CEO - Reinventing Customer Relationship Roundtable · 14 IBM CEO Roundtable CMO, Marketing Ops,...
Transcript of CEO - Reinventing Customer Relationship Roundtable · 14 IBM CEO Roundtable CMO, Marketing Ops,...
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CEO - Reinventing Customer Relationship Roundtable
Pravin Patel, Associate PartnerIBM GBS BAO ASEAN
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Today’s Agenda
Capitalizing on Complexity – IBM CEO studyCapitalizing on Complexity Capitalizing on Complexity –– IBM CEO studyIBM CEO study
How Analytics and Analysis Can HelpHow Analytics and Analysis Can HelpHow Analytics and Analysis Can Help
IBM Business Analytic SolutionIBM IBM Business Analytic SolutionBusiness Analytic Solution
Why IBM?Why IBM?Why IBM?
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IBM 2010 CEO study - vast majority experience the New E conomic Environment as distinctly different
More volatileDeeper/faster cycles, more risk
More uncertainLess predictable
More complexMulti-faceted, interconnected
Structurally differentSustained change
Not at all/to a limited extent To a large/very large extentTo some extent
“Last year’s experience was a wake-up call, like looking into the dark with no light at the end of the tunnel.”
President and CEO, Industrial Products, The Netherlands
18%13% 69%
21%14% 65%
22%18% 60%
21%26% 53%
The New Economic Environment
2010Capitalizing on Complexity
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Uncertainty – The New NormalVelocity and Volatility
“Over 60% of Executives believe that when the recovery takes hold, the heightened uncertainty in the business will remain.”
Duke University Business Outlook, September 2009
Sense that volatility, uncertainty and risk are going to be part of the new economic
landscape.
The world has been transformed from a series of loosely connected economies with reasonably predictable flows between them to a complex web of relationships where the global impact of local events is felt almost instantaneously.
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Standout organisations capitalize on complexity in three ways
• “Getting closer to customers” is the single most important theme.
• Better understand customer needs through collaboration and info sharing.
• Exploit the information explosion to deliver unprecedented customer service.
2010Capitalizing on Complexity
Key Findings
Rapid escalation of complexity creates need to:
� Embody creative leadership�Reinvent customer
relationships� Build operating dexterity
Business Imperative
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CEOs want to better understand customer needs and actively work with them
12%82% 6%Better understanding of needs
20%70% 10%New or different services
20%69% 11%More collaboration, information sharing
22%61% 17%New or different products
25%51% 24%New or different channels
24%45% 31%Stronger focus on price-value equation
30%46% 24%Increased focus on social responsibility
Not at all/to a limited extentTo a large/very large extent To some extent
CEOs’ view of “How customer expectations will change over the next 5 years”
All participants:
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Customer Information lacking to support consistent & shared view
Source: Business Analytics Product Marketing global survey June 2010 with Marketing Line of Business
0 10 20 30 40 50
No Common Shared Visibility isAvailable
Yes through spreadsheets
Yes through manager/analystdashboards
Yes through reports
Survey Response %
42% of respondents did not share common view of the c ustomer.
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So how do you reinvent customer relationships?
� Honor your customers above all else:Unprecedented level of focus, heightened customer exposure for every employee, measure what customers value.
� Use two-way collaboration to sync with customers:Make customers part of your team, solicit customer wants, co-innovate and interact with customers in new ways, deliver true process transparency.
� Profit from the information explosion:Tap the value of limitless data, use analytics to translate data into insight into action that creates business results, share information freely to build trust and improve customer relationships.
Recommendations
� How will you engage customers in new ways that increase interest and loyalty to generate new demand and revenue sources?
� How can you involve customers more effectively and directly in product and service development?
� Can you hear the voice of your customers through the vast amount of data? Can you understand and act upon the information?
Tough questions to consider
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Today’s Agenda
Capitalizing on Complexity – IBM CEO studyCapitalizing on Complexity Capitalizing on Complexity –– IBM CEO studyIBM CEO study
How Analytics and Analysis Can HelpHow Analytics and Analysis Can HelpHow Analytics and Analysis Can Help
IBM Business Analytic SolutionIBM IBM Business AnalyticBusiness Analytic SolutionSolution
Why IBM?Why IBM?Why IBM?
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How Analytics and Analysis Can Help
Analytics can be used to signify many different things including:
– Particular BI capability or technique, especially a more advanced technique such as data mining or predictive.
– Business strategy of using analysis to address a particular business problem.
– Analytics applications – a collection of packaged BI capabilitiesfor a particular domain or business process.
– The entire domain, spanning hardware, software, personnel and processes.
Gareth Herschel, Gartner 2010
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• Who are our customers?
• What’s their buying behavior?
• What are their product/channel/pricing affinities?
• When do customers respond to promotions?
• Which customer group offers the highest total and a verage revenue and margin contribution?
• Which customers are most profitable?
Historical Trending and Analysis – Multidimensional Data Model –Adhoc/Standard Query, Reporting and Analysis .
Business Driver:Increase Revenue
Customer Analysis: Current State
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Customer Analysis: Current State
• What are our best performing channels?• What is our customer churn?
– Product/service– Geography– Channel– Demographics/psychographics
• What are our most effective promotions/programs?• When and in what channel do customers respond to pr omotions? • What are our service costs per channel? Per custome r group?
Historical Trending and Analysis – Multidimensional Data Model –Adhoc/standard Query, Reporting and Analysis.
Increase RevenueBusiness Driver:Decrease Costs
� Channel Analysis� Customer Churn Analysis� Marketing Program Analysis� Response Analysis� Cost to Serve Analysis
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Sales Operations, Forecasting, Sales VP
• Need solutions that increase sales productivity and effectiveness.• Need accurate forecasts and visibility into all fac tors that affect
pipeline conversion rates.• Need ability to track, monitor sales trends in real time/historical
and understand drivers behind sales behavior.
Analysis, Reporting, Forecasting Challenges� Can’t retrieve information from Siebel/SFDC for easy opportunity and conversion
analysis.
� Can’t do necessary analysis from multiple sales forecasting, CRM, contact, ERP systems.
� Lack insight into elongating sales pipeline and conversion failures.� Sales processes complex – not well defined, undocumented.
What Sales Needs for Smarter Decisions� Accurate , improved information and insights across the sales pipeline.� Adaptable to my changing business requirements.� Fast time to market.� Functional fit for specific roles-based sales concerns.
Sales Director
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CMO, Marketing Ops, Online Marketing, Marketing Programs
• Marketing needs to measure, monitor, analyze and co mmunicate campaign performance weekly/monthly/quarterly basis.
• Needs insight to understand response and conversion rate performance multi-dimensionally, i.e. across channels, geos, program vehicles, customer t ypes and lead gen costs.
• Need ability to engage in target market and custome r segmentation and analyze customer buying behavior, pricing, discount trending to adju st and fine tune market offering & messaging.
Analysis, Reporting, Monitoring, Predictive Challen ges� Cannot measure , monitor, analyze and communicate campaign performance/results weekly, monthly, quarterly
basis to key parties.
� Ability to analyze key contributing (limiting) factors into marketing conversion rates throughout the demand gen pipeline – what’s working & why?
� Cannot measure marketing program vehicle effectiveness.
� Lack a customer segmentation model which inhibits our ability to pursue target marketing and refine our offers/products.
� Means to identify/replicate proven upsell/cross sell strategies for product portfolio and communicate those strategies.
What Marketing Wants� Accurate , improved information and insights daily, in real time and in context to marketing business needs.� Ability to dynamically respond to changes in market demand/needs to support sales partners.� Fast time to market.� Functional fit for specific marketing roles
Marketing Director
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Customer Service, Customer Care, Customer Loyalty and Call/Contact Center
• Track, analyze and take corrective action to addres s immediate concerns within Customer Service and the call center operations.
� Need to provide service to customers before, during and after a purchase. The function is designed to enhance the customer experience and maintain certai n levels of customer satisfaction in keeping with t he organisation’s customer value proposition.
� Understand customer satisfaction by having 360 degr ee visibility to the customer experience – seeing the issues via multiple, linked channels and being able to diagnose and address problems immediately when they occur.
� Monitor SLA KPIs in real time to provide optimal Cu stomer Service and Secure renewal revenue.
Analysis, Reporting, Monitoring, Predictive Challen ges� Lack of visibility in real time of key call/contact center operational metrics.� Lack of insight into customer churn, attrition, customer satisfaction.� Inability to see in real time 360 degree view of customer interactions.� Inability to maximize effectively agent utilization across contact centers in real time.� Unable to monitor SLAs within short timeframes (less than an hour).
What Customer Service Wants� Accurate , improved information and insights daily, in real time and in context to my call center/customer service
operational needs.� Ability to dynamically respond and align to changes in customer service/contact center to support optimally
functioning environment and maintain critical customer sat metrics/ratings.� Functional fit for specific customer service/contact center roles.
Customer Service Director
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How Answers are Often Found
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Why?
How are we doing?
What should we be doing?
INT
ER
NA
L DA
TA
EX
TE
RN
AL D
AT
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Why?
How are we doing?
What should we be doing?
ERP
HR
RETAIL
AC NEILSON
TBS/DLB
CRM
CEO FINANCE
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Today’s Agenda
Capitalizing on Complexity – IBM CEO studyCapitalizing on Complexity Capitalizing on Complexity –– IBM CEO studyIBM CEO study
How Analytics and Analysis Can HelpHow Analytics and Analysis Can HelpHow Analytics and Analysis Can Help
IBM Business Analytic SolutionIBM IBM Business Analytic SolutionBusiness Analytic Solution
Why IBM?Why IBM?Why IBM?
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Why are we on/off track?
How are we doing?
What should we do next?
IBM Cognos BI provides portfolio of capabilities to drive smarter business outcomes and critical customer insights
Executive Line of Business Manager
Business User
Manager Business Analyst
Financial Analyst
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Scorecards & Dashboards Reports Real Time Monitoring
Immediate insights into business health
??Decide & Act
Decide & Act
What is happening?
IBM Cognos Business Intelligence What is Happening?
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Decide & Act
Decide & Act
Why?Decide & Act
Decide & Act
Scorecards & Dashboards Content Analytics
Drill deeper and analyze why things are on- or off-track
Ad Hoc Query Trend & Statistical Analysis
IBM Cognos BI - Why is it happening? Ad Hoc Query & Analysis
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Determining What you “Should be Doing”
• Replaces spreadsheet based, manual budgeting and planning.
• Connects operations and finance.
• Engages the whole organisation to make better informed decisions.
• Replaces rigid, annual budgeting with continuous planning for higher responsiveness.
• Supports best practices (e.g. driver based planning, rolling forecasts ).
• Offers packaged best practice Blueprints for processes inside and outside of Finance across industries.
• Rich client for improved user experience and personalization, and simplified deployment.
Planning, Budgeting and Forecasting
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Packaged InsightAd-hoc Query
Analysis
Dashboards
Scorecards
Packaged AdaptableWarehouse
PREBUILT CONNECTORS
CONFIGURABLESOURCES
CONFIGURABLESOURCES
BUSINESS ANALYST
BUSINESS ANALYST
EXECUTIVES & MGMT SPECIALIST EXECUTIVES
& MGMT SPECIALIST
And More…Legacy
systemsAnd More…
Recruiting & Staffing
SAPSAPSAPSAP
Introducing - IBM Cognos Analytic Applications
IBM CEO Roundtable
Ad-hoc Query
Analysis
Dashboards
Scorecards
GeneratedInteractive Operational and Analytic Reports
Generated Warehouse
Generated ETL Code
BUSINESS ANALYST
BUSINESS ANALYST
EXECUTIVES & MGMT SPECIALIST EXECUTIVES
& MGMT SPECIALIST
PREBUILT CONNECTORS
CONFIGURABLESOURCES
CONFIGURABLESOURCES
And More…CompensationAnd More…Recruiting &
StaffingSAPSAPSAPSAP
Generated Semantic Layer
Introducing - IBM Cognos Analytic Applications
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Over 43,000 Objects including
� 250+ Dimensions
� 850+ Metrics
� 230+ Defined Calculations
Adaptive Framework
� Unlimited Extensions
� Delivered ERP extraction
� Unlimited Data Sources
Generated Data Repository
1000+ Report Permutations
Financial Analytics� Ledger � Payables� Receivables� Cash Management� Customer/Vendor Risk
Workforce Analytics� Talent Development� Talent Management� Talent Retention� Workforce Strength� Compensation
Procurement Analytics� Spend Analysis� Vendor Analysis� Contract Management� Operational Efficiency
Sales Analytics� Pipeline Performance� Sales force Performance� Sales Segmentation� Customer Relations� Pricing and Program Analytics
What’s Included?
Open, Enterprise PlatformCommon Decision-Making Model
Seamless Business Intelligence
Source System
Packaged Reporting & AnalysisAnalytics Drill Through
IBM Cognos Analytic Applications
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Sales Capabilities
IBM Cognos Customer Performance Sales Analytics
CUSTOMERSCUSTOMERS
PRODUCTSPRODUCTS
CHANNELSCHANNELS
PLAN / FORECASTPLAN / FORECAST
organisationorganisation
� Pricing Analysis� Marketing Program
Analysis
� Sales organisation Performance
� Sales Representative Performance
� Pipeline Health� Pipeline Conversion
� Channel Analysis� Product Analysis� Customer Analysis
� Customer Service� Fulfillment
Efficiency
Analysis DimensionsSALES PIPELINE PERFORMANCE
SALES FORCE PERFORMANCE
SALESSEGMENTATION
CUSTOMERRELATIONS
PRICING & PROGRAM PERFORMANCE
Business Drivers
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Sales Segmentation
ANALYSIS PACKAGES INSIGHT TO BUSINESS QUESTIONS METRICS
• Which channel offers the highest total and average revenue and margin contribution?
• Are channel sales meeting or exceeding expectations ?• Are we penetrating the expected customer groups thr ough
these channels?• Are product sales plans within the channels being a chieved?
� Order Amount
� Order Cost
� Order Margin
� Customer Count
� Sales Forecast
� Variance to Forecast
� New Customer Orders
� New Product Orders
� Average Sales Profit per Product
� Average Sales Volume per Customer
…
Channel Analysis
• Which item categories offer the highest total and a verage revenue and margin contribution?
• Are item sales meeting or exceeding expectations?• What is the ranking of customer segments for these items?• What is the average revenue per channel for these i tems?
Item Analysis
• Which customer group offers the highest total and a verage revenue and margin contribution?
• Which products are customer groups buying?• What is the business profile for the customer?
Customer Analysis
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Customer Relations
ANALYSIS PACKAGES INSIGHT TO BUSINESS QUESTIONS METRICS
• How well are our sales divisions doing at maintaini ng customer satisfaction over time?
• Are customers remaining active?
• Are we generating new customers?
• What has been the return pattern of our customer ba se?
• Which products are being returned? Which organisati onal unit is experiencing returns?
• What is the volume of shipments?
• Are we shipping on time to key customers?
� Average Order Cost per Customer
� Average Order Amount per customer
� Order Amount
� Order Cost
� Customer Count
� Lost Customer Count
� Returns Amount
� Late Shipment Count
� Return Rate
� Average Shipment Days Late
� Order to Ship Duration
…
Customer Service
• How efficiently are we delivering to the customer?
• What is the duration between fulfillment stages: fr om order to ship, and from ship to receipt?
Fulfillment Efficiency
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Smarter Customer Insights
• Faster time-to-value with
packaged analytics.
• Information leveraged as a
strategic asset to affect
business change.
• Aligned business outcomes
to manage risk and controls.
• Smarter Decisions = Smarter
Business.
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What is likely to happen?
There are times when only predictive analytics can deliver the kinds of insights needed to answer key customer-related questions:
� How do I reduce churn and retain my most loyal customers to maximize profitability?
� Which factors are most likely to drive customers to choose my product vs. the competitor’s?
� Which offers will my customers most likely respond to?
� Which channels are most effective for my different customer segments?
Predictive Analytics - IBM SPSS Customer Intimacy
The Final Step in the Customer Insight Continuum
Retail /Telco Flu/OJ Beer/Nappy’s
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Information led business optimization applies exten sive capabilities across the organisation to turn raw data and information into decision-driving wisdom.
Degree of Implementation Complexity
Deg
ree
of im
pact
on
orga
nisa
tion
perf
orm
ance
Standard Reporting
Ad hoc reporting
Query/drill down
Alerts
Simulation
Forecasting
Predictive modeling
Optimization
What exactly is the problem?
What will happen next if ?
What if these trends continue?
What could happen…. ?
What actions are needed?
How many, how often, where?
What happened?
Stochastic Optimization
Adopted from: Competing on Analytics, Davenport and Harris, 2007
Descriptive
Prescriptive
Predictive
How can we achieve the best outcome?
How can we achieve the best outcome including the effects of variability?
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Today’s Agenda
Capitalizing on Complexity – IBM CEO studyCapitalizing on Complexity Capitalizing on Complexity –– IBM CEO studyIBM CEO study
How Analytics and Analysis Can HelpHow Analytics and Analysis Can HelpHow Analytics and Analysis Can Help
IBM Business Analytic SolutionIBM IBM Business Analytic SolutionBusiness Analytic Solution
Why IBM?Why IBM?Why IBM?
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• Over $15B in software investments since 2005
IBM Business Analytics & Optimization
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• Over $15B in software investments since 2005.
• New division for Business Analytics
• Over 4,000 dedicated Business Analytics and Optimization (BAO) consultants
• Creation of 6 BAO Analytic Solution Centers.
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ASEAN Clients in 2009
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ASEAN Clients 1H 2010
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Brand Mgmt
Segmentation and clustering
Customer profiling
Media mix optimization;
Resource planning
Product feature assessment
Demand, Sales Planning and Forecasting
Merchandising and offering localization
Customer moments-of-truth, points-of-pain and satisfaction mgmt
Customer contacts and request routing
WWW/Branch/ Retail design
Tiered Treatment
• Customer Loyalty/Advocacy• Customer Acquisition• Cross/Up-Sell• Customer Retention/ Win-back
What organisations want Customer Insights
Marketing Analytics Sales Analytics Customer Exp /
Service AnalyticsCustomer Lifetime Value
Productivity
• Eliminate ineffective spend and non-productive customer contacts.
• Optimize productive customer contacts.
• Act at the right time for the best outcome.
organisations want their customers to buy, buy more and stay longer (and invite others to do the same)
Channel effectiveness and resource assignment / deployment
Next best action / offer
Campaign management
Sales targeting and lead management
Soc’l Ntwrk Analysis
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IOD Software & Solutions; Information Infrastructure
BI/Performance Management; Advanced Analytic & Optimization Services
Information Agenda;BAO Strategy Services
Apply business
analytics to optimize
decisions
Establish a flexible
information platform
Plan an information
agenda
Industry out-performers are 8 times more likely to pursue information-led transformation at an enterprise level than industry under-performers
How Do you Get Started in an Information needs
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Conclusion
• Customer Insight is a top of mind CEO imperative and is key agenda item for global “outperforming” organisations.
• Multiple adoption paths to develop customer insight within your organisation - BICC, sales and marketing line of business functions -choose one and get started!
• IBM’s Business Analytics portfolio can address, support and accelerate your understanding of your most strategic asset – your customer.
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