CAS Software AGSuccess with Customer ExcellenceWhy CRM, Is it really necessary ?Mircea PrelipceanuInternational Business ManagerCRM TRENDS 201107.10.2011
What can you expect today?Agenda1. CAS Software AG2. The Increasing Importance of CRM3. CRM – so what now?4. Live with CRM
CAS Software AGSuccess with Customer Excellence CAS Software AG
CAS Software AG – At a Glance Facts Established 1986 Headquarters Karlsruhe - Germany Ownership Executive board and employees Employees CAS group: ~330 (Dec 2008) CAS Software AG: ~190 Turnover ~33 Mio. Euro Growth in 2008 Employees +16% Turnover +34.0% with CRM standard products +18.2% CAS-Group Investments in the future in innovation over 25% of the turnover goes into R&D in employees CAS model: earnings shared with employees CAS academy: continuing on-the-job training, CAS leadership compass CAS new blood: close contacts with universities, research facilities, etc.
CAS Software AG – A Few Facts More than 140 partners in DE and 55 worldwide and over 150.000 users of CAS products CAS is active in more than 24 countries on 4 continents: Focus on EMEA and LATAM In Turkey presence since 2007 CAS genesisWorld is available in 12 languages D, EN, FR, IT, RO, HU, HR, CZ, ES, NL, TR, PL Several CRM products and dedicated CRM branch solutions Hundred add-on solutions to common systems Numerous awards: CAS recently won the CRM Best Practice Award (for the 5th time ) with customer OKI Printing Solutions
CAS Software AGSuccess with Customer Excellence The Increasing Importance of Customer Relationship Management
Current situation Enterprise Products Services Customer
CRM – what is that ?•CRM is a long-term business strategy to growth andimprove profitability through a better understanding of CONFUSED ?customer behavior.•Customer Relationship Management - those aspectsof a business strategy which relate to techniques andmethods for attracting and retaining customers.•There is no agreed definition, but CRM is a blend ofoperational processes, methodologies andtechniques that helps organizations create two-wayinteractions with customers, thereby enabling them tobetter understand and anticipate the behaviors,needs and wants of existing and potential customers.•CRM is a straightforward concept...
Drivers of CRM Product & Competition Products become more and more comparable! Increasing Competition! CRM
In Past - Sales process- PRODUCT was in the middle- Selection was not so great , were mostly regional providers- Lack of market overview and actions to attract new customers was not necessary,
Today - Purchasing process- Customer have more power is well informed, market is transparent- Customer have HIGH expectations from products/services and become disloyal- We all run for customers, the product is not in middle anymore but CUSTOMER get infocus
Competitive advantage throughcustomer orientation Evaluation of future opportunities for competitive differentiation Services/Customer orientation 76,9% Product quality 57,4% Technical/Innovation 56,5% Price-Performance 42,6% Image/Publicity 21,3% Sales 21,3% Price/Costs 14,8% Source: Simon, Kucher & Partner Services & customer orientation bear the greatest potential to differentiate from the competition
Competitive advantage throughcustomer orientationEvaluation of corporate strategies, which promise thelargest competitive advantage on a long-term basis(Number of points:500 = high potential, 300 = little potential, 100 = low potential) Customer Relationship Management 422 Growth strategies 407 Core competencies management 380 E-Business 376 Knowledge Management / optimized information processes 370 Business Process Outsourcing 340 Total Quality Management 335 Lean Management 332 Business Process Reengineering 293 Shareholder Value Management 270 Virtual Companies 256 Source: Institute of Management and Consulting Sciences; Prof.Dietmar Fink
Top 10 challenges for SME Top 10 of the challenges for medium-size enterprises from advisors point of view Customer relationship management 52 42 Recruitment / Employee qualification 50 43 48 Innovation 42 48 International competition 41 41 42 Globalization (new markets and competitors) 37 47 42 Changing business strategies 32 50 Capital raising 30 49 Intensifying national competition 29 51 Demographical changes 28 46 Importance in %: very important important Costs cut 27 51 Source: Facts & Figures from advisors market 2007/2008, BDU e.V. 2008
Drivers of CRM Customer behavior Decreasing loyalty Product & Sources of information Competition Demanding attitude Products become more and more comparable Increasing Competition CRM
Customer 1 happy customer shares its positive experiences with 4 other persons :) 4
Customer 1 unhappy customer shares its bad experiences with another 8-10 persons, (potentially) customers :( 10
Customer 12 positive actions are necessary to be done, in order to adjust a negative situation 12
Drivers of CRM Customer behavior Decreasing loyalty Sources of information Demanding attitude Getting new customers Product & vs Competition Taking care about the Products become existing ones more and more comparable Getting new customers is more expensive than Increasing improving relations with Competition existing ones CRM
Increasing revenues through customer loyalty Revenue Loyal customers 20% Costs 80% Sales Multiple customers One time customers Interested customers 80% Costs 20% Sales Potential customers Costs
Customer relations and confidence Trust, operations costs Operations costs Trust Time Costs and trust in the process of a successful business relationship Source: Tech. University Berlin, Inst. f. BWL, Business und Services marketing, Prof. Dr. E. Kuhlmann
Important Questions?1. Do you know your customers ?2. What information do you have about them? Also personal data ?3. Who is having this information?4. Is your customer aware about your company and what u do?5. Is your customer satisfied with your company?6. Is your customer enthusiastic about your company?7. Would your customer recommend you to others?
CAS Software AGSuccess with Customer Excellence CRM – SO WHAT NOW?
Starting point: Address ManagementAnnoying situations:• Time intensive data input result in incorrect address entries incomplete custo - mer data• duplicate copies• missing, wrong or old data of contact persons• poor additional information Quelle: Riek, direkt Marketing Fairmarktung GmbH & Co. Service KG• no addresses of decision makers• no transparency regarding data quality According to statistics, in Germany, between 10 - 30% of the customer data inserted in a CRM systems is corrupted.
Address management in the future Structured process of Address Management Responsibility and Transparency over address quality Notifications on changes Correct Addresses Persons will be notified about Always updated and completed changes immediately Complete Information Enhancements for better decisions
Revolution in address managementGathering addresses CAS Manually or Import with address wizard / Madam Software AG Other databases Janine Black Examination and correctionDuplicate check OKI Printing SolutionsAllocation/Reference database Supervise Enrich Regelkreis Update
Address Management Address acquisition Address assistant Address monitoring Duplicate check automatic address when entering the update address/ for all databases Validating and enhancing addresses with WEB Servicess
Reaching and serving customers Customers Multi Channel Event Marketing Customer segmentation campaigns organization Budgets tracking Interaction analysis Lead Responsible Competition Winning Sales management workflows analyze probabilities Report and analysis SLA Hotline & Help-Desk Ticketing Responses and management Call Center Portal System satisfaction analysis Time load Expenses Resource Milestones Complete calculations internal/external planning targets/risks Project reporting Document 3rd party systems Groupware Workflows management integrations (eg.ERP) Task & Appointment Intelligent E-Mail Form designers planning Address Management