Customer Relationship Management. Joseph FX Zahra

Transcription

1 Customer Relationship Management Joseph FX Zahra

2 The New Marketing Paradigm

3 CRM.. Is a multi functional core business strategy that sets out who to serve, and what and how to serve them.

4 CRM. An IT enabled sales and service function It s little more than precisely targeted one to-one communications CRM impact on marketing, operations, sales, customer service, HR, R&D, Finance and IT

5 Why customer relationship management? Deepening the customer relationship to achieve a total customer experience Permanent maximizing of individual lifetime customer value Optimal fulfillment of client needs Efficient deployment of available instruments & resources

6 CRM FAILS TO MEET CUSTOMER EXPECTATIONS % OF THE TIME (Gartner & Meta Group)

7 CRM ACQUIRING LOYALTY RETENTION

8 The loyalty effect 5% increased retention % increased returns

9 Acquisition vs Retention

10 Giving customers a little more than they expect

11 The answer is yes. What s s the question? BT advert

12 Environment and conditions are changing Saturated markets Parity offer Decreasing loyalty Pressure on margins New technologies

13 We can be the best or one of the rest

14 You You can t t have the fruits without the roots. Stephen R.Covey

15 The Value Star People Communication Process Servicescape Product/Brand Location Price Service

16 CRM leading to customer loyalty Customer Loyalty Empowerment Personalisation Bonding Satisfaction

17 The Development of a Prospect through CRM ADVOCATE SUPPORTER CLIENT Emphasis on retaining customers by developing and enhancing relationships Emphasis on acquiring new customers CUSTOMER PROSPECT

18 Measures of loyalty

19 The loyalty matrix

20 CRM: a simple goal which is very difficult to achieve

21 Crm value chain Supporting Conditions: Culture and Leadership Procurement processes Human Resource management processes IT/data management processes Organisation design P R O F I T A B I L I T Y

22 Crm value chain PRIMARY STAGES: Customer Portofolio Analysis Customer Intimacy Network Development Value Proposition Development Manage the relationship C U S T O M E R Continued..

23 CRM requires a radical shift of perspective Products Customer needs oriented segments Product 1 Product 2 Product 3 Segment 1 Segment 2 Segment 3 Group 1 Group 2 Group 3 Bundle 1 Bundle 2 Bundle 3 TARGET GROUPS Products/Services/ Information

24 The marketing-power-house

25 Linking business unit strategy to commercial action: Database Marketing

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28 Customer relationships only become profitable after a few years EARNINGS NET EARNINGS GENERATED COSTS

29 Marketing Approach

30 Balanced scorecard Financial Perspective Customer Perspective Operational Efficiency Employee Perspective

31 Leading Marketing Edge - Change Cash Flow Sales Brandvalue ROE/ROA Customer Satisfaction Loyalty Cost LAGGING Market Share Share of Wallet LEADING

32 We need to change to stay what we are

33 The best vision is within sight but just out of reach

34 Leading change From Brick & Mortar To Click & Mortar

35 If HP knew what HP knows, It would be three times as profitable Lew Platt, CE O Hewlett -Packard

36 Data Quality Monitor Basic Data - Analysis Report Statistical Analysis Report Predictive Analysis Report

37 Management Commitment People Management.to Retention-Mix Customer Base Systems Management Retention Ret ntion Marketing Marketing

38 Customer relationship management

39 Knowledge discovery system High Value Defectors Loyalty- drivers Cross Selling Possibilities Product- bonding Product-Mix Analysis Product-Gap Analysis Developing New Products Segmentation Client Profiling Risk Assessment Wallet share Analysis Pricing Models Multichannel Analysis etc KDS

40 Loyalty-Function: f(l) = P Profitability High Low Low High Loyalty

41 CRM requires the customer centric alignment of many building blocks Products, Customer, Channels Strategic Focus Know your client Deliver a unique customer experience Minimize relationship cost Maximize share of wallet Business perspectives Deepen Relationships IT PLATFORM MARKETING DATAMART ANALYSIS TOOLS SEGMENTATION CONTACT SUPPORT (Triggers, Flags) WORKFLOW SUPPORT PROCESSES ORGANISATION CHANGE MANAGEMENT Business pillars

42 CRM how to get it work? Clear vision support Beware for analysis paralysis Organization mode is not carved in stone! Integrate IT-components in business Create learning environment It s not tooling it s the organization Delivery is Key! Be successful, and tell it.

43 CRM- How you get it wrong? Implementing CRM before creating a customer strategy Rolling out CRM before changing your organization to match Assuming that more CRM Technology is Better Stalking, not wooing, customers Source HBR, Avoid the Four Perils of CRM D.Rigby, F Reichheld, Ph. Schiffer, Feb 2002

44 The Service Profit Chain Employee Retention Revenue Growth Internal Service Quality Employee Satisfaction External Service Customer Satisfaction Customer Loyalty Employee Productivity Profitability

45 Corporate identity is part of the Business Strategy Branding is part of Corporate identity The value of the brand