P. 1
CRM

CRM

|Views: 37|Likes:
Published by Ajay Maheska
Strategy
Strategy

More info:

Published by: Ajay Maheska on Dec 25, 2012
Copyright:Attribution Non-commercial

Availability:

Read on Scribd mobile: iPhone, iPad and Android.
download as PPT, PDF, TXT or read online from Scribd
See more
See less

09/01/2013

pdf

text

original

CRM Strategy

Dr. Elijah Ezendu
FIMC, FCIM, FIIAN, FBDI, FAAFM, FCCM, MIMIS, MITD, ACIArb, ACIPM, PhD, DocM, MBA, CWM, CBDA, CMA, MPM, PME, CMC

Learning Objectives
At the end of this course, participants should be able to do the following: i. Explain importance of CRM Strategy ii. Explain CRM development and implementation iii. Identify methods for aligning CRM Strategy to business model iv. Explain Customer Value Added and Customer Loyalty v. Conduct proper enterprise-wide implementation of customer-centricity

“70% of CRM initiatives fail”
Source: Cap Gemini Ernst & Young

“90% of enterprises cannot show a positive return on CRM”
Source: META Group

“75% of CRM initiatives fail to substantially impact the customer experience”
Source: Gartner

A CRM Strategy shows the intent of a firm concerning its customer base, pointing out how it shall acquire, maintain and retain customers through improvement in customer value deliverables as the way to enhance corporate performance.

CRM Strategy & Implementation Model
CRM Readiness Assessment

Process 1: Strategy Development

CRM Project Management

ENABLING PROCESSES

Process 2: Value Creation

Process 3: Multi-Channel Integration

Process 4: Information Management

Employee Engagement

Process 5: Performance Assessment

Source: Adrian Payne & Pennie Frow, Customer Relationship Management

CRM Change Management

thereafter the best option shall be adopted as the CRM strategy and the right measures for performance shall be established. .Strategy Development This involves development of CRM strategic options for achieving established CRM objectives for every targeted segment.

CRM Strategy .Strategy Development Process CRM vision stands as established customer value proposition effected through customer audit Target customer segments based on value Establish CRM objectives for every targeted segment Conduct capability analysis Develop CRM strategic options & evaluate them Choose the most appropriate CRM strategy & establish the right measures for performance Review Source: Elijah Ezendu.

Customer Asset Audit Customer Potential (Value to Company) Protect Key Position Invest to Protect Invest to Build Build Selectively Manage for Profitability Secure Invest to Win Damage Limitation Win the Opportunity Manage the Revenue Manage the Revenue Vulnerable Careful Management Manage for Revenue Consider Divesting Fragile Counter Large Share Competition of Wallet Manage Some potential Profitability Manage Transactional Profitability Highly Secure Source: Gartner Strength of Relationship (Value to Customer) .

CRM Investment Framework Maintain Efficiently Invest High Claimed Importance Hygiene Factors Motivators Trim Overspending Hidden Opportunities Study/ Invest Low Low Real Relevance High Adapted from Gartner .

.Interoperability of CRM Strategy The CRM Strategy must have a high level of interoperability with the Corporate Strategy and Competitive Strategy of the Business Portfolio.

Using McKinsey 7S Framework for Testing CRM Strategy Strategy Systems Structure Shared Values/ Subordinate Goals Staff Skills Style .

. • Solution should be either to amend the elements accordingly or to alter the CRM strategy.Action Points for Testing CRM Strategy • Examine each of the 7S. • Ascertain the gap between the elements and the strategic fit. • Identify the key success factors of each ‘S’.

The Business Model binds Business Strategy and Business Process together and functions as link between them. The focus of strategy is determination of position and codification of aims and objectives. while business process captures and implements the strategy. Business Model is the logic behind value generation.Aligning CRM Strategy to Business Model It’s imperative to align CRM Strategy to a firm’s Business Model due to its role. .

Business Logic Triangle Planning Level Business Strategy Business Model Architectural Level Implementation Level Business Process .

Customer Value Added “Customer value added approach is based on providing products and services to customers that are a greater value than they could expect from purchases from competitive companies in similar markets.” Source: John McKean. Customers Are People .

The CVA Approach Customer value added facilitates proper customer relationship management through identification the suitable value proposition which is superior to the whole bundle of offering from competitors. CVA = Perceived worth of a business’s offer Perceived worth of a competitive offer . and ensuring effective communication of the standard to customers.

CRM Strategy .Steps for Implementing CVA • Identify customer values • Identify competitors’ offers • Build customer values into firm’s offer to obtain firm’s interim offer • Compare firm’s interim offer to competitors offer • Identify value gaps • Use problem analysis tools to identify root causes • Use quality improvement tools for quality enhancement in order to set new standard of value proposition Source: Elijah Ezendu.

CRM Strategy .Branding to Breed Customer Value Proposition Ascertain vision (establish customer value proposition) Communicate the value proposition Determine the fitting culture for delivering the value proposition Establish clear cut identity that highlights both functional & emotional benefits to customers Establish a character to deliver the promised customer experience Develop personality and emotional elements of the value proposition Source: Elijah Ezendu.

Customer Loyalty Customer loyalty is aggregation of attitudes and emotional disposition developed in the course of interaction with value proposition either directly or indirectly. . such that a customer would tend to purchase a particular product/service over and over again.

Ladder of Loyalty Partner Advocate Supporter Client Purchaser Prospect  Partner: Someone who has the relationship of partner with you. who does your marketing for you.  Prospect: Someone whom you believe may be persuaded to do business with you. or at best neutral.  Supporter: Someone who likes your organisation.  Client: Someone who has done business with you on a repeat basis but may be negative. towards your organisation. Source: Christopher.  Advocate: Someone who actively recommends you to others. Relationship Marketing .  Purchaser: Someone who has done business just once with your organisation. but only supports you passively. Payne & Ballantyne.

and there are eagles. following orders."There are ducks. The ducks run around the ground quacking all the time. doing what they are told and often pecking at other ducks. stating rules." .Ken Blanchard. Eagles soar high above to get the best perspective and decide what is best for the customer. Leading at a Higher Level .

What is Customer-Centricity? “Customer-centricity involves aligning organizational resources for effectively responding to the ever-changing needs of customers. while building mutually profitable relationships.” .Craig Bailey & Kurt Jensen .

Aligning Organizational Resources     Personnel Operating practices and procedures Systems (internal and external) Products and services .

Ensuring that decision-making hinges on customers. Using communication tools and techniques for highlighting the firm’s progress in customer-centricity .Aligning Personnel • • • • Recognizing and rewarding customer-centric behaviour. Training every staff on customer-centricity.

.Entrenching Customer-Centricity via Training cum Internalization Customer-centricity can be embedded on organizational processes through adequate training and modeling of interdepartmental transactions as depiction of customer relationships that require optimization.

Focus of Training • Communicating effectively and building rapport. Managing complex and taxing conversations. Identifying and exploiting opportunities. People and communication styles • • • .

.Requirements for Building Mutually Profitable Relationships Ascertainment of customer’s request Ensuring Profitability Find out repeatability of transaction Determination of feasible term of relationship.

Voice of The Customer Process • • • • • • Obtain customer’s pulse Involve the customer Analyze information Socialize results Implement customer-focused changes Respond to the Customer .

How to Obtain Customer’s Pulse Survey the Customer Interview the Customer Get information from customer-facing personnel Observe actions and behaviours of customers Embark on mystery shopping .

Three Different Faces of a Customer • • • Business decision-maker End-user of product or service Procurement function .

. Relationship Surveys Focuses on all aspects of the firm such as • Marketing • Product Management • Service and Support • Sales/Account Management • Engineering/Development • Professional Services • Training and Education • Accounting/Finance Survey on many individuals in customer’s firm.Customer Survey Transactional Surveys Focuses on measuring customer satisfaction with individual or collection of Interaction with firm.

Factors that Aid Collection of Inputs from Customer-Facing Personnel • • • Environment of trust Establishing expectations with personnel Managing anecdotes .

attitudes or purchase patterns. taking cognizance of commonality in demographics.Involving Customers This can be done by means of the following: 1. Factors that determine selection of customers include strategic importance. diversity of industries which the firm represents. 2. level of complexity/sophistication in use of products or service. Customer Board of Advisors: For holding periodic meetings with selected number of senior executives from firm’s customer database. . Focus Group: For obtaining information through discussion with a group of participants.

Analyzing information Analyze customer feedback and information obtained Compare to other information held by the firm Output: i. Challenging trends iii. Positive trends ii. Customer demographics ii. Transactional history This gives rise to development of customer segmentation strategy . Issues raised by customers Such information include the following: i.

departmental and project action-planning .Socialize Result Top-level reporting for general awareness Comprehensive report for sectional.

Steps for Implementing Customer-Focused Changes • • • • Getting management commitment Conducting cross-functional reviews Voice of customer tracking and reviews Forecasting .

Key Performance Indicators Targeted for Improvement • • • • Customer Satisfaction Customer Retention Churn Revenue and Profitability -Overall -By Customer Segment -By Customer Product/Service Diversity By Customer • .

Immediate Response i. Establishment of criteria for ‘immediacy’. Continue the process . Inform the organization and respond resourcefully. Prepare for customer review meeting iv. 2. Responding with Account Strategies The six steps for implementing Account Strategies: i. Involve senior management in customer experience.Responding to Customers 1. Implementing ‘immediacy’ team. vi. Management reporting. iii. Engage customer in meeting v. Record account-specific results ii. ii. iii.

 Responding immediately to participants during survey.Other Methods of Updating Customers  Newsletter  E-mail  Website  E-zine  Instituting the update as a component of firm’s account management practices  Using interactive sessions of forum or board of advisors. .

Common Pitfalls of CRM  Accepted as a technical instead of business problem  Using a top-down approach  Non-involvement of senior management  Lack of focus on areas of high adoption  Driven by IT department instead of Sales.  Absence of a cross-functional implementation team  Biting more than one can chew  Organizational unpreparedness . Marketing and Service.

services and knowledge  Bottom-up.From Product-Focused to Customer Centric Firm Feature Customer Orientation Product-Focused  Discrete transaction at a point in time  Event-oriented marketing  Narrow Focus Customer-Centric  Customer life-cycle orientation  Work with customer to solve both immediate and long term issues Build customer understanding at each interaction  Broad definition of customer value proposition  Bundles that combines products. designed on the front lines  Working as an insider  Solutions focus  Advisory relationship  Team-based selling  Innovation and authority at the front line with customer Incentives based on customer economics and team performance  Tailored business streams  Balance between customization and complexity Complexity isolated within the system  Cross-organizational teaming  Joint credit High degree of organizational trust Solution Mindset  Narrow distribution of customer value proposition  Off-the-shelf products  Top-down design  Perceived as outsider selling in  Push product  Transactional relationship  Individual to individual  Centrally driven  Limited decision-making power in field  Incentives based on product economics and individual performance  “One size fits all” processes  Customization adds complexity  Rigid organizational boundaries  Organizational silos control resources  Limited trust across organizational boundaries Advice Orientation Customer Interface Business Processes Organizational Linkages & Metrics Source: Booz Allen Hamilton .

Solutions Advance Customer Value Proposition Traditional Value Proposition Value-Added Services Customer-Centric Value Proposition “We can help you reduce life-cycle transportation costs” “We can reduce your operational costs” Industry Truck Manufacturing Traditional Product  Trucks = + = “We sell and service trucks”  Financing  Service  Application/Design support Aerospace Components  Aerospace Fasteners “We sell highperformance fasteners” Utilities Electricity “We provide electricity reliability”  Energy asset maintenance “We can help you reduce total energy costs” Chemicals  Lubricants “We sell a wide range of lubricants”  Usage and application design  Lubricant analysis  Product support  Outcomes-driven information database “We can increase your machine performance and up-time” “We can help you better manage your patient base” Pharmaceuticals  Drugs “We sell pharmaceuticals” Source: Booz Allen Hamilton .

.Developing Customer-Centric Culture Put employees in the customers’ shoes Put employees in the shoes of a particular colleague Review your habits and attitude Be evaluated in a 360-degree approach by colleagues you frequently deal with (through a random selection).

What is Customer Advocacy? It’s a cross-functional role empowered to marshal organizational resources to resolve troublesome customer issues and identify root cause while balancing the financial realities and strategic goals of the company. .

. thereby managing “customer experience” effectively.The Need for Customer Advocacy Function To steer customers away from veiled gaps. inefficiencies and organizational complexities that perturb perception.

Key Skills for Customer Advocates Straight-forward and honest Interpersonal management and communication Good business sense and judgment Organizational navigation Executive Presence Time management Project management .

analysis and execution Managing customer experience through resolution Internal management review .Customer Advocacy Process Framework Customer segmentation Engagement process Escalation process Response planning.

Factors to Consider When Crafting Message Ensure your communication stands alone Consider the audience Read it “as if” you were the recipient Acknowledge the “bigger picture” Special handling procedures when emotionally charged .

Align your organization structure with the segmented customer view 4. Adjust your mission and vision statement 2. Segment your customer base 3. Encourage and seek to create customer loyalty 11. sales and customer service functions . Study the behaviours. attitudes and demographics of your customers 7. Create new performance measures 6.Do‟s of Customer Centricity 1. Empower employees. particularly customerfacing staff for proactive relationship-building 9. Make good use of technology 5. Communicate and engage all stakeholders in the process Allow anyone in the company to say (or think) “this is not my job/responsibility” Assume that your project/ programme were completed. Try to understand the true value of your customers Don‟ts of Customer Centricity Expect a brand new mission statement to make you a customer-centric company Overcomplicate the segmentation Reorganize too often and for the sake of it Expect technology to build customer relationships for you Throw out the old performance measures Confuse behaviours and attitudes with needs Rely on the customers past buying patterns 8. you „got there‟ Think of loyalty as the tenure of a customer (duration of the relationship) Limit your change management efforts to the marketing. Set clear goals for achieving a defined state of customer centricity by a certain point in time 10.

and they understand why. They continually innovate by evolving their customer segments and sub-segments. They create a competitively unassailable customer innovation advantage based on a customer R&D model grounded in continual experimentation at key customer touch points. They understand in precise analytic terms exactly how their different customer relationships contribute to or subtract from the total value of the firm. they know what to manage and where to invest in order to create sustainable. They thrill their customers by delivering knockout value propositions that competitors cannot match. profitable growth and drive outstanding share price performance over time. v. Source: Wharton Business School iv. They understand the different needs of different customers and group them into operational customer segments and sub-segments based on common needs. They know how much money they make or lose with each of their customers or customer segments. but as a portfolio of customers. vii. . ii. iii. and improve their value propositions as customer needs change. because they manage their customer portfolio on this basis. territories.The Seven Characteristics of Customer-Centric Companies i. services. or functions. They conceive of themselves not as a group of products. vi. They organize their businesses into customer segment business units to establish clear ownership of the customer experience and accountability for the financial performance of each customer business unit.

Institute of Internal Auditors. Director of Strategy and Performance. Certified Institute of Cost Management. He is concurrently Senior Partner. As a result of his strides in management consulting. Institute of Management Consultants. Institute of Business Development. International Project Management Commission. Associate. He holds a doctoral degree in Management from St. Fellow. Fortuna. South Africa. International Council of Business Development Professionals. International Council of Management Consulting Institutes. He is a Chartered Manager certified by Canadian Institute of Management. Nigerian Institute of Training and Development. USA and stands as a Member of International Association of Software Architects. Chartered Institute of Personnel Management of Nigeria. Fellow. Rohan Marine. Fellow. Director of Programmes and Member of Governing Council. Institute of Management Consultants. who has functioned as Speaker/Facilitator at myriad programmes of professional institutes. Refined Shipping. UK along with Microsoft Corporation. private and public firms including extra-governmental agencies and institutions. Cost Management Journal. Fellow. Associate. Member. Director. Second Vice President and Member of Governing Council. He is a Certified Management Consultant. Regent Business School. Ladoke Akintola University of Technology. and a world-class consultant. Management Institute of Canada. Part-Time Lecturer & External Examiner (MBA Programme). and Examiner to various Professional Institutes. The Institute of Business Development. Director of Training. Additionally. and Programme Coordinator (Nigeria). Clements University. Shevach Consulting. Chief Operating Officer. international development organisations. Honorary Global Advisor. Fellow. American Academy of Financial Management. Elijah Ezendu is a multidisciplinary professional whose business experience mounts through diverse fields. He is an outstanding motivational speaker with a knack for recalibration of positive influence. . licensed by International Council of Management Consulting Institutes which has a Special Consultative Status in United Nations Economic and Social Council. he received Merit Award for Excellence in Consulting. He is a Certified Business Development Analyst and Competitive Intelligence Professional.Dr. British West Indies. Chartered Institute of Arbitrators (Nigeria). Institute of Analytics Professionals. He is a prolific writer and author who had served as Editor-in-Chief. Project Manager E-Business. Member of Marketing Committee. Director of MBA Programme (Nigerian Outreach). Canada and holds numerous professional qualifications including Master Project Manager. Lead Assessor and Member of Governing Council. Certified Institute of Cost Management. Member. he is an information technology management professional certified by Institute for the Management of Information Systems.

com. 234 8058835237 .Thank You Dr. 234 8033024596. Elijah Ezendu elezendu@yahoo.

You're Reading a Free Preview

Download
scribd
/*********** DO NOT ALTER ANYTHING BELOW THIS LINE ! ************/ var s_code=s.t();if(s_code)document.write(s_code)//-->