CRM Software and Customer Retention

Presented by: Anne LairdTitle: CRM Programme Manager, ElsevierDate: 1st May 2003

Using technology to get closer to your customer

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What is CRM software

Sales Force Automation Customer Service Marketing & Analytics Integration to back office

applications: customer activation, billing, G/L

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Scope of CRM today

Integrated sales, marketing and service across all channels and all products

Customer Database“single viewof customer”

Lead Tracking &Sales Management

ContactManagement

CampaignManagement

MarketingEncyclopaedia

CustomerService

Management

Integration withProduct Engines(Transactions)

TelemarketingWorkflow &Fulfilment

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Economics of customer retention

“Winning back a lost customer can cost up to 50-100 times as much as keeping a current one satisfied.”

Rob Yanker, Partner, McKinsey & Company

Understanding your customer is key to retention…..

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Challenges impacting understanding your customer

DetermineBest

Resource

Knowthe Customer’s

ValueLearn fromCustomers

Identifythe Customer

Access Complete Customer

Profile & History

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Common customer service complaints

“I hate being transferred from one person to another.”

“I hate being transferred from one person to another.”

“It is frustrating to sit on hold for minutes on end.”

“It is frustrating to sit on hold for minutes on end.”

“Why can’t everybody know my issue? This is the 10th time I have call about the same problem. Don’t they value my business?”

“Why can’t everybody know my issue? This is the 10th time I have call about the same problem. Don’t they value my business?”

“I might not get a timely answer if I email. I’d rather call.”

“I might not get a timely answer if I email. I’d rather call.”

“How come when I go to the web site I get a different answer than when I call into your call centre?”

“How come when I go to the web site I get a different answer than when I call into your call centre?”

“I entered my account number and the agent still asks me for it.”

“I entered my account number and the agent still asks me for it.”

“I just want to talk to a live person rather than enter 1, 2, or 3 on my touchtone phone.”

“I just want to talk to a live person rather than enter 1, 2, or 3 on my touchtone phone.”

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Avoid information silos

There is often a lack of integration between channels. Sales and Customer Service Agents had little visibility into the Web channel, and Web sites sometimes had little

correlation with what was available

Web, Email, WirelessWeb, Email, Wireless • • 24x724x7 • • VisualVisual

Call CentreCall Centre • • ConvenientConvenient • • ImmediateImmediate

Field SalesField Sales • • Hands-onHands-on • • ConsultativeConsultative

ResellersResellers • • LocalLocal • • MultivendorMultivendor

Source: Gartner Group

CustomersCustomers

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Understanding your customer in the context of CRM

CustomerCustomerInformationInformation

CUSTOMERS

ProductProducts/s/ServiceServicess

GeographieGeographiess

Legacy / Legacy / Back Back officeoffice

Best Best PracticesPractices

Web & EmailWeb & Email

Call CentreCall Centre

Field SalesField Sales

Partner/AgentPartner/Agent

…Drives Service Delivery Across All Business Units

Visibility Across All Channels…

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Understanding your customer – Implementing CRM

• Business strategy & roadmap

– Customer segmentation– Multi-channel strategy– Business processes– Skills & culture– Technology

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Implementing CRM

• Effective customer segmentation

– Customer profile– Customer lifecycle– Consolidated information

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Implementing CRM

• Integrated multi channel strategy

– Match products to channel– Customer needs & costs– Customer experience

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Implementing CRM

• Well defined business processes

– Eliminate ill-defined and inefficient– Focus on customer facing processes– End to end approach

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Know your customer common business processes

Identify CustomerIdentify Customer Identify RequestIdentify Request

Cross-sell /Up-sell Offer

Cross-sell /Up-sell Offer

Capture Customer Details / Update Profile

Capture Customer Details / Update Profile

Obtain Customer Feedback

Obtain Customer Feedback

Complete TaskComplete Task

Call Center Agent

Customer

Initiate RequestInitiate Request

Phone

Email

Web

Technology

Route to Best resource

Route to Best resource

Agent skills

Agent availability

Customer attributes

Screen pop Customer History

Screen pop Customer History

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Implementing CRM

• Organisational Skills & Culture– Change management– Performance measures– Senior management support

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Implementing CRM

• Technology

Generation

1st

2nd

3rd

4th

5th

6th

7th

Key application components

Word processor

Spreadsheet

Email

Change mgmtpotential

Low Return on Investment High

Sales styles

ROI

Enables

Team and technique focus

Acct/territory

manager

Order entry

CRS, SAS

MC/S

Contact

manager

Expense

reports

SCS, OMS, MES

Telesales, ISS,

Integrated sales

desktop

Enterprise OMS

Intra-enterprise

team selling

All assisted

channels

integrated

Inter-enterprise

OMS

Virtual sales

channel

Inter-enterprise

team selling

Technology

enabled

buying

Web

buying

Integrated

inter- and

intra-enterprise

Minimal Significant Daunting Extreme

Individual Sales Team Enterprise/Value Network

Product Selling Proposition Selling Solution Selling

SCM 1 to 1

Source Gartner Group

Key:1 to 1 – One-to-one marketing

CRS – Call reporting system

ISS – Interactive selling system

MC/S – Mobile client/server system

MES – Marketing encyclopaedia system

OMS – Opportunity management system

SAS – Sales analysis system

SCM – Supply chain management

SCS – Sales configuration system

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A CRM solution has wide strategic benefits

• Protect cherry picking of customers by competition. Most companies have decided to focus their efforts on multi-product relationships with profitable customer segments. Many are developing relationship strategies to identify, attract, grow and retain profitable customer segments - and hence will be targeting your most profitable customers.

• Choose service levels by customer segment and channel. CRM will help enable different parts of the organisation to understand and communicate the “value” of each customer and hence the treatment strategy.

• Enable a sales led organisation & culture to be implemented. The CRM solutions include sophisticated sales tools and sales management information to assist sales people and managers in focusing on the key drivers to make their sales more effective.

• Radical cost reduction by streamlined processes. CRM is likely to reduce levels of central support, manual administration, error correction and time taken to serve a customer. Hence overall cost improvements should be achievable.

• Avoid costly “data clean-up” and re-work programmes. By improving the quality and consistency of information recorded and used there will be far less need to invest in these type of activities.

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Implementing CRM

• Business strategy• Customer segmentation• Business processes• Skills & culture

Technology is just the enabler!

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In summary

• You are better able to serve customers needs if you understand them well

• If you give them the products they want, when they want them and provide a good and consistent service they will continue to be your customers

• CRM gives the complete and rich view of the customer, enabling tactical and strategic actions to be taken by sales, product development and marketing to meet customer needs

• CRM also enables consistent customer communication regardless of channel, location, time