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Growing The Business Through Customer Relationships & Retention


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Growing The Business Through Customer Relationships & Retention

  1. 1. Growing the Business through Customer Relationships & Retention Joel Warady Principal Joel Warady Group October 1, 2005
  2. 2. Understanding the Value of each Relationship and Making Sure each Interaction Maximizes that Value What is CRM?
  3. 3. CRM: What is it? How Do I Change My Business <ul><li>Functions: Sales, Marketing, Customer Service </li></ul><ul><li>Channels: Face to Face, Phone, Direct Mail, Interactive </li></ul><ul><li>Relationship: Customer, Supplier & Vendor </li></ul><ul><li>Competency: Process, Technology </li></ul>
  4. 4. What Should CRM Accomplish? <ul><li>I want a company to know what I like </li></ul><ul><li>I want a company to inform me about offers in which I might be interested </li></ul><ul><li>I want a company to inventory what I normally purchase </li></ul><ul><li>I want a company to make my life easier </li></ul>
  5. 5. What is the Reality of Most Companies? <ul><li>They really don’t know who I am </li></ul><ul><li>They sell me what they are interested in selling, not necessarily what I want </li></ul><ul><li>They won’t let me place an order without transferring me </li></ul><ul><li>They make my life more difficult </li></ul>
  6. 6. CRM & ERM Cut Across Organizations <ul><li>Why Now? Technology!!! </li></ul><ul><ul><li>Face to Face </li></ul></ul><ul><ul><li>Telephone </li></ul></ul><ul><ul><li>Direct Mail </li></ul></ul><ul><ul><li>Web Site </li></ul></ul><ul><ul><li>E-mail </li></ul></ul><ul><ul><li>IM (Skype, GoogleTalk, Yahoo, MSN) </li></ul></ul><ul><ul><li>Key Chain </li></ul></ul><ul><ul><li>Wireless </li></ul></ul><ul><ul><li>Interactive Kiosks </li></ul></ul><ul><ul><li>Interactive TV </li></ul></ul>
  7. 7. What Does CRM Provide a Company? <ul><li>It allows for a Central Source of Truth </li></ul><ul><li>Capture Information at Relationship Touchpoints </li></ul><ul><ul><li>Marketing </li></ul></ul><ul><ul><li>Sales </li></ul></ul><ul><ul><li>Customer Service </li></ul></ul>
  8. 8. What are the Benefits to the Customer? <ul><li>Better Service </li></ul><ul><ul><li>One Call Empowerment </li></ul></ul><ul><ul><li>More Channels for Satisfaction </li></ul></ul><ul><li>New & Interesting Products </li></ul><ul><li>Mass Customization </li></ul><ul><li>Global Company, Local Feel </li></ul>
  9. 9. What are the Benefits to the Company? <ul><li>Survival!!! </li></ul><ul><ul><li>Higher Service Levels </li></ul></ul><ul><ul><li>Customer Brand Loyalty is fading </li></ul></ul><ul><ul><li>Customers Expect More </li></ul></ul><ul><ul><li>Customers Expect Information Immediately </li></ul></ul><ul><li>Prosperity </li></ul><ul><ul><li>More Wallet Share </li></ul></ul><ul><li>Retention Share </li></ul><ul><ul><li>It costs less than acquiring a customer </li></ul></ul>
  10. 10. Wallet Share vs. Market Share <ul><li>More Customers vs. More $ from same customers? </li></ul><ul><ul><li>How deep can a company penetrate its current customer accounts? </li></ul></ul><ul><li>Don’t find customers for your products </li></ul><ul><ul><li>Find products for your customer </li></ul></ul><ul><li>Reduce the cost of doing business </li></ul><ul><li>Create greater loyalty with your customers </li></ul>
  11. 11. Common Pitfalls for CRM <ul><li>Cart Before the Horse </li></ul><ul><ul><li>Companies Purchase CRM Product </li></ul></ul><ul><ul><ul><li>Products are Expensive </li></ul></ul></ul><ul><ul><ul><li>Providers are Inexperienced </li></ul></ul></ul><ul><ul><li>Systems Need Information </li></ul></ul><ul><ul><li>People Need Training </li></ul></ul><ul><ul><ul><li>New Processes </li></ul></ul></ul><ul><ul><ul><li>New Skills </li></ul></ul></ul><ul><li>Plan First </li></ul>
  12. 12. Stages of Company Focus <ul><li>Product Driven </li></ul><ul><li>Sales Driven </li></ul><ul><li>Database Driven </li></ul><ul><li>Customer Driven </li></ul><ul><li>Collaborative Driven </li></ul>
  13. 13. Creating Customers for Life (The Ten Commandments) <ul><li>Ask customers what they want and give it to them again and again </li></ul><ul><li>Systems, not smiles </li></ul><ul><li>Underpromise, overdeliver </li></ul><ul><li>When the customer asks, the answer is always yes. Period. </li></ul><ul><li>Fire your inspectors and customer relations department </li></ul><ul><li>Encourage your customers to tell you what you’re doing wrong </li></ul><ul><li>Measure everything </li></ul><ul><li>Never charge your customers for something you would not charge your friends </li></ul><ul><li>Show people respect </li></ul><ul><li>Borrow, borrow, borrow </li></ul>