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Digital Academy | Class #4 CRM
1.
2. WHAT THE AGE OF
THE CUSTOMER
MEANS FOR MULTI-
CHANNEL CRM
31ST JANUARY 2012
3. What you are going to learn
What CRM is
How we are now in the Age of the Customer and what that means for
business
How to design Multi-Channel CRM Strategy
Exercises to put the principles into practice
5. CRM Goals are business priorities
72% Keep/retain current customers; improve loyalty
62% Attract new customers
38% Drive cross sell / up sell
32% Improve the profitability of customers
15% Offer new products and services
Source: Global Forrester/Customer Think Customer Management Technologies Value Online
Survey, February 2012
33. 5 year stock performance of Cxi leaders versus Laggards
34. The Perception Gap
91% 37%
but only…
of execs say their of customers do
brand delivers
great customer
experience
Global Insights on Succeeding in Customer Experience, 2013
36. Designing Multi-Channel CRM Strategy
#1 Understand business goals
Understand what your business is seeking to achieve
#2 Customer Needs Analysis
Understand your customers needs, wants and desires
#3 Visualise your multi-channel CRM Strategy
Design multi-channel scenarios that create deep affinity
#4 Data & Technology Strategy
Personalisation and optimisation strategy, big data, social data,
propensity modelling and CRM CX technology
37. #1 Understand business goals
Understand what your business is seeking to achieve at each
stage of the lifecycle
38. 1. Understand business goals
• What is your business seeking to achieve at each stage of
the lifecycle?
39.
40. Communication stages:
1 2 3 4 5 6
Awareness Interest Communications Framework
Desire Action Loyalty Advocacy
Reconigition of need Brand consideration and Brand property hotel Leisure Purchase decision (either buy, Repeat lease of ALDAR property Actively positively promoting Aldar
involvement preference lease, resevervation or attend) visits to hotel leisure destination property, hotel guests and leisure
facilitates with colleagues, friends
and family
Slide here showing comms framework stages
1. Residential Owner Occupiers
Audience Mindset
Alert me Engage me Excite me Satisfy me Reassure me Reward me
Behaviours
Seek information Identify and research relevant Evaluate and narrow choice to preferred Form purchase intention & choice Evaluate post purchase Evaluate post purchase
brands, developments and locations brands developments properties (e.g. Al Raha Gardens) experience experience
Establish reason to move and Research options, decide what’s Confirm and check shortlisted areas and Offer (worry, stress, sleepless Evaluate transaction experience Discussing property purchase (e.g.
budget right and short list developments thoroughly nights) and end result Al Raha Gardens) with friends,
Evaluate what you have Internetdeveloper websites Exchangecomplete Was the purchase experience colleagues, neighbours
Establish and negotiate priorities Real Estate agentslocal press positive? Was the end result
with partner Drivingwalking around positive?
Decide if good idea to move or
‘improve’
Estate agent and internet
CRM Triggers predictive of engagement stage
Website Behaviours
Visit property development website
Visit property development website and
Visit property development and view specific development
view specific development content (e.g. Al
website and view content once in content (e.g. Al Raha Gardens) 2+
Raha Gardens) 4+ times in last 2 weeks
last 2 weeks times in last 2 weeks or 10 minutes+
or 30 minutes+ total time
total time
Registration on ALDAR property
website or 3rd party Real Estate site
Download property development Forward property development
brochure brochure to a friend
Call Centre Interaction E-Service suite interaction
Call Call Centre with questions about
property development (e.g. Al Raha
Gardens)
Call Call Centre requesting
brochure
Call Call Centre requesting appointment
41. Exercise 1
On each table there is an example communications
framework with 5 stages and 15 empty boxes
Either pick a brand from within the group or use the brand
named inside the envelope on your table
Spend 5 minutes identifying business objectives for your
brand at each customer life-stage
The business objectives can be 1 or 2 words or a short
sentence
42. #2 Customer Needs Analysis
Understand your customers needs, wants and desires
43. 2. Customer Needs Analysis
1. What’s the current customer experience at each stage of
the lifecycle?
2. How do different segments needs differ at different
lifecycle stages?
3. What can your exist database, web analytics tell you?
4. What can research tell you (1st or 3rd party)?
47. Exercise 2
Using the communications framework containing the
business objectives, spend 5 minutes identifying the
Customer mindset for one imaginary customer for each
stage of the lifecycle
What are the customers needs?
What is the customer thinking and doing at each stage?
Try to create 1 sentence per stage
48. #3 Multi-channel CRM Strategy
Design multi-channel scenarios that create deep affinity
49.
50.
51. Multi-channel Strategy
Customers want seamless transitions between channels
Customers look for different types of support in different
channels and contexts
Design customer interaction scenarios help visualise the
end-to-end customer experience
52.
53.
54.
55. #4 Data & Technology Strategy
Personalisation and optimisation strategy, big data, social data, propensity
modelling, CRM CX Technology
59. Key Data and Technology Questions
How should we take advantage of the big data opportunity?
What level of personalisation is going to be most valuable?
How should we recognise our customers at every
touchpoint in a manner which conveys value, rather than
being intrusive?
60.
61.
62. Exercise 3
Using the communications framework, spend 10 minutes
developing an idea for each life-stage which which would
create an *exceptional customer experience*
Ensure the CX idea meets your business objectives and
customer mindset
Think about how you could use data to personalise the
experience
65. 5 Top Tips
1. Strategy first, then technology. Start small, learn and
improve
2. Focus continuously on understanding, delighting and
exceeding customer expectations
1. Manage the transitions well, not just the touchpoint
2. Get Personal. Use customer data to drive relevance
1. Get Social. Customer advocacy is your biggest sales
channel
66.
67. TOM BURRELL
• Global CRM Director, LBi
• CRM, direct and digital marketing client
side and agency roles
• Responsible for the LBi Global CRM
proposition across all markets
• Full-service CRM offering from strategy to
solution
• Support clients multi-channel, social
and mobile CRM needs
@tomburrell
http://uk.linkedin.com/in/tomburrell1
Editor's Notes
Sounds complicated, not really
Customer Relationship Management goals are business priorities
If going to achieve business goals eg loyalty, profitability, cross sell – you need to manage your customer relationships in way which provides value to the customer Effective CRM is about Making customers feel good about the relationship they have with your BRAND so that they buy or spend moreEffective CRM is about creating great Customer Experienceinherent in the DNA of the region
Creating Great customer experiences incoporates every stage of the lifecycleBUILDCRM incorporates every department BUILDCRM incoporates every channel BUT CAN START SMALL IN ONE AREA
Many CRM technology vendors out there, some better than others However just because you have a CRM system does not mean you are effective at managing relationships or providing a great customer experience
Relationship strategy: retention, loyalty strategy, community strategy, social CRM strategy Customer Management: Providing great CX across customer service, marketing, sales Data strategy: Use customer data to drive better CX Once you have defined the strategy, you can look to configure your technology to meet the strategy and / or investigate alternative tech
So “the age of the customer”, what is the age of the customer?
READ slide
Seen a fundamental shiftDigital in last 10-15 yearsSocial in last 3-4 yearsMobile in last 1-2 years have or are currently fundamentally changing the relationship between customers and brands
3 DISTRUPTIONS
Old world – very simple Create a TV add and basic website and people will buy your stuff
Digital has caused the proliferation of opportunities for customers to engage with brandsConsumers no longer want to just suck up your advertising, they are empowered, so when they engage with your brand it better be cool Content new currency in a this new digital age
3200 tweets per minute 44 hours of Youtube content posted every minute
Word of mouth always existed Social means consumer can now reach many other consumers at the same stage of the buying cycle AWARENESS – SEARCH CONSIDERATION – AMAZON REPEAT PURCHASE & LOYATLY – POSITIVE OR NEGATIVE COMMUENTS ON BRAND EXP IN SOCIAL MEDIA
And we are seeing that social is dramatically influencing purchase decisions More predisposed in a younger demographic
Brands no longer control the message, BRANDS ARE WHAT PEOPLE SAY THEY ARE
Not something we can look at from afar in this region READ SLIDE
46% of those surveyed said social media planned a role in influencing change in their country in Egypt 43% in Bahrain YOU CAN BET IF SOCIAL IS IMPACTING SOCIETAL STRUCTURES, IT IS UNDOUBTEDLY INFLUENCING PURCHASE BEHAVIOUR
3rdDistruption is Mobile
READ SLIDE – first 2 points 60% of the population of UAE and Saudi Arabi have a smartphone On average Saudi smart phone users have 32 apps Most importantly though 50% of facebook traffic in MENA is from mobile devices
Smartphone provide opportunities for consumers to discuss or provide feedback and in engage in social media about a brand in the MOMENT OF THE EXPERIENCE This can be great for when the CX is great, but very detrimental if you catch someone who is very frustrated with their experience Its this connection between digital, social and mobile which means we are now at point where CONTROL of the relationship has shifted from brands to customers
WE ARE NOW IN THE AGE OF THE CUSTOMER, WHERE CUSTOMER CENTRICITY AND GREAT CX IS YOUR KEY COMPETITIVE ADVANTAGE1900-1960 Age of manufacturing Build a factory = competitive advantage FORD 1960 to 1990 was the age of distribution. Products produces in one country and sold in another richer market = competitive advantage WALMART1990 to 2010 was the age of information. Companies with information-centric services thrived For example Amazon marketplace operates as an information provider for which it takes commission, it plays no role in the distribution of products sold via its marketplace platform 2010 and beyond is the age of the customer.Distribution and information flows are not a competitive advantage = everyone has access Consumers are empowered by digital, social and mobile = great CX is the competitive advantage
Great Customer Experience is a proven revenue driverForrester Research examined the statistical relationship between how customers rate companies in ForrestersCXi and 3 key revenue generating measures Strong correlation between good CX and willingness to consider company for another purchase, liklihood to switch, likelihood to recommend NO SHIT – good customer experience drives sales NOTES BELOW NOT FOR PRESENTINGPeoples assessed based on the experience of a a couple of hundred brands Weighted the data by age, gender, income, broadband adoption, and region to demographically represent the adult US online populationThe CXi survey is based on Useful. An experience is useful to customers when it allows them to accomplish whatever goal they set out to accomplish. To assess whether or not consumers perceive their experiences as useful, the CXi asks them: "Thinking about your interactions with these firms over the past 90 days, how effective were they at meeting your needs?" Easy. When an experience is easy, customers are able to access the value from the experience with minimal effort. To assess whether or not consumers perceive their experiences as easy, the CXi asks them: "Thinking about your interactions with these firms over the past 90 days, how easy were they to do business with?" Enjoyable. When an experience is enjoyable, the customer perceives it as pleasant and having engendered generally positive emotions. To assess whether or not consumers perceive their experiences as enjoyable, the CXi asks them: "Thinking about your interactions with these firms over the past 90 days, how enjoyable were they to do business with?"
THERE IS A HUGE OPPORTUNITY TO BECOME CX LEADERS
Business executives believe they are delivering significantly better experiences than their customers do HUGE OPPORTUNITY
So massive opportunity to drive competitive advantageHow do you design CRM strategies that deliver great CX and deliver that competitive advantage
CUSTOMER Understanding Driven by a combination of qualitative user research, analytics, data mining and quantitative research to answer CX STRATEGYThis insight should then be used to drive the data strategy
AMEX – LINK, LIKE, LOVE great example Goals 1. to get customers to spend more on their cards AND 2. acquire more customers Created a social application which provides users with offer based on stuff they liked on facebookIt drives usage because consumers get discounts on things they want It drives acquistion because non amex users see their friends getting access to discounts when they share
A tool we use to create a customer centric approach to business objectives is the communications framework By mapping business objectives, to the customer mindset, we can identify exceptional Customer Experiences We are going to do a couple of very simple exercises using this tool today
Do not over think this This stuff is simple For example if you have mini as your brand, your goal at consideration will be to get mini on the shortlist, at purchase it will be to sell more cars There will be subtle differences by brand – so try to make the answers very relevant Remember there are prizes
Personas, which are pen portraits of different customer types are a great way to understand diverse customer needs
Great example of how customer needs analysis drove British Telecom website experience 98% of customers come to BT site for customer service The site was designed to sell Completely re-engineered the site to ensure help featured on the homepage Community content which picked up the most common asked questions to the BT community if broadband is down in SW london, lots of people will call about that issue…picking it up on the homepage dramatically reduced calls to the call centre10% reduction in calls to call centre since introduced Customer needs analysis driving business benefit
Another interesting approach to customer needs analysis is by being with the customer at the point of the CUSTOMER experience EMOTIONAL ENGAGEMENT studies like those used bv FEDEXNearly 100% of deliveries on time Repeatedly getting 7 o 8 in their ratings on deliveryBut 100% of the time fedex parcels delivered on time…so this was a strange disparity Placed researchers with small business people at the point of parcel delivery to understand what they were “feeling” at point of delivery Athough most understood their fedex parcel would not be late = anxiety it would be The anxiety might be because the person taking the delivery expected it at 4pm, but needed to leave at 4.30pm to pick up the kids…so it is this anxiety – rather than the actual delivery reality which creates the perception and lower that ratings score Fedex looking to address this with live parcel location training
Do not over think this This stuff is simple For example if you have Etihad – at consideration the customer may be thinking “is this the best flight for me?”
Before I get into multi-channel strategy design, share an example Mini Great brand – I used to own old style, green with yellow leather interiors Great website & configurator - over 780million styles Fantastic touchpoint – but problem is the transitionThe problem occurs when you request a test drive… You have to complete another form with the same details as those you have already submitted to access the configurator The dealership has no insight on the car you have configured AND
3. You get this….which gives you no indication of when someone will be in contact Great touchpoint – with poor transition from digital to offline Ideas: One registration for login to configurator and offline real time chat windows to book an apppointment with the dealer or at the very least a call back booking tool Linking registration and configurator to dealer db – so the car they want is waiting
Emirates – brand which puts exceptional customer experience at the heart of everything they do They conduct customer needs analysis based on WHAT IS VALUED at every stage from booking to post flight Visualise every stage throughout journey through card system = allows them to bring all business units into the process of visualising customer needs at every stage of the journeyThe first class cabins, bar and showers on the A380 are legendary
The final component is data and technology strategy
Your Customers are uniqueCustomer data is our window into their preferencesWealth of data available
READ SLIDE Huge amount of data available and the challenge is to make sense of that data in a way which is useful for the business
Everyone seen case study before and most people have purchased from Amazon - undoubted leaders in use of customer data to drive relevance Read examplesMARKET LEADING DATA STRATEGY EVERYONE TALKS ABOUT AMAZON, BUT VERY FEW SEEM ABLE OR SET UP TO EMULATE (relates to structure and process piece)
These questions -should be asked and answered by Marketing not IT
Forrester talk about marketing technology office – All customer facing technologies deicsions are made with business needs in mind Important when creating multi-channel connected experiences –
Starbucks is a great example of loyalty program with connected channels, with tech decisions made by marketing and data at is core single mobile application which You can buy product with – scan app at POSCollect points App notification inform you of offers on your favourite product as you walk past the store 110.5m in incremental revenue
This is the money round – there are prizes for the best idea
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