How to Optimize Customer Relations with Customer Care / Service Center Intergration ?
[ Paper by Prof. Dr. Daniel Baier and Detlef Dimkowsky, M.A. ]
A Short Introduction
Methods of Resolution
Conclusions
Main Focus
[ 2 ]
A Short Introduction
FIRST OF ALL – INTRODUCING MYSELF…
contact information
phone +49 (0) 341 / 7 02 19 21fax +49 (0) 341 / 7 02 19 90 21mobile +49 (0) 172 / 3 63 95 77email [email protected]
internet http://www.bitonic-systems.de
bitonic systems GmbH
founded | January 2002locations | Leipzig / Halle (Saale)
competence | Marketing and sales, scientific consultingline of business | Life Science industries (Pharma, Biotech)
projects | Pharma CRM / Patient Relationship Management (pharmaceutical companies);
Pharma analytical applications – finance, marketing, sales / sales force controlling …
KnowBIT – Knowledge Management Biotech, Weinberg Campus, Halle.
Detlef Dimkowsky, M. A.* 29.11.1968
Study of African Linguistics, Economics and Social Science. University of Hamburg | University of Leipzig 1993 – 2001
Managing director | bitonic systems 2002 –
[ 3 ]
A Short Introduction
Customer Relationship Management (CRM): Current trends
Integrated Customer Relationship Management (CRM) „in times of stress“? See your chance!
40% of companies are going to plan the introduction of CRM in the next one or two years.Today about 75% of the companies investigate reinforced in keeping their customer relations.
Though:
About 80% of the CRM projects are aborted during the past years.[Upon what grounds ?]
Integrated CRM is an efficient instrument to generate the competitive advantages, especially in times of stress! [What effects can be generate by CRM ?]
Notwithstanding:
The change from the product to the customer oriented approach is a central point of CRM and a business critical factor in highly competitive and complex markets.
[How CRM can be successfully created ?Which factors and measures are most important ?]
[ 4 ]
A Short Introduction
Customer Relationship Management (CRM): Definition
Customer Relationship Management (CRM) DEFINES:
Corporate strategy and its implementation
‚Living Customer Orientation‘ within the enterprise‚Ecosystem‘ [Gartner, 2001], which pervades all parts of the enterprise
Customer Relationship Management (CRM) CONTAINS:
All customer oriented processes (360 degree view)All functions / departments within the enterprise
All communication channels from / to the customerAll processes in marketing, sales and service
The entire IT infrastructure of the enterprise, in particular the stock of customer information (communication systems, ERP, eBusiness, eCommerce)
CUSTOMER RELATIONSHIP MANAGEMENT(CRM)
operative(f.e. field service control)
collaborative(f.e. Detailing)
analytic(f.e. Targeting)
MARKETING STRATEGY
SERVICESALES
marketstarget groupscustomers
potentials...
productcampaign...
potentialsone-to-one...
field service controlfield service informationfield service reporting...
potentials…premium...
customer valuecustomer potential
...
service / call centercomplaint managementfield service support...
servicelevel
positioningfinancescontrolling…mergers & acquisitions
marketspotentials...
i
[ 5 ]
A Short Introduction
Customer Relationship Management (CRM): Current business environment
Business environment in the today markets / essential factors of CRM projects:
Tightened competition in increasingly saturated and transparent markets
Lack of differentiation of products and services offered
Increasing demands concerning the IT infrastructure of the enterprise (CRM, ERP, eCommerce, eProcurement)Targeting as a business critical factor (market share / segmentation, customer value)
Integrated communication by grouping all relevant channels of customer interaction
„We are drowning in information and starve for knowledge“ Naisbett, J. and Aburdene, P. (1980)
„Information gap“ – lots of gathered information in different data bases and systems, but…
… the covered knowledge is frequently not available for customer operations, decision support and management information processes in the enterprise
Insufficiant resources within the customer care / fulfillment processes
Current shortcomings and bottleneck factors:
Increased costs (of complexity / infrastructure) / increasing cost pressure
[ 6 ]
A Short Introduction
Customer Relationship Management (CRM): Objective target
Registered customers:
Increase of customer retention
Higher customer satisfaction (by customer care services)Selective prevention of customer loss
Increase of highly profitable customers
Tap the full potential of customer relations (cross / up selling)Customer value based organisation of sales and service channels (field service, service center, self services – internet)
New business / potential customers:
Market research (branding / publicity, profiling of attitudes / demands, creation of target groups)
New business
Methodology – selective and systematic approach (to tap the full potential of the target market)Precondition – comprehensive knowledge of market and customer behaviorBasis – customer data bank system (specific customer profiling / creation of target groups)
[ 7 ]
Main Focus
Service Center vs. Field Service: Advantages and disadvantages
+ Tele Marketing and Sales / Service Center
High affinity for the medium telephone (?)
Relatively low costs (especially HR)
High level of interaction with „forced“ feedback
Fastest achievement of a broad market reach
Spatial independent and versatile (by substitution / support of personal calls)
– Telephone service
Difficult accessibility
Increasing number of Tele Marketing Agencies;higher frequency of total calls per customer(tends to result in higher rejection rates)
+ Field service / Personal call
Personal interaction
Strong personal relation is possible
Highest level of interaction
Direct and private response / feedback
Construction of confidence
– Field service / personal call
Time consuming preparation process
High personell costs and travel expenses
Relatively low range
[ 8 ]
Main Focus
Service Center: Central questions and known problems
Is the service center established in conjunction with the whole business communication process ? >> Y/NIs a central customer data bank established to collect all relevant customer information ? >> Y/NAre the service processes co-ordinated in the entire company ? >> Y/N
meeting
FieldService
REQUEST
INFORMATIONRETRIEVAL
INTEREST
INTERNET (informations for insider)
TELEPHONE
LETTER
FAX
MARKETING
MED./ SCIENCE
SERVICE
DOCTORSTATUS
[ 9 ]
Main Focus
Service Center: … high complexity (business processes I – Inbound Service Center)
order request
serviceorder
CUSTOMER
withdrawalof material
service
bill/ credit noteTRANSPORT
ORDER
EXECUTION
ORDER
CONTROLLING
DEPOT
CALL
CENTER
material requirements
delivery note
material delivery
achievement INVOICING
access/dispatch
material/ supplierrequirements
order proposalRESSOURCES
MANAGEMENT
stock receipt
SUPPLIERdelivery of goods
demand
ACCOUNTING
CONTROL
delivery note
supplier bill
order
delivery note
accountspayable
result
budget
PERSONELL
DEPARTMENT
L+G-data
contract
assessment
BANK
bankstatement
outpayment
payment
payment
BUYING
DEPARTMENT
ACCOUNTANCY
MANAGEMENT
[ 10 ]
Main Focus
Service Center: … high complexity (business processes II – Outbound Service Center)
withdrawalof material
service
bill/ credit noteTRANSPORT
DEPOTmaterial requirements
delivery note
material delivery
achievement INVOICING
access/dispatch material/ supplier
requirements
order proposalRESSOURCES
MANAGEMENT
stock receipt
SUPPLIERdelivery of goods
ACCOUNTANCY
demand
ACCOUNTING
CONTROL
delivery note
supplier bill
order
delivery note
accountspayable
result
budget
L+G-data
contract
assessment
BANK
bankstatement
outpayment
payment
payment
CALL
CENTER
CUSTOMER
requestorder
ORDER
CONTROLLING
order
serviceorder
ORDER
EXECUTION
customer qualificationmarket research, etc.
MANAGEMENT
PERSONELL
DEPARTMENT
BUYING
DEPARTMENT
[ 11 ]
Main Focus
Service Center: Objective target
(8) Early-warning systems and opportunity management
(1) Targeting (sales effort in selected market segments) (2) Centrally managed services for time consuming, routine work (inbound call services and Email management in particular) (3) Increasing hit quota / high frequency of customer contact (4) Prompt reply in customer interaction process (5) Integrated data processing / handling
(6) Business process integration and workflow management (7) The ‚proactive service unit‘
(9) Planning and control at customer level
(10) Classification (ABC) at potential level
INTEGRATED ENTERPRISE SOLUTIONS
OPERATIONS
INTERNAL
employeemanagementshareholder
EXTERNAL
partnercustomer
PROCESS LEVELS
knowledge managementproject managementprocess management (CRM, SCM, ERP)
ANALYTICSOPERATIONS STRATEGY
[ 12 ]
Main Focus
Service Center: Target deployment – Example I
(3) Increasing hit quota / frequence of customer contact(4) Prompt reply in customer interaction
First example – optimized service quality (with registered customers):
Measure = customer valueDetermining factors = turnover potential (cross / up selling) and recommendation potential; Further factors like customer satisfaction or operating figures are considered.
Analysis methods = customer value, ABC classification
Results (selection) =
A customers shall „rewarded“ with cost intensive premium services;Customer contact occurs regular and active via field service / high frequency of sales calls, supported by service center activities / tele services;corporate publishing activities with high quality customer journals will be added.
B/C customers will be addressed with basic services at low cost level; like self services via internet and newsletter; service center activities shall occasionally applied.
>> Efficient customer care services as a result of fact based service level management
[ 13 ]
Main Focus
Service Center: Target deployment – Example II
(9) Planning and control at the customer level (10) Classification (ABC) at the potential level
Second example – optimized sales performance (with registered customers):
Measure = customer valueDetermining factors = turnover potential (cross / up selling) and recommendation potential; Further factors like customer satisfaction or operating figures are considered.
Analysis methods = customer value, ABC classification
Results (selection) =
A customers shall further addressed with high frequent sales calls;sales force will be supported by service center activities / tele services.
B/C customers will be addressed with a lowered frequency of sales calls; high frequency of service center activities / tele services;
>> Efficient sales performance as a result of fact based sales controlling
[ 14 ]
Main Focus
Service Center: Target deployment – Example III
(9) Planning and control at the customer level (10) Classification (ABC) at the potential level
Third example – campaign optimization [Call – Mail – Call](for new customer acquisition / (re)launch of a product):
Measure = potential (interested person, customer profile), response behaviour (test mailing + mailing)
Analysis methods = response analysis, ABC classification, conjoint analysis
Results (selection) =
significant high response rates (up to 35 % are possible!);
considerable cost saving effects as a result of detailed targeting in the campaign setting process(reduced amount of total mailing output, less handling costs of the campaign)
>> Efficient campaign / direct marketing activities as a result of fact based targeting / campaign processing
[ 15 ]
Methods of Resolution
FIRST CLASS CUSTOMERS! – Fact based customer knowledge I
>> Business Intelligence (BI) forces ‚turning-off‘ spread sheet applications!
>> Integrated analytical application (Data Warehouse, OLAP, Data Mining) as central parts of both Decision Support (DSS) and Management Information Systems (MIS).
Is the systematic and overall gathering of market and customer information realized at the enterprise ?Is the entire data set which is relevant for the customer management process available in the company ?Are analytical applications deployed in the entire organisation to answer and report specific questions / problems ?
different views
Product Management Controlling
Regional Management Ad-hoc
DATA CUBE
TIME
PRO
DU
CT
[ 16 ]
Methods of Resolution
FIRST CLASS CUSTOMERS! – Fact based customer knowledge II
Relevant internal data sources as part of the customer data management (selection): Customer data bank(s) / CRM, log files from enterprise web portals / CMS, ERP systems.Integration of external data sources, for example:customer and campaign data – call / service center, external market research data, purchased adress data, tracking data from internet market places and portals.
DeltaMiner SQL-Server (OLAP) Facts Tables SQL-Server (relational)
Data Analysis OLAP-Transformation
(periodic) Processingof Import,
Structure and Data
SQL Drill Through
[ 17 ]
Methods of Resolution
FIRST CLASS CUSTOMERS! – Fact based customer knowledge III
External DataExternal Data CENTRAL DATA POOL
SAP | ORACLE | SQL-Server | iHistorian | dBase | Access | Text | Excel
Central connection withthe reporting server
Analysis, Reporting,Planning, Simulation
Data Banks on thecentral OLAP-Server
LocalUserCubes
DeltaMinerImportWizard
MinerPivotizer | AnalyzerReader | ViewerWord | Excel | HTML/ XML
Export of the results forthe external reporting
[ 18 ]
Conclusions
FIRST CLASS CUSTOMER COMMUNICATION! – AT A GLANCE
The COMMUNICATION CENTER (inhouse or service provider) is an essential and cost effective instrument for both customer service and the acquisition of new business in today‘s markets.INTEGRATED COMMUNICATION SERVICES (inbound / outbound calls, Email management, fulfillment) are increasingly important within the marketing mix of a company.INTEGRATED ANALYTICAL APPLICATIONS are an business critical factor on the way toFIRST CLASS CUSTOMER COMMUNICATION!
EFFECTS
COST
EFFICIENCY
ACCEPTANCE
PUSH TO PULL
CHANNEL INTEGRATION
CUSTOMER KNOWLEDGE
SALES FORCE
E-COMMUNICATION SERVICE CENTER
ONE-TO-ONE MARKETING
INTEGRATED CUSTOMER COMMUNICATION
CONSUMER
Advantage 1 forthe customer
CONSUMER
Advantage 2 forthe customer
CONSUMER
Advantage 3 forthe customer
[ 19 ]
Conclusions
FIRST CLASS CUSTOMER COMMUNICATION! – BY EXAMPLE [bitonic iDetailing]
CUSTOMER PROFIL
customer interestscustomer behaviourcustomer wishes
e-DETAILINGContent
ManagementPersonalization
Virtual Detailing
MARKET INFORMATION
socio-economicsdemographicsmicro-geographics
COMPANY INFORMATION
target group managementproduct management
distribution data
ANALYSISANALYSISintelligent customerinteraction
TECHNO
LO
GY
ORGANIS
ATIO
NVIRTUAL DETAILING INTERNET
VIDEO CONFERENCES EMAIL
SERVICE CENTER FIELD SERVICE
CUSTOMERS
[ 20 ]
Conclusions
FIRST CLASS CUSTOMER COMMUNICATION! – SUMMARY
FIRST CLASS APPROACH AND METHODS:
Identify! FIRST CLASS CUSTOMERs / POTENTIALs by ANALYZING CUSTOMER PROFILES >> Success factor(s)! Address and tap the full potential!
Realize! FIRST CLASS SERVICES FOR FIRST CLASS CUSTOMERs with FACT BASED SERVICE LEVEL MANAGEMENT
>> Success factor(s)! Selected premium services and high quality programs to reach customer satisfaction for A customers; Addressing B/C customers primary via cost effective instruments like electronic self services and newsletter.Measure! FIRST CLASS COMMUNICATION FOR FIRST CLASS CUSTOMERs with ANALYTICAL APPLICATIONS(as an essential requirement for targeting and customer process performance measurement)
>> Success factor(s)! Comprehensive market and customer knowledge is a necessary condition for market success.
Relevant customer data / information is often gathered but not available in the enterprise!Enhance hidden knowledge and make it available in the management / decision process of your organisation.