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MANAGING IT FOR ONE-TO-ONE CUSTOMER INTERACTION

Group 2 Heena Sharma N.L.B Oshadie Tamara Jayasekara Avishek K. Karky Rahul Agarwal Alexis Quentrec

AGENDA
I One to One customer interaction A Paradigm B Examples II Implementation of new IT system in an organization A A tool f for implementation: p a Roadmap p B Case study: GTCOM III A new focus: Social CRM

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ONE TO ONE MARKETING / CUSTOMER INTERACTION PARADIGM

INTRODUCTION:
Information Technology: Effective use of IT is considered to be an enabling factor in gaining competitive advantage for an organization. i ti IT provides an organization with the opportunity to engage its customers in interactive communication and has led to the emergence of the one-to-one marketing paradigm One to One Marketing Model: A model that concentrates on obtaining and maintaining a share of each customer, customer rather than a share of the entire market. with information technology (IT), being the enabling factor. Customer Information System: CIS is defined as the acquisition, storage, and distribution of customer information.

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ONE TO ONE MARKETING PARADIGM

One to One Customer Interaction requires a high level of co-ordination of two important areas: Marketing and IT. IT Marketing professionals are responsible for applying Information Technology for establishing effective one toone customer interactivity with the purpose of increasing customer satisfaction. Information o at o systems syste s p professionals o ess o a s a are e responsible espo s b e for o designing an effective information infrastructure that will provide marketing professionals with the foundation for taking advantage of interactive applications.

FOUR KEY ELEMENTS SUCCESSFUL CUSTOMER INTERACTION

The four key elements that provide the necessary steps that allow an organization to position its people, business processes, and i f information ti systems t t to establish t bli h and d take t k advantage d t of f this thi emerging paradigm are:

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1. BUSINESS PROCESS ANALYSIS

When an organization decides to establish an interactive relationship p with its customers, , the first step is to analyze the current business processes for this communication. This analysis must focus on

How customer support pp p personnel will access customer information. How this information can be used by various decision support functions.

MAJOR COMPONENTS OF BUSINESS PROCESS ANALYSIS

An organization must analyze three major components when it undertakes a business process analysis for the purpose of establishing interactive communication with its customers: Customer Interaction: The first component for analysis is to identify how, where, and when the organization will conduct this form of communication and record it in the CIS for future use. The purpose of analyzing these opportunities is to identify the points of interaction where useful information can be recorded.. Customer Support: Organizations employ a number of different methods to support their customers. Examples include 1 1-800 800 telephone numbers and in in-store store customer help desks. Decision Support: The process in which decisions are made may be significantly altered when a one-to-one customer interaction strategy is adopted. An organization must properly organize and distribute information to improve the quality of its decisions.

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2. INTEGRATING & REDESIGN OF CUSTOMER DATA

When redesigning customer data, an organization has two major issues to consider: Integrate customer data across the organization
A complete redesign or modification of the existing data schema.

The customer data profile must be extended to include non-transactional data (e.g. E-mail documents , audio, etc.).

Expand the customer data profile.

Data in the form of suggestions, complaints, and comments must be included in the expanded customer data profile because this information is what makes customer interaction so powerful.

2. INTEGRATING & REDESIGN OF CUSTOMER DATA

Fragmented v. Integrated View of Customer Data

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3. IT ENABLED CUSTOMER INTERACTION

Information technology can be used in both, manual and automated customer interactions.

3.A: IT-assisted interaction

IT-assisted interaction is predominantly a manual process that uses IT to enhance the relationship between the service provider and the customer. For example, a local pizza parlor may use a personal computer to track individual orders. This use of IT could possibly migrate toward storing customer address and order information with the intention of using it to facilitate future orders. Another Example: Outback restaurants distribute beepers to customers who are waiting for a table, allowing them to leave the restaurant until a table is available.

3. IT ENABLED CUSTOMER INTERACTION

3.B: Automated Interaction:
The key to the automated service encounter is to pass the control of the interaction process to the customer. Technical infrastructure is a key consideration when an organization designs its automated interaction strategy. This will consist of a telecommunications network and terminal equipment and can be internal or external to the organization.

3.B.1 Internal Technical Infrastructure:

: includes tighter control over the network, higher security, and standardized terminal equipment. equipment An organization can control such network issues as bandwidth (e.g. transmission speed) and media type (e.g. fiber) plus apply a high level of access security.

Advantages

Disadvantages: include high maintenance costs and limited accessibility.

Example: Kiosk. These are multimedia-based workstations that are specifically designed for public access and can be stand-alone or networked to a larger computer system.

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3. IT ENABLED CUSTOMER INTERACTION

3.B.2 External Technical Infrastructure: Advantages: It i is easily il accessible ibl by b the th customer t and d has h low l maintenance i t costs. t
: It lacks security and both, the network and equipment are out of control of the organization. Examples: Traditional phone lines, Internet, Computer/ telephone integration, and stand-alone Software Packages.

Disadvantages

4. ACCESSIBILITY/TRANSMISSION OF ORGANIZATIONAL INFORMATION

The distribution of this information can be: Internal: Internal transmission of information refers to the
distribution of information within the organization for the purpose of enhancing customer and decision support.

External: External transmission focuses on how customer and organizational information will be distributed back to the customer in an effort to enhance the interaction process and, subsequently, improve customer service.
Example: Client/server techniques: The use of client software is advantageous because it allows different functional areas to construct interfaces that meet their requirements but at the same time access the same integrated view of the data as other functional areas.

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SUMMARY INTEGRATED FRAMEWORK FOR ORGANIZATIONAL CUSTOMER INTERACTION

EXAMPLES OF SUCCESSFUL IT ENABLED CUSTOMER INTERACTION

Levi Straus Ritz Carlton

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LEVI STRAUS

A product oriented company in its focus Initiates a marketing effort that offers customized jeans for women

Customers try on sample jeans & provide an accurate information on their exact measurement

This information is captured & stored in Levi Straus information system for current & future use

LEVI STRAUS
Customer Interaction e ac o Business Process Analysis Customer Support Occurred through in-store employees and through automated systems ( (computers) t ) Customer support personnel were trained in this new technology & in managing new repository of customer information Large repository of customer information helped highly Data such as customer feed helped refine future marketing activities

Decision Support

Integration & Redesign of Customer Data

Expand Capture more information than just Customer Data transactional data Profile Integrate Future jean orders could be processed Customer Data by simply accessing existing info Across Org. about customer

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LEVI STRAUS
A t Automated t d IT Enabled Customer Interaction IT Assisted Customers could interact from remote locations through Levi Straus W b Page, Web P a stand-alone t d l software ft package, or a computer/ telephone integrated application Proved more effective For example, initial measurement, etc. Levi Straus focused here for better decision making

Accessibility/ Transmission of Organizational Information

Internal Transmission

External Transmission

Opportunity to extend and share information with customers

RITZ-CARLTON
Ritz-Carlton hotel chain is an example of serviceoriented organization implementing a one one-to-one to one interaction strategy Ritz built a database of customer profiles Database allowed employees to anticipate customer preferences and thereby increase customer satisfaction Since Si a few f customers t are uncomfortable f t bl with ith having their behaviour recorded, a special feature alerted the employees in such instances

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RITZ-CARLTON
C t Customer Interaction Two sources of information Customer (kiosks, computer, t l h telephone) ) Employees (guest preference pad, direct interaction, observation) Customer support personnel were trained to leverage the customer profile information in the best interests of both, the hotel & the customer t Large repository of customer information helped highly Data such as customer feed helped refine future marketing activities

Business Process Analysis

Customer Support

Decision Support

RITZ-CARLTON
Data profile included customer suggestions, preferences & complains Variety of forms (audio, video, images) supported the system Consistency in data maintained across the Ritz-Carlton hotels spread geographically An integrated view of customer across all functional units of hotel chain

Integration & Redesign of Customer Data

Expand Customer Data Profile

Integrate Customer Data Across Org.

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RITZ-CARLTON
IT Enabled Customer Interaction Automated Kiosks customers would either type or verbally record their comments t & suggestions ti Computers Telephone Line Employee Service Desks Customer information shared with other Ritz-Carlton hotels to help better service customers No external transmission of information considering the sensitive nature

IT Assisted

Accessibility/ y Transmission of Organizational Information

Internal Transmission

External Transmission

LEARNINGS FROM LEVI STRAUS & RITZ-CARLTON EXAMPLES

Levi Straus placed greater emphases on integration of customer information while also addressing customer information redesign issues Ritz-Carlton focused on the redesign of customer data, while also creating an integrated view of their customer information Both examples illustrate importance of integration & redesign of customer data, and the criticality of interactive user interfaces and business process reengineering

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A ROADMAP FOR SUCCESS IN IMPLEMENTING 1-TO-1 CONSUMER INTERACTIONS

WHY USE A ROADMAP?

The best way is to have a roadmap

Clear view of what to achieve, and how to achieve Easy to track the progress of the implementation H l have Helps h top-management t t approval l

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CONTENT OF THE ROADMAP

STEP 1 STRATEGIC ALIGNMENT

Business strategy should be based on a consumer-centric consumer centric vision (ie. 1 1-to-1 to 1 consumer interaction) A high-level of IT is needed to achieve that goal

Long-term strategy at the corporate level and IT level should be aligned (with shorter-term strategy i the in th implementation i l t ti of f IT)

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STEP 2 AUDIT AND ANALYSIS

Identify the current state of the company (customers, IT level, etc) Identify key customer groups, and the interactions with them Analyse the gap between the current state of customer interaction and the state you want to achieve

STEP 3 DESIGNING THE TEAM

Multi-functional team: IT experts for technical knowledge Operational users for feedback and customization Project Manager for providing guidance Consultant for outside advice on technologies/organization

Expertise required from all the functions of the organization

Limit the possible pitfalls due to lack of training or no view of the global picture

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STEP 4 BLUEPRINTING THE TECHNOLOGY

Establishing a technology plan

Identifying the customers interaction point Choosing the technologies, and softwares accordingly Establishing the CRM architecture

Examples: MSN & facebook for C2C, force.com for B2B, Access for B2C

STEP 5 DEVELOPMENT & RESULTSDRIVEN DEPLOYMENT

Project should be segmented in small parts

Identified small goals, with achievable Keeping the team motivated with shorter time

Test of the platform

Running the old system and the new one together Checking for inconsistencies Proceed to modification if needed

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STEP 6 LEADERSHIP, CHANGE MANAGEMENT AND CULTURE

Employees are the core of the CRM systems

The new CRM system requires training Change Manager must be deployed to help transition from an older corporate culture to the new one Extensive corporate communication on how the new strategy will influence the business should happen

Top management must gain support from their employees p y to use the new technology gy

STEP 7 EVALUATION, MEASUREMENT AND REFINEMENT

Evaluation of the success of the implementation Use of relevant metrics

Relative-scoring tools (such as benchmarking) instead of financial based tools (such as RoI)

Refinement with better tools, or more detailed i f information i Proceed to a new audit, and check if it is in line with the objective of the company

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CASE STUDY: GTCOM

How KCRM for 1-to-1 interaction is implemented

OVERVIEW OF THE COMPANY

Company based in Botswana Former state company company, facing deregulation in Telecom market (early 2000s)

Need to implement new IT solutions to survive Decided to focus on one-to-one interactions with customers

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STEP 1 STRATEGIC ALIGNMENT

Objective of the company :

Delivering a complete and simple customer experience: offering a full range of reliable, competitively priced communications services and solutions

From product-centric to consumer-centric To survive and succeed in a market with increased competition

STEP 2 AUDIT AND ANALYSIS

Current tools not enough for strategic decisionmaking

Need for more information on the customer Different systems in use blocking efficient leverage

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STEP 3 DESIGNING THE TEAM

Business representative: Managerial, and enduser link Executive sponsor: In charge of promoting the project Project manager: Handles practical work and planning System owners: Responsible for installation of IT system t

STEP 4 BLUEPRINTING THE TECHNOLOGY

The central part is a new Data warehouse, fed by employees in direct interaction with customers. Then analysis by top management.

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STEP 5 DEVELOPMENT AND RESULTS-DRIVEN PERFORMANCE

Project segmented in two different elements

Data warehouse
Establishing the need choosing a standard product customizing to the needs of the company

CRM implementation
Identifying the data to collect Choosing the correct infrastructure to exploit the data Customizing C t i i th the t tool l for f both b th f front-office t ffi and db back-office k ffi

STEP 6 LEADERSHIP, CHANGE MANAGEMENT AND CULTURE

GTCOM launched initiatives to

Unify all information systems Promote cross-functional cooperation between sales and product development divisions Improve the job rotation between departments

Nomination of a dedicated Change manager But many issues with people giving up their tools and processes

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STEP 7 EVALUATION, MEASUREMENT AND REFINEMENT

At the completion of the project Financial results were 25% higher, and year year-on-year on year growth of 5% Systems integration well-executed BUT Managerial problems Inefficiencies

CONCLUSION

IT side: Success Many economies System efficiency Better focus on customer

Human side:

Failure Change management failed No effective training for employees No real communication on the project

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SOCIAL CRM

A NEW FOCUS FOR 1-TO-1 CUSTOMER INTERACTIONS?

Or how Social Networks changed the game

WHAT IS SOCIAL CRM?

Make use of customers to promote the companys image Relies on the social consumer, that can give opinions and write reviews Wide information available challenges companies and their KCRM systems

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WHO IS THE SOCIAL CONSUMER ?

Traditional customer: Nave consumer, relying heavily on advice from sales person Strong loyalty to a brand thanks to 1-to-1 customer interaction Social consumer: Easily accesses information on products and substitutes Easily have advice from consumers websites, blogs, or friends (ie. Facebook, MSN, etc) Relies heavily on word of mouth

TOOLS OF THE SOCIAL CONSUMER

With the emergence of mobile internet, access to limitless information, everywhere Social networks make people communicate easily Blogs, consumers review websites, forums readily give any information about any product

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A NEW HURDLE
The social consumer challenges what companies know The pressure to keep the KCRM updated, and get the right information at the right time and place is money-consuming Transforms all consumers in new consumers Challenges the brand image

HOW TO FACE THIS CHALLENGE?

Listen to the social internet Be B a normal l customer t

Test Testing T ti on a small ll scale l the response Embed Launch Review In a dynamic context, is it still relevant?

Assess and analyze Recognizing the threats and opportunities

Strategize and structure Preparing your response

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EXAMPLES

Dell
Dell Swarm operation, relying of group-buy, promoted on Twitter Inventories sold-out, $6.5M in revenue

Best Buy
FAQ & forums for customers, where employees provide answers $5M in economies, because call-centers were not sollicited

SeaWorld
Death of a trainer during a show Immediate countermeasures on Twitter, Facebook and YouTube Very limited impact

CONCLUSION
Social

CRM exists to face the new challenges of the Web 2.0 20 complements 1-to-1 interaction by making organizations actors of their online image organizations can understand and act to enhance their relationship with the customer

It

Proactive

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