CRM convergence in Manufacturing

1. CRM @ Age of convergence in Manufacturing

2. Contents
 Challenges for Manufacturing
 CRM
 Trends in CRM
 New Frontiers in CRM
 Social CRM
 Mobile CRM
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3. Today’s Challenging Business Environment
Intense
Limited Demand Visibility Global Coordination
Competition
“How can I improve forecast “How can I better coordinate with my “How do I innovate and differentiate
and planning accuracy?” overseas counterparts?” while driving operational efficiency?”
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4. Manufacturing Value Chain
Channel Partner:
Dealer
Supplier Manufacturer Distributor
End User/
Broker Consumer
Retailer
Manufacturers often don’t know or interact with
the End User/Consumer of their products
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5. Customer Relationship Management
• “Process of creating and maintaining relationships
with business customers or consumers”
• “A holistic process of identifying, attracting,
differentiating, and retaining customers”
• “Integrating the firm’s value chain to create
enhanced customer value at every step”
• “An integrated cross-functional focus on improving
customer retention and profitability for the
company.”
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6. Why CRM… ?
Lifetime Value (LTV)
- Refers to the net present value of the potential revenue stream for
any particular customer over a # of years
- Starts with current purchase activity then extrapolates to include
potential additions from cross-selling, upgrades, total ownership,
etc.
Customer Ownership
- Attempts to “own” the lion share of customer spending and/or
“share of mind” in a particular product category
- Building brand equity, maintaining vigilant customer contact,
keeping current with the market trends is critical
- 5% points increase in customer retention=20-25%
increase in profit
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7. Process, Technology, People
Field Sales
Sales
Website Selling Knowledge
Product Knowledge
Email Solutions Knowledge
Customer Knowledge Marketing
Call Center
POS
CRM Service
Social
Networking
Retail Finance
Fax
Production
PDA
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8. CRM Programs can Potentially Improve…
• Analytical CRM
– Customer Segmentation
– Trend Analysis
• Operational CRM
– Campaign Management
– Tele-Marketing/Tele-Sales
– Activity and Time Management
– Quotation and Order Processing
– Delivery and Order Fulfillment
– Customer Service and Support
– Remote Access
• Collaborative CRM
– Enterprise Portals
– Customer Access
– Supplier Access
– Personalization
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9. Trends in CRM
• Channel and Social Media Integration – Social CRM
• Real time Customer value based segmentation
• Customer engagement/Customer experience – customer life cycle management
• Mobile CRM
• Order Management and down stream Integration
• Unified CR communications
• Cloud adoption
( * Gartner have predicted that 25% of all new CRM will be on cloud )
• Voice-Enabled Software
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10. 2009: Social Networking Surpasses Email
Social Networking Users Surpass Email
Users on 7/09
Social Networking Users
Email Users
Source: Morgan Stanley Internet Mobile Report, December 2009
Data is for unique, monthly users of social networking and email usage.
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11. Typical CRM Deployment Progression
9 – Part of
Platform DNA!
Custom Objects
Collaboration
Business Impact
Ideas
Multi Channel
Content Collateral
Customer Portal +
Contact Center
Social 8
Unified Customer Partner Portals
View Customer Servicing
Sales Management 360 Degree ViewAutomation and
Streamlining
Analysis and Productivity
Reporting
Integration 7
Enhancement
Initial Rollout Customer Analysis Targeting and
Segmentation
Competitor Analysis
Customer and Activity 6
Management
User Adoption
5
4
3
2
1
Functionality
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12. New Frontiers in CRM
• Commercial E-Communities
- What are people loyal to?
Families
Football teams
Schools
Clubs
Cultures
Countries
I.E.: Communities not corporations
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13. New Frontiers in CRM
Commercial E-Communities
1. Goal is to create an environment where people get meaningful
interactions with the company and other users so that they feel part of
the enterprise.
2. Adds human component and engages customers.
3. Creates more stickiness and “ownership”
4. Ex. User Groups for software products (Oracle, Intergraph)
5. Ex. Dell / Sony technical support communities
6. Can be run internally or by an external organization such as Sift
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14. Social CRM - It all started with the web 2.0 revolution and its 4C’s
According to Wikipedia (Nov/2008) - Web 2.0 is a term describing changing trends in the use of World Wide Web technology and web design that aims to enhance creativity,
secure information sharing, collaboration and functionality of the web.
Web 2.0 is enabling:
•Collaboration
•Community creation
•Conversation
•Creativity
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15. Social CRM – Getting connected
Uses new
online
channels and
new
Web 2.0 stimulated fundamental communication
tools
changes in consumer behavior Seeks support
Trusts in
advices made
to connect
by online
with like-
acquaintances
Interactions between customer and minded peers
and strangers
brands starting earlier and never ending
New behavior patterns demand a new
strategy, better segmentation, new
The new
channels and targeted messages and Reads and Social
creates
review of current customer facing product Customer Tends to buy
reviews, more online
business processes product than offline
rankings and
blog posts
Wants to
provide
Expects better feedback
customer about the
experience product and
customer
service
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16. Lets take a look at the fundamental changes
that Social CRM is introducing to the current, traditional CRM in terms of…
Landscape Channels Processes
• Bl • Microblog
Customer Customer og s
s
• Price comparison website
Customer
• RSS • Podcast
• Phone • Phone
• Fax • Wikis
• Fax
Customer Customer • Email • Email • Social Networks
• Service • Service
• Letters • Letters
• Personal contact • Personal contact • Widgets
• Company’s website • Company’s website
+
Customer • Video sharing
Customer • SMS • SMS
• Instant Messenger • Instant Messenger
• Chat • Chat • Photo sharing
• Media • Media
Competitor Supplier / Partner
• Forums • Auction website
Customer Customer • Slides sharing
• Reviews and ratings in retail sites
• Wish lists
• Social Bookmarking
Your company
Customer Customer
Customer Customer
Mindset Technology
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17. Some foreseen benefits of Social CRM
 Raise Marketing ROI thanks to better targeting, better product solution, customer experience and word-of-mouth.
 Gain insights to explore new market segments and improve marketing effectiveness
 Identify new business opportunities and improve cross/up-sell abilities through increasing contact with existing and potential
customers
 Cut sales commissions costs by building community around the brand
 Increase R&D capabilities and innovation through tapping into the collective intelligence of your target audience
 Increase customer loyalty by promoting transparent dialogue and improving employee/customer interaction efficiency
 Decrease customer service costs through self-helping communities
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18. Mobility in CRM
Work from any where Reduction in sales cycle
Advantages Of Mobile
CRM
Unfettered information
of Customer
Collaboration
Unfettered information of
product
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19. Happiest Minds - Customer Centricity Framework
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20. Thank You
Anil Jain - Head Of Mfg. Industry Group
anil.jain@happiestminds.com