Output CRM 1

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Customer RelationshipCustomer Relationship

MaManagementnagement

(CRM)(CRM)

ATTF LuxemburgATTF Luxemburg

Helping you through the learning curve

R.J.ClaessensR.J.Claessens&&PartnersPartners


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Key Sources of the course:Key Sources of the course:

Harvard Business ReviewHarvard Business ReviewCRM by EdCRM by Ed PeelenPeelen

Snezana DraSnezana DraggicevicicevicGeraldineGeraldine ClaessensClaessens

E mail: [email protected] - Internet: www.rogerclaessens.be

R.J.ClaessensR.J.Claessens&&PartnersPartners


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The key message of the courseThe key message of the course


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We are in it, together!


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In 2003, according to Harvard Business Review,

82% of interviewed companies in the USA, statedthey would introduce CRM, a large jump from the

35% who employed CRM in 2000.

What changed?


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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 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 accurateand timely data are not required everywhere


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Achieving success with CRM is more difficult than

expected and it is not just a matter of marketing

and IT.


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IntroductionIntroduction

The philosophy of Customer Relationship

Management is this :

CRM is about Keeping the old-time spirit of

customer connection even when you can notshake every hand .


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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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The focus is on:

What will the customers buy, when, why andfor 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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What CRM systems do!

The primary taskof a CRM system consists in

supporting or performing the activities involved

in customer contact processesThe secondary taskis related to providing

customer and management information


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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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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 roadCRM should the end of the road

CRM is a great concept BUT you might wonderif it is worth the effort relative to your customer

base and expenses involved?

It is the ultimate phase AFTER a solid marketresearch and a strategic planning process!


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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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Is it strategic?

A large and comprehensive CRM programinvolves 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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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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Where could we make more money?

It is possible to use CRM to manage the entirerelationship cycle: that is usually a bad idea!

Large systems usually do not pay back.

The focus of CRM should be the weak pointsthat undermine performance


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Where can we make more money?

Focusing on weak points can not only be aneffective way to build a successful CRM

program but can also put it back on track in case

you started one.


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Do we need perfect data?

Perfect real time information comes at a veryhigh 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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Narrowly focused CRM system often revealadditional opportunities for business

improvements.

All the small improvements taken together, canamount to a broad CRM application that extends

across the bank.

The key is to make sure the step by stepapproach fits into a defined strategic plan


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In most cases, the opportunities for developmentlie in the activities adjacent to the customer

relationship cycle.

Ultimately, CRM can be the glue that bindstogether all activities related to a customer.


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Customer relationship cycle.

Development

Sales

ExperienceRetention

Targeting


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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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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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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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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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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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How do consumers define us in terms of

competition?


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How do consumers define us in terms ofcompetition?

Cost

Time

Quality

Opportunity

Information

Knowledge

Choice

Culture


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Why might you consider CRM?


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1. Gather customer information quickly

2. Identify the most valuable customers

3. Obtain loyalty by providing customized products

4. Possibly reduce cost of serving these customers5. Making it easier to acquire similar customers

6. Retention of existing profitable customers

7. Getting the maximum out of existing customers

8. It can function as an early warning system


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Integrated

image

KnowledgeDataOrganisation

Multi-

channels

AttunedOne wayCommunication

CommitmentIndividual

satisfaction

SatisfactionCustomer

perspective

ValueIncreased

turnover

TurnoverFinancial

perspective

Long termMediumterm

Currentsituation


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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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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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Salespeoples capabilities

Finding customers identifying sales

opportunities

Winning customers converting opportunities

into business

Keeping customers cementing customer

relationships - CRM


1 2 3 4 5 6 7 8 9 10


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Sales Managers' skills

Planning for growing business

Coaching giving clear direction, expectations

and feedback

Motivating recognition and rewards


1 2 3 4 5 6 7 8 9 10


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Support systems

Recruiting and hiring capabilities

Performance management systems

Opportunities management systems

Strategic account management systemsCRM systems

Training and development systems


1 2 3 4 5 6 7 8 9 10


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Sales organisation climate

Clarity of goals and expectations

Staff dedication to achieve challenging goals

Staff initiative

Acknowledgment of good work


1 2 3 4 5 6 7 8 9 10


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The total score for your sales organisation is:..


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Average for high-performing organisations 123

Average for low-performing organisations 109

We shall put the spot on CRM, but it is only a partof a bigger picture

( US based companies)

Th f hTh t t f th


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The structure of the courseThe structure of the course

CRMCRM


ORGANISATIONORGANISATION MARKETINGMARKETING ANALYSISANALYSIS

1_Elements of CRM1_Elements of CRM

2_Customer2_Customer--suppliersupplier

3_Strategy3_Strategy

4_Relationship oriented4_Relationship oriented

1_Customer knowledge1_Customer knowledge

2_Customisation2_Customisation

3_Communication3_Communication

4_Relationship policy4_Relationship policy

1_1_RelationshipRelationship DataData

2_Data mining2_Data mining

3_Data selection3_Data selection

4_Data reporting4_Data reporting

SYSTEMSSYSTEMS

1_CRM systems

2_Implementation

3_The future

4_Conclusion


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l f


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The four cornerstones of the

elements of CRM are:

1. Customer knowledge

2. Relationship strategy

3. Communication4. The individual value proposition

1 El f CRM


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1. Customer knowledge

Segmentation Awareness, Attitude

Usage

Concept Customer satisfaction

Customer loyalty Brand Image

Brand equity

Pricing Advertising

1 l f C1 El f CRM


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2. 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

1 El f CRM1 El t f CRM


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3. Communication

The issue is to carry on a dialogue with

individual customers

Shifts should be possible between distributionchannels

1 El f CRM1 El t f CRM


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4. 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

1 El t f CRM1 El t f CRM


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Systems

If a relationship must be maintained with a largegroup 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

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