Chapter Six, Case #1 Implementing Customer Relationship Management Systems Client: Mitsubishi Motors

Group #1 Keith Vines Jeremy Boling Siva Bhattiprolu Georg Wieninger Falk Scherzer Ansel Young

Company Background
Official Name: Mitsubishi Motors North America, Inc. Responsible for manufacturing, finance, distribution and marketing of Mitsubishi brand coupes, convertibles, sedans and sport utility vehicles through a network of nearly 700 dealers in the United States, Canada, Mexico and the Caribbean. Began selling cars in1981 and built their first car in 1988.

Company Background
The fastest growing Japanese corporation in North America Sales have grown 81% percent over the past four years. Sold 345,111 new vehicles in the United States in 2002, their best year ever for the fourth consecutive time.

Company Background
Finnbar O'Neill formerly of Hyundai Motor America now resides as Mitsubishis Motors North America, CEO.

Company Background
Parent company: Mitsubishi Motors Corporation (MMC) is a Japanese company with a strong GermanAmerican alliance partner in DaimlerChrysler and an international management team. MMC is a multinational manufacturer and distributor of automobiles, buses, parts and power-trains. It began as the motor vehicle division of Mitsubishi Heavy Industries, Ltd., with the production of the first Mitsubishi automobile in 1917.

Company Background
In 1970 MMC became an independent entity that is now a publicly traded company based in Tokyo, Japan. MMC began selling its vehicles and power-trains in the United States in the 1970s under the Chrysler brand.

Company Background
In 1981 MMC went out on its own and began creating the organization that has evolved into Mitsubishi Motors North America.

Customer Relationship Management

What is CRM? CRM is a cross functional enterprise system that integrates and automates many customer serving processes in sales, marketing, and customer services that interact with a companys customers.

Customer Relationship Management

CRM also creates an IT framework of Web-enabled software and databases that integrate these processes with the rest of the companys business processes. CRM systems include a family of software modules that provide the tools that enable a business to consistently provide the highest level of service to the customers.

Customer Relationship Management

Why do companies use CRM? Companies use CRM to help them become customerfocused businesses.

CRM Implementation
Why did Mitsubishi Motor decide to implement CRM? Executives felt that company lacked a customer focus. Customer service was very poor.

CRM Implementation
Why did Mitsubishi Motor decide to implement CRM? More than 18 service lines customers had to navigate to get help. Customer service department was costly and inefficient.

CRM Implementation
How did Mitsubishi Motor implement CRM? Formed a project team that included members from sales, marketing, finance and IT departments. The team then set guidelines on what type of CRM software they would implement and how it would be implemented.

CRM Implementation
The team decided that Mitsubishi would implement a best-of-breed software based on company needs, and not a CRM suite that would force the company to fit needs to a software. The team also decided to implement changes to current operations slowly, only adding another when employees were utilizing the last one.

CRM Implementation
The Beginning Mitsubishi started CRM in 1999 by outsourcing their basic level customer service calls to Sitel Corp., and condensing their 18 service lines and call centers to one using call center software by Siebel systems. The next year a new customer-centric database was consolidated in-house, to power the call center.

CRM Implementation
In early 2001, a digital phone switch from Avaya Inc. was installed that allowed flexible skills-based call routing. About half of customer calls were now handled by an interactive voice response unit rather than a person!

CRM Implementation
In March 2001, user interface upgrades gave operators access to 11 screens of customer information all on one screen. Smart Scripts Workflow software from Siebel was also implemented in March 2001. Operators were now provided with decision tree scripts and automated correspondence.

CRM Implementation
In June 2001, workforce management software from Blue Pumpkin Software was implemented to hourly forecast call center coverage. Finally, late in 2001, NiceLog software from Nice Systems was installed to record agents voice and screen activity for quality assurance and training.

CRM Benefits to Mitsubishi

Happier customers satisfaction rate rose 8% Career growth and higher pay for call center employees. Greatly reduced call center turnover (20% to about 7%). 66% reduction in cost per call. Able to handle 38% more calls.

Question #1
What are the key applications components of Mitsubishis CRM system, and what is the business purpose of each of them?

Question #1
The key application components of Mitsubishi Motors, customer relationship management system, are sales, marketing and fulfillment, customer service, customer support, contact and account management, retention, and loyalty programs.

Question #1
Sales Support and manage their sales activities. Optimize cross selling. Up selling to customers.

Question #1
Contact and Account Management Track of relevant data about every past and planned contact With prospect and customer to help with sales, marketing and service professionals

Question #1
Marketing and fulfillment Marketing professionals accomplish direct marketing campaigns by automating such tasks as making sure all calls are returns. Provide for the service of the customer to make sure all callbacks and customer needs are met.

Question #1
Customer Service and Support Provides the tools for real time access to customer information and information about the company. Calls are routed based on customer need.

Question #1
Retention and loyalty programs identify, reward, and market to their most loyal and moneymaking customers

Question #2
What are the benefits to a business and customers of a CRM system like Mitsubishis?

Question #2
Answer: Shared or distributed data. Cost reduction. Better Customer Service. Better Customer Retention.

Question #2
Answer: More new business. More Profit !

Question #3
Do you approve of Mitsubishis approach to acquiring and installing a CRM system?

Question #3
Yes, we agree with Mitsubishis approach to acquiring and installing their CRM. Their approach allowed for a CRM that was a custom fit for their companys needs. Current customer service employees now have more opportunities for education and advancement.

Question #3
The implementation was slow and gradual so that no major changes were made abruptly, and employees were not behind on the new technologies. The benefits that Mitsubishi has gained (lower cost per call, higher customer satisfaction) from their CRM are a compliment to their acquisition and implementation process.

Conclusion
Thank you!

Questions or comments?