crm seminar 1 2010[1]
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SEMINAR 1 2010
MARINO ASSOCIATES, LLC 2010
Best In Class CRM Companies state that profitable growth, rather than growth through aggressive customer, product or business unit acquisition, is the reason to implement a Customer Relationship Management program.
MARINO ASSOCIATES, LLC 2010
Companies need to align their
processes, employees, and systems towards a customer-centric philosophy.
MARINO ASSOCIATES, LLC 2010
Is about managing relationships not as an alternative to having a competitive product, high quality and reasonable price-but as a differentiator.
If your competitors are doing the same thing you are product and price won’t give you a long-term sustainable competitive advantage.
MARINO ASSOCIATES, LLC 2010
A marketing philosophy based on putting the customer first. The collection and analysis of information designed for sales and marketing decisions to support and understand existing and potential customer needs. It includes:
Sales and Marketing
Product Line Managers
Demand Managers
Operations
Service
Finance
Systems
MARINO ASSOCIATES, LLC 2010
Implemented CRM and are achieving benefits
Started the process of implementing CRM Contemplated the implementation of
CRM and are not sure how to start No plan or strategy for CRM Drive all their processes, planning and
strategy based on customer desire
MARINO ASSOCIATES, LLC 2010
Open access of all customer information to all employees that are customer facing
Link CRM to corporate goals Select software that enables the users to
apply customer information with speed and accuracy
Build cross functional buy-in and collaboration
MARINO ASSOCIATES, LLC 2010
Multiple data bases throughout the company too difficult to access
Single data base/accessible and current Customer information is not kept in a data
base no formal system
MARINO ASSOCIATES, LLC 2010
CRM is a management discipline
CRM blends customer intimacy with economies of scale
CRM is a data base of needs and preferences and this information is available to anyone in the company
CRM is absolute customer focus
CRM is when the strategic thrust of a business is customer focused
MARINO ASSOCIATES, LLC 2010
Annual Revenues
Customer Acquisitions
Customer retention
MARINO ASSOCIATES, LLC 2010
General Motors audit on what the Company would have to change to be able to make cars to order. The
answer?
“We’ll have to change everything.”
MARINO ASSOCIATES, LLC 2010
Who are your customers?
What do they want and expect from your company?
How can they be better served?
MARINO ASSOCIATES, LLC 2010
MARINO ASSOCIATES, LLC 2010
Customers Needs
Company Solutions
GAP Benefit
24/7 Service World Wide
24/7 U.S. Only
Large Large
Call Centers Part Time Employees
Large Large
Consignment Inventory
24 Hour Service
Medium Medium
Formal Service Documentation
Informal Large Medium
Delivery to Customer Want date
Ship to promised date
Large Large
100% Quality Poor Quality Large Large
GAP ANALYSIS TEMPLATE
Focus Training Education Technology Energy Product Development Customer Communications E-Mail Fax Internet
MARINO ASSOCIATES, LLC 2010
Companies who begin to embrace CRM often have no one single strategy.
They are pushed into CRM by a compelling business problem or a series of customer relationship issues.
They may be losing market share even though cost, quality and solutions are equal
MARINO ASSOCIATES, LLC 2010
Staying ahead of competitors solely through product leadership is becoming more and more difficult.
Be distinctive:◦ In the core product/service offering◦ In the total cost of ownership◦ In the total relationship and customer experience
MARINO ASSOCIATES, LLC 2010
Top management support is a must when implementing CRM.
Review and value map your business approach before re-engineering.
Build a strong functional CRM team. Outline the information required to affect the
appropriate CRM change. Integrate CRM tools into your system
seamlessly. Review your technology requirements and only
invest in high tech solutions if required.
MARINO ASSOCIATES, LLC 2010
CRM business strategies must clearly define where the business benefits will come from and how these benefits are distributed and, very importantly, in what priority?
MARINO ASSOCIATES, LLC 2010
Centralize management of customer information at the corporate level
Utilize both operational and strategic analysis to respond to high value customers
Take a long term approach to growth by defining customer value according to lifetime value models
MARINO ASSOCIATES, LLC 2010
Do you individualize customers
Do you individualize services by customer
Are all customers treated as equal
MARINO ASSOCIATES, LLC 2010
CRM solutions should focus attention on the right customers. The most valuable customer might not be the biggest spender or the most frequent buyer. ◦Big Spender (high maintenance)◦ Frequent Buyer (small order quantities, high
fulfillment cost)
MARINO ASSOCIATES, LLC 2010
The perfect customer value quotient is difficult to obtain, but by tracking:
Discount Rates Product Profitability Customer Acquisition cost Cost of Service Number of Support Calls Fulfillment Cost
It can lead you into knowing and individualizing service based on customer value to your company
MARINO ASSOCIATES, LLC 2010
- Current Company Process and Business Rules
- Has Management communicated throughout the organization a clear CRM STRATEGY ?
- Is there a ranking of customers that is used when managing the relationship?
- Has Marketing articulated to Management the competitive environment that it is competing in?
- Review existing customer databases
- Conduct internal interviews with management
- Conduct voice of the customer interviews with a cross section of your customer base
Checklist
MARINO ASSOCIATES, LLC 2010
- Develop a Detailed Project Plan that supports transformation to CRM
- Develop a formal CRM Project Team
- Define Project Scope and Timelines
- Prioritize all Key Elements of the Plan concentrating on competency requirements, education, training and capacity
- Establish quick wins (homeruns). Things that can be complete in as little as 3 months’ time and will provide:
Financial Impact Morale Impact Validate Process Early Success
MARINO ASSOCIATES, LLC 2010
Customer Retention ◦Rank customer based on ABC◦Concentrate on retention campaign
Customer Service ◦Provide exceptional service in all areas
New Customer Acquisition ◦Manage the cost of obtaining a new customer
MARINO ASSOCIATES, LLC 2010
◦ Return on Sales Companies that give good service achieve 12%
Return on Sales compared to 1% for companies with poor Customer Service
◦ Market Share Higher market share
Perceived as a Quality Company
Demand premium pricing
◦ Internal Customer Satisfaction
◦ Positive Word of Mouth
MARINO ASSOCIATES, LLC 2010
- Reduce the cost of customer acquisition- Improve customer retention- Improve the up-selling of additional
products and services- Treat your customer with consistency and
quality- Improve information flow for Sales and
Operations planning- Dynamic information flow for Operations
planning
MARINO ASSOCIATES, LLC 2010
Increases in annual revenues Improved customer retention Improved acquisition rates Improved accuracy in forecasting
customer requirements Improved stability in the S&OP process Improved utilization of inventory and
capacity Improved supplier management
MARINO ASSOCIATES, LLC 2010
Modular Approach
VS.
Big Bang
MARINO ASSOCIATES, LLC 2010
Marketing Sales Logistics / Fulfillment Call Centers
◦ Benefits
Gradual shift of corporate culture from Product-Centric to Customer-Centric
◦ Drawback
Shift of long-term strategy Cost Ongoing Customer data silos continue to exist within company
MARINO ASSOCIATES, LLC 2010
Benefits◦ All functional areas cut over to the same system
No legacy systems interface Elimination of redundant systems All areas sharing the same information Single source for training and support
Drawbacks◦ Massive Implementation
◦ Massive amounts of:
Support Education Training
◦ Legacy Systems are turned off◦ Culture change required◦ Cost
MARINO ASSOCIATES, LLC 2010
• Customer Relationship Management Champion
• Executive Sponsor
• I.T. Management
• Management Representative from each department touched :
- Sales
- Marketing
- Customer Service
• External CRM Advisor (consultant)
.
MARINO ASSOCIATES, LLC 2010
• Top management direction
• Change culture is difficult and change management is not understood
• Poor project management
• The effects of CRM on current business processes
• CRM is not understood
- Lack of a solid strategy
- Lack of clear goals
- Lack of defined objectives
• Lack of training and education
• Existing technology is inadequate
MARINO ASSOCIATES, LLC 2010
CRM success requires the total committed resolve of a corporation to commit its resources and to change its culture in a continual campaign that results in the optimization of customer and partner satisfaction, revenue, and business efficiency.
Despite the cost and risk, the uncertainty and the noise, CRM is valuable, viable, and real, and it’s not going back in the box.
MARINO ASSOCIATES, LLC 2010
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