Customer Loyalty, Sales & Service - Sachin Seth

22nd – 24th November 2012, Jaipur

Customer Loyalty, Sales &
Service

Sachin Seth , IBM Global Business Services,
India/South Asia

http://bit.ly/Imperatives

Increasingly
Connected
Economy
The convergence of digital, social and mobile
spheres in connecting customers is
fundamentally changing the way customers
need to be engaged – we need to engage
them as individuals

http://bit.ly/Imperatives 22nd – 24th November 2012, Jaipur

Embracing
connectedness
Technology is now driving more
organizational change than any
other force – even the economy.
How are CEOs harnessing this
unrealized potential?


The Global CEO Study 2012 is the fifth biennial CEO study,
building on our insights and findings over the last 9 years

2004 2006 2008 2010 2012
Expanding the The Enterprise Capitalizing on Leading through
Your turn Innovation Horizon of the Future Complexity Connections
 Revenue growth is  Business model  Hungry for change  Embody creative  Empowering
the #1 priority innovation matters  Customers as leadership employees through
 Responsiveness is  External opportunity to  Reinvent customer values
key competence collaboration differentiate relationships  Engaging customers
 Improving internal  Innovation must be  Business model  Build operating as individuals
capabilities as first orchestrated from innovation, global dexterity  Amplifying innovation
step to growth the top business designs with partnerships

456 interviews 765 interviews 1130 interviews 1541 interviews 1709 interviews


Forces impacting the organization according to CEOs

External forces that will impact the organization
Global India
2004 2006 2008 2010 2012 2012
1 1 1 1 1 Technology factors 1 People skills
2 2 2 2 2 People skills 2 Technology factors
3 3 3 3 3 Market factors 3 Market factors
4 4 4 4 4 Macro-economic factors 4 Macro-economic factors
5 5 5 5 5 Regulatory concerns 5 Regulatory concerns
6 6 6 6 6 Globalization 6 Globalization
7 7 7 7 7 Socio-economic factors 7 Socio-economic factors
8 8 8 8 8 Environmental issues 8 Environmental issues
9 9 9 9 9 Geopolitical factors 9 Geopolitical factors

Source: Q1 “What are the most important external forces that will impact your organization over the next 3 to 5 years?”
(Global n=1709) (India n=66)

Internally, CEO focus is not on technology itself, but how
technology facilitates primary sources of sustained
economic value
Key sources of sustained economic value

Global India
Human capital 71% 74%
Customer relationships 66% 55%
Products / services innovation 52% 45%
Brand(s) 43% 39%
Business model innovation 33% 29%
Technology 30% 35%
Partnership networks 28% 36%
Data access / data-driven insights 25% 27%
R&D, intellectual property 22% 18%
Price / revenue innovation 19% 24%
Assets (physical, infrastructure) 15% 17%
Corporate social responsibility 13% 11%
Access to raw materials 8% 14%

Source: Q24 “What do you see as the key sources of sustained economic value in your organization?” (Global n=1709) (India n=66)

In India/ South Asia’s current rapid change period, a successful CEOship
demands customer obsession, leadership and transparency
CEO characteristics for success

Global India
Customer obsession 61% 62%
Inspirational leadership 60% 62%
Leadership teaming 58% 46%
Global mindset 48% 43%
Competitive instinct 38% 48%
Boldness 35% 37%
Transparent 34% 51%
Risk tolerant 33% 20%
Disruptive creativity 33% 34%
Financial skills 24% 34%
Technology savviness 23% 34%
Diversity-driven 20% 6%
Environmentally / socially 16% 15%
devoted

Source: Q25 “What are the five most important characteristics that a CEO needs to be successful over the next 3 to 5 years?” (n=1707)


So how will CEOs create more economic value by engaging
customers as individuals?

Customers share insights into what they
value individually, and when and how
they want to interact

To connect individually, CEOs plan a
step change in social media interaction
and continuing face-to-face
engagement

Outperformers strongly
differentiate by better data access,
insight, and translation into actions


CEOs identify customer insights followed by insights from operations and
sales as their priority investment areas
Drawing insight from information – Areas of improvement
Substantial investments
Global India
Customers 73% 71%

Operations 50% 60%

Sales 49% 57%

Markets and competitors 44% 51%

Human resources 43% 56%

Supply chain 40% 55%

Risk management 38% 56%

Financials 32% 33%

Source: Q23 “In which areas do you plan to improve your ability to draw meaningful and executable insights from available information?”
(Global n=1609 to 1658) (India n=55 to 62)

CEOs want to capitalize by improving response time and by
having better understanding of customer requirements

Change required to meet customer expectations (3 to 5 years)

Global India
Improve understanding of individual customer needs 72% 77%

Improve response time to market needs 72% 83%

Harmonize customer experiences across channels 55% 59%

Include customers / citizens across product / service life cycle 48% 49%

Increase transparency and corporate accountability 47% 56%

Increase social and environmental responsibility 44% 46%

Source: Q9 “To what extent will your organization change to meet customer expectations compared to your industry peers over the next 3 to 5
years?” (Global n=1652 to 1676) (India n=61 to 64)

To connect individually, CEOs plan a step-change from traditional
to social media, while continuing face-to-face engagement

79%
Industrial Mechanisms to engage customers

57%

48% 49%
43%
40% 40%
Today 37%
35% 35%
In 3 to 5 years 32%
27%

19%

11%

Face-to-face* Social Websites Channel Call Advisory Traditional
media partners centers groups media
Source: Q8 “What are the three most important mechanisms your organization will use with customers over the next 3 to 5 years?” (India n=66)
*Face-to-face / sales force / institutional representatives


Outperformers are twice as good at deriving value from data – key to
engaging customers as individuals

Outperformers strongly differentiate their organizations in three key areas
Outperformers
Underperformers

%
108 %
more 108 %
more
84 more
57%
54% 54%

31%
26% 26%

Access to data Draw insights from data Translate insight into action
Source: Q22 “How good is your organization at driving value from data? [Today]” (n=631 to 636)


So, how do you win the race to gather and
convert data into customer insight and action?

 Look outside to complete the view
1. Let “big data” reveal the
 Connect pieces into profiles
customer you never knew
 Empower staff with predictive analysis

 Listen at an individual level
2. Listen lavishly, respond
 Capture what employees see and hear
with focus
 Respond with relevance and speed

 Leverage the fact that mobile “changes
3. Be where your customers everything”
expect you to be  Blend the physical and digital worlds
 Offer value that stands out


Let “big data” reveal the customer you never knew

Today’s analytics provide opportunities to explore big
data, detect patterns and reveal new insights – knowing
how to effectively access, analyze and use data is crucial Large Retail
to understanding and engaging individual customers Company, India

 Look outside to complete the view Purpose
Incorporate external sources, especially social media and  Unleash the power of data by
generating actionable insights to
complementary data sets from partners – blend internal maximize individual customers
and external views to discover unexpected insights share of wallet
Activities
 Connect pieces into profiles  Deployed CRM analytics to
Use analytics to distill what’s valuable from an enable micro segmentation of
abundance of data – assemble vital pieces into holistic customers based on their
profiles of individual human beings shopping pattern and life stage
 Engaged with customers at an
 Empower staff with predictive analytics individual level with customized
Embed insights where front-line decisions are made – offerings
ensure data-driven decision making is part of everyday  Improved revenue by effectively
processes increasing individual customers
frequency of visits and width of
purchase
14

Listen lavishly, respond with focus

In exchange for more insight, customers want organizations to
interact selectively and responsibly – offering what they want, Large
when and where they want it Insurance Co,
India
 Listen at an individual level
Look beyond aggregate customer information based on
Purpose
market segmentation – use sources that allow you to
 To build business in a growing
hear directly from individual customers market with a large young
consumer base
 Capture what employees see and hear
Establish easy ways to channel clues employees observe  To provide an effective platform to
address queries
in their customer interactions – incorporate these
Activities
insights into your analysis
 Active in 6 social media platforms
 Respond with relevance and speed to communicate with consumers
Study each customer touch point and find ways to  Uses social media for new
respond more selectively and create deeper connections announcements & insurance tips
that build loyalty and advocacy  Company has a Facebook page
with ~ 17464 fans and the highest
mention on Twitter
15

Be where your customers expect you to be

Mobility is elevating customer expectations:
Jet Airways,
organizations have a tremendous opportunity to create
India
value out of immediacy – to be ready with relevant
services and information in the context of the moment Purpose
 Reaching a larger cross-section of
 Leverage the fact that mobile “changes everything” its customers
Take advantage of location-based services and new forms
 Usage of evolving technology and
of e-commerce social media to engage with
guests and for instant updates.
 Blend the physical and digital worlds
Activities
Exploit augmented reality to make mobile part of
 First airline to launch a number of
integrated, multichannel customer experiences self service options in India
 Offer value that stands out  First airline to Mobile QR code.
Interact in ways that are attention-grabbing, meaningful This disseminates more
and tailored to the individual information
 Successfully implemented social
media strategy by creating
communities on Facebook, Twitter
and Linkedin
16

What does it mean
for the CIO & the
CMO
The Digital Revolution has forever changed the
balance of power between the customer and
the organization, putting customers in charge of
the relationship

17

Provide a consistent and relevant experience across all your
customer/prospect interactions leveraging technology
The „New Front-Office‟ for the services industry

Front Office Digitization
New/ Integrated
Channels

Physical Web Social Mobile Call Center Broadcast

Information & Analytics

New Create best-
Imperatives Improve digital, social & mobile Engage based on deeper, more
in-class digital marketing
presence actionable Customer Insights
capabilities

Enable collaboration and Improve Order Management & Increase Business Partner
innovation Fulfillment Visibility

More Connected
ERP Systems Legacy Applications Data Warehouses
Back Office


Create a digital journey to enable the “Moment of Truth”
with customers & other stakeholders


GBS integrates business insight, best practices and innovation in order to tackle
our client’s most difficult issues…

Develop / Improve Design, Build, Implement Run applications,
Develop Strategy
business processes a solution processes, IT

Strategy & Transformation

Innovation & Operations & Organization &
Growth Finance People

Business Analytics & Optimization
Business Analytics and Business intelligence and
Optimization strategy performance mgmt.
Advanced analytics Enterprise Content mgmt.
and optimization Enterprise Information mgmt.
Application Innovation Services
Application IBM Interactive
Development
Emerging technologies Security and privacy
and architecture
Portals and e-Commerce

Enterprise Applications Services

SAP ORACLE Microsoft

Application Management Services

Application Assembly Business application
Optimization modernization services
IBM Testing Services Application Outsourcing

Differentiating Capabilities

Smarter IBM IBM IBM Component Cloud “Full Small & Green: Expertise in
Thought Executive IBM Global Global Equation” Med. Energy & Functional
Commerce Leadership Exchange Financing Smarter Delivery Research IT Services Alliance Business Delivery Business Sustain- 20+ Expertise
Consulting Planet Services Solutions Modelling Models Services Solns. ability Industries

Business Insight
Global Global Global Global Global Chief
CEO CFO CIO CHRO Supply Chain
Study Study Study Study Officer Study


Case Study 2 : Sales & Service Solution for a Leading Paint Manufacturer

Business Need – (Engagement & Business Challenge)
• Berger wanted to increase dealer / customer satisfaction
• Reduce order cycle times
www.electrolux.com • With this objective in mind, Berger wanted to set up centralized call centre for dealers and end customers with
both inbound and outbound call capabilities.
Project • Berger needed a comprehensive CRM solution which could support the call centre operations, Dealer
achievements: Management and direct customer interface for home painting solutions.
Client Solution
• 2 call centers and other users at office and depot
 Reduction in • Replacing of legacy applications
order handling • Home painting Solution- VB + Access
time – 70% • Painter Activity System- .NET + MS SQL
• BS Tracker - .NET + MS SQL
 Increase in dealer • Lead Management System- .NET + MS SQL
• Prolinks- .NET + MS SQL
response times by • Daily Activity Reporting- >NET = SQL
50-70% • Color Bank System
• SMS Integration
 Removed
complexities of Business Impact
multiple legacy  Customized service to dealers resulted in better satisfaction levels
systems  Streamlined order processing
 Created platform  Customer profiling and segmentation, complaint management – Direct interface with customer
for Social CRM  Opportunities to cross-sell and up-sell dealers identified, and scheme entitlements visibility improved


Case Study 1: CRM Strategy for a start up General insurance company
Business Objective

The General insurance company wished to Implement Customer Relationship Management for its business with the following
objectives
 Create the base CRM capabilities that address immediate needs and provide building blocks for an integrated CRM
delivery in the long-term
 Focus on delivering the „Peace of Mind‟ value proposition to customers
 Continue to grow & strengthen the existing focus customer segment to drive “Profitable Growth”
 Create Advanced CRM Framework to have better customer insights, acquire new customers

Project Approach Client Benefits

IBM worked on a eight week engagement divided in three phases to define a CRM Reduced dependency on agency channel for sourcing
Strategy. business
PHASE 1 Define CRM Objectives Reach the final consumers through direct channels
a) Stakeholder Assessment – Interviewed Key Stakeholders like call center, internet etc.
b) Voice of Customer Survey – Generated Outside In View
c) CRM Capability Maturity Model – Defined current state Vs Proposed State in Enable the company to expand its base across India
next 3 years and augment its top line growth.
PHASE 2 Create Operation Blueprint
a) Organization readiness assessment and change management plan
b) Proposed to be processes for Sales, Marketing, Service and Partner
Management
PHASE 3 Implementation Roadmap
a) Vendor Evaluation Framework
b) Guidance on Project Implementation


Questions and Discussion

23

Thai
Hindi
Traditional Chinese

Gracias
Thank You
Russian Spanish

Obrigado
Brazilian Portuguese

Arabic

Danke
German

Grazie
Italian Merci
French

Tamil Korean

Japanese

Simplified Chinese
24

Data is at the heart of everything & BUSINESSES to stay
competitive will need to put their heart into Data


IBM Global Business Services will SERVE as the partner most committed to
the success of the CEOs and their Leadership team
Key consulting offerings

Main Offering Sub-offering Description

1. Customer 1. Customer centric strategy 1. Strategies to help you focus on
Experience & 2. Channel transformation customer experience and care
Market Strategy strategy 2. Strategies and approaches to help
3. Social media strategy implement experience and care
4. Digital brand & presence activities across all channels
strategy 3. Strategies and approaches to create
5. Smarter sales & marketing meaningful customer experiences
and drive deeper customer
relationships in the social web space
4. Strategies and approaches to better
leverage and manage your brand in
the digital world
5. Consulting offerings to help you
better improve and manage the sales
& marketing organization
22 – 24 November 2012, Jaipur
nd th
http://bit.ly/Imperatives

IBM Global Business Services will SERVE as the partner most committed to
the success of the CEOs and their Leadership team
Key consulting offerings

Main Offering Sub-offering Description

2. Enterprise 1. Customer awareness 1. Web and digital analytics, event
Marketing solutions detection, predictive analytics and
Management 2. Centralised decisioning visual exploration
Solutions solutions 2. Segmentation, offer management,
3. Cross-channel execution interaction history, behavioural
4. Integrated marketing targeting and contact optimisation
operations 3. Email, inbound integration,
distributed marketing, lead routing
and monitoring and online ad/search
bid management
4. Collaboration, cross-channel
planning, design, execution and
measurement


Thank
You


Customer Loyalty, Sales & Service - Sachin Seth

Recommended

Recommended

More Related Content

What's hot

What's hot (20)

Viewers also liked

Viewers also liked (12)

Similar to Customer Loyalty, Sales & Service - Sachin Seth

Similar to Customer Loyalty, Sales & Service - Sachin Seth (20)

More from Jyothi Satyanathan

More from Jyothi Satyanathan (15)

Recently uploaded

Recently uploaded (20)

Customer Loyalty, Sales & Service - Sachin Seth