The document discusses a workshop on customer relationship management (CRM), databases, and the web. It covers how CRM involves capturing customer information from various sources and channels to better understand customers and target them. Effective CRM requires an integrated strategy, structure, and skills across the organization to deploy what is known about customers for competitive advantage.

1. Wednesday 13 April 2011 CIM CRM Workshop 1

2. Customer relationship management, databases & the web Thom Poole Global Product Manager Dr Alan Rae Business Adviser

3. Agenda Introductions Knowledge Management and Marketing BREAK CRM , Databases & the Web Conclusion

4. Introductions Just to warm us up a little Who you are and what your organisation does Why you have come to our seminar I will start …

5. Why are we doing this Competitive advantage lies in deploying what companies know This involves getting to grips with 3 sorts of information The knowledge that exists in people The know-how that exists within the processes of the company The information that exists about how the company interacts with its customers

6. What is Marketing? Marketing is about EXPLOITATION You learn about your customers You understand their desires, ambitions and expectations You discover their stimuli You Exploit your knowledge for competitive advantage

7. CRM is about customer interaction A good definition is “A management approach that enables organisations to identify, attract and increase retention of profitable customers by managing relationship with them” - Bradshaw and Brash- Ovum

8. The Key Word is profitable You need to know who your most profitable customers are What their lifetime value is going to be What the prospective lifetime value of new clients is going to be What service offers build in switching costs to the client How to construct offers that support and extend the brand.

9. It is a balance of art and science A good salesman does this intuitively But one to one , face to face selling is too dear CRM gives us the opportunity to use a variety of channels - particularly the new interactive media to automate low level personalisation of interactions This automated information can be captured, analysed and used to formulate new offers that increase customer retention

10. However it must support the key brand values The client must feel Cared for In control Able to influence the process Able to have his needs customised Web sites such as Amazon and Dell have achieved this effectively They put the client in control while getting her to do the work & externalising transaction costs

11. Effective Implementation needs an integrated approach Strategy What are you doing this for Who are your customers What do they want Structure Front & back office databases, web sites & IT Your business processes Skills Behaviour, IT & leadership skills

12. CRM is Knowledge Management The how vs the why - knowledge management is the process that builds intellectual capital Any investment in knowledge must have a strategic purpose It involves an analysis to identify where are the key leverage points in the business Anything that isn’t of major strategic importance should be ignored It must fit the existing capability of the business

13. What does this involve for small companies Three main areas of activity Up-skilling staff and encouraging them to share knowledge Making sure that processes and news are shared using intranet technology Making sure that key information about customers is located, refined and used to achieve a competitive edge It needs to be simple, practical and use industry standard software and hardware

14. Themes to establish Need to focus on systematically deploying staff abilities Need to establish that there is a critical infrastructure level both physically and in people’s understanding of IT Need to tie what you know into to what builds competitive advantage What measures are appropriate to know that organisation is on track

15. Strategy - What you must know What your clients want, where they are, and where they are in the sales cycle How can you capture it How can you track it What changes to your business processes are necessary to make this work What staff behaviours you need to institutionalise

16. Information needed to plan Income by meaningful category Gross Margin Customer and Product Profitability Sales Plan vs Forecast Sales Pipeline Strategic and Tactical Marketing Analysis

17. Marketing Strategy - the issues What markets are attractive? What competitive advantages have you What else should you consider how much of total market is available where in the product life cycle you are what is the decision structure of the market how do you stack up against the competition across the whole product

18. What you must know about your clients Lifetime value of the client What do they want How likely are they to buy What behaviours do they want What behaviours do they display How does this relate to your brand values What control of the process can you give them

19. Exercise 1 Is it correct? Would you correct the data? Why? Why is/could the data be wrong? Other methods of collection

20. What you must know about your marketing processes Activity to generate leads Cost per lead generated Cost per close ratios including close ratio average value per close retention rates by segment

21. CRM is not just about sales It is aimed at retention In many business to business environments it is important link sales with service data This can give great results and can help develop new products and offerings It can extend to true collaborative working in supply chains - buzzsaw.com

22. To be successful consider the business as a whole The respective aims of company and client The Value creation process The multi-channel nature of business today The assessment of performances The IT analysis and communication infrastructure These form the strategic framework for CRM

23. Strategic Framework for CRM

24. The definition of the Sales and Service pipeline Acquisition of Customer Consolidation of customer Only very satisfied customers spontaneously testify and build your brand Enhancement of the relationship Services Loyalty programs Cross and up-selling

25. The Nature of Customer Encounters

26. CRM becomes critical for companies as the web brings more interaction There is more to capture You can do more with it If you can analyse the information you can get a clearer picture of how your business is running. The web enables greater scope for interactivity.

27. What does the Web bring to the party It allows communication, structured offers and instant response However it needs to be integrated with direct mail, telesales and even physical sales people You can monitor behaviour in real time You can offer various means of communication

28. Exercise 2 The Web Experience assisted by Alan Rae

29. BREAK We’ll break for about 5 minutes Tea, coffee available Can we be back at ...

30. Methods of communication from web site include Web chat - interactive conversation in real time Web callback - immediate or later Telephone number Email facilities A recent study of how companies use these in practice was carried out by Ovum

31. Ovum study Only 33% of companies who invited response by email or form responded to them AT ALL 34% of companies responding took > 24 hours 27% of established companies had no phone number on the site only 8 out of 97 companies inviting emails gave telesales the info to treat client as an individual Generally companies showed damaging lack of consistency

32. What would getting it right mean? Integrating front office, back office & analytic systems Integrating responses from different media channels to ensure consistency of brand experience Consciously automate what can be automated and free your sales / service stars to lock in your cash cows.

33. How are other companies using the web now? Recent HP study showed Business to consumer 41% deliver content and information 17% offer online shopping 12% provide personalisation Business to Business 57% deliver content and information 21% do online trading 21% provide personalisation

34. Think about it … Wouldn’t it be great to customise information from database according to customers web site + other marketing profile

35. Other HP findings Most are not happy with their companies response and integration capabilities The most key motivation is to get closer to customers ahead of generating more traffic and converting existing customers to working on line Not much sign of mobile technology strategies being deployed Greatest source of info for senior players is on-line across industry sectors

36. Why this is important Companies lose half their customers in 5 years Harvard Business review It costs 7-10x as much to get a new customer as to keep an old one As quality and price converge, responsiveness becomes the key differentiator Automate simple stuff to free staff for quality time with customers business automate product info and follow up

37. CRM depends on overall perception of the company

38. So where does it fit?

39. Management Needs to identify which segments are working and which need attention Needs to be integrated with ERP and other systems Needs to be scalable and concerned with speed an ease of deployment Needs to foster increased customer satisfaction and retention - increased sales, higher strike rates, better margins and market share

40. INFORMATION Technology

41. The Architecture of eRM

42. A good CRM system can Capture info from any source - email, web site call centre, trade show or referral Support Autodialling, order entry, and automate follow up Provide Scripts to automate telesales Workflow tools to guide reps through processes Automate distribution of customer info Provide analysis tools & manage campaigns

43. Sales management Opportunity management - tracking the milestones to the sale Should handle complex models with multiple points of contact Automate routine information exchange Excellent and detailed management tools

44. Sales Pipeline

45. Customer Service and Support The customer wants to be looked after I want to be me I want to be looked after Supermarket > Cavalry mode Service needs ALL the Key info to achieve this Enables problems to be turned into sales opps Incident assignment, escalation, warranties and contracts, service level management

46. Sales can see service logs

47. Service team can see Sales logs

48. Monitoring activity

49. Large vs small solutions Key players - entry level £50k But entry level players such as goldmine and maximiser are catching up New Front Office 2000 product from Goldmine

50. Goldmine Example

51. Internet support provides a complete intranet solution for distribution of collateral in future will support extranet capability to extend customer info to business partners and networked communities. Partners can schedule own appointments Supports Microsoft Web Architecture

52. Imperatives of E-relationships Create a dynamic customer context Generate Consistent Custom Responses smart navigation/high-value action/consistent treatment Build and maintain a content directory relevant sales and marketing offers need to tag content for specific customer context - product elements & past buying patterns

53. Rules to succeed Companies that treat business buyers uniquely and consistently will build loyal clients fastest analyse information and apply business rules effectively to build customised contextual offers synchronise field, web and telecentre info

54. Conclusion Take this seriously - it’s the lifeblood of your company Integrate with Web and other data inputs Make sure your other systems and telephony are up to it Think how to integrate with mobile workers Make sure staff are motivated and understand WHY it’s important Good luck - it’s a grand life if you don’t weaken