Customer Relationship Ma Nagement (CRM) ATTF Luxemburg

Download as ppt, pdf, or txt
Download as ppt, pdf, or txt
You are on page 1of 50

Customer

Relationship
Management
(CRM)
ATTF Luxemburg

R.J.Claessens&Partners
Helping you through the learning curve
Key Sources of the
course:
Harvard Business
Review
CRM by Ed Peelen
Snezana Dragicevic

Geraldine Claessens
R.J.Claessens&Partners
E mail: contact@rogerclaessens.be - Internet:
www.rogerclaessens.be
The key message of the
course
The key message of the
course

We are in it,
The key message of the
course
• In 2003, according to Harvard
Business Review, 82% of
interviewed companies in the USA,
stated they would introduce CRM,
a large jump from the 35% who
employed CRM in 2000.

• What changed?
The key message of the
course
• The approach changed!

Rather than use CRM to transform


entire businesses, companies using
CRM successfully have directed
their investments toward solving
clearly defined problems within
their customer relationship base
The key message of the
course
• The approach changed!

CRM today result in highly focused


projects that are relatively narrow in
their scope and modest in their goals.

There is also an understanding that


highly accurate and timely data are
not required everywhere
The key message of the
course

« Achieving success with CRM is


more difficult than expected and
it is not just a matter of
marketing and IT. »
Introduction
The philosophy of Customer
Relationship Management is
this :

•CRM is about « Keeping the old-


time spirit of customer
connection even when you can not
shake every hand ».
Introduction
The philosophy of CRM is:

•It is a
comprehensive approach for
creating, maintaining and
expanding customer
relationships.
•CRM is a way of thinking about
and dealing with customer
relationships
Introduction
The focus is on:
•What will the customers buy,
when, why and for how much?
•What creates value for them?
•What does create a structural
bond?
•What service can we provide
that does create a premium?
•What about market segmentation?
Introduction
What CRM systems do!

•The primary task of a CRM


system consists in supporting or
performing the activities
involved in customer contact
processes
•The secondary task is related
to providing customer and
management information
Introduction
The concept of CRM is:

• Customer relationship management


(CRM) is a business strategy to
select and manage the most
valuable customer relationships.
• CRM requires a customer-centric
business philosophy and culture to
support effective marketing,
sales, and service processes.
Introduction
The concept of CRM is:

• CRM applications can enable


effective customer relationship
management, provided that an
enterprise has the right
leadership, strategy, and
culture
CRM should the end of
the road

•CRM is a great concept BUT you


might wonder if it is worth the
effort relative to your customer
base and expenses involved?
•It is the ultimate phase AFTER a
solid market research and a
strategic planning process!
Introduction

• Is the issue we analyse


strategic?
• Where could we make more money?
• Do we need perfect data?
• What is the next step?
Introduction
Is it strategic?
• A large and comprehensive CRM
program involves complicated
business and technology issues
and requires investments of time
and money.
• Before spending money, key
marketing questions need to be
addressed
• What are your key marketing
questions?
Introduction
Is it strategic?
• An example: A well trained and
« proactive » sales force is a
strategic necessity; this
requires the right information!
Introduction
Where could we make more money?
• It is possible to use CRM to
manage the entire relationship
cycle: that is usually a bad
idea!
• Large systems usually do not pay
back.
• The focus of CRM should be the
weak points that undermine
performance
Introduction
Where can we make more money?
• Focusing on weak points can not
only be an effective way to
build a successful CRM program
but can also put it back on
track in case you started one.
Introduction
Do we need perfect data?
• Perfect real time information
comes at a very high cost
• The requirements for real time
and good data are quite
different
• Example: Outstandings on a
current account (real time)
versus portfolio management data
(good data)
Introduction
What is the next step?
• Narrowly focused CRM system often
reveal additional opportunities
for business improvements.
• All the small improvements taken
together, can amount to a broad
CRM application that extends
across the bank.
• The key is to make sure the step
by step approach fits into a
defined strategic plan
Introduction
What is the next step?
• In most cases, the opportunities
for development lie in the
activities adjacent to the
customer relationship cycle.
• Ultimately, CRM can be the glue
that binds together all
activities related to a
customer.
Introduction
Customer relationship cycle.
Developme
nt

Targetin Sales
g

Retentio Experien
n ce
Introduction
Business before technology
• We should look at what CRM should
do, not so much on what it can do
• CRM depends more on strategy than
on the amount spent on technology
• Strategy is about the way you
allocate your resources to create
a competitive advantage and
superior performance
Introduction
Implementing CRM before creating a
customer strategy = like building
a house without an architectural
plan
• Effective CRM is based on
segmentation analysis
• Customer strategy is designed to
achieve some specific marketing
goals
• Technology is not a marketing
strategy
Introduction
Introducing CRM before changing
your organisation into a
customer focused organisation =
like painting without sanding
• CRM will succeed only AFTER the
organisation and its processes –
job descriptions, performance
measures, compensation systems,
training programs, and so on-
have been structure to provide
superior customer value
Introduction
Assume that more technology is
better = is like building
without foundation
• To start, see what lower-tech
alternatives offer; there may be
no need for more in the very
near future
• In the future as sequence of
individual software solutions
may lead to each step
reinforcing the next step
Introduction
Define the right customers you want
to establish a relationship with
= a two way street
• Just because managers can
contact customers, does not mean
they should by all means and for
whatever reason.
Introduction
How do consumers define us in terms
of competition?
Introduction
How do consumers define us in terms
of competition?
• Cost
• Time
• Quality
• Opportunity
• Information
• Knowledge
• Choice
• Culture
Introduction

Why might you consider CRM?


Introduction
Why might you consider CRM?
1. Gather customer information quickly
2. Identify the most valuable customers
3. Obtain loyalty by providing customized
products
4. Possibly reduce cost of serving these
customers
5. Making it easier to acquire similar
customers
6. Retention of existing profitable customers
7. Getting the maximum out of existing
customers
8. It can function as an early warning system
Introduction
Why might you consider CRM?
Current Medium Long term
situatio term
n
Financial Turnover Increas Value
perspective ed
turnove
r
Customer Satisfac Individ Commitmen
perspective tion ual t
satisfa
ction
Communicati One way Attuned Multi-
Introduction
The ultimate goal of CRM :
The goal is to encourage the
customer to make its future
purchases from you and reduce
the share of purchases being
made from the competition DUE TO
THE FACT customer knowledge has
been accumulated and therefore
it will be more difficult for
the competition to offer a
similar package
Introduction
CRM is only a part of the sales’
performance!

How would you assess your overall sales’


performance?

Please rate the questions hereafter as


follows
Not effective Extremely
effective
1 2 3 4 5 6 7 8
9 10

(Source HBR 08/06)


Introduction
Salespeople’s capabilities
•Finding customers – identifying
sales opportunities
•Winning customers – converting
opportunities into business
•Keeping customers – cementing
customer relationships - CRM

Not effective
Extremely effective
1 2 3 4 5 6
Introduction
Sales Managers' skills
•Planning for growing business
•Coaching – giving clear
direction, expectations and
feedback
•Motivating – recognition and
rewards

Not effective
Extremely effective
1 2 3 4 5 6
Introduction
Support systems
•Recruiting and hiring
capabilities
•Performance management systems
•Opportunities management systems
•Strategic account management
systems
•CRM systems
•Training
Not and development systems
effective
Extremely effective
1 2 3 4 5 6
Introduction
Sales organisation climate
•Clarity of goals and
expectations
•Staff dedication to achieve
challenging goals
•Staff initiative
•Acknowledgment of good work

Not effective
Extremely effective
1 2 3 4 5 6
Introduction

• The total score for your sales


organisation is:……..
Introduction

Average for high-performing


organisations° 123
Average for low-performing
organisations° 109

We shall put the spot on CRM, but it


is only a part of a bigger picture
(° US based companies)
The structure of the
course
CRM
Introduction

ORGANISATION MARKETING ANALYSIS SYSTEMS

1_Elements of CRM1_Customer knowledge


1_Relationship Data 1_CRM systems

2_Customer-supplier 2_Customisation 2_Data mining 2_Implementation

3_Strategy 3_Communication 3_Data selection 3_The future

4_Relationship oriented
4_Relationship policy 4_Data reporting 4_Conclusion
1_Elements of CRM
1_Elements of CRM
The four cornerstones of the
«elements of
CRM » are:
1.Customer knowledge
2.Relationship strategy
3.Communication
4.The individual value
proposition
1_Elements of CRM
1. Customer knowledge
• Segmentation • Customer
• Awareness, loyalty
Attitude • Brand Image
• Usage • Brand equity
• Concept • Pricing
• Customer • Advertising
satisfaction
1_Elements of CRM
2. Relationship strategy

•A long lasting customer –


supplier relationship
•The key is not only the
stimulation of a transaction
•Success is not measured by market
share
1_Elements of CRM
3. Communication

•The issue is to carry on a


dialogue with individual
customers
•Shifts should be possible
between distribution channels
1_Elements of CRM
4. The individual value
proposition
•The product, service and price
are adapted to the individual
circumstances
•The organisation has to build up
the capacity to supply
customisation in one form or
another
1_Elements of CRM
Systems
•If a relationship must be
maintained with a large group of
customers, a portion of which
represents a low value to the
supplier, the use of IT becomes
inevitable.
•Integration is therefore a must
between front-mid-back office

You might also like