CRM

Customer Relationship Management

Rich DuBose, Arnold Kelly,

Mellisa Thom and Ben Wylie
Outline
 General elements of CRM
 Spending and trends
 CRM ROI
 Why some company succeed and others fail at CRM
 Industry uses
 12 key applications
 Top 5 providers of CRM
 Mini case studies - Square D and Graybar
 Argosy Gaming case study
 Don’ts of CRM
 Best practices
 CRM Defined
 “CRM is a technology-enabled business
strategy whereby companies leverage
increased customer knowledge to build
(1)
profitable relationships.”

 CRM is first and foremost a business

strategy, not merely a software package.

(1) A Strategic Framework for CRM, by Patrick Sue and Paul Morin. February 2001
 Functional Elements of CRM
Marketing
• Market Research
• Product Development
• Market Assessment
• Market & Customer
Segmentation
• Product Lifecycle
Management
• Product Pricing and
Profitability
Sales Customer Service
• Sales Automation and • Customer Inquiry
Management
• Customer product
• Customer Profiling support
• Account Management • Customer Information
Management
• Opportunity Management
• Call Center
• Product, Price, and Effectiveness
Contract Negotiation
• Trouble Analysis &
• Sales Alignment and Resolution
Incentives
• Billing

Customer Relationship Management Solutions

• Data Warehouse Management and Decision Support

• Integrated Customer Management Systems
Marketing Functionality
 "Half the money I spend on advertising is wasted; the
trouble is I don't know which half." John
Wanamaker, the department store pioneer, stated in
1886

 A CRM can greatly enhance a company’s marketing

efforts in the areas of :
 Market research
 Price planning
 Product development
 Market assessment
 Customer segmentation
 Product lifecycle
Marketing Functionality Cont...
 Example: Hewlett-Packard
 Previously, HP sent out mass emails to update
customers on sales offers, new products, technical
support, etc.
 After implementing a CRM, these efforts become
much more customers specific
 85% of customers said they were satisfied with the
content of the emails and additional revenue
increase by $15M
Sales Functionality
 Common functions implemented:
 Provide the sales force with detailed and current
information, such as:
 Buying preferences

 Pricing

 Inventory levels

 Billing information

 Automate the sales processing activities (SFA).

Sales Functionality Cont...
 Example: Empire Blue Cross and Blue Shield
 Extremely complex and highly manual sales

process
 33 redundant audit checks and took approximately
27 days
 On-line quote system developed

 Sales processing steps streamlined and automated

Service Functionality
 CRM can be used to capture such things as:
 Customer’s complaint history

 Outstanding customer services requests

 Billing information

 Customer preferences

 Tracking unresolved issues

 Service representatives are much more prepared to

service their customers
Service Functionality Cont...

 Example: Marriott International

 Collect data on customer preferences and
spending
 Data shared by all Marriott Hotels nationwide

 Once you check in they already know your

smoking preference, which floor you prefer, any
allergies, complaint history, whether you drink,
etc.
 Enable Enterprise-wide Information Integration
Collecting and integrating data from every point in the organization will allow
customer relationship, life cycle and event information to be analyzed and driven
through the marketing organization to the front-line, enhancing sales and retention.
Phone
Branch
Sales Front line Mobile Sales Force Customer
Support Internet

Marketing and Sales

Support
 Customer demographic and
purchased services data.
 Marketing campaign tracking
and offer development
 Customer and profitability
data matched for service
development and pricing
 Attrition data for retention
modeling
 Customer value and preference
information for customized
experience.
 Enable Enterprise-wide Information Integration
Collecting and integrating data from every point in the organization will allow
customer relationship, life cycle and event information to be analyzed and driven
through the marketing organization to the front-line, enhancing sales and retention.
Phone
Branch
Sales Front line Mobile Sales Force Customer
Support Internet

Back Office Operations

 Customer relationship
information and contact
history available for issue
resolution
 Information gathering
follow-up or alert
messaging to front line
 Rules development for
value-based decisioning
for all product support
 Enable Enterprise-wide Information Integration
Collecting and integrating data from every point in the organization will allow
customer relationship, life cycle and event information to be analyzed and driven
through the marketing organization to the front-line, enhancing sales and retention.
Phone
Branch
Sales Front line Mobile Sales Force Customer
Support Internet

Customer Touch Points

 Customer relationship data
gathering
 Delivery of customized service
delivery or sales offers
 Customer value information
available for decisions
 Product information and sales
process automation enables
effective targeted sales efforts
 Relationship and contact
information allows sales reps
“know” each customer
Demonstration
 Worldwide CRM Spending

30,000,000,000

25,000,000,000

20,000,000,000

15,000,000,000

10,000,000,000

5,000,000,000

-
2001 2002 2003 2004 2005
Years

Based on report by Aberdeen Group entitled “Worldwide CRM Spending: Forecast and Analysis 2001 - 2005”.
 Forces Driving Spending
 “Only 7% of global companies have reached mature
CRM deployments, indicating more spending to
come.” (1)
 According to Gartner Group “CRM remains one of the
top three, if not number one, business priorities in
2001.”
 “The average company loses 20% of their customers
each year and the number is rising.” (2)

(1) Data Warehouse Institute survey. CRM is Anything but Dead CRM Industry. June 2001
(2) Maximizing CRM Performance with Strategic Performance Measurement by James
Brewton
 Forces Driving Spending Cont...
 “It costs up to 10 times as much to acquire a
new customer as it does to keep an existing
one.”
 Reasons growth is not higher:
 Hard to prove ROI
 Expensive customization
 High failure rate
 Slow economy has force IT budgets to tighten

Maximizing CRM Performance with Strategic Performance Measurement by James Brewton

 Trends in CRM
 Mobile CRM (mCRM)
 PalmPilots, web phones, and pagers are becoming
less expensive and more widely used
 Siebel and Sprint recently signed a join venture
selling wireless CRM
 Domestic businesses are expected to spend $74B
on wireless service by 2005

Wireless CRM: Strings Attached by Marc Songini Computer World, November 2001
 Trends in CRM Cont...
 Netsourcing - Application Services Providers
(ASPs)
 ASP work better in smaller organizations - less
customization
 CRM applications are the second largest segment
of hosting sales, led only by E-commerce
applications
 By 2003, Forrester predicts hosted CRM
applications will account for almost $2.5 billion in
revenue
The Forrester Report by Stacie S. McCullough. December 1999
 CRM ROI

Source: Swift, “Accelerating Customer Relationships: Using CRM and Relationship Technologies
 CRM ROI Cont…
 Possible Returns
 Up to 10 X’s more costly to generate
revenue from new customer than existing
customer
 5% Increase in retention rate can increase
company profits by 60-100%
 6 X’s more costly to service customer
through a call center than via the internet
 Loyal customer referrals generate business
at little or no cost

Source: Swift, “Accelerating Customer Relationships: Using CRM and Relationship Technologies”
 CRM ROI Cont…
 Investments
 Upfront costs

 Takes time

 Need to create measuring metrics

 It is marketing rather than sales

 Switching from product focus to
customer focus
Source: Swift, “Accelerating Customer Relationships: Using CRM and Relationship Technologies”
 Succeeding VS Failing
 Keys to Success
 Managing the data
 Managing the customer

 Business process before implementation

 All levels must buy in

 Flexibility on the company’s side

 Relationship vs database

Source: Rigby, Reichheld and Schefter, “Avoid the Four Perils of CRM”
 Succeeding VS Failing Cont…
 CRM Mistakes
 Implementing CRM before creating a
customer strategy
 Rolling out CRM before changing your
organization to match
 Assuming that more CRM technology is

better
 Stalking, not wooing, customers

Source: Rigby, Reichheld and Schefter, “Avoid the Four Perils of CRM”
 BMC “Learning from Failure”
 BMC Software
 Systems-management software
provider
 Based in Texas

 Failed Two Times Before Succeeding

Source: Rigby, Reichheld and Schefter, “Avoid the Four Perils of CRM”
 BMC’s Failures
 No research
 No top-management involvement
 Software would change culture

Source: Rigby, Reichheld and Schefter, “Avoid the Four Perils of CRM”
 BMC’s Successes
 Recreated the strategy
 Communicated benefits across the
company
 Changed the culture not just the process

Source: Rigby, Reichheld and Schefter, “Avoid the Four Perils of CRM”
 Industry Uses
 Airlines
 AA
 Aadvantage Frequent Flyer Program
 Banks
 Barclays
 Realize profitability of customers
 Car Rental Companies
 Enterprise
 ECARS System

Source: Swift, “Accelerating Customer Relationships: Using CRM and Relationship Technologies”
 Enterprise Computer Assisted Rental System
(Ecars) - introduced in 1992 now supports 1.4
million transactions logged every hour
 Locates cars, tracks customer preferences,
measures customer satisfaction ratings
 Uses Enterprise Service Quality Index(ESQI)to
measure satisfaction - compensation for
management is tied to results
 Enterprise uses its Automated Rental
Management System (ARMS) to allow
insurance companies to access rental
information
 Allows agent to book reservations, EFT, and
reporting to support claims processing
 Allows electronic monitoring of repair shop
progress
(CIO Magazine - Nov 2000)
 Gartner’s 12 Key
Application Components
Gartner’s 12 Key Application Components

 Opportunity Management System

(OMS)
 Sales Configuration System (SCS)
 Partner Relationship Management
(PRM)
 Interactive Selling Systems(ISS)
Gartner Nov 2001
Gartner’s 12 Key Application Components

 Incentive Compensation Management

 Content Management
 E-Service
 Call Management
Gartner Nov 2001
Gartner’s 12 Key Application Components

 Field Service and Dispatch(FS/D)

 Personalization
 Data Mart/Analytical
 Campaign Management System

Gartner Nov 2001

Today, for a B2B CRM application suite, three vendors can deliver features
across all 12 key functionality components: Siebel, Oracle and SAP

•Gartner Nov 2001

 Feature ratings are based on the current
shipping versions of the following
vendors' CRM suite offerings:
•Clarify eFrontOffice v.10 by Amdocs
(i.e., an agreement for Amdocs to
purchase Clarify CRM products from
Nortel E-Business is expected to close by
February 2002.)
•E.5, release 5.5 by E.piphany
•Kana iCARE by Kana
•Oracle CRM 11i v.5 by Oracle
•PeopleSoft 8 CRM by PeopleSoft
•SAP CRM 3.0 by SAP
•Siebel 2000 by Siebel Systems

The scores in Figure 1 are based on vendors scoring 1 point for a 1/4 circle rating, 2 points for a
1/2 circle, 3 points for a 3/4 circle and 4 points for a full circle with 48 points equal to 100
percent. In the past year, SAP's scores improved the most, followed by Amdocs/Clarify, Siebel,
PeopleSoft then Oracle (see Figure 2). Today, Gartner estimates that Siebel still provides almost
twice as many features as the next closest competitors; and Siebel remains the only vendor to
meet more than 50 percent of the horizontal functionality requirements for a B2B large enterprise
CRM application suite.

•Gartner Nov 2001

 North American CRO Magic
Quadrant - Gartner March 1, 2002

CRO stands for customer

relationship optimization, and it
is the alleged potential new
direction for customer
relationship management
(CRM). "It's no longer about
managing your customers," the
NRF session description stated.
"It's about strategically investing
in customer segments that will
make the most money."
http://www.computerworld.com/itresources/rcs
tory/0,4167,STO67518_KEY51,00.html

http://www.gartner.com/reprints/ncr/104847.html
Key CRM Providers
 PeopleSoft
 Siebel
 SAP
 Oracle
 Convergys
 Leading provider of enterprise applications  Headquarters:
that tie together customers' back-office Pleasanton, CA
operations
 2000 revenue: $1.7 billion
 Software addresses such tasks as accounting,
human resources, manufacturing, and supply  Customers: 4,600
chain management
 Employees: 8,000
 Services such as consulting, maintenance, and Worldwide
training account for about two-thirds of sales
 Customer relationship management software
has rekindled licensing sales growth and
helped offset a slowdown in the broader
enterprise software market, but it has also
exposed PeopleSoft to more direct
competition with companies such as Oracle
and Siebel Systems. (www.hoovers.com)
 World's leading provider of eBusiness  Founded: 1993
applications software
 2001 revenue: $2.05
 Provides an integrated family of eBusiness billion
applications software, enabling
 2001 net income:
multichannel sales, marketing, and
$255 million
customer service systems to be deployed
over the Web, in call centers, in the field,  Employees: 7,400+
through reseller channels, and across retail
and dealer networks
 Sales and service facilities are located in
more than 32 countries.
 29 Years in the Business of E-Business
 10 Million Users, 44,500 Installations,
1,000 Partners, and 21 Industry
Solutions.
 Founded in 1972 - recognized leader in
providing collaborative e-business
solutions
 Headquartered in Walldorf, Germany
 World's largest inter-enterprise software
company, and the world's third-largest
independent software supplier overall
 Employs over 27,800 people in more
than 50 countries
 2000 Sales (mil.): $5,881
1-Yr. Sales Growth: 14.3%
 2000 Net Inc. (mil.):
$596
1-Yr. Net Inc. Growth:
(1.6%)
 2000 Employees: 24,480
1-Yr. Employee Growth:
12.8%
 World's leading supplier of software
for information management, and the
world's second largest independent
software company
 Headquartered in Redwood Shores,
California
 First software company to develop and
deploy 100 percent Internet-enabled
enterprise software across its entire
product line: database, server,
enterprise business applications, and
application development, and decision
support tools.
 2001 Sales (mil.): $10,860
1-Yr. Sales Growth: 7.2%
 2001 Net Inc. (mil.):
$2,561
1-Yr. Net Inc. Growth:
(59.3%)
 2001 Employees: 42,927
1-Yr. Employee Growth:
3.9%
 (CVG) is a provider of Employees: 46,000
outsourced billing and Market Cap (Mil) $ : 5,155.226
customer management Complete Financials: Dec 2001
solutions, which Updated: 04/05/2002
encompass activities Revenues For the FY ended
12/31/01, increased 6% to
such as targeting, $2.32B.
acquiring, serving and
Net income decreased 27% to
retaining customers on $138.8M.
behalf of its clients.
Mini-Case Studies
 Began in 1902 , is a market-leading supplier of electrical
distribution, industrial control and automation products
 A new safety switch with the company's new logo, a "D" (for
Detroit) inside a square became the industry standard and many
customers began asking for "the square D switches." The
trademark was developed in 1915 and the name Square D
Company was formally adopted in 1917. To this day, Square D is
one of the few companies ever named by its customers.
 On May 24, 1991, Square D Company merged with Schneider
Electric of Paris, France the world's leading manufacturer of
electrical distribution and industrial control and automation
products and systems, and the only manufacturer dedicated to
the distribution and control of electricity.
(www.squared.com)
 Information Technology
 Web server-enabled equipment for the plant floor
 Equipment, including power monitors and PLCs, can automatically alert
plant officials to emerging problems by audible alarm or e-mail
 Built-in server technology allows plant personnel to remotely monitor,
diagnose and correct equipment problems and remotely change set
points
 E-Way
 Online quote and order management system for distributor network
 Check pricing, stock availability, and obtain shipping information
 Digest Plus Selector
 Online product selection with more than 66,000 part numbers
 Search an electronic version of Square D's catalog based on the electrical
characteristics of the application
 Generates a bill of materials to send to the distributor of choice for
pricing and ordering

(http://www.controleng.com/archives/news/2000/july/gm0720a.htm)
 Information Technology
 An employee Intranet
 Powered by an Infoseek Corp. search engine. The site includes
everything from employee telephone directories to spec-writing tools
and news on customer-segment marketing activities. Employees can
access the site remotely
 Customer Information Center
 Uses sophisticated customer relationship management (CRM)
technology to give technicians instant access to a complete customer
history, and knowledge management and case management tools to
access a database of technical solutions to almost any question
 Links customer service representatives and technical experts around the
country in a virtual technical support center through Soft Phone
technology from Lucent.
 Extended nationwide in late 1999, the CIC now answers more than
13,000 calls each week from customers, distributors and employees.

(http://www.controleng.com/archives/news/2000/july/gm0720a.htm)
 Successful CRM
Implementation
 Began in 1993, after Schneider Electric acquisition
 Reorganized the company’s three basic business units around
customer segments - Industrial, Residential, Construction, and
OEM
 Only after internal systems were refocused on the customer did
Square D start using high-tech applications to upgrade its
customer-facing processes
 According to Chris Curtis, VP of US marketing, managers were
taken out of their line jobs for months at a time to understand
issues involved in implementing the software
 In 1996, $75 million was invested in an order-management
system that let sales engineers create proposals for customers
based on what the factory floor could deliver

(Harvard Business Review - Feb 2002)

•World leader in collaborative (CRM) solutions
that increase customer revenue, profitability, and
customer loyalty
•Transformed how organizations support their
customers, partners and associates at more than
500 organizations representing over 100,000
users.
•Relavis eBusinessStreams - CRM automation that
allows an organization to efficiently and effectively
"A tremendous benefit from using
interact with their customers, prospects, partners
OverQuota is that we are able to use
and internal associates existing infrastructure for workflow
•Received the 2001 IBM Beacon award for communications. We have been using
Lotus Notes in our worldwide
"Greatest Business Impact," and the 2001 Lotus
operations since 1998," said Lee
Beacon Award for "Best eBusiness CRM Solution." Chong Leong, telecommunications
Relavis is honored to have won the Beacon Award manager, Asia Pacific, Schneider-
seven times Electric.
 In 2001 Graybar selected the mySAP.com(R) e-
business platform to run its business systems
applications
 One of the largest ERP projects in U.S. industry
 Will deploy the entire suite of mySAP.com solutions
including
 mySAP(TM) Customer Relationship Management
 mySAP(TM) Supply Chain Management
 mySAP(TM) Human Resources
 mySAP(TM)Enterprise Portals
 mySAP(TM) Business Intelligence
 Graybar’s new platform will run on IBM hardware
 DeLoitte Consulting is assisting in implementation
 A Fortune 500 service provider of wholesale
distribution of electrical and comm/data equipment
and integrated supply services
 Serves contractors, industrial plants, telephone
companies, power utilities and commercial users
 One of the largest employee-owned companies in the
US, with approximately 9,500 employees and 275
stocking locations
 In business 131 years
 Annual sales in 2001 - $4.7 billion
Graybar plans to go live with “just a sliver of mySAP CRM,” Graybar VP
Beatty D'Alessandro told CRMDaily. “We were advised by our
implementation partner, SAP and other companies in our industry that
CRM implementations can be a bear.”
"We seriously considered both companies," (Siebel) Beatty D'Alessandro,
vice president IT strategy for Graybar Electric, told CRMDaily.com.
"But in the final analysis we bought the whole mySAP suite."
D'alessandro added: "Our feeling was that a completely integrated solution
was preferable to a bolt-on (CRM) strategy."
Another consideration, he added, was that SAP appeared to be committing
a significant amount of corporate resources to its CRM product.
"So, in whatever areas there were perceived inequities between SAP and
Siebel, it was clear to us that SAP was spending the money to catch up
with Siebel," D'Alessandro said.

(http://www.crmdaily.com/perl/story/16309.html)
Argosy Case Study
Company Overview
CEO: James Perry
Revenue: $595 Million
Stock: NYSE Symbol-AGY
$40.65

Employees:4,900

Source: www.argosycasinos.com
Jeff Poure, MIS Director

CIO

CEO
Current System
 Player Tracking System
 Built primarily as accounting/slot system,
not marketing
 Only provide us with transactional data

 Not customer centric, slot machine is center of

universe
 Not flexible
 Difficult ad-hoc queries
Source: Argosy Marketing Report 2001
CRM Strategy
Use knowledge of customers profiles
to develop offers and programs
which appeal to our most
profitable customers
Source: Argosy Marketing Report 2001
How Argosy’s Goal was Defined
 Committee
 Property Operating Committees
 Executive Committee

 Legal Staff

 Marketing Staff

 MIS Staff (including IT Supplier

Representation)
Source: Interview with Jeff Poure, Argosy Gaming Co. MIS Director
Argosy Partners with NCR Terradata
for CRM Development
 Why NCR?
 “Value Added Supplier”
 Harrahs (1998)
 Application Server Evaluation Model (ADEM)
 Evaluates IT Supplier on the basis of Technology,
Market Momentum, Best Practice, & Database
 NCR won Technology & Database, and was second
in Best Practices – Overall highest score
Source: Interview with Jeff Poure, Argosy Gaming Co. MIS Director
CRM Application Scope
 7,724 Hours (3+ Man years)
 Only NCR Applications and Database
Developers time
 Estimated Cost = $849,640
 Not including Software Licenses or Servers
 Two new full time MIS positions
Source: Interview with Jeff Poure, Argosy Gaming Co. MIS Director
CRM Application Operation
 Data collection during registration –
Data Card
 Player Data
 Name
 Address
 SSN
 License No
 Age
 And More! Source: Interview with Jeff Poure, Argosy Gaming Co. MIS Director
CRM Application Operation
 Data collection during the visit
 Wins / Losses
 Tables vs. Slots
 Preferences / History
 Restaurants
 Smoking vs. Non-Smoking
 Magazines

Source: Interview with Jeff Poure, Argosy Gaming Co. MIS Director
CRM Application Operation
•Prior to CRM Application
•Archaic Marketing campaigns based on recent nature of ones visit

Group A(280+) Group B(200-279) Group C(130-199)

Number of Patrons Mailed To 5,821 4,144 8,205
Number of Patron Coupons 1,973 1,140 1,511

Mail Response Rate 34% 28% 18%

Slot Patrons 1,537 979 1,301

Table Patrons 419 177 202
Total Patrons 1,956 1,156 1,503

Casino Revenue $736,376 $218,550 $205,715

Win Per Patron $373 $192 $136

Source: Argosy Marketing Report 2001

CRM Application Operation
•Allows a more granular view at customers
•Greater Market Segmentation to identify most profitable customers
•Redirect Resources away from marginal customers
Female Unknown Male Female Unknown Total Total
Age Total Male Female Unknown Male Slot Slot Slot Table Table Table Slot Table
21-24 835 405 417 13 179 311 7 226 106 6 497 338
25-29 852 423 409 20 191 277 6 232 112 14 494 358
30-34 934 449 467 18 219 326 12 230 141 6 557 377
35-39 966 448 496 22 261 377 15 187 119 7 653 313
40-44 1,043 446 561 36 290 438 20 156 123 16 748 295
45-49 1,004 403 573 28 254 446 18 149 127 10 718 286
50-54 958 391 540 27 261 395 20 130 145 7 676 283
55-59 708 285 403 20 174 298 18 111 105 6 486 222
60-64 520 216 291 13 137 215 20 79 76 3 362 158
65+ 1,060 399 624 37 209 321 14 190 303 9 558 502
TOTAL 8880 3865 4781 234 2175 3404 150 1690 1357 84 5749 3132

Source: Argosy Marketing Report 2001

 CRM Application Operation
 Better understanding of Customers and Revenue
Sources
 Customer Lifetime Value = CONFIDENTIAL
 Identification of most profitable customers
 40 to 50 + Years Old with disposable income and time –
retirement age
 Average player spends $25-$30 a time and comes
frequently, at least once a week…seeking social setting
 80 percent of Argosy’s Revenue comes from slot
machines
Source: Argosy Marketing Report 2001
CRM Application Operation
 Rewards Programs
 Customized for individual market segments
 Right Offer, Right Customer, Right Time, Right Decision
 Targeted mailings
 Based of points
 Incentive Programs

Source: Argosy Marketing Report 2001

Implementation
 Argosy is implementing CRM
Package in two phases
 Phase I – June 4, 2001 to October 4, 2001
 Phase II – October 5, 2001 – June 8, 2002

Source: Interview with Jeff Poure, Argosy Gaming Co. MIS Director
Property Implementation Timeline
Phase I

October 2001, February 2002, March 2002,

Lawrenceburg, IN Sioux City, IA Alton, IL

December 2001, March 2002,

Riverside, KS Baton Rouge, LA

Source: Interview with Jeff Poure, Argosy Gaming Co. MIS Director
 Implementation
 Phase I Criteria for Success
 Have increased ability to view, analyze and act upon
detail player data down to the transaction level by
individual player, player segments or groupings.
 Develop and agree to a methodology and calculation
for the “Lifetime Value” of a player.
 Have the ability to analyze and evaluate Argosy
customers’ hotel, restaurant, entertainment, and offer
preferences at the customer level.

Source: Interview with Jeff Poure, Argosy Gaming Co. MIS Director
 Implementation
 Phase I Criteria for Success - cont.
 Capture and maintain customers’ needs and
preferences for the purpose of determining
offers/programs, which will appeal to out most
profitable customers.
 Increase analytical capabilities to drive more complex
segmentation and communication strategies for the
purpose of increasing customer trips/rate-of-pay,
frequency of visits, and for finding new/profitable
opportunities.
 Ability to have a unified/consistent customer reward
program across the enterprise.
Source: Interview with Jeff Poure, Argosy Gaming Co. MIS Director
Is Phase I a Success?
“Yes, this phase has been considered a success. It(the
CRM package) has given us the ability to more
efficiently identify our key customers, anticipate their
needs and respond to them quickly.”

“…the application has allowed us to better serve our

customers”

“…give us the ability to improve customer retention”

-Jeff Poure, MIS Director
 Don’ts of CRM
 Data is ignored
 Politics rule
 IS organization and business users do
not work together
 No plan exists
 CRM is implemented for the enterprise,
not the customer
Source: Gartner, “Seven Key Reasons Why CRM Fails – And How to Avoid Them”
 Don’ts of CRM Cont…
 Flawed process is automated
 No attention is paid to skill sets

Source: Gartner, “Seven Key Reasons Why CRM Fails – And How to Avoid Them”
CRM Best Practices
CRM Best Practices consists of the
following:
 Customer Involvement
 Involve the correct sources early to develop
CRM Strategy
 Understanding of Information Technologies
place
 CRM Organizational Culture
 Incremental Implementation
 CRM Best Practice
Customer Involvement
 Focus Groups
 Prior to, during, and after CRM implementation
 Customer Survey
 If Feedback being passed to Top Management is being acted
on, then change will happen
 Concentrate on your customer Lifecycle value
 Which Customers repay investment?
 Which Customers just take up resources and should be
considered competitors?
 Segmentation Analysis

Source: www.CRM-forum.com
 CRM Best Practices
Involve the “Right” People
 Marketing
 Provide means of determining our customers?
 Business Strategists
 What are our organizational goals (i.e. growth)?

Source: www.CRM-forum.com
 CRM Best Practices
Involve the “Right” People
 “Value-Added” IT Suppliers (If required)
 Practical experience in CRM
 CRM experience in same/similar industry
 Can provide knowledge of CRM application(s) to allow
Marketing and Business strategists to evaluate the
opportunities
 To often companies allow technology vendors
to dictate the manner they manage customers
because the vendor has implemented CRM
 CRM is to be customized, not for software but for
strategy
Source: “Avoid the Four Perils of CRM,” Darrell K. Rigby, Frederick F. Reichheld, Phil Schefter; Harvard Business Review, Feb 2002
 CRM Best Practices
Involve the “Right” People
 Involve TOP MANAGEMENT from the start
 For CRM to be successful, Top Management must…
 Clearly communicate a vision for the future of the organization
that indicates the benefits of CRM
 The will power to make CRM work across functional boundaries
 Without Top Management participation or a
Strong Top Management
 A common result is that a strong-willed committee
member will shape the final implementation that will
address their desires and not the organizations as a
whole
Source: “Avoid the Four Perils of CRM,” Darrell K. Rigby, Frederick F. Reichheld, Phil Schefter; Harvard Business Review, Feb 2002
 CRM Best Practices
Implementation
 Should not expect to be able to
implement CRM in one major
undertaking
 Implement CRM in increments
 Each Increment should have…
• Its own business case
• Measures of success
• Evaluation of how customers perceive the results of
this step
Source: www.CRM-forum.com
 CRM Best Practices
 While Top Management successful within ones
organization, employees make CRM successful
with your customers
 Companies serious about CRM tie employee
incentives to customer indicators such as retention
and satisfaction. The more serious a firm is about
CRM, the sooner they will adjust the compensation
plan.
 No less than 100 percent user buy in is acceptable..

Source: www.CRM-forum.com
Conclusion
What must we understand?
 Expect a continuing evolution of CRM
 As it evolves, customers will become more and

more familiar with what it can do for them

 If we an organization adopts CRM they must
understand that the strategy will not be delivered by
IT alone
 The primary CRM objective is to improve the
interface between an organization and its’ clients. In
doing so, for a CRM initiative to be successful
substantial re-organization of the organization
dealing with customers may occur
Source: www.CRM-forum.com
QUESTIONS

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