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1 The value of CRM systems How they can help and what is needed for a successful implementation Speaker: Andreas Galanis, MBA CRM Consultant
2 Agenda Definition of CRM. The value of each customer Company sectors and procedures that can be supported by a modern CRM solution Beyond classical CRM ( PRM, Data mining ) Conclusions of the last researches for CRM solutions Basic principles for successful CRM implementation. Do CRM projects fail? Case studies 23/4/2007 2
3 What is CRM CRM (Customer Relationship Management) includes every corporate transaction which has as a target to acquire or to keep a profitable and loyal customer base. Using a CRM platform a company is is able to make the sales department more efficient, to promote its products and services better, to understand better the needs of its customers, to organize the corporate communications with the existing and potential customers, collect t and process information about the competitors and upgrade the after sales level More simple, a company wants to : Get new profitable customers Keep profitable customers as long as possible Win Back profitable customers Find and eliminate the unprofitable customers 23/4/2007 3
4 Sectors covered by CRM Marketing Automation Sales Force Automation CRM Customer Service 4
5 Marketing Automation Campaign Management is is an easy way for winning new customers. A modern CRM system can help to select a target group with specific characteristics ( demographics, behavioral etc ) and reach them using mass or phone call campaigns The results of the campaign must be easily exported through reporting rting tools, in in order to evaluate the effectiveness of the campaign Useful reports may be the source effectiveness ( trade show lists, banner lists and so on ), ), the path effectiveness ( , fax, sales rep appointments etc), the success rate of each sales rep and many more RFM Analysis is is a fine tool to evaluate your potential and existing customer lists 23/4/2007 5
6 Sales force automation (SFA) SFA is about the efficient management of potential customers (lead management), the quote management through simple or more complicated sales processes (opportunities management), the file management (account( and contact management) and group collaboration mainly through corporate calendars Also, users have easy access to sales material (manuals, sales procedures etc) and full capabilities for order management and invoicing A modern CRM software can be accessed remotely by palmtops (ipaq,qtec) ) or tablet PCs 23/4/2007 6
7 Customer Service Automation (CSA) Call center is is the first step to customer service, which must be connected to the customer database through a CRM solution and the other corporate rate systems as well ( SCM, ERP etc). The company will be able to evaluate e the value of their customers by calculating the total time that dedicates to them Also, it it will be able to schedule efficiently the time of the customer service department employees and offer service level agreements (SLAs) Many companies use their customer service department for cross selling opportunities rather than a simple phone call center. (Pizza hut case study) Finally, web self service is is a fine way to reduce the costs of interaction with each customer or the unprofitable ones. Many companies develop Knowledge Bases which can be accessed either by customer service department employees or by the customers themselves via dedicated d web sites (Microsoft case study) 23/4/2007 7
8 E-channels E-channels may reduce significantly the total cost of of interaction 23/4/2007 8
9 Beyond classical CRM (Data mining, PRM ) 23/4/2007 9
10 Data mining Using datamining techniques, a company aims to evaluate better the quality of the corporate data that are stored through CRM or other systems. The target is is to process them in in order to use for business intelligence ligence decisions Mainly decision trees and neural networks are used Clustering Decision Tree Refund Yes NO No MarSt Single, Divorced TaxInc < 80K > 80K Married NO 23/4/ NO YES
11 Data mining Datamining is is a fine tool for those who need to predict the future Companies with a high volume of data, can use datamining and business intelligence techniques to predict : Which is is the profile of an existing customer that is is going to leave l? What target group will respond better to a cross selling effort? How many customers are we going to loose if if we raise the price of a product by 5%?..and so on 23/4/
12 Partner relationship management (PRM) It s s about the relationships between the company and its associates ( partners, resellers). Many companies implement PRM solutions (BMW, Cisco ) as an extension of existing CRM platforms aiming to control the channels and have access to the final customer 23/4/
13 DO CRM PROJECTS FAIL? 23/4/
14 How easily can your CRM project s s goals be achieved? Gartner: 55% of CRM projects fail Butler Group: 70% of CRM projects fail (!) 23/4/
15 Why do CRM projects fail? They under commit (politics, inertia, change management ) They consider the CRM project a part-time time project (lack of time) They have champagne tastes and beer budgets They pick the wrong technology partners They expect to just add water (first plan, then customize) Jim Dickie CSO Insights 23/4/
16 Survey conclusions
17 Return on CRM Investments Benefits Resulting from CRM Usage in Sales Improved Sales Communications Improved Forecast Accuracy Reduced Sales Administrative Burden Improved Best Practices Sharing Increased Revenues Reduced New Sales Rep Ramp-up Time Improved Order Processing Accuracy 0% 10% 20% 30% 40% 50% 60% 70% 23/4/
18 Plans to Expand CRM Plans to Expand CRM Platform Over Next Year CRM/Sales Process Integration Sales Management Analytics Lead Generation Management No Plans for Enhancements / Additions Forecasting Data Cleansing Sales Knowledge Management Channel Management Customer Service Sales Force Collaboration Incentive Management 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% 23/4/
19 Some interesting case studies What kind of company can benefit from a CRM implementation?
20 EXTREME NETWORKS INC and customer support Designs,, builds, and installs sophisticated solutions like IP telephony, security and full LAN solutions Accepts more than 600 phone calls or s e for customer support every month Challenges: To reduce support expenses To give higher service level to profitable customers To obtain reliable customer service metrics 23/4/
21 EXTREME NETWORKS INC and customer support Pre Initiative: In house software Loss of time because of bad scheduling No single view of the customer No reliable metrics for employee utilization No customer evaluation Post Initiative: Different level support for customers Increased customer satisfaction 60% of its customer issues are self- serviced over the web and 75% are successfully resolved Usable support metrics Better scheduling 23/4/
22 Type of companies that can benefit from a CRM solution Food companies (Meat, milk, bread products etc.) Electronic equipment (Computers, alarms, communications) Medical instruments and supplies companies Primary metal industries ( e.g Aluminum systems) Mining of nonmetallic minerals companies 23/4/
23 Type of companies that can benefit from a CRM solution Textile and footwear companies Furniture traders Liquor companies Printing and publishing industries Advertising agencies 23/4/
24 THANK YOU FOR YOUR ATTENTION!!! Andreas Galanis, MBA CRM Consultant 23/4/
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