The CRM Jungle


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CIM Sussex CRM Conference presentation - March 2007

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  • All business people are also consumers, so if you are in a B2B marketplace, you should acknowledge the rules of the consumer marketplace. I would also argue that this includes the Data Protection Act, which does not currently apply to businesses!
  • When I was a salesman, my boss told me that people bought products or services from their ‘friends’. I have yet to meet a salesman that I could call a friend – not whilst they were trying to get my money, anyway! Trust is the basis for building loyalty which in turn will increase interaction – it is up to you to turn this interaction into profit. As a personal example – I am an Apple McIntosh user at home, but have to suffer PC’s at work. Think about the customer loyalty Apple has – most Apple users can be identified by two main attributes – they are fiercely loyal to the brand, and they are poor, because the loyalty costs so much! I have used Michael Porter’s value chain model to demonstrate the trust-focused value chain, culminating in ‘trust’ in a brand, product or service. It is no fluke that trust occupies the same space that ‘profit’ does in Porter’s model, indeed I could have extended it with another field to the right called profit. Being trustworthy is profitable.
  • The normal trust lifecycle curve shows that a customer will start in an untrusting state - they are unaware of the brand’s reputation. During the transaction, the customer will build a view of the company, trusting the relationship as they go. Over time, and [hopefully] with repeat transactions, this trust will be confirmed, and then maintained. Advocates, as we highlighted before, will reduce the time required to build trust, because if you trust the advocate who recommended the company to you, you will adopt some of that trust.
  • The CRM Jungle

    1. 1. The CRM Jungle Justification and implementation Thom Poole Managing Consultant February 2007
    2. 2. Agenda <ul><li>Requirements </li></ul><ul><ul><li>Marketing </li></ul></ul><ul><ul><li>CRM </li></ul></ul><ul><ul><li>How do you view your customer? </li></ul></ul><ul><li>Operating your CRM </li></ul><ul><ul><li>Operational </li></ul></ul><ul><ul><li>Analytical </li></ul></ul><ul><ul><li>Trust </li></ul></ul><ul><li>The business case </li></ul><ul><ul><li>Justification </li></ul></ul><ul><ul><li>The checklist </li></ul></ul>
    3. 3. Why me? A quick biography of Thom Poole
    4. 4. Why I’m here - Thom Poole <ul><li>Web & e-marketing trailblazer since 1992 </li></ul><ul><li>Taught e-marketing for 8 years </li></ul><ul><ul><li>e-Commerce </li></ul></ul><ul><ul><li>Web design for marketers (and the terrified!) </li></ul></ul><ul><ul><li>CRM </li></ul></ul><ul><li>Written papers on ‘Data Privacy’, ‘The Marketing Art of the Opt-in’ and ‘Trust in Business and Marketing’ </li></ul><ul><li>Written a book on ‘ethical e-marketing’ called ‘Play It By Trust’ </li></ul><ul><li>Lately Head of Portal Customer Interaction at O2 – focus on customer centricity and implementing an e-CRM system for 18 million names </li></ul><ul><li>Consultant & business mentor for e-marketing strategy and implementation </li></ul>
    5. 5. Requirements Why do you need CRM?
    6. 6. Definition of Marketing - CIM <ul><li>Marketing is the management process responsible for identifying, anticipating and satisfying customer requirements profitably </li></ul><ul><ul><li>Customers are at the heart of the process </li></ul></ul><ul><ul><li>It is the study of the market forces and factors, and the development of a company’s position to optimise its benefit from them </li></ul></ul>
    7. 7. Alternative Definition of Marketing <ul><li>Marketing is all about EXPLOITATION ! </li></ul><ul><ul><li>You learn all about your customers </li></ul></ul><ul><ul><li>Your products and technologies </li></ul></ul><ul><ul><li>Your competitors </li></ul></ul><ul><ul><li>Your economic environment </li></ul></ul><ul><ul><li>Your customers aspirations, etc, etc </li></ul></ul><ul><li>And you exploit that KNOWLEDGE profitably </li></ul><ul><ul><li>You give your customers what they want </li></ul></ul><ul><ul><li>What they think they want </li></ul></ul><ul><ul><li>What you can convince them they want </li></ul></ul>Thom Poole - 2000
    8. 8. Customer Relationship Marketing <ul><li>This is a form of marketing that aims to create relationships with a company’s customers </li></ul><ul><li>It involves a database that records all the customer interactions and their outcome </li></ul><ul><li>Some complex systems can generate millions of lines of information each day </li></ul><ul><li>It is one thing to collect it, it is another to know what to do with it: </li></ul><ul><ul><li>HEADLINE: CRM is dead! </li></ul></ul>
    9. 9. Types of CRM <ul><li>Simple rotodex </li></ul><ul><li>Contact database </li></ul><ul><li>CRM System </li></ul><ul><li>Complex ERM System </li></ul><ul><li>Propensity Modelling System </li></ul><ul><li>E-CRM </li></ul>
    10. 10. What do you want? <ul><li>“ We want to thoroughly understand our customers’ needs - even before they know themselves” </li></ul><ul><li>“ Decreasing customer churn by increasing customer satisfaction” </li></ul><ul><li>“ Motivating customers to initiate revenue-generating contacts with us” </li></ul><ul><li>“ Increasing the likelihood of the ‘right response’ by a given customer or customer segment” </li></ul><ul><li>“ To use technology to improve customer service and enable a greater degree of customer differentiation in order to deliver customer interactions” </li></ul><ul><li>“ We want to attract customers - both old and new - through more personalised communications” </li></ul>
    11. 11. How do you view your customers?
    12. 12. The single view of customers
    13. 13. How do you operate a CRM? How does it fit into your business?
    14. 14. Operational CRM Customers Call Centre Web Access E-Mail Usage Fax Direct Sales Refined Business Actions Dych é, J. 2002
    15. 15. Operational CRM <ul><li>You want to know everything about your customers </li></ul><ul><li>Personalise the offer and communication </li></ul><ul><li>Log every customer interaction </li></ul><ul><li>Make the customer feel important </li></ul><ul><li>Organise your resources to benefit customers </li></ul>
    16. 16. Operational example <ul><li>O2 customer offered an upgraded phone & contract </li></ul><ul><li>She doesn’t like the phone offered </li></ul><ul><li>O2 offer the next most appropriate phone </li></ul><ul><li>All mail (post & e-mail) and call centres (telesales & care) changes to the new offer </li></ul><ul><li>Customer buys new phone and contract in O2 shop </li></ul><ul><li>All customer communications change to support, and cross-sell the customer’s new ‘lifestyle’ </li></ul>
    17. 17. Analytical CRM Refined Business Actions Process improve- ment Customer feedback Business intelligence Integrated Database ```` Analysis Information Business systems Billing Provisioning Accounts payable/ receivable Sales Call centre Dych é, J. 2002
    18. 18. The analytical environment <ul><li>This is not about individuals, but about trends </li></ul><ul><li>It helps with the segmentation of customers, and the targeting of key segments </li></ul><ul><li>Processes can be altered, based on trends </li></ul><ul><li>All touchpoints are relevant and important </li></ul><ul><li>The analytical environment includes internal touchpoints, as well as external </li></ul>
    19. 19. Relationship time-span <ul><li>A relationship should be long-term </li></ul><ul><li>The relationship should be beneficial to both parties </li></ul><ul><li>A relationship involves mutual trust - a form of emotion </li></ul><ul><li>“People buy from their friends” </li></ul>
    20. 20. Examples of segment motivation Clark, M; Smith, B & McDonald, M. 2003 <ul><li>Basic performance and quality characteristics </li></ul><ul><li>Legal or regulatory approval </li></ul><ul><li>Basic availability levels </li></ul>Basic or efficacy needs <ul><li>Higher performance or availability characteristics </li></ul><ul><li>Use or product compatibility issues </li></ul><ul><li>Bundling or consolidated supply needs </li></ul>Higher or efficiency needs <ul><li>Confidence in use needs </li></ul><ul><li>Self-image needs </li></ul><ul><li>Organisational cultural fit </li></ul><ul><li>Personal career management needs </li></ul>Highest or emotional needs Examples observed Motivation level
    21. 21. Friendship = trust <ul><li>‘ People buy from their friends’ </li></ul><ul><li>Trust builds loyalty </li></ul><ul><li>Trust will drive profit </li></ul>Trust-focused value chain (Poole 2003, adapted from Porter, 1998)
    22. 22. Trust lifecycle Time Level of Trust Unaware Build Trust Confirm Trust Maintain Trust Register/Transact/Confirm Consider/Validation/Assess Browse/Search/Compare Trial Threshold Purchase Threshold Habit Threshold Untrust phase Extrinsic Intrinstic Recommendation  Poole (2005)
    23. 23. Refined marketing campaigns Customer interaction Refined understanding Refined communications New campaigns Customer response Behaviour analysis Dych é, J. 2002
    24. 24. Thank you Next - Salesforce presentation