CUSTOMER RELATIONSHIP MANAGEMENT

1
CUSTOMER RELATIONSHIP MANAGEMENT THE SME

• Michael W. Piczak
• Dipl.T., B.Comm., MBA
• OCCAM Consulting Associates Limited
• 905.730.1385
• piczakm_at_mcmaster.ca

2
OUR COMPLEX WORLD

• Not enough customers
• Too much competition
• Pace of business getting faster
• Demands on people increasing
• Technology improving
• Demand insatiable
• Customers demanding

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WHY CRM?

• An impersonal age
• Lean and mean
• Customerize
• Its all about relationship
• Partnering
• Have to be different
• Make organization more customer friendly
• Superior customer service
• Your sales marketing work as a team

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SUCCESS SETS UP FAILURE

• Your success is finding and keeping your first
  few customers
• You maintain customers and grow
• Referrals and more success
• Seeds of failure already sewn
• Cannot remember everything, there is more than
  one person and you are not always around

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CRM IS

• Institutionalized remembering
• A system of customer cultivation
• A way of delivering on your customer service
  promise
• About erecting exit barriers
• About accessing customers through multiple
  channels
• Getting intimate with customers
• An opportunity for cross selling

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CRM A WORKING DEFINITION

• Systemic approach for understanding
  anticipating needs of current potential
  customer base
• An approach or tool that puts the customer at the
  design point
• You to 1 marketing and moving away from a 1 size
  fits all mentality

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A MESSY LOOKING PUZZLE
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USING CRM TO ADVANTAGE BY

• Knowing your customer better
• Turning contacts into relationships
• Letting everyone in on where you stand vis-à-vis
  a given customer
• Targeted and proportional response
• Using it as an integrated customer location,
  satisfaction and retention plan
• Making relationships more profitable
• Selling the way your customer likes to buy

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WHAT DO YOU WANT TO KNOW ABOUT YOUR CUSTOMER?

• How they like to communicate (e, cell, tel, mail,
  etc.)
• What did they mention in passing about future
  product/services
• How do they like to handle financial
  transactions?
• Do they tend to move fast or deliberately
• No for today or no forever?
• Name of family members, dog, etc.

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CRM IS NOT

• Just software
• Just about technology
• Doing business the old way with new toys
• Just following up using a tickler file

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WHOM TO COPY?

• Super car salesmen
• Amazon.com
• Beer companies
• Car dealerships
• Smaller banks
• Corner grocer in the old days but with todays
  technology

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CASE STUDY 1SEAVIEW TEA COFFEE

• Regular customer recognized
• Rep knows Tom likes mug for bottomless plain
  Columbian
• Has mentioned double espresso in past
• Can I have toasted bagel cheese
• Yee knows Tom likes everything bagel followed by
  poppy seed followed by plain
• Yee also knows Tom likes cheese thinly sliced
  and no melting

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THE RESULT?

• Tom spends hundreds of there each year
• Wife patronizes operation friends
• Does take-out for family
• Tom does not share attitude with competitors
  letting them find out for themselves the hard way

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CASE STUDY 2 BULLAS AUTOMOTIVE

• 7,500 customer database
• Collects data on recency of service, type of
  service provided, spent, snows, tires
  rotated/tune up/emissions check at, etc.
• Queries database to send out letter or post card
  inviting customer in for particular promotion
• Uses POS system to update database
• POS does history, invoicing, inventory,
  accounting and more

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CASE STUDY 3

• Database as part of direct mail campaign
• Customer bought PT Cruiser 2 ½ years ago equipped
  with value package
• Write personalized letter inviting customer back
  to see new SE unit with a variable graphic/data
  taken from database
• Customer letter is upgraded based on database
  information
• Get mass customized/targeted mailing

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CASE STUDY 4 GOING TOO FAR?

• Consumer touches a button on web
• Database checked for customer
• E-mail address taken
• Sales rep contacts customer within minutes to
  assess needs, intention and move to purchase

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WHO YOU GOING TO CALL?

• Siebel Systems
• Oracle Business Systems
• People Soft
• IBM
• Ernst and Young Canada
• Interchange Group
• Jericho Systems
• 500 suppliers out there

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PUTTING IT ALL TOGETHER
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CRM FOR SMEs

• Cellphones
• All in ones with Winfax
• Database software like Access, Excel
• PDAs like Blackberries, Palms, etc.
• Personal information managers (Outlook,
  Maximizer, etc.)
• POS systems
• Specialized CRM s/w

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CRITERIA FOR PICKING A SYSTEM

• Ease of use
• Does it solve the right problem
• Customizability
• Price with eye to total ownership cost
• Ease of implementation
• Future growth
• Fit with other systems
• References

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AN IMPLEMENTATION PLAN

• Do re-engineering of marketing and selling
  process
• Look for ways and means CRM technologies can
  support efforts
• Tie into performance management system
• Dont let IT guys design user interfaces

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IMPLEMENTATION CONT

• Make system easy to access and use
• Involve top management
• Focus on strategy/process first, technology
  second
• Train employees
• Have adequate hardware for speed
• Upgrade over time

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CRM THE SME
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BABY STEPS

• First CRM application is like a 15 watt light
  bulb in a dark room not very bright but makes a
  huge difference
• This is not a slam dunk technology

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CRM IN PERSPECTIVE

• ITS NOT EASYITS NOT FASTITS NOT
  CHEAPANDITS NOT AN OPTION

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WANT TO KNOW MORE?

• Customer relationship management into
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• www.crmacanada.com
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• International Journal of CRM