Customer effectiveness

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1 Customer effectiveness PwC SAP Consulting Services Advance your ability to win, keep and deepen relationships with your customers.

2 Are your customers satisfied? How do you know? Five leading issues shaping CRM challenges in 2010 Intelligence: Most companies have vast troves of information on their customers but are not effective at extracting business intelligence and delivering it to key decision-makers quickly and in an actionable format to drive business performance. Usability: User acceptance can make or break a CRM initiative. Users must be able to complete tasks quickly and easily. Customer experience: Every customer interaction counts. Managing the customer experience is critical especially with cost pressures and customer loyalty at stake. Multi-channel strategy: Few companies deliver a common and consistent experience across all marketing, sales and service channels such as retail stores, internet, interaction centers, , chat and Web 2.0 exchanges. The challenges facing Customer Relationship Management (CRM) are often executive issues particularly now. To address them, you need to show that you are proactively managing your customers experience; that you re gaining actionable insight into their preferences and intentions; and that you re continuously aligning this insight with your business objectives especially as your strategy evolves. It s a different world. As the global economic crisis widens, customers are changing their expectations and their behavior often markedly. They re spending less. They re seeking bargains. They re deviating from their normal patterns of purchase, payment and consumption. And they re often willing to risk dissatisfaction with a new or unknown vendor for the chance to gain more or better value. Few companies can afford to stand by. Typically, two courses of action beckon. One is pursuing new customers, essentially by wooing them away from competitors. This strategy can prove rewarding but is often expensive. The other course of action is to make sure you retain the customers you already have. Yet building deeper relationships with customers through more meaningful engagement, a differentiated value proposition and a consistent experience across a complex new array of channels isn t easy. Technology is nearly always a critical part of the answer. But so is a more elusive capability: understanding how to translate the best CRM technologies in the world into concrete, measurable business value. Customer data integration: One of the most common challenges is connecting all the dots by integrating customer data across applications, systems and databases.

3 Key elements supporting a fact-based, business first perspective on CRM Financial performance Operating metrics & KPI S Customer/ channel satisfaction Level of maturity Progress The PwC perspective on CRM A fact-based, business first perspective on CRM is imperative. PwC s Customer Effectiveness team helps companies throughout the world translate customer relationships into better business value. Our dedicated professionals (including process specialists, industry strategists, SAP experts and change management advisors) specialize in leveraging a highly coordinated, business-centric, benchmark-based approach to creating and sustaining customer relationships that build competitive advantage, enhance revenue and grow shareholder value.

4 Imagine: One single 360 view of your customer How do you know when real customer effectiveness has been achieved? 1. When the relationship with the customer is managed through every single phase in the customer lifecycle 2. When the same pool of information on customer expectations, behaviors and preferences is mined by executives with very different tasks to answer crucial business questions 3. When, collectively, these various operational lines-of-sight roll up to provide executive leaders with a single 360 view of the company s customers an enterprise view that advances the company s most strategic goals A highly tailored and integrated approach Placing your customer s experience at the center of decision-making across your sales, marketing and service operations requires pursuing an integrated approach across many domains. These include: Product and Market Deployment: From analyzing markets and forecasting product demand to managing pricing and intellectual assets, maintaining a continuous focus on how the customer will interact with your company and your product or services is essential. Marketing Effectiveness: Getting the most from your investment in marketing requires expertise in areas that range from campaign and promotion effectiveness to customer segmentation, promotion analyses, and marketing spend analyses. Sales and Channel Effectiveness: How you design and deploy your sales and channel strategy is more complex than ever particularly with respect to sales force effectiveness, key account management and customer relationship management, as well as sales opportunity forecasting and performance management. Customer Service Improvement: Lengthening the customer lifecycle may depend on how you address areas such as interaction center improvement, billing integrity and revenue assurance, and technology improvement. Customer Insight and Strategy: Defining the customer experience strategy is only one key step. Also critical is building insight into customer behavior, preferences and expectations through areas such as customer data management, analytics and predictive modeling, and customer insight process design and implementation, as well as vendor evaluation, system design and implementation.

5 Strategy People Process Technology Product & market development Marketing effectiveness Sales & channel effectiveness Customer service improvement Customer insight And strategy Customer Interaction center Mobile Web Indirect Social/networking Enterprise resource planning Industry Sectors Supply chain management Product lifecycle management

6 PwC: Helping you realize business value A proven set of methodologies, tools and accelerators Transform An integrated methodology that addresses all components of a major change initiative: strategy, people, process, technology, structure and facilities. Customer Effectiveness Roadmap Provides a comprehensive framework that helps clients develop the business case, define a roadmap and identify quick wins. SAP CRM Value Analytic Benchmark Tool A process streamlining tool that quickly identifies opportunities and benchmarks against peers to drive improvements and shareholder value. SAP CRM Implementation Toolkit A complete, integrated package of CRM implementation tools compiled and continuously updated based on our experience helping other companies adopt industry leading practices PwC s SAP Customer Effectiveness services Business case and roadmap development Assess the true business value of SAP CRM 7.0 to your organization and effectively implement the solution with a four-to-six-week business case and roadmap development offering that includes establishing a comprehensive business case, designing the future state enterprise architecture and defining the best path forward. Implementation and upgrades Ensure that your implementation and upgrade team includes a balanced blend of deep SAP CRM 7.0 technical expertise with proven change management techniques. While transitioning to SAP CRM 7.0 is not a formal implementation exercise, it s much more than just a technical upgrade. See it instead as a key opportunity to realize more value by re-examining your CRM practices and leveraging a broader and deeper set of CRM capabilities. Customer performance management Gain rare insights into your customer performance by leveraging a robust set of SAP tools that can improve your customer effectiveness processes.

7 What you gain with PwC at your side A business first, industry-specific, benchmark-based perspective Establish a deeper understanding of the fundamentals behind aligning SAP CRM technologies with real business benefits and business process improvements. Gain new insights into how trends in your industry are affecting customer expectations, behaviors and practices. Use our qualitative benchmarking tools to compare your company s current practices with best practices to pinpoint strengths and weaknesses, identify opportunities for improvement, and prioritize the actions most important to your business. Robust depth and breadth across skills and capabilities Support your team s ability to integrate a wide range of experience and world-class expertise in interrelated disciplines such as SAP technology; business process excellence; system integration; governance, risk and compliance; security and controls; business performance management; and tax. PwC Global Best Practices Tap the PwC Global Best Practices knowledge base, a compilation of best practices content and benchmarking tools on more than 150 critical business processes.

8 For more information, please contact: Thomas DeGarmo, US SAP Practice Leader (267) Doug Hurley Managing Director, SAP US CRM Leader (860) PwC s SAP practice PwC s dedicated SAP professionals help companies plan and deliver successful SAP upgrades or implementations by integrating risk, people, process and technology solutions to address financial, operational, technical and compliance challenges. Our team members have a wide array of SAP-related skills ranging from strategy, enterprise architecture, and process and controls design, to functional configuration and technical implementation. PwC s rapidly growing global SAP team currently includes more than 2,500 SAP-dedicated professionals in 30 countries. About PwC s Advisory Practice PwC s business advisory professionals provide clients with the confidence to succeed by helping them anticipate, create and manage change. Whether clients are proactively implementing change or reacting to an unplanned event, we leverage our resources, deep industry experience, and functional acumen across the areas of operations, finance, organizational strategy and structure, process improvement, human resources effectiveness, technology integration and implementation, risk mitigation, and crisis management to help organizations effect sustainable change. PwC has been widely recognized as an industry leader. In December 2008, Kennedy Information identified PwC as: The overall No 1 worldwide strategy, OM (Operations Management), HR and BAS (Business Advisory Services) consulting practice The No 1 worldwide Business Advisory Services consulting practice The No 3 worldwide Human Resources consulting practice Source: Kennedy, Global Consulting Marketplace ; Kennedy Information, Inc.; used with permission PricewaterhouseCoopers LLP. All rights reserved. In this document, PwC refers to PricewaterhouseCoopers LLP, which is a member firm of PricewaterhouseCoopers International Limited, each member firm of which is a separate legal entity. This document contains information that is confidential and/or proprietary to PricewaterhouseCoopers LLP and may not be copied, reproduced, referenced, disclosed or otherwise utilized without obtaining written consent from PricewaterhouseCoopers in each instance. MW jat SAP is the trademark or registered trademark of SAP AG in Germany and in several other countries

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