Crm class 1 2012

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First class Customer Relationship Management Course University of Amsterdam (master business studies)
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Crm class 1 2012

  1. 1. Ed Peelen CRM Class 1
  2. 2. Customer Centricity > Pre-Industrial Period • Consumer and producer together > Industrial Period • Mass production and consumption: a gap between two worlds • The role of marketing to bring both worlds together > A changing interface; drivers of change • Financial markets, government interference, new economies, information technology, societal trends, new economic laws (‘increasing returns’) >->Position stakeholders 2
  3. 3. Customer centricity? 3 Shareholder value Resources Productivity Quality management Financial planning Financial value Employee valueCustomer value Societal value
  4. 4. Customer Centricity and Stakeholders Classic Grid
  5. 5. Customer Centricity and Stakeholders ‘Real World’ Stakeholder Grid
  6. 6. Value chain Stakeholders Customers Suppliers Employees Shareholders Society Engaging platform Mutual value Communication Reflection Honesty, TransparencyRamaswamy and Prahalad
  7. 7. •7-7-2014 The essentials of co creation > Consumers and managers have plenty of alternatives to choose from > Therefore we do not need to search for in-depth value (and not for more alternatives; product differentiation) > The value of creating together, on a specific moment, in a specific context > Traditional point shifts where consumers detracts value from a supplier; focus on the entire value chain > No outsourcing or shifting of activities from supplier to consumer > Quality of co creation depends on the infrastructure that facilitates interactions Ramaswamy and Prahalad
  8. 8. •7-7-2014 Prosumer > Roughly 25% of the population that behaves differently, • consciously purchases new products, • lives on information, • appreciates contact with suppliers and • wants to have influence on suppliers > Powered by internet, media fragmentation (rising influence of their word-of-mouth communication), globalization (global influence) •Some history
  9. 9. •7-7-2014 •© ICSB Marketing en Strategie Building blocks >Dialogue: empathy, understanding the emotional, social and cultural context of experiences. The forming of thematic communities. >Access: not ownership! >Risk assessment >Transparency > Prahalad and Ramaswamy (2004)
  10. 10. The value is in the individual, not in the service Event Context event Personal relevance Involvement An irregular heartbeat at 11 o’clock in the morning at home Versus an irregular heartbeat downtown in the middle of the night Individual consumer Ramaswamy and Prahalad
  11. 11. Doing it together… • launch Nov 04 - March 05 • 30,000/80.000 models uploaded • LDD 1.2 million total downloads • 5% Royalty paid to winners • 3 products launch July 2005 • Planning next generation
  12. 12. How does CRM fit in this all? Gartner CRM hype cycle
  13. 13. © ICSB, Adviesbureau voor Marketing en Strategie >Definition Gartner Group “A business strategy that combines skilled customer-facing personnel, optimal processes and enabling technologies to balance enterprise revenues and profits with maximum customer satisfaction”. Definition CRM IT allows you to develop individual relations on a large scale at low costs
  14. 14. Course objectives >Understand co-creative enterprise and (S)CRM >How to formulate a customer (CRM) strategy >Understand the consequences of co- creation and CRM for the organization, marketing and IT >Be able to formulate a roadmap towards the implementation of CRM
  15. 15. CRM described > Mass marketing > Market (segment) > One way > Market share > Product orientation > Satisfaction and transactions > Rules of thumb > Interactive marketing > Segment and individual > Two way > Customer share/value > Customer centric solutions > Loyality and relations > ‘Accountable’
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  17. 17. The Jefferson Hotel Washington D.C.
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  19. 19. CRMVision and Strategy Co-operation within organization CRM Processes CRMTechnology CRM Metrics Communication CRM described building blocks Relationship mgt Customer knowledge
  20. 20. CRM Building blocks: Vision - Customer Advocacy >Act as an advocate for your customer in the organization • Principle: Customer success is priority #1! • Useful principle? • Preconditions: transparency (crystal clear) • Consequences?
  21. 21. CRM Building blocks: Co-operation within organization Sales Support Techrep (optional) Product Management Vice President Aircraft Services Aircraft Services Account Support Product Management Vice President Material Support Material Support Account Support Product Management Vice President Component Maintenance Component Maintenance Account Support Product Management Vice President Technical Services Technical Services Account Support Account Manager
  22. 22. Replenish stock Payment Read and save Monitor value Sell Order Drink Check: date Monitor collection Stock Wine adm. Wine info Order info Catalogue/newsletter Payment Delivery Wine for sale Order Take on three of the ten customer activities with a greater degree of accuracy - Le Caveau
  23. 23. CRM Building blocks: Communication
  24. 24. CRM Building block: Communication +- Supplierinitiated +- Consumerinitiated 50% Profile, secude, expert behavior Facilitate, be transparant and open Time
  25. 25. CRM Communication: customer journey Eigenomgeving/lifes tyle: met mode, telco’s, F&B etc. •Blad/magazine •Posters/flyers •SMS/MMS •Internet •Vrienden, familie of community Ticketbox (free record) •Programma toesturen per post/SMS/MMS, internet •Kortingen op … •Lid van bijv. community •Lid van blad/magazine •Free gadget van sponsor Eigen omgeving •Bekijken internetsite (info, partypics, recencies eerdere edities) •Kopen/draaien muziek o.i.d. •Kopen kleding etc. •Kapper •Veroer/verblijf Vervoer/mobiliteit •Verschillende vervoersmodaliteiten (OV, eigen vervoer) •Samen of alleen •Radio (updates) •SMS/MMS (updates) •Bewegwijzering (posters etc.) •Podia onderweg? Key •Eten en drinken •merchandise en accessoires •Artiest(en)/groep(e n)/act/show/ •Faciliteiten (toiletten, internet, oplaadpunten etc.) •Veiligheid/crowd management Eigen omgeving •CD/DVD •Blad •Internet (partypics, recencies) •SMS/MMS •Radio/TV •Vrienden, familie of community Purchase ticket Prepare Going to event Participating Afterwards Organisator Back home Vervoer/mobiliteit •Verschillende vervoersmodaliteiten (OV, eigen vervoer) •Samen of alleen •Radio (updates) •SMS/MMS (updates) •Bewegwijzering (posters etc.) •Podia onderweg? •Verblijfsaccommodatie •Afterparty/borrels etc. Orientation Bron: Europen Centre for the Experience Economy
  26. 26. mailing 80% 25% 50% 33%database ‘order’NegotiateF2facecall standard 1362430100 script Sales man competencies: how good are we in executing these steps? CRM Processes: optimalization
  27. 27. CRM Technology • Data: • Masterdata, databases/mart/warehouse, • Applications: call center, internet, sales force automation, content management, software for analysis, campaign management • Service oriented architecture o 1 suite (Siebel/Oracle, Epiphany) versus a pallet of applications
  28. 28. CRM metrics: dashboard Continuous Monitoring & Analysis – Opportunity & Threat Detection Purpose of your CRM dashboard (phase 1):  Track performance to various goals via related success metrics  Helps achieve goals by showing which contribution metrics drive behind performance levels  Improve your ability to anticipate future changes in performance levels Purpose of your CRM dashboard (phase 2):  Expand scope to be not just evaluation tool, but a projection tool Monitor the dashboard regularly! Dashboard is constantly changing.
  29. 29. Summarized Customer centric organization > From mass marketing to interactive marketing; co creative effort > From product focused to solution oriented > New pricing models > From transaction focused to relation oriented > Process synchronization > Steer on customer success > Organizing around customers: customer ownership > Branding customer solutions > Facilitating and interconnecting infrastructure

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