CRM 2.0
(Fundamental Changes Beyond Customer
(F d t l Ch B dC t
Management)
Vladimir Dimitroff
ad o
Customer Management Congress, October 2008
© PRISM Consulting 2008

In this presentation:
1. Classic CRM: the Fundamentals of
Customer Centricity
2. Evolving CRM: Changes and Trends
3. Examples and Practical Steps
© PRISM Consulting 2008

CRM 1.0 or ‘CRM as we know it’
- The 20th century: the time when Mass
was everything
- One size fits all - well, almost
- Suddenly… Customers matter!
y
- Not everyone was convinced (some
aren t,
aren’t, even today)
© PRISM Consulting 2008

The customer-centric business model
Product Excellence
Operational Efficiency Customer Intimacy
- Dimensions of competitive differentiation
competiti e
- Sustainability of each approach
- Additional benefits of customer centricity
Source: Tracey & Wiersema, “The Discipline of Market Leaders”
© PRISM Consulting 2008

CRM 1.0 - The fundamentals
- Customers are individuals, and they
are different
- Segmenting customers (not markets)
- Treating them differently
- The ‘R’ in CRM: building relationships
- Segment of One: personalisation
- ‘Show me the money!’
- Did I mention technology?
© PRISM Consulting 2008

So far so good - but things started
to happen…
- The world is more connected than ever
(everyone to everyone becomes reality as
social networks become digital)
- We discover ‘internal customers’ and other
customer types: the concept of stakeholders
- Technology unleashes the power of crowds
- Marketing goes digital - and not only marketing
M k ti di it l d t l k ti
- Everyone is talking about something called
‘Web 2.0’
© PRISM Consulting 2008

The evolving concept of
customer centricity (
y (CRM x.x)
)
- CRM is all about technology: “We have
CRM” (or “CRM didn’t work for us”)
- Forget CRM, now CEM is the New Big
Thing!
- ERM,
ERM PRM and assorted TLA-s
- From ‘One-to-one’ towards ‘Many-to-
many’ relationships
’ l ti hi
- Customers truly at the centre of the
business
© PRISM Consulting 2008

At a glance: the key changes
© PRISM Consulting 2008

The future is here: manifestations
- Generation ‘C’ (for content)
- Going viral: a little joke reaches far
- Generation ‘C’ (for cash)
- The Long Tail (segment of one - and beyond)
- Generation ‘C’ (for convergence)
- A different kind of convergence
© PRISM Consulting 2008

Are you ready for the future? The
good news:
- Transformation takes time
- Process and organisation change:12-36 months
- Culture change takes even longer
- Your competitors won’t be able to catch up
© PRISM Consulting 2008

Are you ready for the future? The
bad news:
- If you are still dabbling with CRM 1.0
- Or you ‘have CRM’ and are happy with it
have CRM
- You will be left behind
- It will take you 3 years just to restore
competitiveness (if you’re still in business…)
© PRISM Consulting 2008

A checklist of action steps
- Continue building your CRM 1.x capabilities
- Add social media to your multi channel strategy
multi-channel
- Learn and apply SNA - fast!
- Engage your customers, in every aspect of the
business
- Don’t forget to reward active contributors
- Do not be afraid to be the first to try something
new in your market
- Experiment, but have a clear strategy and
roadmap
© PRISM Consulting 2008

Thank you!
Vladimir Dimitroff
Director
PRISM Consulting (UK) Ltd
C lti
22 Cheviot Drive
Charvil
Reading RG10 9QD
United Kingdom
Phone: +44 (0)7947034944
E-Mail: vdimitroff@prism-gb.com
www.prism-gb.com
Austria • Czech Republic • Germany
Hungary • Italy • Malta • Poland • Russia Spain •
Switzerland • Turkey • UK
© PRISM Consulting 2008