May 30 2016
• I work with managers to help them
understand how enterprise applications,
web and mobile technologies can enrich
• The client portfolio in the ICT industry
includes Microsoft, Apple, Ernst & Young,
France Telecom, HP, IBM, Oracle and SAP
•The work with the IT industry in Europe
has included fifty partner and customer
conferences, a dozen case studies, and
various marketing support activities.Prof. Lee SCHLENKER,
Managing Director, LHST
Web : www.leeschlenker.com
What do customers really value ?
Participation: 30% of your grade will be based upon your participation and
engagement in the classroom.
Videoscribe case study: 70% of your grade will be based upon your video case
In your six-minute videoscribe, you will provide
answers to the following questions :
What is the problem the company is trying to solve?
What exactly does the company propose to do ?
Is the inititive an example of marketing, CRM, or
Social CRM ? How does this compare with what we
have learned social business?
What metrics can be used to measure the future
success of this venture?
What conclusions can you draw from this example
about the future of social business in the industry
under study ?
To help us understand the motivations, experience and objectives of the internal
and external clients of the organization
Real time data
“made in” “made by”
Lower entry barriers
The objectives of an IS
The objective of Customer
Relationship Management is to
enable companies to build deeper,
more profitable, long term
relationships by reaching
customers with the right message
at the right time by providing
superior customer service
Customer Relationship Management
Business Model Stories
Segment the market Identify the conflict
Identify customer needs Portray the needed skills
Design the processes Paint the vision
Measure the results Provide the happy end
Stan Maklan and his co-authors offer us a view of the past and
potential future of customer relationship management in their
Sloan Management Review article, Why CRM Fails — and How to
• How do the authors’ describe the problem of Customer
Relationship Management, and how do they present the solution?
• Why to they suggest that managers need to to invest in both
resources and capabilities ?
• Describe the framework presented to develop their CRM resources
and capabilities as well as how it applies to BMV and Flutter
• Which key insights emerge from the authors’ work?
• new conditions. What other examples confirm this contention?
Why CRM Fails
Traditional Marketing CRM
Goal: Expand customer
base, increase market
share by mass marketing
Goal: Establish a profitable,
relationship with customers;
understanding their needs,
Product oriented view Customer oriented view
Mass marketing / mass
Mass customization, one-to-
Transactional relationship Relational approach
• For CRM to be truly
effective, an organization
must first decide what kind
of customer information it is
looking for and must decide
what they intend on doing
• 75% of CRM projects fail
within their first year
• It can result in lost of
productivity and waste
corporate investment in
software and time
• Is the process of building and
maintaining profitable customer
relationships by delivering superior
customer value and satisfaction
• Think of multi-channel service
delivery, the ways in which customers
can interact with a business
• Three components:
Sales force automation
Customer service and support
Marketing campaign management
Why Study CRM?
• “Today’s businesses compete with
multi-product offerings that are often
assembled or simply outsourced.
• The product/service offer is created
and delivered by networks, alliances
and partnerships of many kinds.
• Sustainable competitive advantage
depends upon nuturing long-term
relationships with internal and
Is a company nothing more
than a set of processes?
"Experience is knowledge,
everything else is information"
-- Albert Einstein
• Service economy – value comes from
services embedded in the product
• Pine and Gilmore argued that
differentiation today comes from creating
• Starbucks, Michelin, Hermès, Apple
• Companies provide “stages”, managers
are “actors”, customers are active
Where does value come from - mass production, personalization, activities,
Pine and Gilmore
• Alvin Toffler in Future Shock (1971) talked
about the “experiential economy”
• Four phases – agrarian, industrial, service
an now experience
• Examples of Walt Disney, AOL, Starbucks,
• Tranformational “Memory” itself
becomes the product — the "experience".
Pine and Gilmore
The Happy End
Challenges Skills Roadmap
• A story begins with
problems are we trying
•Transform a conflict
• Why does this situation
•What knowledge and
skills are missing?
• Who are the heros of
• How does changing
the roles move this story
•Is it a question of
people, process or
•What is the next step?
• Disti Engagement
• Disti PAM
• SMB Engagement
Sources ? Results ? Metrics ?
Where does this story start?
• Where does value
•Do your sponsors
believe in people ,
process or technology?
•This is your value lever
• Where are they
looking for proof of
•With individuals, with
teams or with
•This is where you need
• How do they qualify
•This is your happy end
The Business Value