul><li>Acquisition of Customer </li></ul><ul><li>Consolidation of customer </li></ul><ul><ul><li>Only very satisfied customers spontaneously testify and build your brand </li></ul></ul><ul><li>Enhancement of the relationship </li></ul><ul><ul><li>Services </li></ul></ul><ul><ul><li>Loyalty programs </li></ul></ul><ul><ul><li>Cross and up-selling </li></ul></ul>
  25. 25. The Nature of Customer Encounters
  26. 26. CRM becomes critical for companies as the web brings more interaction <ul><li>There is more to capture </li></ul><ul><li>You can do more with it </li></ul><ul><li>If you can analyse the information you can get a clearer picture of how your business is running. </li></ul><ul><li>The web enables greater scope for interactivity. </li></ul>
  27. 27. What does the Web bring to the party <ul><li>It allows communication, structured offers and instant response </li></ul><ul><li>However it needs to be integrated with direct mail, telesales and even physical sales people </li></ul><ul><li>You can monitor behaviour in real time </li></ul><ul><li>You can offer various means of communication </li></ul>
  28. 28. Exercise 2 <ul><li>The Web Experience assisted by Alan Rae </li></ul>
  29. 29. BREAK <ul><li>We’ll break for about 5 minutes </li></ul><ul><li>Tea, coffee available </li></ul><ul><li>Can we be back at ... </li></ul>
  30. 30. Methods of communication from web site include <ul><li>Web chat - interactive conversation in real time </li></ul><ul><li>Web callback - immediate or later </li></ul><ul><li>Telephone number </li></ul><ul><li>Email facilities </li></ul><ul><li>A recent study of how companies use these in practice was carried out by Ovum </li></ul>
  31. 31. Ovum study <ul><li>Only 33% of companies who invited response by email or form responded to them AT ALL </li></ul><ul><li>34% of companies responding took > 24 hours </li></ul><ul><li>27% of established companies had no phone number on the site </li></ul><ul><li>only 8 out of 97 companies inviting emails gave telesales the info to treat client as an individual </li></ul><ul><li>Generally companies showed damaging lack of consistency </li></ul>
  32. 32. What would getting it right mean? <ul><li>Integrating front office, back office & analytic systems </li></ul><ul><li>Integrating responses from different media channels to ensure consistency of brand experience </li></ul><ul><li>Consciously automate what can be automated and free your sales / service stars to lock in your cash cows. </li></ul>
  33. 33. How are other companies using the web now? <ul><li>Recent HP study showed </li></ul><ul><ul><li>Business to consumer </li></ul></ul><ul><ul><ul><li>41% deliver content and information </li></ul></ul></ul><ul><ul><ul><li>17% offer online shopping </li></ul></ul></ul><ul><ul><ul><li>12% provide personalisation </li></ul></ul></ul><ul><ul><li>Business to Business </li></ul></ul><ul><ul><ul><li>57% deliver content and information </li></ul></ul></ul><ul><ul><ul><li>21% do online trading </li></ul></ul></ul><ul><ul><ul><li>21% provide personalisation </li></ul></ul></ul>
  34. 34. Think about it … <ul><li>Wouldn’t it be great to customise information from database according to customers web site + other marketing profile </li></ul>
  35. 35. Other HP findings <ul><li>Most are not happy with their companies response and integration capabilities </li></ul><ul><li>The most key motivation is to get closer to customers ahead of generating more traffic and converting existing customers to working on line </li></ul><ul><li>Not much sign of mobile technology strategies being deployed </li></ul><ul><li>Greatest source of info for senior players is on-line across industry sectors </li></ul>
  36. 36. Why this is important <ul><li>Companies lose half their customers in 5 years </li></ul><ul><ul><li>Harvard Business review </li></ul></ul><ul><li>It costs 7-10x as much to get a new customer as to keep an old one </li></ul><ul><li>As quality and price converge, responsiveness becomes the key differentiator </li></ul><ul><li>Automate simple stuff to free staff for quality time with customers </li></ul><ul><ul><li>business automate product info and follow up </li></ul></ul>
  37. 37. CRM depends on overall perception of the company
  38. 38. So where does it fit?
  39. 39. Management <ul><li>Needs to identify which segments are working and which need attention </li></ul><ul><li>Needs to be integrated with ERP and other systems </li></ul><ul><li>Needs to be scalable and concerned with speed an ease of deployment </li></ul><ul><li>Needs to foster increased customer satisfaction and retention - increased sales, higher strike rates, better margins and market share </li></ul>
  40. 40. INFORMATION Technology
  41. 41. The Architecture of eRM
  42. 42. A good CRM system can <ul><li>Capture info from any source - email, web site call centre, trade show or referral </li></ul><ul><li>Support Autodialling, order entry, and automate follow up </li></ul><ul><li>Provide Scripts to automate telesales </li></ul><ul><li>Workflow tools to guide reps through processes </li></ul><ul><li>Automate distribution of customer info </li></ul><ul><li>Provide analysis tools & manage campaigns </li></ul>
  43. 43. Sales management <ul><li>Opportunity management - tracking the milestones to the sale </li></ul><ul><li>Should handle complex models with multiple points of contact </li></ul><ul><li>Automate routine information exchange </li></ul><ul><li>Excellent and detailed management tools </li></ul>
  44. 44. Sales Pipeline
  45. 45. Customer Service and Support <ul><li>The customer wants to be looked after </li></ul><ul><ul><li>I want to be me </li></ul></ul><ul><ul><li>I want to be looked after </li></ul></ul><ul><ul><li>Supermarket > Cavalry mode </li></ul></ul><ul><li>Service needs ALL the Key info to achieve this </li></ul><ul><li>Enables problems to be turned into sales opps </li></ul><ul><li>Incident assignment, escalation, warranties and contracts, service level management </li></ul>
  46. 46. Sales can see service logs
  47. 47. Service team can see Sales logs
  48. 48. Monitoring activity
  49. 49. Large vs small solutions <ul><li>Key players - entry level £50k </li></ul><ul><li>But entry level players such as goldmine and maximiser are catching up </li></ul><ul><li>New Front Office 2000 product from Goldmine </li></ul>
  50. 50. Goldmine Example
  51. 51. Internet support <ul><li>provides a complete intranet solution for distribution of collateral </li></ul><ul><li>in future will support extranet capability to extend customer info to business partners and networked communities. </li></ul><ul><li>Partners can schedule own appointments </li></ul><ul><li>Supports Microsoft Web Architecture </li></ul>
  52. 52. Imperatives of E-relationships <ul><li>Create a dynamic customer context </li></ul><ul><li>Generate Consistent Custom Responses </li></ul><ul><ul><li>smart navigation/high-value action/consistent treatment </li></ul></ul><ul><li>Build and maintain a content directory </li></ul><ul><ul><li>relevant sales and marketing offers need to tag content for specific customer context - product elements & past buying patterns </li></ul></ul>
  53. 53. Rules to succeed <ul><li>Companies that treat business buyers uniquely and consistently will build loyal clients fastest </li></ul><ul><li>analyse information and apply business rules effectively to build customised contextual offers </li></ul><ul><li>synchronise field, web and telecentre info </li></ul>
  54. 54. Conclusion <ul><li>Take this seriously - it’s the lifeblood of your company </li></ul><ul><li>Integrate with Web and other data inputs </li></ul><ul><li>Make sure your other systems and telephony are up to it </li></ul><ul><li>Think how to integrate with mobile workers </li></ul><ul><li>Make sure staff are motivated and understand WHY it’s important </li></ul><ul><li>Good luck - it’s a grand life if you don’t weaken </li></ul>

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