Module Three. Connected CRM Enterprise Transformation
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1 Module Three Connected CRM Enterprise Transformation 1
2 Any organization can become more customer focused. It s just harder sometimes Product-centric P&L/Decision Segment-centric P&L/Decision Channel-centric P&L/Decision True competitive advantage will go to firms that transform their operating model to deliver enterprise level Connected CRM Customer Focus Time Value Have to overcome CRM inertia Competing priorities Entrenched metrics Conflicting incentives Uncertainty Risk avoidance 2
3 Channel Media The scope for connected CRM is broad and spans multiple function Many groups need to be aligned Where, when and how you interact with customers Phone/IVR Social Mobile Site Inbound ATM Branch Direct response TV Radio Print Direct Response Outbound Web Direct mail Search Display Capabilities you need How it works in your organization Information Insights Interaction Measurement Optimization Agility Strategy Value Segmentation Measurement Execution Analytics Integration Organization Technology Database Access Automation 3
4 Sponsorship Success drivers How Top-performers Achieve Break-away Change Data Governance Culture and People Change Management Assessments Funding Management Defined Project Objectives Multi-phased Execution Roadmap Business Process Change Program Governance Organizational Realignment Solid Justification Integration Discipline 8% odds of success +33% odds of success Focus on Lasting Change +58% odds of success n= 400, canonical correlation 65%. Low percentage indicates activities common to high and low performers. High percentages indicate activities more unique to top performers 4
5 Executive Governance Executive leadership and governance is a key ingredient for driving lasting change within organizations Objectives Be champions for lasting change Align enterprise to common vision Apply value-lens in prioritizing alternatives Integrate initiatives across groups Ultimately, track business results and impact Example Retail Bank Team Head of Consumer Banking Corporate Marketing Database Marketing Customer Insight and Analytics Branch (sales) and Branch Support Contact Center ebusiness Technology 5
6 Driving lasting change Executive leadership and governance team Champions Vision Value Integration Business Results Customer engagement vision CRM capability gap assessment Technology assessment 4 CRM blueprint & roadmap New and revised transformation initiatives Organizational Realignment Business Process Change Data and Technology Existing initiatives for change Culture and People Change Management Time 6
7 Driving lasting change 1 Customer Engagement Vision 3 Technology Assessment Identify critical interaction points, and moments of truth Define desired end state for media and channel interaction Illustrate current and future state customer journeys across media and channel Separate track reflects scope and complexity of the technology component Define technology environment required address defined capability gaps Create logical end-state solution architecture, project inventory and phasing 2 CRM Capability Gap Assessment 4 CRM Blueprint and Roadmap Baseline current capability across six Connected CRM Capabilities Define capability requirement to support Customer Engagement Vision Define capability gaps relative to targets state and gain alignment End-state vision for the infrastructure and operating model for a customer interaction ecosystem that executes the CRM vision Integrated view of initiatives phasing based on priorities, business impact, dependencies, feasibility, resources and deployment timing 7
8 Driving Change at a Global Entertainment Company Client Case Study 8
9 Why the Journey..Economic Proof Percent, 10 year CAGR ( ) Revenue EBITDA Casinos Big Box Retailers Online Retailers Grocers McKinsey & Co. 9 Other Competitors Big Data Leader
10 Connected CRM drives massive shifts in operating and organization models From Campaign management Brand management Near time Periodic measurement Model and execute Organizational silos Partitioned incentives To Interaction management Brand activation Real time Optimization Always on personalization Agile collaboration Collective incentives 10
11 About the company and their situation Large media and entertainment company US-based company with a global presence Goals Aggressive growth targets Leverage products across the enterprise and customer base Coordination and integration across the brand 11
12 The company sought to be more customer-centric across a siloed organization From State To State Traditional product and business unit siloed orientation Customer centric model to drive engagement across entire experience Transform 12
13 The company and the transformation project had many obstacles and challenges to overcome Operational Challenges Large product offering and price point and complicated sales processes and distribution channels Integrated customer centric view and traditional brand planning approach needed to co-exist Traditional budgeting and planning processes didn t support customer centricity Resistance to change and not invented here Initiative Challenges Quick execution needed despite massive organization Comprehensive time and cost predictions were needed, but difficult to obtain Balancing adoption of changes within the initiative was challenging for the transformation team. The new operating model required new organization structures and differently skilled employees 13
14 Plan of attack Multi-year transformation initiative Cross-functional senior governance and leadership team Stepwise and comprehensive roadmap Pilot and program launch plan tied roadmap 14
15 Customer stewardship and governance was as important as new customer-centric organization and capabilities The executive and stakeholder team involvement was key to success in establishing new measurement methodologies that either replaced or augmented existing ones. Governance model Master vision and plan Team design Customer stewardship and governance Customer centric ecosystems and environments require highly adaptive and responsive technology and business management Marketing ops capabilities (call center and web) Integrated customer views and data Integrated campaigns and triggers Cross-departmental budgeting and finance Highly integrated system design Customer centric capabilities 15
16 New customer centric capabilities and programs were the outcome Call center and web automation Call center and web automation capabilities gather and utilize customer preferences, product needs, offer based sales processes Customer insights guide media spend Customer insights and data drive increase timing and efficiency of broader media spend Personalized onboarding and trigger programs Highly personalized on-boarding and trigger programs for new and existing customers match complex brand and product messages to customer needs and preferences decrease cancellations, increase average buy rates Highly integrated system Highly integrated system design is focused around the customer Support of future channels and systems Current and future channels and systems can plug into the new environment New internal customer processes Customer centric approach drove new methodology, processes and outcomes 16
17 Aligning leadership and organization required a comprehensive change management approach Executive Engagement Measure & Reinforce Business Results Stakeholder Management & Involvement Learning (Education & Training) Communication 17
18 Outcomes: Measureable results Material Increase in annual revenue contribution from transformation initiative 40 55% increase in contribution over global control Financial impacts came fast months to reach major milestone goals Improved Customer Satisfaction Scores ROI of 7:1 Improved Operating & Management Model 18
19 Lessons learned People & Organization changes, even though planned for, were massive Stepwise approach is a best practice When moving fast, sometimes slow down and regroup Consistent strategic vision and leadership set the foundation for competitive advantage 19
20 Thanks! Steve LaValle Executive Vice President, Client and Advisory Services Chris Crayner Senior Vice President & GM 20
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