Welcome.

Week 4

Strategic Relationship Marketing (CRM): MARK 4014

Professor John Paulo Cardoso
john.cardoso@georgebrown.ca
www.NHPDirect.com

www.EcoDirectKoffie.com
www.EcoDirectKoffie.com
investigate.
The Client

Eco Direct Koffie Inc., a Canadian company operating throughout North America operates
under license to Farmers Direct Coffee of the Netherlands reshaping the coffee world by
providing truly sustainable, transparent and traceable coffee, that's what we do!

Making the coffee chain shorter and more transparent from Farm to Cup, with beans straight
from the farmer at a fair price, without intermediate traders. And not just shorter, but 100%
sustainable and transparent.

That way, as a coffee expert you know exactly where the quality coffee comes from. We
strive for innovation on the coffee market. As the first coffee brand in the world where the coffee
farmer really is a co-owner. This doesn't mean only a good price for the farmers coffee beans,
but the farmer also participates in the company results, without this leading to price increases.

Our services include ethically, sustainably sourced specialty coffee beans, roasting and private
label packaging and licensing of our proprietary, transparent Blockchain technology APP.
Learning Objectives:

§ CRM strategy
§ Business Goals and CRM Objectives
§ Organizational Dynamics & CRM Player
§ Sales Channels & Internal Requirements
focus.
strategy + goals + requirements
DEVELOPING A CRM STRATEGY
Any carefully devised plan of action.
CRM payback is experienced in 2 stages

Immediate benefits from improved

operational performance

Latent benefits from new CRM assets

CRM payback is experienced in 2 stages

Immediate benefits from improved operational performance

• Associated with single view of the customer, data integration, channel

integration, standardised processes, customer self-service.

Latent benefits from new CRM assets

• Bigger changes to align the business to the needs of the most attractive
customers in the market.
Why ‘strategy before structure’?

Structure can both enable and disable strategic action

There is no single correct structure that is suitable for

all organisations.
Why ‘strategy before structure’?

Structure can both enable and disable

strategic action
• difficult to promote creativity in a rule-bound bureaucracy
• struggle to become customer-centric in a functional
organization where specialists not share customer insight
horizontally across silos.

There is no single correct structure that is

suitable for all organisations.
https://www.youtube.com/watch?v=41v3PENTEXw
CRM is an essential part of
organizational design

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Five steps to developing a CRM strategy

Create an overall business strategy

Understand organizational dynamics

Map the customer journey

Establish sales channels and processes

Define what success looks like

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Business Goal & CRM
Objectives

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How is CRM strategy defined?
CRM strategy defined

CRM strategy is a high-level

plan of action that aligns
people, processes and
technology to achieve
customer-related goals.
 22
Figure 5. SMART Goals. (Hawkins, 2019)
Organizational Goals

Increase the margins on all new

business by 5% by Q2 2023

Increase sales targets by 10%

by end of 2022

Boost yearly revenue by

another 25% by 2023

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Key CRM strategic objectives
Grow lead generation by X% by DATE

Increase number of Marketing Qualified Leads by X% by

DATE
Increase number of Sales Qualified Leads by X% by DATE

Achieve X% in conversions (or purchases) by DATE

Boost sales to existing customer base by X% by DATE

Add X% of existing customers to loyalty program by DATE

Create X number of customer advocates by DATE

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Organizational Goals to CRM Objectives

Overall Organizational
CRM Objectives
Organizational Goals
Goal
 Other examples of organizational goals
AND related CRM objectives
Organizational Goals – Revenue Related CRM Objectives (Broad)
Growth through:
Increase customer profitability Decrease churn
Increase customer retention
Increase customer loyalty
Enhance cross-sell and up-sell opportunities
Acquire new customers Improve lead numbers and quality
Increase marketing campaign response
Increase number of SQLs
Increase customer advocacy
 Understand your competitive landscape

27
Figure 1. CRM strategy. (Hawkins, 2019)
Competitive positioning

28
https://www.youtube.com/watch?v=kshIWIc15yg
Understanding value

“Value is the customer’s perception of the

balance between benefits received from a
product or service and the sacrifices made
to experience those benefits.”
— (Buttle & Makan, 2019)

30
Understanding value

“Value is the customer’s perception of the

balance between benefits received from
a product or service and the sacrifices
made to experience those benefits.”
— (Buttle & Makan, 2019)

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Value proposition defined (again)

A value proposition is the explicit or

implicit promise made by a company to
its customers that it will deliver a particular
bundle of value-creating benefits.

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What is a CRM Vision?
A CRM vision is a high-level statement of how CRM will change a
business as it relates to customers:

We will build and maintain long-term relationships with

valuable customers by creating personalized experiences
across all touch-points and by anticipating customer needs
and providing customized offers.
 Organizational
Dynamics & Key CRM
Players
https://www.youtube.com/watch?v=Chb3Mk7wVVQ&feature=emb_logo
Understanding organizational dynamics
Identify the contingencies, resources and people changes required
to achieve goals
Conventional management structures
Functional organization structure

Geographic organization structure

Product, brand or category organization structure

Market or customer-based organization structure

Matrix organization structure

 Functional structure

Figure 21. Functional Structure. (“Point Park University,” 2018)

 Geographic structure

Figure 22. Geographic. (“Point Park University,” 2018)

 Product, brand or category structure

Usually CPG companies that produce a variety of products

with different marketing, sales or service requirements

Product or brand managers develop the marketing strategy

for their products

Category manager works with customer/distributor and

product/brand managers to create a category
 Category management at Kraft

Figure 24. Category Management Example. (Buttle & Macklan, 2019)

 Market or customer-based organization structures

Figure 25. Market-Based. (“Point Park University,” 2018)

 A matrix organisation

Figure 26. Matrix. (“Point Park University,” 2018)

 Virtual and network structures
• The role of IT in a stable
corporate environment is to
allow senior management to
control information and
decision-making
• As environments become
more turbulent, the role of IT
has changed

Figure 27. Virtual Structure. (“Point Park University,” 2018)

 IT’s influence on organizational design

Figure 28. CIO Organizational Design. (“ResearchGate,” 2018)

 Role of IT in different organizations
IT in turbulent organizations:
• Can sense and respond rapidly
to changes in the environment
• Collaborate to deliver better
customer value propositions
• Enhance and share their
customer learning
• Improve their individual and
joint cost profiles
• Substitute for a more formalized
and centralized organization
structure, linking networked or
virtual organizations
An IT-enabled organization:
• Is able to take any customer
query in any channel and
resolve it immediately
• Provides a consistent customer
interface whatever the
technology or device
• Provides a first point of contact
that takes responsibility for
resolving the query
• Has a back-end architecture
that enables the contact point to
obtain relevant information
immediately
Identify change management needs
1 Create a sense of urgency so that that people begin to feel “we must do something.”

2 Put together a guiding team to drive the change effort.

3 Get the vision right and build supporting strategies.

4 Communicate for buy-in.

5 Empower action by removing organizational barriers to change.

6 Produce short-term wins to diffuse cynicism, pessimism and skepticism.

7 Don’t let up but keep driving change and promoting the vision.

8 Make change stick by reshaping organizational culture.

 How to plan for buy-in

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Figure 4. Buy-In Matrix. (Buttle & Macklan, 2019)
 Organizational Roles and CRM

campaign
manager

marketing market
manager analyst

account
manager

sales rep market

manager

customer customer
relationshi service
p manager agent

© Microsoft Stock Photos

 The marketing manager and CRM
Marketers

Use marketing
automation for
customer and
market
segmentation,
and lead
management –
as a start.

© Microsoft Stock Photo

 The campaign manager and CRM
Campaign Managers

Use automation
tools for campaign
management,
email and direct
mail campaign
management and
marketing
optimization.

© Microsoft Stock Photo

The customer service agent and CRM
Customer Service Agents

Depending on
their role, CSA’s
use Operational
CRM systems that
range across
sales, marketing
and service
applications.

© Microsoft Stock Photo

 The market manager and CRM
Market Managers

Any Operational CRM

application might be
used by a market
manager – like
territory management,
account management
and a product
encyclopaedia
application.

© Microsoft Stock Photo

 The market analyst and CRM
Market analysts

Fluency with
marketing or web
analytics is essential
for market analysts,
who need to able to
choose the right
analytical approach for
different types of data.

© Microsoft Stock Photo

 The sales rep and CRM
Sales Representatives

Use sales force

automation solutions
that helps them
maintain contacts,
keep track of
opportunities, and
manage their territories
and accounts.

© Microsoft Stock Photo

The customer relationship manager and CRM
Customer Relationship Managers
(Retention Sales)

Make use of
applications such
as account,
contact,
opportunity,
quotation and order
management, as
well as sales
forecasting.

© Microsoft Stock Photo

 The account manager and CRM
Account Managers

Make use of sales

force automation
– account, contact
and pipeline
management, as
well as sales
forecasting.

© Microsoft Stock Photo

 Sales Channels &
Internal Requirements
https://vimeo.com/240813397
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 Identify project management needs

Figure 5. PM Software. (Buttle & Macklan, 2019)

 Data review and gap analysis
The gap between
what is available
and what is
needed may be
quite significant.

Figure 6. Gap Analysis. (“Adverge,” 2019)

 Look to the future

• Bear in mind that your business

will change, so factor this into your
plans.
• Will you be developing new
products?
• Or entering new territories?
• Is a major competitor about to enter
your market?

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Figure 7. Gap Analysis. (“mycustomer,” 2019)
Data review and gap analysis

need-to-know like-to-know
• Information needed for • Information
CRM purposes that might be useful at
some future point.
 Data Migration
• What data needs to be migrated?
• Cleanse the data you have – keeping in mind privacy regulations

Figure 8. Data Cleansing. (“mycustomer,” 2019)

 Define your
funnel &
your needs

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Figure 9. Leads. (Hawkins, 2019)
 Lead and contact management

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Figure 10. Leads. (Aten, 2019)
 Create pipelines and deal funnels

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Figure 11. Pipelines. (Hawkins, 2019)
Email communication

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Figure 12. Email. (Aten, 2019)
 Reporting and analytics

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Figure 13. Reporting. (Aten, 2019)
 Sales performance goals

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Figure 14. Sales Performance. (Aten, 2019)
 Typical sales channels

Figure 13. Sales Model. (Ryan, 2015) 72

 Customer interaction map

Figure 14. Customer Interaction Map. (Buttle & Macklan, 2019)

 The customer
strategy cube

Figure 15. CRM strategy. (Buttle & Macklan, 2019)

 The sales funnel

Figure 19. Sales Funnel (“Luckless Digital,” n.d.) 75

Aligning ORGANIZATIONAL/CRM CAPABILITIES

Overall Organizational CRM Objectives

Organizational Goals
Goal
 Tracking leads & opportunities

Figure 20. Sales Pipeline. (Hawkins, 2019) 77

Traditional personal contact patterns

Controlled Coordinated
contact contact
pattern pattern

Stratified
contact
pattern
Traditional personal contact patterns

Controlled • All contacts channelled through a single point of

contact pattern contact

Coordinated • Contacts are coordinated through one department

or person, and establishes direct personal contacts
contact pattern with departments or individuals on the other side

Stratified • Individuals and departments on both sides manage

their own contacts with their equivalents on the
contact pattern other side
 Key Account Management

KAM ABM
Key Account Management (KAM) basics

Earlier this semester we talked about Account Based

Marketing (ABM) – KAM is the sales-side of this equation

KAM is a structure that facilitates the implementation of

CRM at the level of the business unit

A key account is an account that is strategically significant

Drivers of KAM

Greater
Vendor
concentration Customer
of buying Globalisation reduction
programs expectations
power
 Kam Implementation

A single dedicated A key account team:

person: • fully dedicated to a
• responsible for single key account, or
managing the several large accounts
relationship
Key account teams may include:

Specialists like engineers, logistics,

R&D, etc.

Partnering organizations
 A model of KAM development

Figure 16. KAM Model. (Buttle & Macklan, 2019)

 Bow-tie structure for Early-KAM

Figure 17. Bow-Tie Structure. (Buttle & Macklan, 2019)

 Virtual organization for Synergistic-KAM

Figure 18. Synergistic KAM. (Buttle & Macklan, 2019)

This Week & Next Week
• TODAY: Workshop #2. (2% final mark)

• Next Week:

• Be prepared and read chapters 2 & 5

• Work on your modules for week 5

• Customer & Market Segmentation