CRM IN B-TO-B AT DEUTSCHE

POST WORLD NET

Case Study

Mamatha P FM-1612
Anjali B FM-1594
Jerin Antony FM-1592
Devi Padmanabhan FM-1692
Robin Joseph FM-1630
Shantin Mary Shabu FM-1680
Tom Roy FM-1610
Jojin Jose FM-1631
Question 1: How would one define and measure the potential for cross
selling in this context?

Answer: In this case it is telling about the Deutsche Post World Net
(DPWN) is a fast-growing international logistics service provider. Its
portfolio of companies includes its European B to B parcel service Euro
Express, its express delivery service across the globe DHL, and its global
logistics provider DANZAS. The three companies served in many cases
the same customers. Group of individual companies could achieve much
better results by coordinating their sales efforts, specifically, being able to
systematically cross-sell its various products and services to the many
existing clients. The three individual companies offered complementary
services; the objective was to present one-face to the customer with the
idea to provide complete logistics solutions for these clients regardless of
the type of desired service.

Cross-selling is the action or practice of selling an additional product

or service to an existing customer. In practice, businesses define cross-
selling in many different ways. Elements that might influence the
definition might include the size of the business, the industry sector it
operates within and the financial motivations of those required to define
the term.

The objective of cross-selling can be either to increase the income

derived from the client or to protect the relationship with the client or
clients. The approach to the process of cross-selling can be varied. Unlike
the acquiring of new business, cross-selling involves an element of risk that
existing relationships with the client could be disrupted. For that reason, it

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is important to ensure that the additional product or service being sold to
the client or clients enhances the value the client or clients get from the
organization. The main benefits of cross-selling include increased sales
revenue, improve customer satisfaction and in B2B businesses, increased
Customer Lifetime Value (CLV) through deeper integration in a
customer’s business.

Thus cross-selling is a popular tactic among online retailers in hopes

of increasing average order value, items per sale and improving customer
service with relevant suggestions. Cross-selling in the ecommerce
environment involves identifying related products and creating appropriate
offers while in-person cross-selling could require training in effective
approaches. In both cases, though, the goal is to make more money for the
company while creating a satisfied customer.

With the exponential growth in data and the increased computing

power available, DPWN Company can now combine internal and external
data that spans several years to build more-useful customer profiles. Thus,
creating dynamic, high-resolution customer profiles.

When companies set customer growth goals, they too often pursue
overly broad or diffuse objectives, but this method of cross-selling focus
on discrete customer growth missions. This help I acquisition of more
customers and use of ways to make existing customers satisfied.
The use of cross-selling in the given context of DPWN logistic
service provider also has the potential not only to enlarge customer groups
but also contribute to the growth of profit. This can also help them to
increase the market share. Thus, helping to grow the business.

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 Encouraging customers to make use of its services, or an ancillary,
will increase the size of the transaction thus getting more profit from the
same effort. The reason why this service is so valuable is that it maximizes
the potential of each and every customer. Thus, providing additional
quality to the original order too. By effectively cross-selling you can make
sure that the customer chooses the right product for them and that they have
everything they need to use the product.

In this context, it is said that the three companies were offering

complementary services and various products. Even though they have few
clients in common, after the coordination of the three companies the
DPWN can attract their customers in the different companies to prefer the
other services and buy products provided by the company. For example,
the loyal customers of DANZAS can be introduced to the services provided
by the Euro Express. Thus, an increase in sales for DPWN can be achieved.
Thus, the company will run more successfully after the coordination of the
three companies.

Question 2: If DPWN creates an integrated key account management

system, which key processes need to be integrated across the three
companies?

Answer: The following are the key processes which are needed to be
integrated across three companies:

• Collection of customer data regarding the services availed by the

customers/clients, the sender address, receivers address.
• Supply chain activities which are looked after by the company.

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 • Integration of data for the customers like information about various
services, their benefits pricing, payment mode.
• Physical distribution systems of the 3 companies have to be integrated so
the optimum utilization of resource can be obtained.
• The mode of transportations, warehouses, logistics parties and agents
involved.
• Integration of company’s websites so as to make a feeling of all services
at one stop in the minds of the customers.
• Customer loyalty programs data have to be integrated.
• Customer purchase pattern and frequency of purchase and when and
where the service is availed.
• Integration of customer feedback system and details of after sales
customer service provided to the customers.
• Cost of each service and how to plan for multiple service deliveries.
• Routing details of logistics services provided by each company.
• Date and time taken for logistics activities have to be integrated.

Question 3. What are the barriers to increased cooperation between the

companies and thus effective CRM?

Answer: Lack of awareness on CRM

The existing employees are less aware about the CRM system, how
it benefits the customer service operations and advantages regarding the
analysis and implementing the marketing strategy building. Thus, the
employee are to be given proper training and awareness on CRM system
that the CRM system is not just an IT solution to be bought and

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implemented but it is a business strategy change. Thus, the first step should
include setting a clear goal and the efforts needed for positive results.

Conflicting Goals and Priorities

Department managers and employees of the 3 companies are usually

measured against goals and objectives that are specific to their function and
role. This makes sense, but can lead to sub optimizing, where each
customer service team prioritizes activities that will further successful
completion of their own local goals, leaving little room for service
operation or improvements that will benefit other teams or the organization
as a whole. Thus, Organizations that are serious about improvement must
make room for collaborative activities with the employees of 3 companies
using CRM system. Additionally, employees should have a clear
understanding of how their work on collaborative assignments using CRM
that will be recognized, and be certain that such efforts won’t hinder their
achievement of departmental objectives.

Installation, maintenance and Training incur cost

Another barrier the company is going to face is to build the centralized

CRM system connecting the 3 companies. It incurs cost in installing a
CRM system and it require a specific team to maintain the system free of
the bugs and crashes.

Resistance to change

The certain departments within the company don’t fully understand their
benefits from a CRM system. Existing employees find it difficult to cope
up with the change and even they fear that they may lose their job. As the
CRM integrate the 3 companies, they may have the fear that the
departments will come under a centralized authority which can be either

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controlled by team outside the company. Thus the employees are to be
given awareness and training regarding the CRM system.

Wrong perception about CRM suitability

Introducing a CRM system may ruin the sales force – customer

relationships since the customers are being familiar with the old operations
from the beginning. Even the companies are handling niche services such
as normal B to B parcel service, express service and global logistics. Thus
it may generate a perception on the incompatibility of a centralized system
for the 3 different service operations.

Failure to communicate.

Lack of communication between departments in 3 companies is a big

contributor to the problem. Without adequate communication, via a
medium, there’s a lack of clarity about what each department is doing to
achieve the shared goals. Good communication between departments can
help everyone understand each department’s role in the organization’s
success. And with understanding comes acceptance, and with acceptance,
cooperation is much more likely. Thus, CEM system should make sure that
the smooth communication is happening throughout the operations via the
system.

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Summary

Deutsche Post-World Net is the name under which the former

German Post operates today. This is one of the fastest growing international
logistics service providers. The name reflects the ambition to provide
worldwide services in mail, express and logistics. Companies such as DHL,
Danzas, Van Gend & Loos, SITS, Narrondo Desarollo, Securicor and
Servisco were acquired by Deutsche Post for their know-how and market
share in these fields.

The central problem of DPWN was that the three companies (EuroExpress,
DHL and Danzas) served in many cases the same customers without
knowing this. Each company has its own sales force and was calling
simultaneously on many identical clients. DPWN felt that the group of
individual companies could achieve much better results by coordinating
their sales efforts. Therefore, the company set out to leverage the entire
customer base across the three companies and to build an integrated
customer management approach.

The case study discusses how Deutsche Post DHL, the world’s
leading logistics group in terms of revenue, managed its enterprise wide
risk. The case study provides a fundamental understanding of the different
kinds of risks faced by the company and how it proactively managed these
risks.