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Chapter Six, Case #1

Implementing Customer Relationship

Management Systems

Client: Mitsubishi Motors

Group #

VARUN YADAY



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 Mitsubishi’s Motors

North America, CEO.



Company Background

Parent company: Mitsubishi Motors Corporation

(MMC) is a Japanese company with a strong German-

American 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 inthe 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 company’s customers.




• CRM also creates an IT framework of Web-enabled

software and databases that integrate these

processes with the rest of the company’s 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.




Why do companies use CRM?

• Companies use CRM to help them become customer-

focused businesses.



CRM Implementation

Why did Mitsubishi Motor decide to implementCRM?

• Executives felt that company lacked a customer

focus.

• Customer service was very poor.



CRM Implementation

Why did Mitsubishi Motor decide to implementCRM?

• 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 CRMsoftware they would implement and how it would be

implemented.



CRM Implementation

• The team decided that Mitsubishi would implement abest-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 gaveoperators 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 fromBlue 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

Mitsubishi’s 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 Mitsubishi’s?



Question #2Question #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 Mitsubishi’s approach to acquiring

and installing a CRM system?



Question #3

Yes, we agree with Mitsubishi’s approach to acquiringand installing their CRM.

• Their approach allowed for a CRM that was a

“custom fit” for their company’s 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 costper call, higher customer satisfaction) from their CRM

are a compliment to their acquisition and

implementation process.



Conclusion

Thank you!

Questions or comments?

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