CRM Basics

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CRM Basics

  1. 1. What is CRM? CRM Opportunities 01/12/10
  2. 2. What is CRM? <ul><li>CRM is... </li></ul><ul><ul><li>A Business Strategy that optimize profitability, revenue and customer satisfaction by organizing around customer segments, fostering customer satisfying behaviors and implementing customer centric processes </li></ul></ul><ul><li>CRM is NOT... </li></ul><ul><ul><li>Combination of sales, service and marketing information software </li></ul></ul><ul><ul><li>Web based, thin client software that moves customer information over the internet </li></ul></ul><ul><ul><li>e-xxxxxxx, xxxxx.com </li></ul></ul><ul><ul><li>New age database marketing </li></ul></ul><ul><ul><li>Software </li></ul></ul>12/01/10
  3. 3. What is CRM? 12/01/10 CRM Strategy Re-defined Funtional Roles Re-engineered Work Processes Supporting Technology CRM Technology is the last wave of a ripple effect: In oder to successfully implement Customer Relationship Management functional roles and work processes need to be re-defined
  4. 4. Implementing CRM: Business Change Program , Not Project 12/01/10 Implementing CRM as a program and hooking in e-business, provides a robust framework and a pproach for the challenges that will be encountered when t urning customers into company assets. Source: Gartner Research Feature Project Program Endeavo r Management Focu s Delivery on Time Strategic Change Competitive Advantage Breadth Functional Boundary Across Enterprise Complete Environment Manages Cost/Risk Corporate Cost/Benefit Stakeholder Returns Scope Easily Identified Evolving Shifting Justification Return on Investment Competitive Initiative Survival Time Frame 3-15 Months 18-36 Months Many Years Leadership Motivate Team Influence Enterprise Lead Enterprise Change Focus Reduce Ambiguity Thrive on Ambiguity Create Ambiguities Links Departments Projects Programs
  5. 5. The Eight Building Blocks of CRM 12/01/10 CRM initiatives need a framework to ensure that programs are approached on a strategic, balanced and integrated b asis. We introduce such a framework to help enterprises i mplement “true” CRM and maximize benefits.
  6. 6. Current Information Flow 12/01/10 Corporate HQ Relationship Management Transactional Reports, eMail “ prospect” lists, more eMail Transactions Relative volume of customer information The traditional corporate-centric model mostly pushes data at the field . Customer knowledge is kept only in sales people. “ No sale” is unregistered event.
  7. 7. CRM Information Flow 12/01/10 Corporate HQ Relationship Management Analysis, Transaction reports, Qualified sales leads, eMail Field Intelligence, Customer Intelligence, Transactions Relative volume of customer information Customer-centric data flow is more balanced, with much more emphasis on uploading customer feedback and information. All customer pertinent information is formally kept. Information can be used to improve customer equity value.
  8. 8. CRM Opportunities <ul><li>Sales: Salespeople sell by process or accident. Accidents don’t happen often enough </li></ul><ul><ul><li>Replicate successful sales processes </li></ul></ul><ul><ul><li>Improve efficiency of Sales Calls </li></ul></ul><ul><ul><li>More customer time </li></ul></ul><ul><ul><li>Lower sales force turnover </li></ul></ul><ul><ul><li>One face to the customer </li></ul></ul><ul><li>Service: How do you present one face to the customer when the two most frequent contact point for customers can’t communicate? </li></ul><ul><ul><li>Empowerment to solve problems </li></ul></ul><ul><ul><li>Understand commitments and importance of each customer </li></ul></ul><ul><ul><li>Know customer contacts </li></ul></ul><ul><ul><li>Communicate to sales potential customer loss </li></ul></ul><ul><ul><li>Build customer loyalty through service </li></ul></ul>12/01/10
  9. 9. CRM Opportunities (Cont...) <ul><li>Marketing: Because CRM listens so well, we can whisper the right messages back to customers </li></ul><ul><ul><li>Less spending in media advertising, less obsession with brand </li></ul></ul><ul><ul><li>Less customer turnover </li></ul></ul><ul><ul><li>More business from current customers </li></ul></ul><ul><li>eCommerce: If you base your CRM strategy primarily on e-Commerce, you are going to be e-Specially sorry </li></ul><ul><ul><li>Customer relationships are what makes you different, special to your customer </li></ul></ul><ul><ul><li>Learn how to use the data gathered without invading customers privacy </li></ul></ul><ul><ul><li>Provide information about products/services requested by customers accurately and fast </li></ul></ul><ul><li>Management: CRM can bring management closer to customers, leading the organization according to customer value </li></ul><ul><ul><li>Allows management to feel the pulse of the market, hear what customers are saying, learn customer concerns, directly </li></ul></ul>12/01/10
  10. 10. Some figures <ul><li>70% of CRM projects failed to deliver their core promises </li></ul><ul><li>Only 31% of the CRM implementation are generating meaningful ROI </li></ul><ul><li>Why?... </li></ul>12/01/10
  11. 11. The CRM Hype Cycle <ul><li>Gartner's hype cycle is designed to help enterprises make intelligent decisions about when to implement emerging technologies. </li></ul><ul><li>Enterprises can (and should) invest in technologies across the entire hype cycle. </li></ul>12/01/10
  12. 12. The CRM Hype Cycle <ul><li>CRM itself has just entered the disillusionment phase, and will achieve a mature state in a short period of time. </li></ul><ul><li>On the other hand, several tools that are the base for efficient CRM, such as ACD, IVR, Call Centers, etc...are completely mature an generating benefits, although Cargill is not exploiting them </li></ul>12/01/10 Source: Gartner Group Type A enterprises (pioneers) are technology-driven, willing to risk to gain a competitive edge. Type B (mainstream) enterprises implement new technologies once they have proved to be useful. Type C enterprises (followers) are technologically risk-averse and cost-conscious; they are usually among the last to adopt new technologies.
  13. 13. Misunderstanding CRM <ul><li>CRM = software </li></ul><ul><ul><li>Business preffers dealing with tangibles, action over vision, tactis over strategy </li></ul></ul><ul><ul><li>Very few software sellers understand CRM, they are product driven companies, not customer driven. </li></ul></ul><ul><li>CRM = e.com </li></ul><ul><ul><li>As long as people are doing the buying, people will be involved in selling </li></ul></ul><ul><ul><li>We can’t allways be “connected”. Managing customer relationship at the point of contact requires information and tools availability. Internet is not yet that ubiquitous. </li></ul></ul><ul><li>CRM will be installed in a quarter (and without pain) </li></ul><ul><ul><li>Don’t try to implement at warp speed serious, complex and lasting stuff like CRM. </li></ul></ul><ul><ul><li>CRM implementation is only successful when it disrupts old functional activities and processes, the more disruption the better the job </li></ul></ul><ul><ul><li>Implementing CRM without adequate pre-implementation planning is heading to failure </li></ul></ul><ul><li>CRM = Database Marketing </li></ul><ul><ul><li>Database marketing and marketing automation are mass techniques </li></ul></ul><ul><ul><li>CRM is one to one </li></ul></ul>12/01/10
  14. 14. Misunderstanding CRM <ul><li>CRM is too hard, too risky, too expensive </li></ul><ul><ul><li>Customers are demanding CRM </li></ul></ul><ul><ul><li>The previous warnings are yellow flags saying “slow down”, “don’t let anyone lure you out of your course”, etc… </li></ul></ul><ul><ul><li>LA is slightly behind as compared with USA and Europe, but we are in a unique position to lead within the region leveraging the knowledge already available </li></ul></ul><ul><ul><li>It is creating opportunity for hard working, risk taking visionaries who can see past the short term financials, and as a result can tackle as big and challenging opportunities as CRM. </li></ul></ul><ul><ul><li>There are huge benefits for those who do it right </li></ul></ul>12/01/10

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