Welcome to SOCAP 2006 Workshop The real cost and benefits of Customer Relations. Presented by: SFI

Transcription

1 Welcome to SOCAP 2006 Workshop The real cost and benefits of Customer Relations Presented by: SFI

2 Presenter Overview Peter Gillson is the Director of Global Solutions at SFI International and has been involved in the CRM industry for 15 years. Peter has worked across many industries in Australia, Europe, UK, Canada and the USA to implement internal change and increase CRM effectiveness. Regularly consulting with business about current and future trends in customer relations and customer value management, Peter uses his understanding of key performance drivers to develop flexible CRM software solutions that deliver meaningful bottom line results. Peter has been a SOCAP member for 12 years and a board member for the past 3 years. He is the current Vice President and Public Officer for SOCAP Australia and is very passionate about the direction of consumer affairs and the complaint handling processes both here and overseas

3 Who is SFI? SFI create consumer relations management systems that are driven by both business and consumer needs. We have developed an understanding of business that allows us to create flexible successful implementation and a shared vision for customer satisfaction and process improvement within organisations. We have a unique approach, modeling our CRM solutions and event strategies around the customer lifecycle to ensure that our systems are appropriate, pragmatic, manageable, and always customer focused. Our approach also includes the concept that the total organisation should be involved in the CRM process and help our clients to create a stronger customer focus, and actively drive adjustments that come with changes in customer value and the way they do business. In conjunction with their software applications SFI has developed a consulting side of their business that sees them work to educate business with a measurement framework that links the values delivered to customers to the values received from customers Knowledge, Capability, Capacity

4 EXECUTIVE SUMMARY More customers are expecting 24 hour issue resolution, especially for online contacts (48%). There is little coordination between the customer service/customer relations and other consumer-facing departments

5 EXECUTIVE SUMMARY Twenty five percent (25%) of organisations have no established budget for customer service. More than half of customer service staff (55%) are not rewarded based on the achievement of Key Performance Indicators (KPI s).

6 EXECUTIVE SUMMARY Post-complaint customer retention is not well known in the industry, however satisfaction and post-complaint surveys may give a likely indication of customer retention success. A product, service or brand advocate influence more than ten people.

7 EXECUTIVE SUMMARY The majority of respondent organisations cannot accurately measure their bottom line results from their CRM management contribution to their organisation.

8 CRM & The Total Organisation & QA

9 Costs Key components of costs a) Fixed Assets b) Product/Service c) Marketing d) Operating

10 Benefits Lower Costs of recruiting customers Reducing our cost of sales Increased profitability from customers Increased retention levels Understanding the profitability of our customer

11 Reason For Survey To understand the importance placed on identified determinants for measuring customer benefits & costs by respondent organisations To utilise respondent data & measurements to evaluate how a well managed CRM system actively contributes to bottom line results To identify the current performance parameters utilised by organisations in measuring their cost effectiveness and customer retention capacity

12 Reason For Survey To understand industry best practice in 2006 in relation to CRM contributions to bottom line results To identify & nominate areas where improved evaluation & performance measurement would assist customer retention & expansion of sales & bottom line profit To report on how many respondent organisations are utilising CRM as part of a total organisation approach to better customer management & retention

13 Methodology Developed a checklist of major parameters & key contributors to improve customer management & retention within major organisation Finalised a short list of questions & divided the information into two surveys: Survey A was mainly concerned with costs and areas of performance Survey B was mainly concerned with consumer and complaints behaviour

14 Methodology There were 94 questions in total, 20 common questions Delivered through Survey Edge to our clients, BRW top 1000 companies and companies known to have CRM systems. Utilised marketing with telephone follow up Analysed surveys A & B, including cross-tabulation and impact analysis All contributors to the online survey remained anonymous

15 Respondent Profile 50 Respondent organisations from a number of industries: FMCG Food and Beverage, Wine, Packaging, White goods, Household goods, Pharmaceutical Essential Services Electricity, Water, Communications Banking and Finance Entertainment, Electronics and Technology Government Automotive, Petrol & Associated Activities Retail Superannuation and Insurance

16 Respondent Profile Titles of respondents: Consumer Affairs Manager Consumer Information Manager Consumer/Customer Relations Manager Consumer/Customer Services Manager General Manager Contact Center Manager

17 Respondent organisations account for over $141.7 billion % Respondents No Response Revenue (millions)

18 Culture of handling customer complaints 6% 42% 52% Customer Complaints Customer Relations Both 52% still see themselves as having a customer complaints culture 48% believe they have a customer relationship culture we see this is positive. Respondents that are fire-fighting will not be able to contribute to bottom line results effectively

19 Occupation of complainants Occupation Home duties Professionals Unemployed Students Tradespeople Managers Government Teachers Retail workers Technicians Machine operators/assemblers * 18% Non-response %Respondents 25% professionals and managers 20% home duties (may have a high level of education) 22% unemployed and students

20 How budgets are established 19% 6% 49% 3% 3% 20% Previous year + review/forecast Service Level Agreements with brands Other Department budgets established independently No budget No response 49% establish budgets based on previous year + review/forecast 20% have no budget or did not respond

21 Are respondent complaint policies online for consumers? 3% 39% 58% Yes No No Response 58% of organisations do not have their policies online for customer to read

22 What have we learnt? To make business more aware of real costs Feedback from organisations to assist others in the direction they need to take Integrate findings with previous studies and behavior based studies so that business is better informed to make budgetary decisions

23 Next Steps Identify Gaps in analysis Go back to market, broaden scope Provide paper for all attendees who have contributed Options Provide SOCAP with a leading edge position in estimating complaint handling and CRM contributions to the bottom line

24 Thank you