CRM thru the Customer Experience Model

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CRM thru the Customer Experience Model
Presented by Ian Scatliff
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CRM thru the Customer Experience Model
Ian Scatliff October 2005
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About myself - Ian Scatliff

• Protegra principal consultant
• Account management project delivery
• Protegra shareholder
• Leading focus on wealth management market
• Protegra Wealth Management team
• Worked with clients in Canada, US, Japan and
  Europe
• Experience in
• Business process improvement initiatives
• Designing software build processes
• Building and integrating software
• Previously held roles with
• Rescom, wealth mgt product company
• SHL Systemhouse
• GPA Technologies (international development arm
  for LPL Financial Services)

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Introducing Protegra

• Passionate, creative professionals that provide
  business and technology solutions
• 50 consultants with average experience of 14
  years
• Protegra Wealth Management services
• Solutions that target growth and efficiencies
• Successes in this regard includes
• LPL Financial Services of San Diego
• European-based Moventum
• Canadian-based Assante Wealth Management (CI
  Funds), IQON Financial, Wellington West Capital,
  Credit Union Central of Manitoba
• 8 years in business
• Never a quarterly loss and no debts
• Employee owned

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Protegra offerings

• Protegra Wealth Management
• Business Process Consulting
• Solution Architecture
• Solution Design Development
• Solution Centre
• Virtual IT
• A la carte outsourcing

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Topic

• How CRM can be enhanced through Customer
  Experience Management (CEM)
• Discussion goals
• Provide landscape overview
• Provide awareness of issues and potential
  approaches

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Market Forces Leading Clients to CEM

• 50 churn of customer base every 5 years
• Cost of new customer acquisition is much larger
  than retention
• No clear understanding of wallet share and
  customer profiles
• Competition is driving the need to reduce costs
  and improve customer experience
• Consumers are savvier
• Multiple channels to reach the customer, with no
  clear measurements or integration between silos
• Small percentage of customer base contributes to
  profitability
• Brand impact of bad customer experience

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What is CRM?

• Forrester defines CRM to be the set of processes
  and supporting technologies used to acquire,
  retain, and enhance customer relationships

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What is CRM?

• CustomerThink Corp defines CRM as 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. CRM applications can enable
  effective customer relationship management,
  provided that an enterprise has the right
  leadership, strategy, and culture.

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What is CRM?

• Enables a corporation to
• Acquire, maintain, enhance customer relationships
• Not just a software solution
• Desired outcomes must be determined
• Clear processes, measures and goals
• Requires IT enablement

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What is CEM?

• Walker Information defines CEM as applying
  technology and the storage of customer
  information to improve the customer's service
  experiences with the company
• Jeff Marr defines CEM as applying customer
  perceptions, technology and the storage of
  customer information to improve customers'
  service experiences and their ultimate loyalty to
  the company

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What is CEM?

• A win-win for your company and the customer
• In general terms
• CRM is about collecting purchase and profile data
  for the purposes of marketing or cross-selling
• CEM is about improving the service experience of
  the customer

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What is CEM?

• Define measures from your customers perspective
• How to gather data? Ask your customer!
• Close the loop through customer feedback
• Measure a customers experience

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Examples of data and simple solutions

• Gathering wait times, or perception of wait
  times, at a bank branch at lunch
• If too long, increase staffing over lunch hour
• Old hotel, elevator example

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The benefits of CEM / CRM

• By understanding your customer experience
• Increase loyalty
• Improve experience
• Retain customers (reduce acquisition costs)
• Increase market share
• By understanding your customer relationship
• Increase profitability of current relationships
• Acquire new customers
• Reduce customer interaction costs (targeting)
• Leverage offerings across channels
• Increase market share

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The benefits of CEM / CRM

• You define!
• Measure what is important to you
• Plan for what you can afford to implement

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Top CRM Challenges (Forrester)
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CEM Best Practices

• Integrated
• Customer perceptions, service activities,
  purchase behavior are consolidated
• Data spans all touch points
• Phone center, email, the web site or a visit to
  the branch office
• Data spans all stages
• Prospect, new customer, recent purchase, loyal
  customer
• Loyalty-linked
• Analyze what transactions impact loyalty the
  most good or bad

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CEM Best Practices

• Frequency-managed
• Beware over-surveying of individual customer
  contacts
• Diagnostic and performance-measurable
• Short surveys track operational performance but
  also diagnose how to make it better
• Accessible
• Info available in real time
• Available for use by sales, operations, help
  desk, etc
• Continuous Improvement
• Info is being used to make improvements by sales,
  operations, help desk, etc
• Have accountability (and responsibility), to
  management for doing so

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Forresters CRM Success Factors
1. Build strong executive sponsorship 2. Have the
business lead CRM, with support from IT 3. Put in
the right governance structure
Strategy Governance
Strategy and governance
4. Define processes first, then apply
technology 5. Follow a realistic pace for roll-out
Process
6. Define data requirements and quality
management approaches
6. Define data requirements and quality
management approaches
Data
Data
7. Strive for high user involvement 9. Place
high priority on usability
Training, user adoption, andchange management
7. Strive for high user involvement 8. Place a
high priority on usability

8. Work towards a common platform 9. Limit
customization 10. Actively manage the vendor
relationship
9. Work towards a common platform 10. Actively
manage the vendor relationship
Technology
Technology
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Proposed Workplan

• Reviewed market forces, success factors, best
  practices and challenges
• The following slides describe an approach thats
  worked for our clients

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Implementation Approach

• Best approach is to begin with a strategy
  assessment
• Understand drivers, gaps, and barriers
• Come up with options to position for future

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Strategy Planning

• Begin with the end in mind
• Start with desired business outcomes
• Strategy often covers these key areas
• Infrastructure
• Organization Governance
• Applications Service Levels
• Business Strategy
• Process
• Finance

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Strategy Planning

• Senior executive support is key
• CEM / CRM must work toward corporate goals, not
  departmental
• Define the business drivers
• Balance needs of all departments
• Careful not to focus on one measure at all costs
• Identify all requirements

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Performance map

• A performance relationship map identifies
• Desired outcomes
• Gaps between what is and what should be
• Current barriers to this change

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Current state analysis

• Current State Assessment
• Establish an enterprise understanding of current
  Business and IT state
• Customer interaction assessment
• Focus on CRM drivers
• Further iterate the performance map

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Solution Architecture Recommendation

• Initiatives to eliminate gaps and position for
  desired outcomes
• Business cases defined for initiatives
• Position business for future

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Case study

• Background
• Client decided to improve customer offering
• Challenge
• Old technology
• IT/Business unaware of all systems/processes
• The Results
• Strategy planning initiative undertaken
• 100 IT applications discovered
• 4 product line processes, reduced to 1
• Enterprise vision delivered in phases
• First phase successfully completed with desired
  outcomes
• Hit their projected ROI

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Technology Application

• Broad overview of CRM/CEM
• Strategy work plan reviewed
• Following slides describe a flexible approach to
  the solution

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Realizing the solution architecture

• All-or-none vs. phased approach
• An approach weve used successfully leverages
  assets
• Asset identification
• Asset packaging using Services-Oriented
  Architecture (SOA)
• Benefits of our approach
• Leverage industry CRM packages
• Minimizes data replication
• Lowers cost of initial implementation
• Lowers cost of future phases
• Solution tailored to your requirements
• In less time than custom build
• Increases quality of solution

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The Dashboard

• A system users homepage
• Advisor or operational staff
• Services are tailored to you
• Different users see different services
• Display information required to maximize measures
  and hit goals

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Summary

• CRM can be enhanced through CEM
• The top CRM / CEM implementation challenge is
  business strategy alignment
• Protegra recommends a strategy assessment to
  identify
• Desired outcomes
• Issues, Gaps, Barriers
• Recommended initiatives to meet targets
• Protegras approach can leverage CRM assets to
  build a tailored CEM solution (or other)

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• Contact Information
• Ian.Scatliff_at_protegra.com
• www.protegra.com

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Referenced Work

• Julie Phillips Baker, Measurement Should Be From
  the Customer's Point of View, Quaero, Aug, 2005
• William Band, Best Practices For CRM Deployment
  Lessons From 22 Global Companies (Part 1 of 3),
  Forrester, June 22, 2005
• Niall Budds, You Can't Gauge Your Business
  Success Without Effective Measurement, Quaero,
  Aug, 2005
• Jeff Marr, Should the Focus Be on Customers
  Experience or Loyalty?, Creating Loyalty, May,
  2005
• Bob Thompson, What is CRM?, CustomerThink Corp,
  April, 2002

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Presentation Title CRM thru the Customer
Experience Model
Presented By Ian Scatliff