IMPROVING YOUR BOTTOM LINE THROUGH CUSTOMER RELATIONSHIP MANAGEMENT INDUSTRIAL BUSINESS SOLUTIONS

IMPROVING YOUR BOTTOM LINE THROUGH CUSTOMER RELATIONSHIP MANAGEMENT INDUSTRIAL BUSINESS SOLUTIONS

USING THE LATEST TECHNOLOGY If one-to-one relationships with customers used to be prohibitively expensive, then what has changed? In a word technology. THE IMPORTANCE OF CUSTOMER RELATIONSHIP MANAGEMENT CUSTOMERS AND COSTS Until recently, it was believed that building any meaningful one-to-one relationship with customers was too costly an exercise even to contemplate. Mass marketing was the recognised way to go, treating customers as essentially identical. Interaction with them was to be avoided if at all possible. Think, for example, of the way in which banks have herded their customers away from face-to-face relations at the counter to the cash point machine outside. Business was telling its customers that it didn t care about them and customers got the message. TREATING CUSTOMERS LIKE PEOPLE In 1993 Don Peppers and Martha Rogers published The One To One Future, stressing the value in dealing with one customer at a time. It was the birth of what is known today as Customer Relationship Management. Eight years later, it is now universally recognised that developing a personal relationship with a customer is a far more profitable business strategy than treating them as a faceless individual on an undifferentiated database. Your personal relationship with a customer is a key differentiator in a competitive world, whether you re a business-to-business or business-to-consumer organisation. Furthermore, personalised one-to-one communications can: Gain incremental revenue from existing customers Benefit from new revenue from new customers Increase customer loyalty Focus on more profitable customers rather than all customers The effect on the bottom line is obvious. New technology now allows organisations to enjoy the economies of scale of mass marketing while simultaneously reaping the benefits of one-to-one personalised customer relationships. Pioneers such as The Document Company Xerox have created not only the physical technology to help cut costs and increase profitability but also the strategies for successful implementation. A COMPETITIVE EDGE Today, most companies are introducing some form of CRM strategy and gaining a very real competitive edge in their markets. Those left behind will find it increasingly difficult to retain customers. MARKET OBSERVATIONS 82% of the world s biggest organisations have an incomplete view of their customers 5% increased customer retention results in a 25-85% increase in profitability ( The Loyalty Effect by Frederick Reicheld) 68% of customer defections are due to poor customer service interaction (META Group 2000) DEVELOPING A SUCCESSFUL CRM STRATEGY Every customer relationship starts and continues with some kind of communication: Face-to-face (a representative on the road) Phone (person-to-person or person-to-system) Documents (hard-copy, e-mail, internet or mobile phone messaging) Their effectiveness will be governed by the development of a quality communications strategy - a clear strategy that supports your business objectives by good communications based on your own unique strengths as an organisation. QUALITY IS THE KEY The key difference between mass communication and CRM communication is the quality of the interaction. In mass communication you measure the result to your bottom line without a clear understanding of the value of each individual customer. With CRM communication, you measure the specific value of a chosen community. By implementing a closed-loop process, CRM communication will provide you with an increasing amount of information to continuously improve your effectiveness.

THE IMPORTANCE OF THE DOCUMENT IN CRM STRATEGIES 90% of all communication with customers occurs through documents. Overwhelmingly, your customer knows you, your brand and your products and services through the documents you produce, whether on paper or electronic. Your document strategy is therefore nothing less than vital to your sales success and the success of any CRM strategy you implement will depend very largely on a successful document strategy. THE EVOLUTION OF THE DOCUMENT Traditionally, documents have had a single purpose in a sales strategy. They might be a selling document, or an invoice, for example. However, today it is recognised that a single document can perform a number of functions beneficial to the organisation. These other functions might typically include: Building a one-to-one relationship with the customer Improving customer satisfaction Providing guidance Reducing customer service costs Selling additional products and services Enhancing company and brand awareness Increasing customer retention Obtaining useful feedback ONE-TO-ONE RELATIONSHIPS Personalising your communications with customers pays significant and well-proven dividends: 32% increase in overall revenue 25% greater average order value 48% increase in repeat orders 34% better response rate (Source: CAPV study for IBM) Customers like personalised documents and respond accordingly. Furthermore, the effect has long-term benefits, as demonstrated by the repeat orders achieved. MARKET OBSERVATIONS 90% of communication with customers in through documents 80% of knowledge workers activities are supported by documents Corporate knowledge resides in documents 26% paper documents 20% electronic documents Documents are 50% of your IT budget THE DOCUMENT COMPANY XEROX SOLUTION No-one understands the document better than Xerox. That s why we re called The Document Company after all. Documents are our core competency and our knowledge and expertise includes both the traditional paper document and all forms of electronic communication the internet, e-mail, WAP and Text messaging. Together with CRM specialists including Siebel, the SAS Institute, Oracle, SAP, JD Edwards and People Soft, we are uniquely placed to provide you with the right CRM solution for today and tomorrow. In fact, Xerox is probably the only party in the world that can manage the entire process from CRM data to CRM communication. To differentiate in a competitive market, Xerox can offer you some unique vectors: Variable data manipulation: allowing you to develop more powerful communication Output devices: allowing you to produce exactly the right quality and quantity at the lowest possible costs Partnerships: allowing you to work with all leading vendors of your choice Alternative output media: allowing you to use the best and most cost effective ways of communicating with your customer and prospect base Knowledge and services: allowing you to make the investment with the highest success rate

THE BEST FIT TO YOUR CUSTOMER VALUE The Document Company Xerox can offer you a unique solutions portfolio for document processing and production, because we can bring the widest portfolio of document processing and production solutions to your organisation to meet your requirements. THE BEST FIT TO YOUR CURRENT AND FUTURE PROCESSES However, printing is just one of our core competencies. A Xerox solution is designed to offer three way integration BACKWARDS SIDEWAYS SIDEWAYS FORWARDS Forward integration: seamless integration from print to recipient Backwards integration: seamless integration with your CRM data Sideways integration: seamless integration to non- paper communication and processes (e-documents, call centres etc) A FULLY COMPREHENSIVE SUITE OF SERVICES Document Knowledge Consultancy Services Our project management team can help you develop your vision into a solid document strategy, building a tailormade document architecture as part of an overall solution. Document Technology Analyst Services Xerox specialists are available to expertly integrate components into your IT environment and ensure your requirements are met in every respect. PLANNING FOR TODAY AND TOMORROW CRM is under constant change. For this reason solutions can have a limited economic lifetime. To protect your investment, Xerox solutions are mostly: Modular with state-of-the art technology for both paper and non-paper based processes, while continuous improvements are under development and delivery. Scalable to stay in line with your requirements, both on volume as your business grow as well as on technology as we move ahead. Open to meet the widest variety of requirements and solution components in the future. It also allows you to cherry pick new technologies from other parties. They offer a leading advantage to your business. Unique Especially in printing you will find solutions that nobody else in the world can deliver. Some examples today include highlight colour printing and production full colour printing. MARKET BRIEFING: THE DOCUMENT COMPANY XEROX The biggest innovator in document equipment for over 70 years Leading knowledge on human behaviour and technology in Palo Alto Research Centre (PARC) California, & Grenoble France (XRCE) The market leader in transactional printing, with a worldwide market share of 65 to 80% (depending on the speed-band) Recognised market leader in each segment for cut-sheet production equipment First in digital documents; co-research with e-companies. Document Fulfilment Training and Operations Services To ensure you obtain maximum benefit from your new technology, Xerox can oversee its integration into your environment and provide full training for your staff. Of course, if you d prefer to outsource the production process, Xerox can offer you complete fulfilment and/or facility management services.

PUTTING CRM INTO ACTION The advent of CRM has profound implications for a number of key business processes and documents. There are new challenges, new opportunities and new solutions too. It is therefore vital to identify the solutions which will realise optimal improvement in customer communications and bring the best possible strategic value to the organisation. NEW INFLUENCES Industrial companies cannot deny certain trends and have to respond to very creative organisational issues. Globalisation and cost reduction are two of the most challenging trends. Deregulation has opened some markets causing the number of competitors to increase, while more demanding customers and the impossibility to deny the new technology puts enormous pressure on many enterprises. More competition also means more companies are chasing the same customer - the customer that the organisation doesn t want to loose. This is just one reason why organisations must develop retention strategies and programmes to improve customer loyalty. Above all, customer information has become an invaluable asset. Working over the globe and around the clock puts new requirements on the availability of documents, the archive, and on the way these documents can be consulted and viewed. CHALLENGES, OPPORTUNITIES AND GOALS How to drive the production and delivery costs down How to handle the enormous amount of customer data How to improve customer response time from the call-centre How to avoid confusing dialogs about document contents How to increase order-size by up & cross selling Automating a print & assemble process to replace pick & pack from stock Increasing response rates and lower cost per lead Automating mailing operations. Xerox solutions that help in these areas: BECOMING CUSTOMER CENTRIC Many processes are affected when changing to a customer centric business model. Important customer information has to be massaged and stored in a way that it can be easily accessed and used by the document composition engines. Document composition systems need to merge variable data components with static elements, using very dynamic layouts and highlight or full colour technologies. Systems will be enabled to output personalised documents, for example bills and statements, over the internet. Unique documents for every individual customer also impose new working methods on the mailroom. Data-management tools: Data cleansing, data-profiling and segmentation using a mix of transactional and personal data, for example the use of demographic information to help define the target audience. Various composition engines enrich documents in a personal way. Archiving and viewing clients present the call centre with exactly the same information as was sent to the customer facilitating communication and shortening response time. Automated processes to fulfil customer s demand driven by the database or the call-centre. Presentation of information on the internet. Customers, business partners or suppliers can access it from all over the globe, 24 hours a day, 7 days a week, having the most recent information immediately available. Some of these changes in the business process or business documents address a problem, others present an opportunity for better customer communication and/or cost-cutting in the process itself. Brochures, flyers, mailings, etc can be individualised giving a higher return.

CRM AND THE DOCUMENT COMPANY XEROX FIVE CENTRES OF EXCELLENCE Promotional Transactional Communication CRM Database Customer Profiling Personalised Marketing Communication Document Presentment Document Composition Automated Fulfilment AUTOMATED FULFILMENT An automated fulfilment solution that maximises productivity by sending output through multiple engines at the lowest possible costs. The creation of personalised documents by merging variable data documents with static data documents. Workflow management software Data mining software Document composition and assembly Document repository Integrity hardware and software Printing and finishing equipment Eliminates costly stock Reduced errors No waste PROMOTIONAL TRANSACTIONAL COMMUNICATION To turn transactional documents into a powerful marketing tool through up and cross-selling. Obtain data from multiple databases to enrich transactional documents with very high value, customised marketing messages. Present the information in a highly effective format for the customer. Delivery Custom Catalogues Archiving DocumentXchange (Internet Presentment) Workflow and output management software Integration with data mining software Full dynamic document composition software Printers, finishing equipment (enveloping) Virtually no incremental cost Improved loyalty More profit PERSONALISED MARKETING COMMUNICATION Maximise the marketing value of non-transactional based marketing documents. Obtain data from multiple databases to make a unique offer that appeals to a potential customer. Workflow management software Integration with data mining software Full dynamic document composition software Full integrity software Printers, finishing equipment (enveloping) Higher response rate Increased revenue Virtually no incremental cost CUSTOM CATALOGUES To output highly effective, personalised catalogues on paper or on the web at lower cost. Build catalogues based on buying history or information gathered from the web-site. Operational management software Colour management Variable data composition Digital asset management Output manager INTER/INTRANET PRESENTMENT To present personalised, interactive web pages to promote your brand and up and cross-sell new products and services, and to improve call centre communications. Transform your legacy print data and other data in a highly effective web site. e-presentment software Archiving systems Integration services Reduce print and postal costs Increase customer loyalty Build on existing process (no clean-sheet design) www.xerox.com