CustomerRelationship

Management
(CRM)
ATTFLuxemburg

R.J.Claessens&Partners
Helpingyouthroughthelearningcurve

KeySourcesofthecourse:
HarvardBusinessReview
CRMbyEdPeelen
SnezanaDragicevic
GeraldineClaessens

R.J.Claessens&Partners
Email:contact@rogerclaessens.beInternet:www.rogerclaessens.be

Thekeymessageofthecourse

Thekeymessageofthecourse

Weareinit,together!

Thekeymessageofthecourse
In2003,accordingtoHarvardBusinessReview,
82%ofinterviewedcompaniesintheUSA,stated
theywouldintroduceCRM,alargejumpfromthe
35%whoemployedCRMin2000.

Whatchanged?

Thekeymessageofthecourse
Theapproachchanged!
RatherthanuseCRMtotransformentire
businesses,companiesusingCRMsuccessfully
havedirectedtheirinvestmentstowardsolving
clearlydefinedproblemswithintheircustomer
relationshipbase

Thekeymessageofthecourse
Theapproachchanged!
CRMtodayresultinhighlyfocusedprojectsthat
arerelativelynarrowintheirscopeandmodest
intheirgoals.
Thereisalsoanunderstandingthathighlyaccurate
andtimelydataarenotrequiredeverywhere

Thekeymessageofthecourse

AchievingsuccesswithCRMismoredifficultthan
expectedanditisnotjustamatterofmarketing
andIT.

Introduction
ThephilosophyofCustomerRelationship
Managementisthis:
CRMisaboutKeepingtheoldtimespiritof
customerconnectionevenwhenyoucannot
shakeeveryhand.

Introduction
ThephilosophyofCRMis:
Itisacomprehensiveapproachforcreating,
maintainingandexpandingcustomer
relationships.
CRMisawayofthinkingaboutanddealing
withcustomerrelationships

Introduction
Thefocusison:
Whatwillthecustomersbuy,when,whyand
forhowmuch?
Whatcreatesvalueforthem?
Whatdoescreateastructuralbond?
Whatservicecanweprovidethatdoescreatea
premium?
Whataboutmarketsegmentation?

Introduction
WhatCRMsystemsdo!
TheprimarytaskofaCRMsystemconsistsin
supportingorperformingtheactivitiesinvolved
incustomercontactprocesses
Thesecondarytaskisrelatedtoproviding
customerandmanagementinformation

Introduction
TheconceptofCRMis:
Customerrelationshipmanagement(CRM)isa
businessstrategytoselectandmanagethemost
valuablecustomerrelationships.
CRMrequiresacustomercentricbusiness
philosophyandculturetosupporteffective
marketing,sales,andserviceprocesses.

Introduction
TheconceptofCRMis:
CRMapplicationscanenableeffective
customerrelationshipmanagement,provided
thatanenterprisehastherightleadership,
strategy,andculture

CRMshouldtheendoftheroad
CRMisagreatconceptBUTyoumightwonder
ifitisworththeeffortrelativetoyourcustomer
baseandexpensesinvolved?
ItistheultimatephaseAFTERasolidmarket
researchandastrategicplanningprocess!

Introduction

Istheissueweanalysestrategic?
Wherecouldwemakemoremoney?
Doweneedperfectdata?
Whatisthenextstep?

Introduction
Isitstrategic?
AlargeandcomprehensiveCRMprogram
involvescomplicatedbusinessandtechnology
issuesandrequiresinvestmentsoftimeand
money.
Beforespendingmoney,keymarketing
questionsneedtobeaddressed
Whatareyourkeymarketingquestions?

Introduction
Isitstrategic?
Anexample:Awelltrainedandproactive
salesforceisastrategicnecessity;thisrequires
therightinformation!

Introduction
Wherecouldwemakemoremoney?
ItispossibletouseCRMtomanagetheentire
relationshipcycle:thatisusuallyabadidea!
Largesystemsusuallydonotpayback.
ThefocusofCRMshouldbetheweakpoints
thatundermineperformance

Introduction
Wherecanwemakemoremoney?
Focusingonweakpointscannotonlybean
effectivewaytobuildasuccessfulCRM
programbutcanalsoputitbackontrackincase
youstartedone.

Introduction
Doweneedperfectdata?
Perfectrealtimeinformationcomesatavery
highcost
Therequirementsforrealtimeandgooddataare
quitedifferent
Example:Outstandingsonacurrentaccount
(realtime)versusportfoliomanagementdata
(gooddata)

Introduction
Whatisthenextstep?
NarrowlyfocusedCRMsystemoftenreveal
additionalopportunitiesforbusiness
improvements.
Allthesmallimprovementstakentogether,can
amounttoabroadCRMapplicationthatextends
acrossthebank.
Thekeyistomakesurethestepbystep
approachfitsintoadefinedstrategicplan

Introduction
Whatisthenextstep?
Inmostcases,theopportunitiesfordevelopment
lieintheactivitiesadjacenttothecustomer
relationshipcycle.
Ultimately,CRMcanbethegluethatbinds
togetherallactivitiesrelatedtoacustomer.

Introduction
Customerrelationshipcycle.
Development

Targeting

Retention

Sales

Experience

Introduction
Businessbeforetechnology
WeshouldlookatwhatCRMshoulddo,not
somuchonwhatitcando
CRMdependsmoreonstrategythanonthe
amountspentontechnology
Strategyisaboutthewayyouallocateyour
resourcestocreateacompetitiveadvantage
andsuperiorperformance

Introduction
ImplementingCRMbeforecreatingacustomer
strategy=likebuildingahousewithoutan
architecturalplan
EffectiveCRMisbasedonsegmentation
analysis
Customerstrategyisdesignedtoachievesome
specificmarketinggoals
Technologyisnotamarketingstrategy

Introduction
IntroducingCRMbeforechangingyour
organisationintoacustomerfocused
organisation=likepaintingwithoutsanding
CRMwillsucceedonlyAFTERtheorganisation
anditsprocessesjobdescriptions,performance
measures,compensationsystems,training
programs,andsoonhavebeenstructureto
providesuperiorcustomervalue

Introduction
Assumethatmoretechnologyisbetter=islike
buildingwithoutfoundation
Tostart,seewhatlowertechalternativesoffer;
theremaybenoneedformoreintheverynear
future
Inthefutureassequenceofindividualsoftware
solutionsmayleadtoeachstepreinforcingthe
nextstep

Introduction
Definetherightcustomersyouwanttoestablish
arelationshipwith=atwowaystreet
Justbecausemanagerscancontactcustomers,
doesnotmeantheyshouldbyallmeansandfor
whateverreason.

Introduction
Howdoconsumersdefineusintermsof
competition?

Introduction
Howdoconsumersdefineusintermsof
competition?
Cost
Time
Quality
Opportunity
Information
Knowledge
Choice
Culture

Introduction
WhymightyouconsiderCRM?

Introduction
WhymightyouconsiderCRM?
1. Gathercustomerinformationquickly
2. Identifythemostvaluablecustomers
3. Obtainloyaltybyprovidingcustomizedproducts
4. Possiblyreducecostofservingthesecustomers
5. Makingiteasiertoacquiresimilarcustomers
6. Retentionofexistingprofitablecustomers
7. Gettingthemaximumoutofexistingcustomers
8. Itcanfunctionasanearlywarningsystem

Introduction
WhymightyouconsiderCRM?

Financial
perspective
Customer
perspective

Current
situation
Turnover

Medium
Longterm
term
Increased Value
turnover
Satisfaction Individual Commitment
satisfaction

Communication Oneway
Organisation

Data

Attuned

Multi
channels
Knowledge Integrated
image

Introduction
TheultimategoalofCRM:
Thegoalistoencouragethecustomertomake
itsfuturepurchasesfromyouandreducethe
shareofpurchasesbeingmadefromthe
competitionDUETOTHEFACTcustomer
knowledgehasbeenaccumulatedand
thereforeitwillbemoredifficultforthe
competitiontoofferasimilarpackage

Introduction
CRMisonlyapartofthesalesperformance!
Howwouldyouassessyouroverallsales
performance?
Pleaseratethequestionshereafterasfollows
Noteffective Extremelyeffective
12345678910
(SourceHBR08/06)

Introduction
Salespeoplescapabilities
Findingcustomersidentifyingsales
opportunities
Winningcustomersconvertingopportunities
intobusiness
Keepingcustomerscementingcustomer
relationshipsCRM
Noteffective Extremelyeffective
12345678910

Introduction
SalesManagers'skills
Planningforgrowingbusiness
Coachinggivingcleardirection,expectations
andfeedback
Motivatingrecognitionandrewards

Noteffective Extremelyeffective
12345678910

Introduction
Supportsystems
Recruitingandhiringcapabilities
Performancemanagementsystems
Opportunitiesmanagementsystems
Strategicaccountmanagementsystems
CRMsystems
Traininganddevelopmentsystems
Noteffective Extremelyeffective
12345678910

Introduction
Salesorganisationclimate
Clarityofgoalsandexpectations
Staffdedicationtoachievechallenginggoals
Staffinitiative
Acknowledgmentofgoodwork

Noteffective Extremelyeffective
12345678910

Introduction

Thetotalscoreforyoursalesorganisationis:..

Introduction

Averageforhighperformingorganisations123
Averageforlowperformingorganisations
109
WeshallputthespotonCRM,butitisonlyapart
ofabiggerpicture
(USbasedcompanies)

Thestructureofthecourse
CRM
Introduction
ORGANISATION

MARKETING

ANALYSIS

SYSTEMS

1_ElementsofCRM

1_Customerknowledge

1_RelationshipData

1_CRMsystems

2_Customersupplier

2_Customisation

2_Datamining

2_Implementation

3_Strategy

3_Communication

3_Dataselection

3_Thefuture

4_Relationshiporiented

4_Relationshippolicy

4_Datareporting

4_Conclusion

1_ElementsofCRM

1_ElementsofCRM
Thefourcornerstonesofthe
elementsofCRMare:
1. Customerknowledge
2. Relationshipstrategy
3. Communication
4. Theindividualvalueproposition

1_ElementsofCRM
1. Customerknowledge

Segmentation
Awareness,Attitude
Usage
Concept
Customersatisfaction

Customerloyalty
BrandImage
Brandequity
Pricing
Advertising

1_ElementsofCRM
2. Relationshipstrategy
Alonglastingcustomersupplierrelationship
Thekeyisnotonlythestimulationofatransaction
Successisnotmeasuredbymarketshare

1_ElementsofCRM
3. Communication
Theissueistocarryonadialoguewith
individualcustomers
Shiftsshouldbepossiblebetweendistribution
channels

1_ElementsofCRM
4. Theindividualvalueproposition
Theproduct,serviceandpriceareadaptedtothe
individualcircumstances
Theorganisationhastobuildupthecapacityto
supplycustomisationinoneformoranother

1_ElementsofCRM
Systems
Ifarelationshipmustbemaintainedwithalarge
groupofcustomers,aportionofwhich
representsalowvaluetothesupplier,theuseof
ITbecomesinevitable.
Integrationisthereforeamustbetweenfront
midbackoffice