1) The document discusses the "magic of seven" value drivers for CRM success. It identifies seven core CRM components that can improve customer equity by increasing value, brand, and relationship equity: 1) targeting profitable customers, 2) integrated offerings, 3) sales force efficiency, 4) individualized marketing, 5) customized products/services, 6) customer service efficiency, and 7) improved pricing. 2) It explains how each of the seven components can positively impact different dimensions of customer equity at different customer relationship stages from acquisition to maintenance to termination. 3) Measuring changes in customer perceptions of value, brand, and relationship equity provides ongoing accountability for CRM investments and focuses initiatives on the

1. Back to Basics CRM
- the magic of seven
Communicate, Collaborate, Compete
#TFM2012
David Beard
Sage CRM Evangelist

2. What’s the evangelist stuff then?
2

3. Sage Overview
• Over £1B in revenue
• 14,500 employees
• Over 6 million customers
• Global distribution network
– 30,000 reseller partners
• Presence in 26 countries
• 3rd largest business
management software provider
worldwide
3

4. About Sage CRM
Sage CRM offers customers
a rapid route to success
and value
4

5. What The Analysts Say
Gartner on Sage CRM
Strengths include:
End-user usability
Core opportunity management
End-to-end business process support, such as "opportunity to cash"
Source: Gartner Magic Quadrant for Sales Force Automation 28 July
2010
Forrester on Sage CRM
The solution’s primary strengths include a low price tag, strong usability,
and quick time-to-value. The solution offers an intuitive admin UI, strong
Source: Gartner Magic
Quadrant forperformance capabilities, and strong product help functionality. In
Sales Force
Automation 28 July 2010
addition, the product integrates well with other Sage back-office
software products.
Source: The Forrester Wave™: CRM Suites For Midsized Organizations, Q2 2010 , Forrester Research,
Inc
5

6. What’s the problem ?
The case for
Customer Relationship Management
6

7. Common Business Issues
Faced by Companies Today
“I need a quick “I need to be able
and easy way for to calculate the
me to see how cost per member
the business is easily and
performing” accurately” “Acquisition
“I need to campaigns are
know what “I want to difficult to manage
the revenue maximise the and information
flow looks productivity of can go missing”
“It take me
like quickly all my
ages to roll up
and easily” employees”
all the line-of-
business
forecasts”
“forecasts are
difficult to “We don’t have an up
create and to date log of all
time- communications with
consuming” “I want to have members” “Our
access to the processes
“I sometimes same member are not
spend my information the automated
whole customer team “I don’t want
so issues
morning has so I to be
sometimes
trying to understand any wasting time
fall through
figure out who issues” re-entering
the cracks”
I’m meant to the same
follow-up with information
and when” into multiple
7 places”

8. Why Do Companies
Experience These Difficulties?
User
CRM Brings it All Together
Information in Disparate Locations Throughout the Company
8

9. So, what is CRM ?
What is CRM ?
Customer Relationship Management
9

10. Time to define …
“A business strategy whose outcomes optimise
profitability, revenue and customer satisfaction…
CRM technologies should enable greater customer
insight, increased customer access, more effective
customer interactions, and integration throughout all
customer channels and back-office enterprise
functions”.
-Gartner
10

11. CRM is …
a means by which to achieve
strategic goals
11

12. CRM for Marketers
The “magic of seven” value drivers
for success

13. Finding the value drivers:
- the challenges
• Big investment with little measurable feedback
• Cross company thinking often means a series of stumbling blocks
• BUT ….
• Successful implementations share common characteristics
13

14. Finding the value drivers:
- reset your beliefs
• CRM is not an over-arching business salvo
• It’s an enabler to achieve improved customer relationships
• Measuring the outputs of investments in CRM
measures the CRM strategy
• A measured CRM strategy, with customers in mind
= Happy Customers
= Profits
14

15. Finding the value drivers:
- some thoughts
• What is your CRM initiative - strategic or operational?
• Strategic:
• How your organisation relates to its customers
• Integration of marketing, sales and service to
achieve greater effectiveness and efficiency
• Operational:
• gather customer data quickly
• identify most valuable customers
• increase loyalty through customised offers
Across three stages of customer relationships
- acquisition, maintenance & termination
15

16. Finding the value drivers:
- focus on the unique characteristics
• CRM has a number of unique characteristics.
• It’s about
• One to one relationships
• Interactive processes not simple transactions
• Value-added activity based on mutual interdependence
• Collaboration between suppliers and customers
16

17. Finding the value drivers:
- measuring CRM success
• Let’s harden up on what success means
• Profitability ? Satisfaction ? Retention ? Share of wallet ?
• Customer Equity (CE)
• Identifies the value of a customer to a selling firm
17

18. Finding the value drivers:
- let’s make sense of Customer Equity
Relating CRM to Customer Equity (CE), provides
• a common basis on which to measure different customer
impacting initiatives
• Customer Equity (CE) is
• Concerned with identifying value of customer to the business
• Provides an indication that margin generated is above &
beyond product and selling costs
• Focuses on two important concerns for marketers
• Customer relationships
• Financial accountability
18

19. Finding the value drivers:
- the dimensions of Customer Equity
CE has three subcomponents
Value equity – based on the utility of the brand Value
to the customer
Brand equity - more concerned with the meaning
of the brand to the customer
Relationship equity – the relationship above and Brand
beyond the other two elements
Relationship
Customer
Equity
19

20. Finding the value:
- core benefits of CRM that drive CE
Seven core CRM components that drive CE
1. Improved ability to target profitable customers
2. Integrated offerings across channels leading to cost savings
and consistency
3. Improved sales force efficiency and effectiveness
4. Individualised pricing messages
5. Customised products and services
6. Improved customer services efficiency and effectiveness
7. Improved pricing
These do not vary greatly across industries or countries
20

21. Finding the value:
- let’s look at each for CE drivers
For each of the seven core CRM
components that drive
Customer Equity Value

Brand U
Relationship 
21

22. Finding the value:
- let’s look at each for CE drivers
Seven core CRM components that drive CE
1. Improved ability to target profitable customers

Improvements here are positively related to value equity
in the customer acquisition stage
22

23. Finding the value:
- let’s look at each for CE drivers
Seven core CRM components that drive CE
1. Improved ability to target profitable customers
2. Integrated offerings across channels leading
to cost savings and consistency

U
Improvements here are positively related to value equity
& brand equity in the maintenance stage
23

24. Finding the value:
- let’s look at each for CE drivers
Seven core CRM components that drive CE
1. Improved ability to target profitable customers
2. Integrated offerings across channels leading
to cost savings and consistency
3. Improved sales force efficiency and effectiveness 
U

Improvements here are positively related to value &
brand equity in the acquisition and maintenance stages
as well as relationship equity in maintenance stages
24

25. Finding the value drivers:
- let’s look at each for CE drivers
Seven core CRM components that drive CE
1. Improved ability to target profitable customers
2. Integrated offerings across channels leading
to cost savings and consistency
3. Improved sales force efficiency and effectiveness 
4. Individualised marketing messages
U
Improvements here are positively related to value &
brand equity in acquisition and maintenance stages.
25

26. Finding the value drivers:
- let’s look at each for CE drivers
Seven core CRM components that drive CE
1. Improved ability to target profitable customers
2. Integrated offerings across channels leading
to cost savings and consistency
3. Improved sales force efficiency and effectiveness
4. Individualised marketing messages
5. Customised products and services U

Improvements here are positively related to brand &
relationship equity in the maintenance stage.
26

27. Finding the value drivers:
- let’s look at each for CE drivers
Seven core CRM components that drive CE
1. Improved ability to target profitable customers
2. Integrated offerings across channels leading
to cost savings and consistency
3. Improved sales force efficiency and effectiveness 
4. Individualised marketing messages
5. Customised products and services U
6. Improved customer services efficiency and
effectiveness 
Improvements here are positively related to value &
brand equity in acquisition and maintenance stages
& relationship equity in the maintenance stage.
27

28. Finding the value drivers:
- let’s look at each for CE drivers
Seven core CRM components that drive CE
1. Improved ability to target profitable customers
2. Integrated offerings across channels leading to
cost savings and consistency
3. Improved sales force efficiency and effectiveness 
4. Individualised marketing messages
5. Customised products and services
6. Improved customer services efficiency and effectiveness
7. Improved pricing
Improvements here are positively related to value equity
during acquisition and maintenance stages
28

29. The value drivers story
- the benefits in using CE with CRM
Whether you are considering operational or strategic CRM
• Focuses CRM initiatives on 7 core components
• Provides a broader view of measurement for process &
technology change
• Provides financial accountability for CRM investments
• Measuring changes in customer’s perception of value,
brand and relationship equity gives on-going accountability
 U 
29

30. Back to Basics CRM
- the magic of seven
Communicate, Collaborate, Compete
#TFM2012
David Beard
Sage CRM Evangelist