The document outlines a 10 step approach to evaluating a company's CRM capabilities. It discusses understanding customers, defining high value customers, and capturing customer interactions across channels. The goal is to develop a strategic and multi-channel communication plan that nurtures customer relationships over time based on customer insights.

1. CRM Assessment
10 Step Approach to Evaluating CRM capabilities and readiness
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2. Statement of Understanding
Creating and Strengthening relationships with customers is central to
the CLIENT growth strategy. The purpose of this assessment is to
provide a preliminary evaluation of CLIENT’s capabilities in the CRM
arena with a particular emphasis on the social and digital channels.
The primary output of this assessment will be an actionable
roadmap that outlines sequence and rational for specific, near-term
recommendations.
2

3. Response Outline
o Introducing Experian Marketing Services
o Point of View (POV) on what to consider in evaluating a CRM program
o Our methodology for conducting a CRM assessment
o Partnership – anticipated CLIENT commitments / named account team
o Relevant case studies
o Pricing guidelines
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4. Understanding who we are, what we do, and those we serve
EXPERIAN MARKETING SERVICES
4

5. Experian is a Global Leader
Our vision Experian business groups
 Marketing Services
For our people, data and
 Credit Information Services
technology to become a
 Decision Analytics
necessary part of every
major consumer economy
 Interactive
around the world  Automotive
 Interactive
Competitor comparison Current work at CLIENT
5

6. Customer Intelligence Platform
You can’t build customer relationships if you don’t
have the right tools.
6

7. The world’s
largest brands
depend on us
every day.
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8. Focused on CRM
and customer
insights:
• Provide analytical services for 10 /
10 largest retailers
• Provide analytical services for 9 / 10
largest financial services and banks
• Have built, deployed, or advised on
hundreds of CRM programs
• In-house capability to deploy
unified customer view across
traditional, digital, and social
channels.
• CRM partner for award winning
programs at Amex, Restoration
Hardware, William Sonoma, and
Wells Fargo
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9. Why you should choose Experian
9

10. Point of view on characteristics of a world class program
CRM OUTLOOK
10

11. WHAT AN OLD
MOVIE CAN TEACH
US ABOUT MODERN
DAY MARKETING
IF YOU ARE DOING
CRM RIGHT, IT
SHOULD FEEL LIKE
THE COURTSHIP
SEQUENCE
(minus the slapping!)
11

12. Components of a Strong CRM Program
Specific things to look for when evaluating a new program
ID’ing the customer
Successfully growing relationships
begins with the ability to define and
identify the best customers
Continuous improvement Multi-channel perspective
Everything known about the customer and The ability to chart future conversations is tied
learned about the effectiveness of marketing to the ability to trace response across
efforts needs to be re-cycled back into the campaigns, channels, and over time.
programming process to insure incremental
improvements are delivered.
Response attribution Consumer insight
When campaigns are deployed in field, you Data in itself is useless. It’s what’s done with
need to evaluate their impact. data; how it can be applied to business
decision making and the informed crafting of
new creative that is valuable.
Communication plan
If no one hears a tree fall, does it
make a noise? The best insight in
the world won’t activate if it’s not
delivered. Control the sequence
and cadence of messaging for
optimal effect.
12

13. Defining Customer Value
Pulling together multiple dimensions of customers to better understand “best” customers
• Lives in MOSAIC cluster “Small Town Success” • Buys 12 times a year
• Baskets average $150 You can’t begin to effectively build
• Beer & Diapers relationship strategies until you
• Rock and country music have a clear understanding of who
Persona • Loyal to specific brands
• Sports and finance your best customers are and what
• Social networking they look like.
Interests
Customer From there you can then begin to
value define additional segments based
upon their potential value to the
brand and the likelihood of
retaining and growing the
Who is relationship.
• Married he?
• Two Children It’s also critical to base these
• Gets news online • Multi-channel buyer segmentations on data that you
• Follows the markets • Expected lifespan 7 years can then harness to execute
• Works in financial services • Reward program member campaigns. If you can’t reach the
• Owns a truck with high capacity towing • Responds promotional offers segment, it’s ultimately a valueless
• Sportsman and power sports enthusiast • House brand purchaser scheme.
13

14. Capturing Behavioral Interactions
Visibility into all the channels or interaction, covering where and when engagement occurs
SOCIAL DIGITAL TRADITIONAL
WOM Syndication Display Email Search Web POS Direct TV Loyalty …
Once you have an understanding of who
your best customers are, you then need to
be able to identify the channels and
campaigns that are the most effective.
On the surface, this is intuitive, but in our
highly fragmented, socially connected digital
world it is difficult to realize.
14

15. Nurturing communication
Cadence and sequence of messaging is dictated by customer persona and history of interactions
Communications with customers unfolds over time across channels. Well founded program
strategy, therefore, will address the sequence and cadence of messages being delivered via
multiple flights of creative to specific channels. The overall contact strategy should be
optimized to individual preference and past response.
No
No
Yes
No
No Yes
Yes
No
Yes
No
Yes
No
Yes
Yes
15

16. Creating Actionable Customer Insights
Data itself is valueless, it’s the actionable insight that it engenders that is valuable.
Common Attributes
• Gender: Female
• Education: College
• Age: 32
• Location: Chicago
• Marital Status: Single
“Look at Me Now” “Smell the Roses”
Moving beyond the pen portraits. The value of the data comes alive when it can be applied
against data derived customer segments to produce direction for positioning and content that
is tailored to key points of interest.
16

17. Tracking performance
Attributing response across channels, across time is critical for gauging effectiveness
AWARENESS ACQUISITION RETENTION LOYALTY
Campaign A Campaign A Campaign F
Campaign B
Campaign E Campaign B Campaign E
Campaign C Campaign C
Measuring marketing performance is about
Campaign F
more than addressing the complaints of the
Campaign D CFO. ToCampaign D
get better at something, at
anything, you need to know what does and
doesn’t work. Invoking a repeatable,
Campaign D Campaign B reliable measurement framework,
therefore, should be a key to the program.
17

18. Continuous improvement
The program must be run with an analytical discipline
Shares
The customer relationship process
Targets doesn’t have an end. When one
purchase cycle ends, the next
begins. It’s an ongoing continuum
whereby marketers much
Loyalty Awareness constantly refine and reengage
Experiences Searches customers with new targeted
messaging.
Marketers that get this will utilize
feedback loops that tie marketing
efforts to financial performance
Retention Acquisition
and leverage to improve future
messages.
Friends
Browses
Nurtures Visits
18

19. 10-step approach to assessing your CRM capabilities
ASSEMENT METHODOLOGY
19

20. CRM Assessment Methodology
10-step approach for establishing where you are and how to get to where you want to go
1 Goal Alignment
2 System Review
3 Channel Usage
4 Metrics
5 Organizational Readiness
6 Competitive Comparison
7 Benchmarks
8 Gap Assessment
9 Recommendations
10 Roadmap
20

21. Timeline
If work commences during the first week of August, deliverables will be ready week of Sept 12th
Week 1 Week 2 Week 3 Week 4 Week 5 Week 6
Goal Alignment
System Review
Channel Usage
Metrics
Organizational Readiness
Competitive Comparison
Benchmarks Assessment
Gap Assessment Technical
Review
Recommendations Marketing
Review
Roadmap Competitive
Review
21

22. 1. Goal Alignment
Ensure all stakeholders understand and are committed to the requirements and outputs of assessment
• Critical to ensure there is
alignment between Experian as
well as internal CLIENT teams
• Ensure understanding of
deliverables is shared across all
parties
• Serve as an advocate and
ambassador for effort within
CLIENT.
• Communication of critical dates
and final delivery timeline
• Formalized in a 2-page summary
22

23. 2. System Review
Assess your technology infrastructure and it’s ability to support a targeted CRM program
• We have a clear map of
the known world
• Take inventory of all your
deployed systems
• Review deployment
across internal, external,
and SaaS models
• Note redundancies and
inconsistencies
• Assess cross system
linkages
• Evaluate existence of, or
possibility for SOR
• Preliminary PII audit of
stored data
• Measure the “thickness
of the walls” between
systems
Luna Partners
23

24. 3. Channel Usage
Identify where, when, how, and why your messages are being delivered across channels
Proliferation
Fragmentation
• Audit marketing calendar • Cross channel addressability • Rough tally of touches by channel
• Identify all channels used • Assess ability to capture response • Evaluate channel propensity
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25. 4. Metrics
Review your internal depictions of customer, basis for lifetime value calculations, & marketing performance
• impressions / customers Customer Insights • net impressions
• avg. channel / customer • cost / impression
• avg. messages / customer / time TARGETING • cross channel effectiveness
• response delay cross channel • estimated cross channel response
• days awareness to acquisition • loyalty members
• estimated share of wallet • loyalty transaction penetration
RELEVANCY
• attrition rate • transaction response time
• channel preference • marketing asset / revenue ratio
• cost per acquisition • marketing attributable revenue
OPERATIONAL CONTROL
• most next likely product • media spend / revenue ratio
• social influence • channel / campaign attribution
• sentiment • unique percentile
• lifetime value • two-way synch feed count
• product affinity • key index count (wall thickness)
• discount responsiveness EFFICIENCY • unrealized value proxies
• … Performance • …
25

26. 5. Organizational Readiness
The best tool in the world is only as useful as the hand wielding it
Separation Skills
• How silo’d are responsibilities • How multi-lingual are your marketers
(traditional. digital, social, data, insights)
• Depth and breadth of separation
• Experience taking a campaign through all of
• Vertical separation. Are there player- it’s steps
managers, or clearly delineated roles
• Familiarity with nurturing or episodic
campaigns
While individual interviews are conducted, results are only presented in summarized format.
26

27. 6. Competitive Comparison
Conduct field research of your competitive, customer facing communication
• Evaluate and document strategies of two retail banking competitors (Wells, BofA)
• Evaluate and document strategies of two retailers (Target, Nordstroms)
• Sign-up for accounts. Review website, email, direct mail, display, in-branch messaging, etc.
• Source industry reports, 3rd party opinion / review, etc.
27

28. 7. Benchmarks
Plot your marketing sophistication according to stages of engagement framework
Ability to record multi- Ability to model and Ability to layout a multi- Ability to deliver
channel response and analyze the data to channel plan of coordinated messages
combine it with turn into actionable interaction that builds across traditional,
transactional and 3rd insights that can be on response to build digital, and social
party sources into an carried into channel. relevancy and timeliness channels
integrated view.
BENCHMARK
CROSS CHANNEL
MULTI CHANNEL OPTIMIZATION
MARKETING
CHANNEL recognizing channel triggered and drip
OPTIMIZATION preference campaigns
CHANNEL scoring, modeling, response revenue / outcome
EXECUTION and advanced attribution causation
segmentation
single channel, faster cycle times enabled across personalized
fire and forget multiple platforms interaction
file based list Persisting results voice of customer consolidated view
processing over time per channel of customer
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29. 8. Gap Assessment
Across all levels of the assessment, evaluate where CLIENT is behind, on or ahead of the curve
Gap Assessment – is
conducted across all
phases of the assessment
methodology, but focuses
on the:
 Customer data
 Systems review
 Channel assessment
 Applied metrics
 Competitive comparison
The relative capabilities are
ranked on a detailed basis
within each as basic, good.
better, or best.
29

30. 9. Recommendations
Provide rational and explanation as to which gaps should be addressed and where most value lies
Fast Track Assessment Opportunity Matrix
ECD Core Team Scores
Com petitive Know ledge
High
Service Provider Leverage
Bubbles sized by Potential Benefit
White Outline indicates Jum p Start Near Term
Opportunity Custom er Contact Strategy Program
Effectiveness
High Level Measures
Customer
Capability Enhancem ent Insight
Processes
Custom er Segm entation CRM Culture
Marketing Metrics
Feasibility
Business Intelligence
Capability
Custom er Transactional Data
Custom er Profiles and
Analytics
Custom er Product Dynam ic
Multi-Channel Choice
Longer Term
Custom er Marketing Database Tracking and Testing Strategic
Discipline Initiatives
Low
High Cost Short Time to Low
Long Time to
Execute Execute
30

31. 10. Roadmap
Outline your plan of attack with prioritized recommendations and estimated effort levels
12-month roadmap
Roadmap Deliverable –
Create roadmap and
implementation plan to
address each measurement
challenge and marketing
opportunity –
recommendation for go-
13-week jump start forward
 Resource requirements and
timing
 Durations and dependencies
of all initiatives
 Checkpoints to assess the
progress and success
31

32. Summary of Deliverables
What you get at the end of the day
• Assessment initiation summary outlining specific deliverables,
timeline, and communication strategy for findings / broader
interactions.
• Technology audit inclusive of map, inventory, and written evaluation of
interoperability and the state of the data
• Cross-channel usage audit, intensity / frequency matrix, ability to
deliver addressable audiences. Form of 5-slide summary
• Organizational readiness review. Summarized view of structure and
cross functional skills. Form of 2-slide summary.
• Comprehensive competitive CRM comparison with benchmarks.
Covers details of communication strategy as well as industry best
practices around organization capabilities. Form of ~50-slide
presentation.
• Gap assessment and recommendation review. Presented in a
matrixed spreadsheet for easy sorting and analysis and a graphed
opportunity chart.
• Roadmap. A high level effort and deliverable timeline that addresses
the delivery of recommended opportunities and summarizes in a
written executive summary.
32

33. Success requires commitment of key stakeholders
TEAM EFFORT
33

34. Deployment Team
Ensuring all the right resources are aligned and ready to go as needed
Executive
Sponsor
MARCUS TEWKSBURY
CRM expert that bridges the gap
between IT and the business. His
Relationship Technical retail work includes: Coach,
Strategic Lead Hallmark, Walgreens, and Wal-
Manager Architect
Mart.
Strategy
Analyst
Strategy
Analyst
34

35. Shared Commitment
Both organizations will contribute to, and share in the success of the effort
35

36. Driving CRM for well known brands around the world
RELEVANT CASE STUDIES
36

37. Estimated detail for outlined scope of work
PRICING GUIDELINES
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38. © 2011 Experian Information Solutions, Inc. All rights reserved.