Chapter 1, KCRM


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A Handbook of Key Customer Relationship Management - Ken Burnett

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Chapter 1, KCRM

  1. 1. KCRMByKen Burnett<br />Chapter 1<br />BY<br />Kingkortabbyabemuro<br />
  2. 2. What&apos;s In?<br />Why KCRM?<br />How KCRM can Help?<br />KCRM? Or No to KCRM?<br />How KCRM affect sales?<br />KCRM & HRM<br />KCRM in 11 steps for Dummies<br />7/30/2009<br />2<br />KKB,KCRM,C#1<br />
  3. 3. Why KCRM is the BUZZ!!?<br />Glut economy<br />Technological Innovation<br />Quality Seeking Customers<br />Shorter PLC<br />Dynamic Market place & Organization Culture<br />Changed Channel of Distribution<br />7/30/2009<br />3<br />KKB,KCRM,C#1<br />
  4. 4. Every Customer is a Market Segment<br />Customization? Customerization?<br />7/30/2009<br />KKB,KCRM,C#1<br />4<br />
  5. 5. Companies Should Focus……..<br />They can demonstrate distinctive competence<br />They can create sustainable competitive advantage<br />7/30/2009<br />KKB,KCRM,C#1<br />5<br />
  6. 6. A Market Segment must be…..<br />Measurable<br />Substantial<br />Accessible<br />Differentiable<br />Actionable<br />7/30/2009<br />KKB,KCRM,C#1<br />6<br />
  7. 7. To Ensure Success, A Company must …….<br />Identify, analyze, & select right market segment.<br />Creating relevant product and services.<br />Focusing sales activities on Key Customers within the target segment.<br />7/30/2009<br />KKB,KCRM,C#1<br />7<br />
  8. 8. But beware of……..<br />Poor Communication both internal & external<br />Inadequate channels to collect feedback<br />Top-Down Planning Approach<br />7/30/2009<br />KKB,KCRM,C#1<br />8<br />
  9. 9. KCRM in Your Company<br />What can it do for you?<br />7/30/2009<br />KKB,KCRM,C#1<br />9<br />
  10. 10. KCRM can……..<br />Help to respond to a customer driven environment<br />To maximize the return on investment<br />In any business, financial performance depends on creating capturable customer value (CCV) as efficiently as possible. <br />7/30/2009<br />KKB,KCRM,C#1<br />10<br />
  11. 11. KCRM can……..(cont.)<br />7/30/2009<br />KKB,KCRM,C#1<br />11<br />Customer Benefit Value = $10000<br />
  12. 12. KCRM Helps in <br />KCRM helps an organization in addressing operational problems, to help the management of older businesses, phasing out the weaker ones, or building a new SBU and it also helps to be the market leader through risk management, competition control and obviously by offering more value to the customers.<br />7/30/2009<br />KKB,KCRM,C#1<br />12<br />
  13. 13. KCRM…..<br />Yes or No?<br />7/30/2009<br />KKB,KCRM,C#1<br />13<br />
  14. 14. KCRM is For you if……………<br />KCRM is more relevant to the business where:<br /> Few Customers dominating market demand.<br /> Significant economies of scale.<br />Ex: GP vs. TELETALK.<br /> Product service differentiation<br />Ex: Customized Software<br /> Decision making unit is complex.<br /> Ex: Industrial Buying<br /> Competition is intense<br />
  15. 15. KCRM might be Harmful if…………<br />Market is highly fragmented with few dominant customers.<br /> Ex: daily necessary goods.<br />Little product differentiation.<br /> Ex: Petrol<br />The product is not technically or financially significant.<br />Ex: Daily Soap<br />Economies of scale is low.<br />If the firm enjoy monopoly.<br /> Ex: Central Bank.<br />
  16. 16. Pitfalls of KCRM<br />The increased dependence on relatively few customers.<br /> Ex: Cement industry.<br /> Pressure on Profit Margins if Key Customers abuse this preferred <br /> customer status.<br /> Dealing with more professional buyers.<br />Prospective customers may be neglected in this process.<br />Ex: Jewelers.<br />
  17. 17. Resources Needed<br />What we need?<br />
  18. 18. KCRM & Resources<br />
  19. 19. How does KCRM affect the sales function<br />Prospecting<br />Product<br />Organization<br />Profile<br />Style<br />Responsibility<br />Authority<br />Culture<br />Competition<br />Targets<br />
  20. 20. KCRM & HR<br />Making HR Ready to Face KCRM<br />7/30/2009<br />KKB,KCRM,C#1<br />20<br />
  21. 21. Skill Requirements of the KEY Customer Manager<br />Understanding How it works<br />Ability to counsel, advice and influence<br />Ability to identify key result areas<br />Ability to plan & allocate resource<br />Ability to negotiate<br />Ability to lead a multidisciplinary team <br />
  22. 22. Customer manager’s contribution to the Company<br />Marketing intelligence<br />Customer knowledge<br />Creative ideas<br />Appreciations<br />
  23. 23. KCRM for Dummies<br />How to apply KCRM<br />7/30/2009<br />KKB,KCRM,C#1<br />23<br />
  24. 24. Implement KCRM<br />Understand Corporate Objectives<br />Generate Plans<br />Prioritize<br />Agree Upon Plans<br />Organize resources needed<br />Get commitments from Top Mgt<br />Develop detailed Plans<br />Set up a profitability measurement system<br />Introduce KC infosys<br />Introduce KC satisfaction measurement Sys<br />Find mutual stability & GAIN!!!<br />7/30/2009<br />KKB,KCRM,C#1<br />24<br />
  25. 25. At a Glance…………..<br />KCRM Helps But Not Everywhere, Every case and Every Time<br />It is needed to be implemented to achieve profitability<br />The Company must have some HR capabilities<br />It also needs to follow some steps.<br />7/30/2009<br />KKB,KCRM,C#1<br />25<br />
  26. 26. The End<br />7/30/2009<br />KKB,KCRM,C#1<br />26<br />