The Path to Customer Centricity - Merkle Inc. Centricity...of new customer-centric processes and...

The Path to Customer Centricity

September 15th, 2011Merkle Inc. featuring Forrester Research

© 2011 Merkle Inc. All Rights Reserved. Confidential

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Webinar House Keeping

• Questions throughout today’s webinar• Ask a question at any time throughout the Webinarq y g• Q&A section of your screen in the bottom right• “All Panelists”, enter question, hit “Send”• If asking questions on Twitter, please use hashtag #merkleg q , p g

@MerkleCRM, @fatemehx2• Post Webinar Survey

• A link will be sent out in an email following today’s webinarg y• Post Webinar “Point of View” paper & slides

• Links to Merkle’s latest Point of View paper focused on Customer Centricity and an abridged version of today’s slides will also be sent via y g yemail to all attendees following today’s webinar

• For any technical questions, dial *0 at any time throughout the webinar to be directed to the helpdesk


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Today’s Speakers

Steve LaValleEVP Client & Advisory Services, Merkley ,– Focused on driving client value through Merkle services

that embed advanced customer insight into customer strategies, marketing and customer operations.

– Steve has more than 24 years experience in direct marketing and CRM /analytics strategy consulting.

– Prior to joining Merkle, Steve spent over 8 years at IBM Global Business Services where he was Global Leader

@MerkleCRMGlobal Business Services, where he was Global Leader, Business Analytics and Optimization Strategy Services. Prior to that, he served as Partner for PwC Consulting focused on CRM strategy for Fortune 100 g gyorganizations.


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Today’s Speakers

Fatemeh KhatiblooS i A l t F t R hSenior Analyst, Forrester Research– Serves Customer Intelligence Professionals, helping

companies better leverage customer knowledge to improve marketing and business performanceimprove marketing and business performance.

– Her research focuses on overall Customer Intelligence strategies and the CI services landscape, including agencies, analytics providers, MSPs, and consultancies.@fatemehx2 g , y p , ,

– Fatemeh covers the trends and issues around privacy, identity, data portability, and the emerging consumer data economy.


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Today’s Speakers

Chris CraynerSVP Consumer Goods, Travel & Entertainment, Merkle– Focuses on devising innovative solutions for integrated

marketing and customer relationship marketing. – Has developed and led customer marketing strategy,

initiatives and functions for more than 15 years acrossinitiatives, and functions for more than 15 years across multiple industries

– Prior to joining Merkle, Chris was vice president, global customer managed relationships, for Walt Disney Theme @MerkleCRM custo e a aged e at o s ps, o a t s ey e eParks and Resorts, where he was responsible for customer relationship marketing strategies and initiatives worldwide.


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The Path to Customer Centricity

Presented by: Steve LaValleEVP, Client and Advisory Services


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We’ve been on this path to customer centricity for a long time

We’ve been talking about becoming customer centric

f t l t 15

Yet…we still haven’t “cracked the code”for at least 15 years

Acquiring customers is still expensiveexpensive

Attrition still existsAttrition still exists

Profitability is not guaranteed

(2005)(2010)

(1996)

Profitability is not guaranteed


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7

Every time we think we’ve arrived, the target moves

New technologyEscalating UnrelentingNew technology disruptions

Escalating customer

expectations

Unrelenting competition

Demands of customer centricity are not an end state


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Customer centricity changes the profit model

Some other centric Customer centric

ProfitsRevenue CostsMarketing ProfitsRevenue CostsMarketingProfitsRevenue CostsMarketing investment

ProfitsRevenue CostsMarketing investment

Profitable Break even UnprofitableKey:


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The path to centricity is one of little steps, not a giant leap

Bang!Bang!

andMonumental change

Incrementalchange

POC Test program New capability

g g

Pilot 1 Initiative Pilot 2


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C CThe Path to Customer CentricityDriving Change at a Global Company

Case Study Presented by: Chris CraynerSVP Consumer Goods, Travel & Entertainment

© 2010 Forrester Research, Inc. Reproduction Prohibited11

1

About the company and their situation

Large and diverse organizationUS-based company with a global presence

Direct & indirect business models

Goals:• Aggressive growth targets• Aggressive growth targets

• Leverage products across the enterprise and customer base

• Coordination and integration across the brandg


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The company sought to be more customer-centric across a siloed organization

Current State Future State

Traditional product and business unit siloed orientation

Customer centric model to build lifelong

relationships with tsiloed orientation customers

Transform


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The company and the transformation project had many obstacles and challenges to overcome

L d t ff i d i i t

Operational Challenges Initiative Challenges

Large product offering and price point and complicated sales processes and

distribution channels

Quick execution needed despite massive organization

Integrated customer centric view and traditional brand planning approach needed to co-exist

Comprehensive time and cost predictions were needed, but

difficult to obtain

Traditional budgeting and planning processes didn’t support

customer centricity

Balancing adoption of changes with transformation plan

Resistance to change and “not invented here”

New systems required changes in skill sets and technology required

collaboration across the enterprise


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The Approach

Multi-year Transformation Initiative

S

Cross-functional senior governance and

Mission and Vision backed up by a stepwise

and comprehensive Business cases and pilot programs tied to

Vision and Strategy Run the Business –Change the Business

Change Management

gleadership team

proadmap

p p groadmap


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Vision, planning and governance drove the development and roll-out of new customer-centric processes and capabilities

Master Vision and PlanThe executive and

Governance model

Team designThe executive and stakeholder team

involvement was key to success in

establishing new measurement

th d l i th t

Change management and programmethodologies that

either replaced or augmented existing

ones.

and program governance

Integrated customer views and data

Integrated campaigns and triggers

Channel integration and data captureCustomer centric ecosystems and

environments require highly adaptive and

Customer centricg p g gg

Highly integrated system design

Cross-departmental budgeting and financeresponsive technology

and business management

centric capabilities


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Transformational capabilities and processes were the outcome

Call center and web automation capabilities gather and utilize customer preferences, product needs, offer based sales processesChannel Integration

Highly personalized onboarding and trigger programs for new and existing customers match complex brand and product messages to customer needs and preferences – decrease losses and attrition, increase average buy rates

Personalized onboarding and trigger

programs

Customer insights and data drive improved timing and efficiency of broader media spend and understanding of customer behaviors and attitudes

Customer insight leverage

Current and future channels and systems can plug into the new environment

Highly integrated

Support of future channels and systems

Highly integrated system design is focused around the customer

Customer centric approach drove new methodology, processes and cross departmental and business unit collaboration

Highly integrated system

New internal customer processes


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departmental and business unit collaborationprocesses

Outcomes: Measurable Results

Material Increase 40 55% increasein annual revenue contribution fromtransformation initiative

40 – 55% increase in global contribution over control

18-24 monthsTo reach financial goals

Improved Customer Satisfaction Scores

Improved Operating &ROI of 7:1 Improved Operating & Management Model


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Lessons Learned

Changing is harder than building capabilities Take a “stepwise” approachbuilding capabilities

When moving fast, sometimes slow down and regroup

New metrics and insights often challenge long held beliefsslow down and regroup challenge long held beliefs


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Q ti ?Questions?


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Contact

Steve [email protected]

Fatemeh [email protected] forrester com

Chris [email protected]

Twitter: @MerkleCRM Twitter: @MerkleCRMwww.forrester.comTwitter: @fatemehx2

Blog:http://blogs.forrester.com/customer intelligence/

Twitter: @MerkleCRM Twitter: @MerkleCRM

http://blogs.forrester.com/customer_intelligence/


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Th k YThank You


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