Developing a succesful CRM Strategy

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Developing a successful CRM strategy for your
business Presentation to ISTUG Monday 9th
October 2006
Simon Raeburn-Ward Sage UK Ltd
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Agenda

• What is CRM?
• Key Business Issues
• Preparing for a New Solution
• Customer Case Study
• Implementation - Avoiding the Pitfalls
• Customer Segmentation
• Product Positioning

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What is Customer Relationship Management?
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A business strategy whose outcomes optimise
profitability, revenue and customer
satisfactionCRM technologies should enable
greater customer insight, increased customer
access, more effective customer interactions, and
integration throughout all customer channels and
back-office enterprise functions. -G
artner
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A business strategy whose outcomes optimise
profitability, revenue and customer
satisfactionCRM technologies should enable
greater customer insight, increased customer
access, more effective customer interactions, and
integration throughout all customer channels and
back-office enterprise functions. -G
artner
6
A business strategy whose outcomes optimise
profitability, revenue and customer
satisfactionCRM technologies should enable
greater customer insight, increased customer
access, more effective customer interactions, and
integration throughout all customer channels and
back-office enterprise functions. -G
artner
7
A business strategy whose outcomes optimise
profitability, revenue and customer
satisfactionCRM technologies should enable
greater customer insight, increased customer
access, more effective customer interactions, and
integration throughout all customer channels and
back-office enterprise functions. -G
artner
8
A business strategy whose outcomes optimise
profitability, revenue and customer
satisfactionCRM technologies should enable
greater customer insight, increased customer
access, more effective customer interactions, and
integration throughout all customer channels and
back-office enterprise functions. -G
artner
9
A business strategy whose outcomes optimise
profitability, revenue and customer
satisfactionCRM technologies should enable
greater customer insight, increased customer
access, more effective customer interactions, and
integration throughout all customer channels and
back-office enterprise functions. -G
artner
10
CRM is

• A Business Strategy, NOT a Technology
• Technology is the enabler

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Understanding the Business Issues
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What are the key business issues?

• Improve integration
• Reduce inefficiency
• Better cross selling
• Better marketing insight
• Improve visibility of operations

• Higher customer retention
• Increase market share
• Higher profitability per customer
• Preserve brand reputation

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Traditional Business Model
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Customer Centric Model
Phone
Phone
Face to
Face to
F
ace
F
ace
Email
Email
Internet
Internet
Letter
Letter
Fax
Fax
3
Party
3
Party
rd
rd
Partners
Partners
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Planning the Project and Setting Expectations
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CRM - Defining the Challenges

• What is the current reality?
• Consult with users, managers
• Learn, understand, map the processes Sales,
  Marketing, Customer Service
• How do they do things and why?
• Identify inefficiencies
• Confirm that any planned changes will be in line
  with the strategic objectives set out by the
  board

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Build the Business Case

• Link the project to a strategic objective of the
  Board
• Summarise the current as is situation
• Articulate the future required situation
• Specify reasons for change
• External market pressures, competition,
  legislation
• Internal inefficiencies, creaking IT systems
• Customer defections, poor sales
• Attach values to time or effort that is to be
  gained from improvements

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Estimating the ROI

• No base metrics means no ROI measurement
• Have you defined the base metrics now?
• What are your defined success criteria?
• Objectives
• Reduce Costs, Increase Revenues, Improve Service
• Define associated value against
• Time savings task management
• Reduced errors, less time fixing mistakes
• Greater efficiency better processes
• More sales, better lead tracking

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Managing Change
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Managing Change / User Adoption

• People generally resist change
• Focus on instilling awareness desire across the
  user community
• Board level involvement and consistent visibility
  of the board sponsor throughout
• Regular, inclusive communication and feedback
• Well planned education program training!!
• Dont give the users data you have not cleaned!

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Choosing the Enabling Technology
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Functional Fit

• Marketing - profiling, targeting, segmentation,
  campaigns
• Sales account/contact/opportunity management,
  forecasting
• Customer Care helpdesk, call centre
• Website web self-service
• Integration - Existing Sage accounting systems
  eg. MMS Line 200, 500

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Technical Fit

• No solution is a 100 fit
• Can you easily make changes to the system with no
  painful upgrade / maintenance issues?
• Can you adapt the system yourself with minimum
  recourse to the supplier?
• Does it have proven integration capabilities?
• Are the hardware requirements onerous?
• Multi-currency and multilingual support?

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Ensuring a Successful Implementation
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Scoping the Project

• Agree the project team - key users sponsors
• Define the work processes
• Move beyond the requirement list to a detailed
  specification
• Define reporting needs
• Plan the integration of existing / legacy systems
• Agree success criteria
• Cultural diagnosis people!

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Key Steps to Successful Project Delivery
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Project Delivery

• Complete the scoping user tech workshops
• Requirements and Design Document
• Statement of Work Document
• Agreed milestones
• Agreed approach to change control
• Configure, install, integrate and manage
• UAT and system testing
• Training and documentation
• Go-live support

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Sample Customer Story
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Rite Vent Case Study

• UK Leader in the Manufacture of metal flues
• Part of the Lafarge Group
• 15m turnover, 3000 customers
• The Need
• Multiple Customer Databases no single customer
  view
• Unable to Cross Sell
• Reports requested through IT Department (25 days
  per year)
• The Solution
• SalesLogix and Sage BI
• The Benefits
• Instant single source reporting across Sales,
  Marketing and Finance. Future roll out to
  production field based staff
• Proactive at analysing data for business
  flexibility
• ROI within 6 months

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Rite-Vent Ltd

• Key Requirements
• ERP Integration across 5 divisions (L500 to L50)
• Phased roll out across UK and Ireland then Europe
• Scaleable solution
• Multi lingual
• Phase one - SFA across 5 divisions
• Remote access
• Management Reports
• Integration to Lotus Notes

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• Objectives
• Move to a single database of customer information
• Integration to back office for complete view of
  customer
• Mobile field service
• Result
• Single view of the customer including analysis of
  past sales and debtor days
• Sales increased 29 in first year
• Contract Income grew 30

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• Objectives
• Replace manual system, reduce resolution time,
  integrate all customer contact methods into one
  application
• Result
• Increased productivity, integrated booking data
  from mainframe in New York, reduced resolution
  time.
• Automated workload distribution, reduced staff
  training time, improved reporting.

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Watch Out!
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The things that catch you out!

• Excessive process automation workflow overload!
• Data readiness data cleansing migration
• Not phasing the project
• Not fully scoping the integration needs
• Poor reporting definition
• Underestimating training needs
• Cultural readiness of end users
• System Administrator skillsets

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Making the Project Work

• Defined accountability effective ownership of
  the project internally (visible board Sponsor)
• End user involvement early
• Clear prioritisation of deliverables
• Early quick wins for key users
• Phasing - Dont implement everything at once
• Avoid workflow overload on users
• Start with clean data on go-live
• Well managed internal PR
• Well trained people

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Drivers of CRM Success - Top 5

• Process Change 22
• Change Management 20
• CRM Strategy and value Proposition 15
• Organisational Alignment 12
• Governance 10

Explain 79 of Success
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(No Transcript)
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Customer Segmentation
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Customer Segmentation is vital
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Product Positioning - Freedom of choice
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Sage Business Intelligence Sage 1000
Sage Retail Solutions
Sage Construction Solutions
Integration
Business Size/Complexity
Sage ManufacturingSolutions
Third-party Solutions for other industries
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Some considerations
Deployment
Workflow
Customization Configuration
Marketing
Analytics and BI
Solutions
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Collect your How to Choose a CRM System Any
questions?
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Developing a successful CRM strategy for your
business
Simon Raeburn-Ward Sage UK Ltd