Al shaya - What is CRM?

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Overview of CRM and its future within Multi Channel retail.

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Al shaya - What is CRM?

  1. 1. What is CRM? Why CRM? Does CRM deliver? CRM technology & approach? Saj Bhojani Al Shaya November 2013
  2. 2. Customer Relationship Management, is business strategy • Reducing costs and increasing profitability via customer loyalty. • True CRM brings together information from all data sources within an organization (and where appropriate, from outside the organization) to give one, holistic view of each customer in real time. • This allows data driven customer marketing, that is measured by customer lifetime value for example • Should enable and provide for more compelling, personal customer experiences across all channels
  3. 3. What is ecrm? (not just email!) ecrm • Web definition • Electronic CRM concerns all forms of managing relationships with customers making use of IT
  4. 4. CRM is not a piece of software • CRM has evolved into a customer-centric philosophy. • There are three key elements to a successful CRM initiative: • People • Process • Technology.
  5. 5. Multi channel, retail and eCRM, it’s fast....
  6. 6. CRM is about understanding customer data • CRM is used to learn about customers' needs and behaviours in order to develop stronger relationships with them. • Good customer relationships are at the heart of business success (AND RETAIL) • There are many technological components to CRM, but thinking about CRM in primarily technological terms is a mistake. • The more useful way to think about CRM is as a process that will help bring together lots of pieces of information about customers, sales, marketing effectiveness, responsiveness and market trends.
  7. 7. CRM is difficult, expensive and needs executive sponsorship Failure is rife in CRM projects…….internet is littered with reasons for CRM failure
  8. 8. CRM has proven commercial benefit
  9. 9. B&Q approach is via an app and instore engagement 2/3 of B&Q customers use their phone instore 640k customers now signed up, app is easy to use and to sign in The B&Q Club app is extremely limited in terms of functionality (which makes it the perfect mobile loyalty scheme). The aim of the app is to increase footfall instore by offering discounts and deals
  10. 10. Mobile is becoming the glue within any CRM initiative • Sephora has invested heavily in mobile over the last year, most notably integrating its loyalty program, Beauty Insiders, onto mobile. • The brand makes it easy for consumers to track points, view rewards and redeem either in store or online. Due to this focus on increasing engagement, Sephora has since seen a 150% increase in mobile shopping over the last year
  11. 11. Mobile engagement by restaurants works across retail • Boston's, a sports bar and restaurant, built a mobile CRM program across their 51 U.S. locations. Once customers optedin to the program, they were rewarded with a mobile coupon for a free pizza (along with deals and alerts for their specific location in the future). • More than 24% of consumers redeemed their coupons during the kick-off campaign followed by 10-15% average redemption following the launch of the campaign.
  12. 12. Leveraging a common data set continues to be an option with Nectar Sainsbury’s continue to comment publicly how the Nectar loyalty card has driven competitive advanatge 16.5million+ members signed up Sainsbury’s benefits from the data the card generates to determine the product ranges it stocks in stores, identify potential store locations, make sourcing decisions, and measure the effectiveness of promotions, as well as help plan future promotions.
  13. 13. External analysts provide a technological overview
  14. 14. Whats Hot in CRM 2013: Mobile • Big data, cloud, social, mobile and the Internet of Things are the five catalysts that are driving inquiries in the hottest areas of interest. • Gartner’s Ed Thompson, author of the report, states that “this is where our clients’ interests lie, although not their current CRM spending.” • Technologies highlighted in red are the hottest in terms of interest, shown in the following table Highest CRM Application Priorities for 2013. Source: http://www.business2community.com/mobile-apps/whats-hot-in-crm-2013-strong-interest-in-mobile-for-streamlining-sales-and-service-0538556#OxXpo6i07OmHrQAU.99
  15. 15. Consulting options or parallel programmes also bring significant expertise to the table • Dunnhumby • Responsible for the Tesco clubcard • Nectar • Responsible for sainsbury’s and homebase
  16. 16. Recommendation • Start with the data ( collection, analysis etc) and develop a customer understanding • • Develop a customer and business strategy that has achievable milestones and a roadmap. • • Recognise internal data points, systems and culture Clear objective Ensure adoption is simple for in store colleagues and customers via technology • • Mobile applications • • CRM systems Single view of customer database Think Big, Act Small – deliver quick wins that quickly prove the CRM business case

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