Customer Relationship Management CRM ATTF Luxemburg

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Customer RelationshipManagement(CRM)ATTF
Luxemburg
R.J.ClaessensPartners
Helping you through the learning curve
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Key Sources of the course Harvard Business
Review CRM by Ed Peelen Snezana Dragicevic
Geraldine Claessens
R.J.ClaessensPartners
E mail contact_at_rogerclaessens.be - Internet
www.rogerclaessens.be
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The key message of the course
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The key message of the course
We are in it, together!
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The key message of the course

• In 2003, according to Harvard Business Review,
  82 of interviewed companies in the USA, stated
  they would introduce CRM, a large jump from the
  35 who employed CRM in 2000.
• What changed?

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The key message of the course

• The approach changed!
• Rather than use CRM to transform entire
  businesses, companies using CRM successfully have
  directed their investments toward solving clearly
  defined problems within their customer
  relationship base

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The key message of the course

• The approach changed!
• CRM today result in highly focused projects that
  are relatively narrow in their scope and modest
  in their goals.
• There is also an understanding that highly
  accurate and timely data are not required
  everywhere

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The key message of the course

•  Achieving success with CRM is more difficult
  than expected and it is not just a matter of
  marketing and IT. 

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Introduction

• The philosophy of Customer Relationship
  Management is this
• CRM is about  Keeping the old-time spirit of
  customer connection even when you can not shake
  every hand .

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Introduction

• The philosophy of CRM is
• It is a comprehensive approach for creating,
  maintaining and expanding customer relationships.
  
• CRM is a way of thinking about and dealing with
  customer relationships

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Introduction

• The focus is on
• What will the customers buy, when, why and for
  how much?
• What creates value for them?
• What does create a structural bond?
• What service can we provide that does create a
  premium?
• What about market segmentation?

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Introduction

• What CRM systems do!
• The primary task of a CRM system consists in
  supporting or performing the activities involved
  in customer contact processes
• The secondary task is related to providing
  customer and management information

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Introduction

• The concept of CRM is
• Customer relationship management (CRM) is a
  business strategy to select and manage the most
  valuable customer relationships.
• CRM requires a customer-centric business
  philosophy and culture to support effective
  marketing, sales, and service processes.

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Introduction

• The concept of CRM is
• CRM applications can enable effective customer
  relationship management, provided that an
  enterprise has the right leadership, strategy,
  and culture

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CRM should the end of the road

• CRM is a great concept BUT you might wonder if it
  is worth the effort relative to your customer
  base and expenses involved?
• It is the ultimate phase AFTER a solid market
  research and a strategic planning process!

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Introduction

• Is the issue we analyse strategic?
• Where could we make more money?
• Do we need perfect data?
• What is the next step?

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Introduction

• Is it strategic?
• A large and comprehensive CRM program involves
  complicated business and technology issues and
  requires investments of time and money.
• Before spending money, key marketing questions
  need to be addressed
• What are your key marketing questions?

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Introduction

• Is it strategic?
• An example A well trained and  proactive 
  sales force is a strategic necessity this
  requires the right information!

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Introduction

• Where could we make more money?
• It is possible to use CRM to manage the entire
  relationship cycle that is usually a bad idea!
• Large systems usually do not pay back.
• The focus of CRM should be the weak points that
  undermine performance

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Introduction

• Where can we make more money?
• Focusing on weak points can not only be an
  effective way to build a successful CRM program
  but can also put it back on track in case you
  started one.

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Introduction

• Do we need perfect data?
• Perfect real time information comes at a very
  high cost
• The requirements for real time and good data are
  quite different
• Example Outstandings on a current account (real
  time) versus portfolio management data (good
  data)

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Introduction

• What is the next step?
• Narrowly focused CRM system often reveal
  additional opportunities for business
  improvements.
• All the small improvements taken together, can
  amount to a broad CRM application that extends
  across the bank.
• The key is to make sure the step by step approach
  fits into a defined strategic plan

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Introduction

• What is the next step?
• In most cases, the opportunities for development
  lie in the activities adjacent to the customer
  relationship cycle.
• Ultimately, CRM can be the glue that binds
  together all activities related to a customer.

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Introduction

• Customer relationship cycle.

Development
Sales
Targeting
Experience
Retention
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Introduction

• Business before technology
• We should look at what CRM should do, not so much
  on what it can do
• CRM depends more on strategy than on the amount
  spent on technology
• Strategy is about the way you allocate your
  resources to create a competitive advantage and
  superior performance

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Introduction

• Implementing CRM before creating a customer
  strategy like building a house without an
  architectural plan
• Effective CRM is based on segmentation analysis
• Customer strategy is designed to achieve some
  specific marketing goals
• Technology is not a marketing strategy

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Introduction

• Introducing CRM before changing your organisation
  into a customer focused organisation like
  painting without sanding
• CRM will succeed only AFTER the organisation and
  its processes job descriptions, performance
  measures, compensation systems, training
  programs, and so on- have been structure to
  provide superior customer value

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Introduction

• Assume that more technology is better is like
  building without foundation
• To start, see what lower-tech alternatives offer
  there may be no need for more in the very near
  future
• In the future as sequence of individual software
  solutions may lead to each step reinforcing the
  next step

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Introduction

• Define the right customers you want to establish
  a relationship with a two way street
• Just because managers can contact customers, does
  not mean they should by all means and for
  whatever reason.

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Introduction

• How do consumers define us in terms of
  competition?

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Introduction

• How do consumers define us in terms of
  competition?
• Cost
• Time
• Quality
• Opportunity
• Information
• Knowledge
• Choice
• Culture

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Introduction

• Why might you consider CRM?

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Introduction

• Why might you consider CRM?
• Gather customer information quickly
• Identify the most valuable customers
• Obtain loyalty by providing customized products
• Possibly reduce cost of serving these customers
• Making it easier to acquire similar customers
• Retention of existing profitable customers
• Getting the maximum out of existing customers
• It can function as an early warning system

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Introduction

• Why might you consider CRM?

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Introduction

• The ultimate goal of CRM
• The goal is to encourage the customer to make its
  future purchases from you and reduce the share of
  purchases being made from the competition DUE TO
  THE FACT customer knowledge has been accumulated
  and therefore it will be more difficult for the
  competition to offer a similar package

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Introduction

• CRM is only a part of the sales performance!
• How would you assess your overall sales
  performance?
• Please rate the questions hereafter as follows
• Not effective Extremely effective
• 1 2 3 4 5 6 7 8 9
  10
• (Source HBR 08/06)

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Introduction

• Salespeoples capabilities
• Finding customers identifying sales
  opportunities
• Winning customers converting opportunities into
  business
• Keeping customers cementing customer
  relationships - CRM

Not effective Extremely effective 1 2
3 4 5 6 7 8 9 10
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Introduction

• Sales Managers' skills
• Planning for growing business
• Coaching giving clear direction, expectations
  and feedback
• Motivating recognition and rewards

Not effective Extremely effective 1 2
3 4 5 6 7 8 9 10
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Introduction

• Support systems
• Recruiting and hiring capabilities
• Performance management systems
• Opportunities management systems
• Strategic account management systems
• CRM systems
• Training and development systems

Not effective Extremely effective 1 2
3 4 5 6 7 8 9 10
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Introduction

• Sales organisation climate
• Clarity of goals and expectations
• Staff dedication to achieve challenging goals
• Staff initiative
• Acknowledgment of good work

Not effective Extremely effective 1 2
3 4 5 6 7 8 9 10
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Introduction

• The total score for your sales organisation
  is..

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Introduction

• Average for high-performing organisations
  123
• Average for low-performing organisations 109
• We shall put the spot on CRM, but it is only a
  part of a bigger picture
• ( US based companies)

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The structure of the course
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1_Elements of CRM
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1_Elements of CRM

• The four cornerstones of the
  elements of CRM  are
• Customer knowledge
• Relationship strategy
• Communication
• The individual value proposition

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1_Elements of CRM

• Customer knowledge

• Segmentation
• Awareness, Attitude
• Usage
• Concept
• Customer satisfaction

• Customer loyalty
• Brand Image
• Brand equity
• Pricing
• Advertising

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1_Elements of CRM

• Relationship strategy

• A long lasting customer supplier relationship
• The key is not only the stimulation of a
  transaction
• Success is not measured by market share

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1_Elements of CRM

• Communication

• The issue is to carry on a dialogue with
  individual customers
• Shifts should be possible between distribution
  channels

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1_Elements of CRM

• The individual value proposition

• The product, service and price are adapted to the
  individual circumstances
• The organisation has to build up the capacity to
  supply customisation in one form or another

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1_Elements of CRM

• Systems

• If a relationship must be maintained with a large
  group of customers, a portion of which represents
  a low value to the supplier, the use of IT
  becomes inevitable.
• Integration is therefore a must between
  front-mid-back office