Developing & deploying CRM strategy

1

ObjectivesTo focus on various on various issues

involved in planning of CRM implementation

To understand service quality and highlight ways to measure it

To ensure the alignment of CRM capabilities with changing customer expectations

2

ScopePlanning CRM implementation

Framework for building CRM StrategyPreparing for CRM rolloutCreating an organization / governance

structure for CRM rolloutRisks / Roadblocks in CRM implementation

Understanding and measuring service quality

Voice of customer : Ensuring alignment of CRM capabilities to changing customer expectations

3

Stakeholders vs CustomersStakes of shareholders vs customers are

conflictingStakeholders desire maximizing return on

capital Customers want best quality of products at

lowest pricesIt therefore becomes a tough act for the

management to achieve an optimum balance

4

CRM Hierarchy (Maslow revisited)

Increased customer loyalty=Increased profits

Increase value to customers thru

personalized interactionsData enabled process tools

Integrated customer knowledgeCustomer transaction data

5

Framework for building CRM StrategyValue discipline modelAs products become commoditized : margins

shrinkCustomers are unwilling to pay for features:

value adds are not neededCustomer intimacy becomes more important:

difficult for competitors to replicateTotal customer experience becomes the key: 3

major vectors influence the total customer experienceExternal market placeCompany’s brand imageWays in which the company touches the customer .

6

Value discipline model

Best total cost Best total solution

Which of the above is a priority : will determine the strategic direction

ProductLeadership

Operational excellence

Customer intimacy

7

CRM StrategyCRM strategy has to be evolved

To enable quick, accurate knowledge about the customer

Use it to increase value of current customersAcquiring new customers more effectively

8

Aligning Marketing strategy with CRM strategyMarketing Strategy CRM Strategy

How do we take advantage of market opportunities & mitigate competitive threats ?

How do we get closer to the customers to deliver value to them and create value for us?

Vision : Market, Position1. Market definition & audit2. Complete the SWOT analysis

Vision: Customer Experience1. Customer definition, behavior,

requirement audit2. Capability analysis

Target : market segments1. Objective for each market2. Penetration, development,

maintenance and productivity

Target :Customer segments by value1.Objective for each customer2. Acquisition, Development, Retention & Efficiency

Measures: market shares, brand equity, & market penetration

Measures ; Satisfaction, Loyalty, Cost to serve and Employee Satisfaction

1. Based on product life cycle 1. Based on customer life cycle

9

CRM program life cycle

Develop a Strategy : To set direction of the ultimate goalTo deliver the truly integrated customer

experience thru various CRM initiatives in different parts of the organization

Widespread participation, input and visibility

Ensure complete buy-in by stakeholders and prevent conflicts

10

Eight building blocks of CRM 1. CRM vision: Leadership, Market Position, Value

Proposition

2. CRM Strategy : Objectives, Segments, Effective Interactions

3. Valued customer experience: 1. Understand requirements, 2. Monitor expectations, 3. Satisfaction vs competition, 4. Collaboration & feedback, 5. Customer communication

11

Eight building blocks of CRM 4. Organizational Collaboration

1. Culture & structure2. Customer understanding3. People skills and competencies4. Incentives and compensations5. Employee communication6. Partners & suppliers

5. CRM processes: Customer lifecycle, knowledge management

6. CRM information: Data analysis, one view across channels

7. CRM technology: applications, architectures, infrastructure

8. CRM metrics: value, retention, satisfaction, loyalty, cost to serve.12

1. Vision

13

To define for the organization: The value proposition the company is offering With which customers it wants to what kind of relationship Importance and benefits of CRM to the enterprise strategy Nature of customer experience to be delivered

Vision starts with the Customer Value Proposition (CVP)

CVP has to address 3 elements Cost: Dependent on the efficiency of the supplier Product or service excellence: Dependent on the

innovation & R&D capabilities of the supplier Customer intimacy : Efficiency of customer facing

processes / people

2. CRM Strategy

14

How to interweave CRM with marketing strategy and provide a direction to the other operational objectives such as IT, HR, Production

CRM Strategy is created by : Auditing the current position regarding customer’s value

and satisfaction Segmenting customers Setting customer objectives with reference to acquisition ,

retention and development Defining metrics for monitoring the execution of the

strategy ( eg. Satisfaction, loyalty, and cost to serve etc.) Authorizing the strategy for customization by product

segment, pricing, communication, contact channel, customer service and segment management

3. Valued Customer Experience

15

Assess value creation from Customer’s view point

This requires that the customer’s viewpoint is heard at the highest level of the enterprise

The above has to be achieved based on Customer Research and Collaboration

4. Organizational Collaboration

16

CRM involvesChanging internal processesOrganizational StructuresCompensation ( including incentives )Employees skills and behaviors

Suppliers and business partners are co-producers.They must be brought into the shared vision

5. CRM Processes

17

Processes are required to :Manage the customer life cycleCreate customer insight and leverage

the sameLeverage intellectual assets of the

organization by a knowledge management framework

6. CRM Information

18

Customer information has to be:AcquiredStoredAnalyzedDistributed and applied

7. CRM Technology

19

CRM technology is deployed to enable:Analytical insights andFacilitate operational interactionsIntegration is required with

Non CRM applicationsFinancial systemSupply chain management systems(Possibly) Business partner systems

8. CRM Metrics

20

CRM objectives have to be MeasurableShould be used to drive change

management andShould be linked to employee incentives on

CRM objectives achievements

Preparing for CRM Roll out

21

CRM Program Lifecycle

1.Develop Strategy(Launch Project)

2.B

uild

infra

stru

ctu

re

(Inte

gra

te)

3. Know your customer(Target customers)

4.

Deli

ver

cu

sto

mer

off

er

(Evalu

ate

resu

lts)

The Strategic Planning Process

22

Step Purpose Participants

Collect Data • Ensure CRM program is aligned with Company Strategy

• Find out what the customers think about your current performance, what they want more, how do you compare with competitors

Company executives in Sales, Marketing, Support Management , Customers

Assess Findings

• Identify business strategies, risks, opportunities that can influence your CRM program

• Identify gaps between goals and reality

• Define high level customer segments

• Information Technology• Project Team• Impacted business

function representatives

Create Proposal

• Define common vision about what CRM is for your company

• Ensure key constituents support the strategy

• Project team• Key executives,

business managers

Transition :Launch Project

• Select best project to tackle first • Project team• Key executives,

business managers