The White Whale CRM Test Kit. Instruction Manual (download version)

Transcription

1 The White Whale CRM Test Kit Instruction Manual (download version)

2 1. Contents Contents of the Instruction Manual This document acts as an instruction manual for the White Whale CRM Test Kit. It contains the following sections: 1. Contents 2. The CRM Test Kit 3. An overview of White Whale 4. The theory behind the CRM Test Kit 5. The White Whale CRM Indicators 6. Performing the CRM Capability Test This Test Kit is designed to provide a quick and ready measurement of the CRM capability of any organisation. The test process uses a simplified version of the White Whale CRM Indicators. The CRM Indicators are part of a broader and more complex concept, called the White Whale CRM Framework, which is used by White Whale for CRM consultancy assignments. To use the CRM Test Kit for a quick and high level CRM capability assessment of your organisation then you need only read sections 2 and 6 of this Instruction Manual. For those who wish to know more about the CRM Indicators and the CRM theory behind the test process then please also read Sections 4 and 5. Alternatively, if you would like White Whale to perform the test for FREE, then contact us for more information. Our contact details are at the back of this manual. CRM Test Kit (Copyright White Whale Limited 2000) Page 2

3 2. The CRM Test Kit The White Whale CRM Test Kit White Whale are pleased that you have decided to use the White Whale CRM Test Kit. We believe that it is a unique concept and a valuable tool for any organisation looking at or involved in Customer Relationship Management. The CRM Test Kit has a number of features. It is: simple and straightforward to use a rapid process (the test will only take about 30 minutes to complete) a test that can be used by most people within an organisation part of a broader concept (the White Whale CRM Framework) so it completely integrates with other CRM services if required. The benefits of using the CRM Test Kit The CRM Test Kit will provide you with a rapid high level assessment of your CRM capability. For instance it will help you: identify areas where the business already has significant CRM capability assess the value (or not) of specific investments understand those areas where CRM capability is weak pinpoint problems in, and causes of, poor customer service and customer dissatisfaction spot inhibitors to mass customisation, the development of learning relationships and other important CRM concepts suggest areas where future investment should be made to enhance overall competitive advantage. Situations where the CRM Test Kit can be used The CRM Test Kit is suitable for any organisation regardless of its current CRM capability. Where organisations haven t started to address CRM it will provide direction and structure to strategies and plans. Where CRM investments are already in place, then it will confirm the value of those investments and help identify future priorities. Who should perform the CRM Capability Test For a business to manage customers effectively requires the integration and coordination of processes and activities across the entire organisation. This breadth of scope is reflected in the Test Kit. Therefore it is recommended that the test should be performed by someone with a wide view of the business and its operations. Some of our customers perform the test as a group exercise working with people from different business backgrounds. This ensures an interesting discussion and also provides an opportunity to share knowledge and experience of CRM within their company. CRM Test Kit (Copyright White Whale Limited 2000) Page 3

4 However the test is performed, the most important consideration is how to interpret the results and identify any actions required to enhance current CRM capability. Contents of the CRM Test Kit The CRM Test Kit consists of the following components: instruction manual (this document) set of White Whale CRM Indicators (in summary form in a separate document) CRM Indicator score cards (a pack of 10 different cards) electronic copy of these files (on a White Whale CD) fibre tipped pen (for completing the CRM Indicator score cards) Please contact White Whale if you need further copies of this kit or any of the components. Information about how to contact us is at the back of this document. Alternatively download additional copies of the material from the White Whale website ( CRM Test Kit (Copyright White Whale Limited 2000) Page 4

5 3. An overview of White Whale White Whale is a business consultancy with expertise in CRM. We understand that managing customer relationships effectively is a commercial organisation s most important capability. We also understand that this presents significant challenges and increases management complexity. White Whale offers a range of skills and services which help our clients meet these challenges. Whether an organisation is just starting on the CRM journey, or has an established Customer Relationship Management capability, we can add value. We are flexible, independent and dynamic and are known for the high quality, creative and innovative solutions we provide to our customers. Operating in sectors including pharmaceuticals, healthcare, financial services, retail, IT and telecommunications, we focus on the critical issues at the heart of CRM: general business consultancy, including marketing, customer services, sales, process design and e-commerce organisational development and change management the application of information technology to support enhanced customer relationships As well as offering strategic and tactical consultancy, strong project management disciplines and a focus on the pragmatic, we also provide a number of unique packaged services, from the White Whale CRM Portfolio. These include CRM Audit, CRM Design and CRM Strategy Development. We also provide personalised services such as interim management and operational support. CRM Test Kit (Copyright White Whale Limited 2000) Page 5

6 4. The theory behind the CRM Test Kit Customer Relationship Management The competitive nature of business is such that every company can now compete equally in terms of price, quality and product features. The only area where real competitive advantage can now be obtained is through the quality of the relationship with the customer, which is why developing CRM capabilities is so important. Achieving this requires significant business transformation and investment. The rewards, however, are significant because as CRM capability increases, customer satisfaction and retention is enhanced, margin erosion is reduced and profitability rises. CRM capabilities To be able to do CRM requires a CRM enterprise to develop capabilities in various areas such as the ability to: identify customers as individuals and interact with them based on previous interactions and knowledge differentiate between customers of different importance to the organisation develop knowledge about a customer and their individual preferences and needs mass customise products or services which meet a customer s needs perform the administration and logistics, such as production and delivery, associated with these customised products operate and implement information systems and technology organise procurement and distribution processes so that the needs of individual customers are met. develop a culture and organisational structure that supports customer centricity White Whale has developed a number of tools to help manage the CRM change process. One of these tools is the White Whale CRM Indicators. The indicators reflect the capabilities that an organisation needs to have in place to be able to practice CRM. A simplified version of the CRM Indicators forms the basis of this CRM Test Kit, as outlined in the following section. For a more detailed explanation of how CRM theory has been applied to develop this CRM Test Kit please contact White Whale. CRM Test Kit (Copyright White Whale Limited 2000) Page 6

7 5. The White Whale CRM Indicators White Whale CRM Indicators The White Whale CRM Indicators is one component of the White Whale CRM Framework. The Framework has been designed to provide structure and focus to CRM change programmes and helps to identify, design, plan and manage CRM initiatives. The CRM Indicators represent those internal and external oriented business capabilities that an organisation must develop to become a CRM enterprise. Because the scope of CRM is business wide, the capabilities encompass all business areas from marketing and sales through to production, IT and organisational culture. Each indicator belongs to a CRM Indicator Group that reflects the indicators (capabilities) role in a CRM enterprise. The different CRM Indicator Groups are as follows: 1. Customer identification and interaction 2. Customisation capability 3. Customer differentiation 4. Needs fulfilment and customer groups management 5. Customer information and knowledge management 6. Information systems and technology 7. Organisation and culture 8. Demand and supply chains/channel management Within each Indicator Group are the separate CRM Indicators. The CRM Indicators within the Indicator Group Customer Identification and Interaction are as follows: 1.1 Customer identification 1.2 Treatment of customer individuality 1.3 Contact points 1.4 Requesting and receiving customer feedback 1.5 Quality of interaction 1.6 Interaction characteristics 1.7 Channels of customer interaction Each indicator can be considered as consisting of a number of levels. However, for the purposes of performing this rapid assessment of CRM capability, only two levels are appropriate, namely the indicator definition and the indicator capability continuum. The CRM Indicators and Capability Continuum To help illustrate the concept of the CRM Indicators consider the indicator Customer Identification from the CRM Indicator Group Customer Identification and Interaction. This indicator represents the ability of a CRM Test Kit (Copyright White Whale Limited 2000) Page 7

8 business to treat customers as individuals (a fundamental aspect of CRM) and is defined as: The ability to recognise individual customers and distribute this knowledge to everyone within the organisation The ability of a business to recognise customers can be represented as a continuum, from zero capability to optimum capability. In the above situation the zero capability point on the continuum would equate to where a business has no capability to treat customers as individuals. At the other extreme, the continuum extends to a point of optimum capability where the business can recognise individual customers at all contact points and share and maintain information about them within the organisation. The CRM Indicator Continuum is a critical concept because by positioning the organisation on each of the different continua, it is possible to build up a picture of the organisation s overall CRM capability. It is a greatly simplified version of this approach that forms the basis of the CRM Test Kit. The Continuum Positioning Questionnaire There are a number of different techniques that could be used to position an organisation on the CRM Indicator Continua. One of the most effective is a continuum positioning questionnaire. Although this produces a simplified statement of CRM Capability, when used in a workshop setting it has the added benefit of generating discussion, improving communication and understanding within an organisation and aligning a business behind the critical issues. The continuum positioning questionnaire works as follows: 1. each continuum (CRM Indicator) is assumed to have a number of discrete points along it, representing different levels of capability 2. each of these different capability levels is allocated a notional percentage of the whole continuum (maximum of 100% in total!) 3. for each separate capability level, determine if the capability is present 4. sum the allocated percentages of the capabilities that are present to calculate the total percentage for that indicator 5. position the organisation at the appropriate point on the capability continuum for that indicator 6. repeat the process for all of the CRM Indicators A similar, but simplified, version of this positioning process is used for the CRM Test Kit. To simplify the process, instead of assessing individual capability points, a scale of 1 to 10 is used to reflect the overall CRM capability for each indicator. How to interpret an organisation s position on the continuum Once an organisation has been positioned against each of the CRM Indicators then the gap between the current capability and optimum capability represents the relative strengths and weaknesses of the organisation s CRM CRM Test Kit (Copyright White Whale Limited 2000) Page 8

9 capability. It is now a simple task to identify those capabilities areas which need to be improved in a CRM change programme. Before deciding which capabilities should be treated as priorities it is important to consider the capability gap in the context of an organisation s mission and values as well as considering the effort involved in closing the capability gaps. Some customer relationship management capabilities will be more important than others, reflecting different strategic emphases, while some capabilities will be easier to develop and acquire than others. Additionally, although most organisations will aim to get to the furthest point on the continuum, this is not always the case for all CRM capabilities. White Whale helps a lot of its clients with this prioritisation and planning process. By using the CRM Indicators and CRM Framework we provide a structured and focused environment in which to design and plan for future CRM capability. The CRM Indicators act as common reference points for communication and discussion, increasing the ability to share information and ideas within an organisation. To find out more about the CRM Indicators, the Capability Continuum and the Continuum Positioning Questionnaire, please contact White Whale. CRM Test Kit (Copyright White Whale Limited 2000) Page 9

10 6. Performing the CRM Capability Test The CRM Indicators represent internal and external oriented business capabilities that an organisation must develop to become a CRM enterprise. Because the scope of CRM is business wide, the capabilities encompass all business areas from marketing and sales through to production, IT and organisational culture. This breadth is reflected in the structure of the indicators into 8 Indicator Groups. Each CRM Indicator can be thought of as representing a continuum between zero and optimum capability (for that particular aspect of the business defined by the indicator). It is the process of placing your organisation (using a scale from 1 to 10) on the continuum for each indicator (capability) that forms the basis of the test. If the resulting answers are plotted on the CRM Indicator Score Cards, then a graphical representation of your organisation s CRM capability can be produced. By completing the test an organisation will understand two things: 1. The strengths and weaknesses of the organisation s current CRM capability 2. The critical business areas that need to be focused on to optimise future competitive advantage and CRM capability The scope of the test It is important that the scope of the test is appropriate. To obtain maximum benefit (and a full set of results) the test is best applied to an entire business. It is recommended that the test should be applied to either: a division or operating company, or part of an organisation which is large enough to represent the whole range of customer interactions and related processes, or An entire product range/set and associated supporting operations (e.g. sales, customer services, administration, product development), or a country affiliate Conversely if the test is too wide in scope, for instance if it covers a group of businesses, then there will not be sufficient granularity in the answers to infer enough about the CRM capabilities in the individual businesses. In this instance it is recommended that the test is run separately for each division or operating company within the group. For help and advice on deciding on the scope of the test, or for additional copies of the Test Kit, contact White Whale. CRM Test Kit (Copyright White Whale Limited 2000) Page 10

11 The CRM Indicator Score Cards A key component of the Test Kit is the CRM Indicator Score Card. There are 10 cards in the Test Kit made up of a card for each CRM Indicator Group (a total of 8), a CRM Group Indicator Score Card and a spare CRM Indicator Score Card. Each of the CRM Indicator Score Cards contains: the CRM Indicators for the CRM Indicator Group a box for scoring the CRM Indicator (from 1 to 10) a spidergram for plotting the score of each of the CRM Indicators in the Indicator Group. a box for recording the average CRM Indicator score for that Group. (The CRM Indicator Group Score Card has a similar structure, but is used for recording and plotting the average capability score from each of the separate Indicator Groups). The spare CRM Indicator Score Card is designed to document any additional CRM Indicators which you may feel need to be included. The CRM Indicators in this kit are designed to be comprehensive, however, there may be some aspects of the CRM capabilities in your organisation which are not reflected by this high level generic assessment. An example of this is in pharmaceutical companies, where the role of the Medical Information team in the customer interface, is probably not reflected with sufficient emphasis. Similarly, companies in the telecommunications, retail and financial services sectors may have small variations in their CRM capabilities which they feel may be worth identifying separately. Industry specific versions of the CRM Indicators Because of the small differences in CRM capabilities between different industries, White Whale has developed industry specific versions of the CRM Framework. For the purposes of the high level capability assessment provided by this kit we felt that there was minimum benefit in using these industry specific indicators. However, when doing a more detailed CRM Audit process, White Whale would ensure that a comprehensive set of indicators for that individual organisation was defined and agreed as a first step. If you would like more information about the industry specific indicators then contact White Whale. CRM Test Kit (Copyright White Whale Limited 2000) Page 11

12 The test process The test process consists of a number of simple steps, as follows: 1. select a CRM Indicator group 2. take the first CRM Indicator in the group. Read the definition for the indicator and the continuum (in the separate summary document CRM Indicators and Definitions ) and apply them to your business situation. 3. using your judgement and experience (and contributions from others as appropriate), consider where on the capability continuum your business should be placed for that capability. Reflect that continuum position by using a number from 1 to 10 (with 1 being minimal capability and 10 being optimum capability). 4. put this score in the box on the Indicator Score Card and mark the relevant position on the graph. 5. complete the above process for each of the CRM Indicators in that indicator group. 6. average the scores for each of the indicators within the group and transfer this average score to the CRM Indicator Group Score Card 7. repeat steps 2-6 for each of the CRM Indicator Groups. 8. complete the graph on the CRM Indicator Group Score Card using the scores from each of the other Indicator Score Cards Interpretation of the results When the Indicator Score Cards have been completed for each of the Indicator Groups, the graphs provide a representation of your organisation s current CRM Capability. Interpreting the graphs enables you to: Identify those areas where the business has significant CRM capability Assess the value (or not) of specific investments by the impact they have had on CRM capability in certain areas Understand those areas where CRM capability is weak and where there may be problems with customer service and customer satisfaction Learn which areas of the business are inhibitors to mass customisation, development of learning relationships and other CRM requirements Suggest areas where future investment should be made to enhance overall competitive advantage. If you would like FREE help to perform the test or interpret the results, then please contact White Whale for more information. Our contact details are on the following page. CRM Test Kit (Copyright White Whale Limited 2000) Page 12

13 address: Web site: Telephone number: (0) Head Office: White Whale Limited Parker s House 44 Regent Street Cambridge Cambridgeshire CB2 1DP CRM Test Kit (Copyright White Whale Limited 2000) Page 13

14 The White Whale CRM FRAmework CRM indicators and definitions (Summary)

15 1. Customer identification and interaction The ability to identify individual customers and manage the interaction with them. 1.1 CUSTOMER IDENTIFICATION Description: The ability to recognise individual customers and distribute this knowledge to everyone within the organisation. Continuum: None or few customers are known to the organisation through to all customers are known and this knowledge is readily available to everyone in the organisation. 1.2 TREATMENT OF CUSTOMER INDIVIDUALITY Description: The ability to treat different customers differently. Continuum: No customer is treated differently to any other customer through to all customers are treated differently and are made to feel special. 1.3 CONTACT POINTS Description: Knowing every point in the organisation that can have contact with the customer through any media. Continuum: Not all contact points are identified through to all are identified with the information generated at the point of contact being coordinated throughout the organisation. 1.4 REQUESTING AND RECEIVING CUSTOMER FEEDBACK Description: The ability to ask the customer for feedback on the organisation s products and services and to receive similar feedback either prompted or not. Continuum: No ability to ask for or receive feedback to full interaction with the customer including taking appropriate action based on feedback. CRM Indicators (Copyright White Whale Limited 2000) Page 2

16 1.5 QUALITY OF INTERACTION Description: The ability to meet given standards for all customer communication and interaction. Continuum: Poor quality and unacceptable customer service interaction through to consistently meeting high quality defined standards of interaction with customers. 1.6 INTERACTION CHARACTERISTICS Description: The ability to interact with customers based upon their personal preferences. Continuum: No needs based interaction with customers to regular and quality interactions with customers based upon customer preferences. 1.7 CHANNELS OF CUSTOMER INTERACTION Description: The ability to use those media and methods preferred by the customer for interaction. Continuum: No understanding of which channels customers prefer for interaction to a complete understanding and use of preferred channels. CRM Indicators (Copyright White Whale Limited 2000) Page 3

17 2. Customisation capability The ability of the organisation to customise its products and services to meet customer preferences and requirements. 2.1 PRODUCT CUSTOMISATION Description: The ability of the organisation to modify products to meet customer preferences. Continuum: No ability to change products for customers to complete flexibility of modification based upon customer preferences. 2.2 SERVICE CUSTOMISATION Description: The ability of the organisation to modify services to meet customer preferences. Continuum: No ability to change services for customers to complete flexibility of modification based upon customer preferences. 2.3 PRODUCTION FLEXIBILITY Description: The ability to vary production methods to support customisation of products. Continuum: Fixed production capability through to full flexibility in production variation. 2.4 PACKAGING/LABELLING FLEXIBILITY Description: The ability to change product and service packaging and labelling to handle customisation based on customer preferences. Continuum: No or little ability or power to change labels and packaging types to complete freedom and flexibility to modify these aspects of products and services. CRM Indicators (Copyright White Whale Limited 2000) Page 4

18 2.5 PRICING Description: The ability to vary prices of products and services for individual customers. Continuum: No ability or control over price through to complete freedom and flexibility to adjust prices for products and services by customer. 2.6 SALES & MARKETING FLEXIBILITY Description: The ability of sales and marketing functions to interact with individual customers and to respond to product and service customisation. Continuum: No flexibility in methods or operation to full flexibility to interact with individual customers and to support product and service customisation. 2.7 SYSTEMS/PROCESS FLEXIBILITY Description: The ability of systems and processes to support production and customisation changes. Continuum: No flexibility through to full flexibility of systems and process change. 2.8 LOGISTICS AND DELIVERY Description: The ability to offer customisable storage and delivery for the organisation s products and services. Continuum: Inflexible logistical and delivery capability to customisable product and service delivery. CRM Indicators (Copyright White Whale Limited 2000) Page 5

19 3. Customer differentiation The ability to understand and recognise individual customers by value to the organisation (both short and long term value). 3.1 CUSTOMER VALUE DEFINITIONS Description: The ability to define customer value, such as turnover, long term value, satisfaction, loyalty, retention, profitability, proclivity to purchase, etc. Continuum: No ability to define customer value terms to the full set of definitions appropriate to the organisation and its customer base. 3.2 MEASUREMENTS OF DIFFERENTIATION Description: Ability to measure in a timely manner customer value using agreed definitions. Continuum: No ability to measure customer value to full capability to dynamically measure customer value. 3.3 MANAGEMENT OF CUSTOMERS BASED ON VALUE Description: The ability to manage relationships with different customers differently based upon value. Continuum: No capability to treat different customers differently to full and complex relationship management by the organisation of each individual customer. 3.4 PROCESSES Description: The ability to manage business processes to support different customers. Continuum: Processes are fixed and traditional through to full flexibility of process change and responsiveness to customer preferences. CRM Indicators (Copyright White Whale Limited 2000) Page 6

20 3.5 INCREASE SHARE OF CUSTOMER Description: The knowledge and ability to increase the proportion of an individual customer s needs for products and services that is satisfied by the organisation. The remaining share for similar products and services being satisfied by competitors. Continuum: No knowledge of share of customer for the organisation to full awareness of share of customer and the ability to increase share of customer. CRM Indicators (Copyright White Whale Limited 2000) Page 7

21 4. Needs fulfilment and customer groups management The ability to continuously improve products and services based upon customer interaction, specifically resulting from customer feedback. 4.1 NEEDS AWARENESS Description: The knowledge of customer preferences for products and services. Continuum: No knowledge of customer preferences for products and services to complete and dynamic needs assessment for each customer based on dialogue with the customer. 4.2 NEEDS FULFILMENT Description: The ability to satisfy customer preferences for products and services. Continuum: No ability to satisfy customer needs and preferences to full capability to meet customer needs resulting from dialogue with the customer. 4.3 CUSTOMER GROUP DEFINITION Description: The ability to group customers with similar characteristics for relationship management purposes, ideally based upon value measurement. Continuum: No grouping of customers owing to inadequate knowledge to full and analytical grouping based on life-time value projections of customer worth to the organisation. 4.4 MANAGING CUSTOMER GROUPS Description: The ability to understand and manage customer groups. Continuum: Unable to manage information and customer relationships within groups to complete and sophisticated handling of customer groupings. CRM Indicators (Copyright White Whale Limited 2000) Page 8

22 4.5 COMMUNICATION CHANNELS Description: The ability to manage different communication paths and methods of customer communication. Continuum: Not all channels of communication are identified and used to full exploitation of all channels based upon customer preferences. 4.6 ENHANCED CUSTOMER NEEDS SET Description: The ability to develop a learning relationship with individual customers leading to the understanding of their wider needs for products and services. Continuum: No learning ability about customers and no awareness of enhanced needs to a comprehensive awareness of customers wider requirements for products and services. CRM Indicators (Copyright White Whale Limited 2000) Page 9

23 5. Customer information and knowledge management The ability to record and retain customer information and to manage and analyse this resource to maximum benefit to the organisation. 5.1 CUSTOMER INFORMATION CHARACTERISTICS Description: The ability to hold appropriate levels of information for an individual customer. Continuum: No or little information of value held for a customer through to complete, up to date and accurate details held for each of the organisation s customers. 5.2 CUSTOMER PREFERENCES Description: The ability to retain knowledge of individual customer s requirements for products and services. Continuum: No awareness of individual customer s preferences to full and regularly checked preference knowledge across the whole organisation. 5.3 CUSTOMER PROFITABILITY Description: The ability to determine net worth of an individual customer to the organisation. Continuum: Inability to measure customer profitability to full regularly updated profitability statements for each individual customer of the organisation. 5.4 SHARED CUSTOMER INFORMATION Description: The ability to share customer knowledge and information across all areas of the organisation that have a need to use it. Continuum: No sharing of customer information to full up to date and timely sharing amongst all customer facing and need to know teams within the organisation. CRM Indicators (Copyright White Whale Limited 2000) Page 10

24 5.5 ANALYTICAL CAPABILITY Description: The ability to identify trends and patterns of behaviour from customer information. Continuum: No use of customer information held to complete, regular and complex analysis of all available customer information within the organisation. 5.6 MANAGEMENT AND MAINTENANCE OF KNOWLEDGE Description: The ability to handle and maintain customer information and develop knowledge. Continuum: Inability to handle customer information owing to inaccuracy, poor storage or access to information, through to timely and careful maintenance of customer information. 5.7 EXPLOITATION OF INFORMATION Description: The ability to use customer information to build learning relationships with individual customers, identify and remember preferences and assist with customisation of products and services. Continuum: No ability to use information held by the organisation to full exploitation of available information to improve customer relations, promote customer loyalty and retention. 5.8 THIRD PARTY INFORMATION SOURCES Description: The ability to use additional external customer information to enhance customer knowledge. Continuum: No reference to external sources of information to full use of all appropriate external sources of information about the customer and the relationship of customer and the organisation. CRM Indicators (Copyright White Whale Limited 2000) Page 11

25 6. Information systems and technology The presence of well-developed I.T. systems and the efficient and costeffective use of technology. 6.1 NEW MEDIA CHANNEL EXPLOITATION Description: The ability to enhance customer dialogue and communications by exploiting new customer channels (e.g. www, Digital T.V. etc.) Continuum: No ability to use the new channels to full and sophisticated use of the latest technology. 6.2 INTEGRATION OF CUSTOMER INFORMATION Description: The ability to integrate customer information from across the organisation into a single unified view of the customer. Continuum: Multiple and inconsistent customer records through to one accurate and consistent view of the customer. 6.3 THE INTERPRETATION OF TECHNOLOGY BASED INFORMATION Description: The ability to interpret and use computer held customer information. Continuum: Electronic information difficult to access and use through to on-line, up to date, easily interpreted and accurate information made available to all customer facing teams within the organisation. 6.4 USE OF TECHNOLOGY Description: The ability to use technology appropriately to enhance customer relationships. Continuum: Basic or non-existent use of technology to extensive, sophisticated and adaptable use of the latest technology available. CRM Indicators (Copyright White Whale Limited 2000) Page 12

26 6.5 DATA WAREHOUSING AND DATA MINING CAPABILITY Description: The ability to effectively manage large quantities of customer data and to use it analytically to determine customer behaviour patterns and preferences. Continuum: No data warehousing or data mining technology available or used to sophisticated customer data analysis programmes run on a regular basis. 6.6 TRANSACTION AND EVENT HISTORY INFORMATION Description: The ability to record and understand customer transaction (e.g. sales orders, payments) and customer event (e.g. phone calls, web site activity, complaints, birthdays, etc) information. Continuum: None of this type of information recorded by the organisation to complete histories of transactions and events for each individual customer being held. 6.7 CRM TECHNICAL INFRASTRUCTURE Description: The presence of hardware, software and communications structures and platforms that support customer management. Continuum: Out of date and poor facilities to state of the art technology and flexible platforms on which to build customer management capability. CRM Indicators (Copyright White Whale Limited 2000) Page 13

27 7. Organisation and culture The structure, nature and attitudes of the organisation s workforce, and the extent of customer focus and ability to implement change. 7.1 CRM AWARENESS Description: The level of knowledge and understanding within the organisation of CRM theory and practice. Continuum: No or little awareness amongst staff and management of the organisation to full practical experience of implementing CRM programmes. 7.2 CUSTOMER CENTRIC ORGANISATION Description: The capability of the organisation to focus on the customer as the central tenet of the organisation s existence. Continuum: No or little awareness of the importance of the customer to an organisation that has been structured with the customer as the central feature. 7.3 CULTURE Description: Ensuring the appropriate attitudes, behaviour and customs are instilled within the organisation. Continuum: Traditional set in ways rigid attitudes to open-mindedness, innovative and visionary outlook towards customer relations. 7.4 ORGANISATIONAL CHANGE CAPABILITY Description: The ability of the organisation to change its working methods, processes and attitudes towards becoming customer centric. Continuum: No ability to change through to full change capability. CRM Indicators (Copyright White Whale Limited 2000) Page 14

28 7.5 MANAGEMENT CAPABILITY AND COMMITMENT Description: The ability and commitment of management to create a customer centric organisation. Continuum: No ability or willingness to change through to the proven ability and commitment to manage change. 7.6 REALITY CHECK Description: The ability to distinguish between the perceived and actual situations and capabilities. Continuum: Inaccurate understanding of the real capabilities and situations through to honest and full appraisal of actual capabilities. 7.7 CUSTOMER FACING FUNCTIONS Description: The abilities of customer facing teams to support and deliver CRM programmes. Continuum: No or poor abilities to understand and implement good CRM solutions to imaginative, committed and innovative teams applying good CRM practice. CRM Indicators (Copyright White Whale Limited 2000) Page 15

29 8. Demand and supply chains/channel management The nature of product and service delivery to customers and the relationship between the organisation, its suppliers and its customers through supply and demand. 8.1 SUPPLY CHAIN STRATEGY Description: The existence of a strategy and policy for the procurement and supply of products and services. Continuum: No strategy in place through to a fully developed and implemented set of policies and strategies. 8.2 SUPPLY CHAIN OPERATIONAL FRAMEWORK Description: Establishing a performance and quality framework within which the procurement of products and services can be managed and measured. Continuum: Limited and unstructured environment through to close and integrated supplier relationships. 8.3 SUPPLY CHAIN MANAGEMENT Description: The ability to manage the procurement of goods and services as part of the operational framework. Continuum: No ability to manage the procurement process through to efficient and well managed procurement as part of the operational framework. 8.4 DEMAND CHAIN STRATEGY Description: The existence of a strategy and policy for the distribution and supply of products and services to end customers, third party organisations and other intermediaries. Continuum: No strategy in place through to a fully developed and implemented set of policies and strategies for the distribution of customised products. CRM Indicators (Copyright White Whale Limited 2000) Page 16

30 8.5 DEMAND CHAIN OPERATIONAL FRAMEWORK Description: Establishing a performance and quality framework within which the distribution and supply of products and services can be managed and measured. Continuum: Limited and unstructured environment through to close and integrated relationships with channel partners and intermediaries. 8.6 DEMAND CHAIN MANAGEMENT Description: The ability to manage the distribution and supply of customised goods and services as part of the operational framework. Continuum: No ability to manage the distribution process through to efficient and well managed distribution as part of the operational framework. 8.7 ENHANCED VALUE STREAMS AND ALLIANCES Description: The ability to establish strategic partnerships and alliances that enable the organisation to meet enhanced needs sets and additional value streams. Continuum: No or little ability to provide enhanced value streams to having a range of partnerships and alliances that provide additional opportunities to increase share of customer. 8.8 NEW MEDIA CHANNEL DEMAND/SUPPLY Description: The use of new media channels in respect of the relationship between the organisation, its suppliers and its customers. Continuum: No or little use of new technology and new media channels to full exploitation of technology to manage the relationship between suppliers, customers and the organisation. CRM Indicators (Copyright White Whale Limited 2000) Page 17

31 CRM Indicator Score Card 1. Customer identification and interaction 1.1 Customer identification 1.2 Treatment of customer individuality 1.3 Contact points 1.4 Requesting and receiving customer feedback 1.5 Quality of interaction 1.6 Interaction characteristics 1.7 Channels of customer interaction 1 Group Average Score Copyright White Whale Limited 2000

32 CRM Indicator Score Card 2. Customisation capability 2.1 Product customisation 2.2 Service customisation 2.3 Production flexibility 2.4 Packaging/Labelling flexibility 2.5 Pricing 2.6 Sales and marketing flexibility 2.7 Systems/Process flexibility 2.8 Logistics and delivery 2 Group Average Score Copyright White Whale Limited 2000

33 CRM Indicator Score Card 3. Customer differentiation 3.1 Customer value definitions 3.2 Measurements of differentiation 3.3 Management of customers 3.4 Processes based on value 3.5 Increase share of customer 3 Group Average Score Copyright White Whale Limited 2000

34 CRM Indicator Score Card 4. Needs fulfilment and customer groups management 4.1 Needs awareness 4.2 Needs fulfilment 4.3 Customer group definition 4.4 Managing customer groups 4.5 Communication channels 4.6 Enhanced customer needs set 4 Group Average Score Copyright White Whale Limited 2000

35 CRM Indicator Score Card 5. Customer information and knowledge management 5.1 Customer information 5.2 Customer preferences characteristics 5.3 Customer profitability 5.4 Shared customer information 5.5 Analytical capability 5.6 Management and maintenance of knowledge 5.7 Exploitation of information 5.8 Third party information sources 5 Group Average Score Copyright White Whale Limited 2000

36 CRM Indicator Score Card 6. Information systems and technology 6.1 New media channel exploitation 6.2 Integration of customer information 6.3 The interpretation of 6.4 Use of technology technology based info. 6.5 Data warehousing and data mining capability 6.6 Transaction and event history information 6.7 CRM technical infrastructure 6 Group Average Score Copyright White Whale Limited 2000

37 CRM Indicator Score Card 7. Organisation and culture 7.1 CRM awareness 7.2 Customer centric organisation 7.3 Culture 7.4 Organisational change capability 7.5 Management capability and 7.6 Reality check commitment 7.7 Customer facing functions 7 Group Average Score Copyright White Whale Limited 2000

38 CRM Indicator Score Card 8. Demand and supply chains/channel management 8.1 Supply chain strategy 8.2 Supply chain operational framework 8.3 Supply chain management 8.4 Demand chain strategy 8.5 Demand chain operational 8.6 Demand chain management framework 8.7 Enhanced value streams and alliances 8.8 New media channel demand/supply 8 Group Average Score Copyright White Whale Limited 2000

39 CRM Indicator Score Card 9. Additional CRM Indicators Group Average Score Copyright White Whale Limited 2000

40 CRM Indicator Score Card CRM Group Indicator Score Card 1 Customer identification and 2 Customisation capability interaction 3 Customer differentiation 4 Needs fulfillment and customer groups mngt. 5 Customer information and 6 Information systems and knowledge management technology 7 Organisation and culture 8 Demand and supply chains/ channel management Copyright White Whale Limited 2000