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1crm 120208025631-phpapp01

  1. 1. Customer RelationshipCustomer Relationship MaManagementnagement (CRM)(CRM) ATTF LuxemburgATTF Luxemburg Helping you through the learning curve R.J.ClaessensR.J.Claessens&&PartnersPartners
  2. 2. Key Sources of the course:Key Sources of the course: Harvard Business ReviewHarvard Business Review CRM by Ed PeelenCRM by Ed Peelen Snezana DraSnezana Draggicevicicevic GeraldineGeraldine ClaessensClaessens E mail: contact@rogerclaessens.be - Internet: www.rogerclaessens.be R.J.ClaessensR.J.Claessens&&PartnersPartners
  3. 3. The key message of the courseThe key message of the course
  4. 4. The key message of the courseThe key message of the course We are in it, together!
  5. 5. The key message of the courseThe key message of the course • In 2003, according to Harvard Business Review, 82% of interviewed companies in the USA, stated they would introduce CRM, a large jump from the 35% who employed CRM in 2000. • What changed?
  6. 6. The key message of the courseThe key message of the course • The approach changed! Rather than use CRM to transform entire businesses, companies using CRM successfully have directed their investments toward solving clearly defined problems within their customer relationship base
  7. 7. The key message of the courseThe key message of the course • The approach changed! CRM today result in highly focused projects that are relatively narrow in their scope and modest in their goals. There is also an understanding that highly accurate and timely data are not required everywhere
  8. 8. The key message of the courseThe key message of the course « Achieving success with CRM is more difficult than expected and it is not just a matter of marketing and IT. »
  9. 9. IntroductionIntroduction The philosophy of Customer Relationship Management is this : •CRM is about « Keeping the old-time spirit of customer connection even when you can not shake every hand ».
  10. 10. IntroductionIntroduction The philosophy of CRM is: •It is a comprehensive approach for creating, maintaining and expanding customer relationships. •CRM is a way of thinking about and dealing with customer relationships
  11. 11. IntroductionIntroduction The focus is on: •What will the customers buy, when, why and for how much? •What creates value for them? •What does create a structural bond? •What service can we provide that does create a premium? •What about market segmentation?
  12. 12. IntroductionIntroduction What CRM systems do! •The primary task of a CRM system consists in supporting or performing the activities involved in customer contact processes •The secondary task is related to providing customer and management information
  13. 13. IntroductionIntroduction The concept of CRM is: • Customer relationship management (CRM) is a business strategy to select and manage the most valuable customer relationships. • CRM requires a customer-centric business philosophy and culture to support effective marketing, sales, and service processes.
  14. 14. IntroductionIntroduction The concept of CRM is: • CRM applications can enable effective customer relationship management, provided that an enterprise has the right leadership, strategy, and culture
  15. 15. CRM should the end of the roadCRM should the end of the road •CRM is a great concept BUT you might wonder if it is worth the effort relative to your customer base and expenses involved? •It is the ultimate phase AFTER a solid market research and a strategic planning process!
  16. 16. IntroductionIntroduction • Is the issue we analyse strategic? • Where could we make more money? • Do we need perfect data? • What is the next step?
  17. 17. IntroductionIntroduction Is it strategic? • A large and comprehensive CRM program involves complicated business and technology issues and requires investments of time and money. • Before spending money, key marketing questions need to be addressed • What are your key marketing questions?
  18. 18. IntroductionIntroduction Is it strategic? • An example: A well trained and « proactive » sales force is a strategic necessity; this requires the right information!
  19. 19. IntroductionIntroduction Where could we make more money? • It is possible to use CRM to manage the entire relationship cycle: that is usually a bad idea! • Large systems usually do not pay back. • The focus of CRM should be the weak points that undermine performance
  20. 20. IntroductionIntroduction Where can we make more money? • Focusing on weak points can not only be an effective way to build a successful CRM program but can also put it back on track in case you started one.
  21. 21. IntroductionIntroduction Do we need perfect data? • Perfect real time information comes at a very high cost • The requirements for real time and good data are quite different • Example: Outstandings on a current account (real time) versus portfolio management data (good data)
  22. 22. IntroductionIntroduction What is the next step? • Narrowly focused CRM system often reveal additional opportunities for business improvements. • All the small improvements taken together, can amount to a broad CRM application that extends across the bank. • The key is to make sure the step by step approach fits into a defined strategic plan
  23. 23. IntroductionIntroduction What is the next step? • In most cases, the opportunities for development lie in the activities adjacent to the customer relationship cycle. • Ultimately, CRM can be the glue that binds together all activities related to a customer.
  24. 24. IntroductionIntroduction Customer relationship cycle. Development Sales ExperienceRetention Targeting
  25. 25. IntroductionIntroduction Business before technology • We should look at what CRM should do, not so much on what it can do • CRM depends more on strategy than on the amount spent on technology • Strategy is about the way you allocate your resources to create a competitive advantage and superior performance
  26. 26. IntroductionIntroduction Implementing CRM before creating a customer strategy = like building a house without an architectural plan • Effective CRM is based on segmentation analysis • Customer strategy is designed to achieve some specific marketing goals • Technology is not a marketing strategy
  27. 27. IntroductionIntroduction Introducing CRM before changing your organisation into a customer focused organisation = like painting without sanding • CRM will succeed only AFTER the organisation and its processes – job descriptions, performance measures, compensation systems, training programs, and so on- have been structure to provide superior customer value
  28. 28. IntroductionIntroduction Assume that more technology is better = is like building without foundation • To start, see what lower-tech alternatives offer; there may be no need for more in the very near future • In the future as sequence of individual software solutions may lead to each step reinforcing the next step
  29. 29. IntroductionIntroduction Define the right customers you want to establish a relationship with = a two way street • Just because managers can contact customers, does not mean they should by all means and for whatever reason.
  30. 30. IntroductionIntroduction How do consumers define us in terms of competition?
  31. 31. IntroductionIntroduction How do consumers define us in terms of competition? • Cost • Time • Quality • Opportunity • Information • Knowledge • Choice • Culture
  32. 32. IntroductionIntroduction Why might you consider CRM?
  33. 33. IntroductionIntroduction Why might you consider CRM? 1. Gather customer information quickly 2. Identify the most valuable customers 3. Obtain loyalty by providing customized products 4. Possibly reduce cost of serving these customers 5. Making it easier to acquire similar customers 6. Retention of existing profitable customers 7. Getting the maximum out of existing customers 8. It can function as an early warning system
  34. 34. IntroductionIntroduction Why might you consider CRM? Current situation Medium term Long term Financial perspective Turnover Increased turnover Value Customer perspective Satisfaction Individual satisfaction Commitment Communication One way Attuned Multi- channels Organisation Data Knowledge Integrated image
  35. 35. IntroductionIntroduction The ultimate goal of CRM : The goal is to encourage the customer to make its future purchases from you and reduce the share of purchases being made from the competition DUE TO THE FACT customer knowledge has been accumulated and therefore it will be more difficult for the competition to offer a similar package
  36. 36. IntroductionIntroduction CRM is only a part of the sales’ performance! How would you assess your overall sales’ performance? Please rate the questions hereafter as follows Not effective Extremely effective 1 2 3 4 5 6 7 8 9 10 (Source HBR 08/06)
  37. 37. IntroductionIntroduction Salespeople’s capabilities •Finding customers – identifying sales opportunities •Winning customers – converting opportunities into business •Keeping customers – cementing customer relationships - CRM Not effective Extremely effective 1 2 3 4 5 6 7 8 9 10
  38. 38. IntroductionIntroduction Sales Managers' skills •Planning for growing business •Coaching – giving clear direction, expectations and feedback •Motivating – recognition and rewards Not effective Extremely effective 1 2 3 4 5 6 7 8 9 10
  39. 39. IntroductionIntroduction Support systems •Recruiting and hiring capabilities •Performance management systems •Opportunities management systems •Strategic account management systems •CRM systems •Training and development systems Not effective Extremely effective 1 2 3 4 5 6 7 8 9 10
  40. 40. IntroductionIntroduction Sales organisation climate •Clarity of goals and expectations •Staff dedication to achieve challenging goals •Staff initiative •Acknowledgment of good work Not effective Extremely effective 1 2 3 4 5 6 7 8 9 10
  41. 41. IntroductionIntroduction • The total score for your sales organisation is:……..
  42. 42. IntroductionIntroduction Average for high-performing organisations° 123 Average for low-performing organisations° 109 We shall put the spot on CRM, but it is only a part of a bigger picture (° US based companies)
  43. 43. The structure of the courseThe structure of the course CRMCRM IntroductionIntroduction ORGANISATIONORGANISATION MARKETINGMARKETING ANALYSISANALYSIS 1_Elements of CRM1_Elements of CRM 2_Customer-supplier2_Customer-supplier 3_Strategy3_Strategy 4_Relationship oriented4_Relationship oriented 1_Customer knowledge1_Customer knowledge 2_Customisation2_Customisation 3_Communication3_Communication 4_Relationship policy4_Relationship policy 1_1_RelationshipRelationship DataData 2_Data mining2_Data mining 3_Data selection3_Data selection 4_Data reporting4_Data reporting SYSTEMSSYSTEMS 1_CRM systems 2_Implementation 3_The future 4_Conclusion
  44. 44. 1_Elements of CRM1_Elements of CRM
  45. 45. 1_Elements of CRM1_Elements of CRM The four cornerstones of the «elements of CRM » are: 1. Customer knowledge 2. Relationship strategy 3. Communication 4. The individual value proposition
  46. 46. 1_Elements of CRM1_Elements of CRM 1. Customer knowledge • Segmentation • Awareness, Attitude • Usage • Concept • Customer satisfaction • Customer loyalty • Brand Image • Brand equity • Pricing • Advertising
  47. 47. 1_Elements of CRM1_Elements of CRM 2. Relationship strategy •A long lasting customer – supplier relationship •The key is not only the stimulation of a transaction •Success is not measured by market share
  48. 48. 1_Elements of CRM1_Elements of CRM 3. Communication •The issue is to carry on a dialogue with individual customers •Shifts should be possible between distribution channels
  49. 49. 1_Elements of CRM1_Elements of CRM 4. The individual value proposition •The product, service and price are adapted to the individual circumstances •The organisation has to build up the capacity to supply customisation in one form or another
  50. 50. 1_Elements of CRM1_Elements of CRM Systems •If a relationship must be maintained with a large group of customers, a portion of which represents a low value to the supplier, the use of IT becomes inevitable. •Integration is therefore a must between front- mid-back office