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Customer Relationship Management&

the Contact Centre

Placing the customer at the centre of a largemulti-brand conglomerate

David FordStrategic Advisor, Al-Futtaim Group

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Leading strategic thinkers are moving beyonda focus on traditional product and services development

to pioneer development of business processes,distribution, value chain, business models and evenfunctional management McKinsey Quarterly

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Agenda

An introduction to the Al-Futtaim Group

Customer Relationship Management and why the Contact Centre is key

Challenges and Approach

What drives a great Contact Centre experience

Criteria for Solution Selection Closing Comments

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An introduction to theAl-Futtaim Group

Founded over 80 years ago More than 50 companies within the group Home to multiple leading brands

Some trivia Electronics

One in every 3 households in the UAEhas at least one electronic or home appliance product from Al-Futtaim.

AutomotiveFour of every 10 cars on the roads of the UAE are from Al-Futtaim.

RetailEvery 3 seconds, a purchase is made from an Al-Futtaim retail outlet.

Large and diverse company

Serve large and very diverse customer segments

Providing a consistent customer experience across the diversity is a challenge Knowing our customers well enough to effectively cross-sell is a further challenge

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Maximizing the Customer Engagement

Customer Satisfaction: Who are our customers and what do they think of us? How do we ensure positive customer interaction at every contact?

Incremental Revenue: How do we create incremental revenue streams by up and cross-selling to our

customers?

Reduce OPEX:

How do we use tools to optimize productivity? How do we standardize on the solution and reduce IT costs? How do we optimize our marketing spend?

Operational Excellence: How do we drive adoption of best practice?

What organizational structure will enable a customer engagement strategy? How would we measure success? How can we share information in a transparent way and leverage effectively?

It is 5x more expensive to gain a new customer than retaining a

current customer

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Segmentation Behavior Modeling Scoring and Targeting

Campaign Management

Pricing

Promotion

Win/loss analysis

Concept Development

Feature and Function

Prioritization

Customer PanelManagement

Cost Positions

requirements

Management

Competitive Intelligence

and Research

Sales Forecasting

Lead Management

Bid and QuoteManagement

PipelineManagement

Cross selling

Personalization

Order Management Presales Experience

Offering Delivery

Interaction management and help desk

Queue management and escalation Service broadcasting

Share-of-wallet

analysis

Loyalty program

Management

Retention

Management

Win-back campaign

Management Collaborative

Innovation

Developmentof

Offering

Superior

Experience

Sales

Retention

and

Win-back

Targetin

g

and

Marke

ting

CENTRALISEDCONTACTCENTRE

Comprehensive Customer RelationshipManagement (CRM)

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A Centralized Contact Centre Experienceis key to a Successful CRM Strategy

Based on market survey in EMEA* 73% of customers will do business with a company based on a great call centre

experience 15% will do this even if prices are higher 52% of customers stated that the last time they stopped doing business with a

company was partly or wholly due to poor customer service 40% of customers have stopped doing business with a company due to poor call

centre experience

Further customer feedback

89%93%

63%

88%

Want to receive pro-activecommunication

Are frustrated by long hold times Would prefer a call back Would have positive opin ion if received curtsey call

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Proposed Approach to CRMDevelopment

Focused drive on enhancing the Customer Experience supported by best practicebusiness process, KPIs and benchmarking

Increase customer satisfaction

Strive towards operational excellence

Embed strong Change Management to deal with cultural changes requirement

Centralized Contact Centre to manage the inbound engagement (and later, outbound)with consistent customer experience and retain brand ethos

Centralized Customer Data Base (with brand differentiation)

Customer segmentation for outbound campaigns

Phased rollout across the Al-Futtaim Group

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What Drives a Great ContactCentre Experience

1. Personalize the customer service experience

2. Deliver first-contact resolution with streamline

Interactive Voice Recognition systems3. Connect customers with the most suitable

agents (eg language of choice)

4. Vary service levels by segment/brand

5. Offer a broader choice of customer servicechannels (ie all media types)

6. Organize customer service resources creatively

7. Delight customers with pro-active contact

8. Measure performance appropriately

9. Ask for feedback

10. Keep measuring and innovating

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Infrastructure Solutions

Criteria for Solution Selection

Solution had to be recognized as best in class (were looking for worldclass best practice!)

Ability to scale as well as support future growth

Integration into SAP was an imperative

Referencability Partners ability to provide ongoing support

Contact Centre ManagementSolution

Systems Integrator Partner

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Closing Comments

CRM requires a cultural change with organizations

CRM can be enabled by technology, but this alone will not deliver business

benefits Change Management is vital

The Contact Centre is often the most common interface the customer has witha company and it clearly needs to be excellent

The Contact Centre is at the centre of a CRM Strategy

The customer experience needs to be consistently enhanced

Customer segmentation/differentiation is next step in the evolution

Its an ongoing business process and will create sustainable competitiveadvantage

Remember: if you arent listening to your customers, your competitors

will

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Thank youDavid Ford

Strategic Advisor, Al-Futtaim Group