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John Tullis

Customer Relationship Management

John TullisDePaul [email protected]


John Tullis

Agenda

IntroductionCurrent SituationGrounding CRMApproaching CRMNext Steps


John Tullis

Current Situation

Business visionCustomer relationship strategies supporting the visionWho are the company's customersWhat are the top three:

business issuescustomer relationship issuesinformation systems

How does your customer relationship add value for the customer and to the company bottom line

What is the greatest obstacle facing customer relationship todayWhat is the company's expectation from customer relationship

management e.g. customer sat, ROI etc.


John Tullis

Grounding CRM

Recent cross industry CRM engagements have revealed several priorities among executives concerning customer relationships

Knowing about customers

Understanding their current and future needs

Maximizing the yield from that relationship

Cost containment / value

Service consistency; enterprise - wide


John Tullis

Grounding CRMThese engagements have further shown multiple business purposes

among companies for pursuing CRM

Increasingly competitive marketsFragmentation and disintermediationGlobalization and deregulationNew and nontraditional competitors

Customer sophisticationEasy access to informationConvenience and personalization expectationsExtended value in products and services

e-Business revolutionAnytime, anywhere, anyhow accessCollaborative dialog v. one-way marketing communication


John Tullis

Grounding CRM

... the same can be said for goals and impact to the organization...

Unique goals at the tactical level however strategically...Provide consistent customer value add experiences

over multiple access points across key company capabilities within each line of business

Organization ImpactVision / Cultural - customer view v. our viewCustomer ownership/responsibility

information, intelligence, accessCommunication

customer, company, employee


John Tullis

Grounding CRM

... and impact to the value of the customer interaction

"Pre CRM" Industrial economic model

add value to an input and pass it along maybe insufficient to maintain leadership

CRMInformation age model

Recognizes customers consume AND create valuecustomer to customercustomer to companyenvironments that create knowledge advantage


John Tullis

Essential Process Capabilities

ENABLING INFRASTRUCTURE

Ideal

Customer Value

I. Customer "Vision"-Optimum possible "Value"-Attributes of "Ideal" delivery (Customer Requirements )

II. Company "Vision"

-Premier delivery of the customer-defined "Value"

MOTs

Grounding CRM

CRM: Alignment and linkage between what customers value ...and your own capabilities to deliver


John Tullis

Grounding CRM

Customer Relationship Management Value Chain

How do we build and sustain customer loyalty ?

Customer Retention

Customer Development

Who are the profitable customers ?

How do we attract them ?

Customer Acquisition

How do we deliver what the customer wants, how they want it, when they want it ?

Experience indicates that CRM requires support by an enterprise-wide value chain that encompasses the life cycle of the customer .


John Tullis

Grounding CRM

Moving customer relationship towards a enterprise-wide view requires more than concentrating on a single function or activity...

... rather it requires an approach that views multiple activities... crafted into a "framework"... that provides a "blueprint" enabling an excellent customer relationship providing maximum yield.

Simplify and align processes that deliver sustained dialogue and

personalized value

People

Create long-term, high value relationships with customer

chain

Process

Technology

Enable customer choice among multiple enterprise access pointsCollect customer information at every point of contactUse business intelligence to customize marketing/sales/service at every point of contact


John Tullis

Grounding CRM

Customer actions during lifecycle & business responses

CRM interactions/activities are executed across organizational boundaries throughout the lifetime relationship with the customer.

This "enterprise-wide view" begins with each opportunity to dialog with a customer... no matter how or where in the enterprise.


John Tullis

Grounding CRMExperience shows an enterprise-wide view to customer relationship requires a comprehensive STRATEGY...

Focused on customer wants and needs, with processes

designed to ensure timely, accurate, flexible and complete responses creating VALUE that is customer centric.

"HOLISTIC" in approach to the development and management of customer relationship which effectively imbeds customer service as a enterprise asset.

Effectively establishes ACCOUNTABILITY within the company for results, ensuring delivery of value.

COMMUNICATED, understood and fully supported by leadership and staff at all levels.

Focused on CONTINUOUS IMPROVEMENT through systemic learning from past experience, supported by capturing and sharing lessons learned

Compared with other companies to establish an external BENCHMARK as a measure for improvement.

...which forms the foundation for development of a Customer Relationship Management (CRM) framework.


John Tullis

Grounding CRM

... and must consider more than the traditional customer service environment...


John Tullis

Grounding CRM

... development of a CRM framework begins with understanding customer expectations/perceptions and the capability to deliver on wants and needs...

Customer Perceptions of Delivered Product or Service

Customer Expectation of Promised Product or Service

Provider's Perception of Customer Expectations

Product or Service Standards or Measurements

Actual Product or Service

G A P


John Tullis

Grounding CRM

...identifying the hierarchy of customer needs and wants, provides specific direction for CRM framework formation...

The "hierarchy" of customer needs identifies behavior drivers:

(the "must-haves")Attractors

(things that would delight the customer)

Satisfiers

Capabilities

Enablers

Attractors/Differentiators

Satisfiers

Basic Expectations

Cus

tom

ers’

Vis

ion

Sat

isfa

ctio

n

Time

Satisfiers

Advantage

Attractors/Differentiators

Basic Expectations

Parity


John Tullis

Grounding CRM

Transaction Stress Points& Service Standards or "Moments of Truth"

Customer "Vision" Of Ideal Relationship

EnablingInfrastructure

Customer-defined Relationship Vision

"I want...." "I need...." "I would be

delighted by..."

Best of Breed/World class: Service Standards Performance

Capabilities

Best of Breed/World class Actionable

"Design Points"

Essential Service ProcessCapabilities

... thus ensuring a successful CRM framework grounded in customer need and want that drives appropriate enterprise capability and enablement...


John Tullis

Grounding CRM...which forms the foundation for design and development of a CRM blueprint.


John Tullis

Grounding CRM"Grounding" CRM within the enterprise presents solid value propositions and can be measured.

Key Value Propositions:Enhanced ability to offer personalized incentives and "lock-in" satisfactionReal time insight for adapting current products/services Cost proficient regular customer contact Early warning of customer dissatisfaction and defection Venue from which to "continuously" earn trust with the customerAbility to continuously update individual and group needs and wants Reduced marketing and access costs Venue from which to gain and provide knowledge

Key Metrics:Operational expensesTransaction cycle timeCustomer satisfaction

OverallEnd of Transaction


John Tullis

Approaching CRM

Successful CRM projects provide insight for vision development... Critical Success Factors

Addresses clearly defined business objectivesExecutive sponsorship / champion. Customers are consulted Recognize the CRM transformation is evolutionary and not a 'One

Time Effort Realistic budget and implementation timetableExecute an iterative phased rollout that balances dependencies, benefits,

and assimilates the new approach Change management (human behavior) issues are addressed and

ongoing


John Tullis

Approaching CRM Recent Experience - Retail Challenge: Preempt margin erosion in a "soon to be" commodity

driven market through improved customer relationship

Key Issues: Current "CRM" strategy - ad-hoc Org. focus - "burn & turn" Market strategy - something for everybody Backoffice - weak Frontoffice - missing Approach: Rebrand & focus on "premium" market segment Wallet share and market share Minimize "cut-rate" product suite Key transformation activities - multiple IBM practices

Strategy developmentBO/FO process reengineeringAccess point development / redesign


John Tullis

Approaching CRM Recent Experience - Utilities Challenge: Maintain/increase marketshare while managing

deregulation pressures and int'l competition

Key Issues: Reduce customer service ops costs - the more the

merrier Culture transformation - what customer Technology - bits & bytes will do it right Skills requirements - who to keep Approach: Consolidate customer service operations Reengineer/develop CRM processes Key transformation activities

CRM transition strategy developmentTechnology / process design & implementationFacilities transition planningEducation & training planning and implementation


John Tullis

Approaching CRM

Customer Relationship Management Value Chain

Manage Customers

Customer Retention

Customer Development

Manage Markets

Customer Acquisition

Manage Sales

The CRM Value Chain is leveraged through three key customer relationship capabilities.


John Tullis

Approaching CRM

Managing Markets.

Defined business mission, objectives and current position within the marketplaceunderstands the enterprise

understands marketplace dynamics, economic trends, and technology understands the key demographic forces

understands customers' wants and needs

Identified and evaluated attractiveness of relevant segments in the marketplace. developed customer profile "triggers" for key, attractive market segments

assessed current and future product/service offerings in relevant marketsassessed strengths and weaknesses in relevant market segments.

Determined the "face-to-market" approach for relevant market segments.understands profitability and lifetime value of target customers.knows market segments that align with its core capabilities, strengths, weaknesses

knows value propositions for all market segments


John Tullis

Approaching CRMManaging Sales.

Defined channel management plandeveloped criteria for selecting channel participants.optimized channel offerings mix.identified resources for channel plan.

Developed opportunity management processes.able to capture, qualify, disseminate and track opportunities.procedure for assigning resources to opportunities.aligned opportunity process with the channel management plan and market

segment strategies. capability to create and manage customer profiles.

leverages usage of technology for sales opportunity management.

Developed the appropriate enablers to execute and manage the process.able to provide appropriate training, motivation, compensation and incentive programs.knows which customers are buying its products/services and why.


John Tullis

Approaching CRM

Managing the customer.

Understands the level of service its customers expect by market segment.customer service strategy is tailored for market segmentscan predict the inquiries that target customers will make customer service plan is aligned with other CRM capability planningcustomer service plan leverages technology, alliances and partnerships.

process for effective complaint capturing and problem resolution in place.

Knows customers’ ease-of-use requirementsknows its target customers' needs for “special handling”.“special handling” procedures are aligned with CRM capability planning.uses customer history to further pinpoint its target customers.

Develops the skills, resources, facilities, and data to efficiently deliver service.processes in place for any employee to capture and access customer input.methods in place to organize customer input, identify patterns & prioritize options,

leverage other customer facing processes (AR, AP etc.) understands satisfaction performance and competitive benchmarks customer satisfaction process is closed-loop


John Tullis

Approaching CRM

MANAGE MARKETS MANAGE SALES MANAGE CUSTOMER

ORGANIZATION

PROCESS

INFO ACCESS

TECHNOLOGY

FACILITIES

The development method in the buildout of a CRM blueprint focuses on key capability points (KCP) which must be in place and aligned for successful CRM transformation.


John Tullis

Approaching CRM

CRM "enablers" represent the infrastructure that must be in place to support the essential customer relationship capabilities


John Tullis

Approaching CRM

Experience indicates that typically a CRM project of this nature is accomplished in iterative project cycles over four phases...


John Tullis

Approaching CRMThis method of analysis gives a consistent "view" within each phase of our work methods from assessment of the "as-is" environment to deployment of the "to-be" state.

Organization

Process

Info Access

Technology

Facilities

Manage Market Manage Sales Manage Service


John Tullis

Approaching CRM

PHASE 0 - CRM ASSESSMENTInitiate Project Assess Current EnvironmentConduct / WorkshopsDefine "To Be" EnvironmentDevelop Roadmap Recommendations Prepare and Present Final Report

WeekOne

WeekTwo

WeekThree

WeekFour

WeekFive

WeekSix

WeekSeven

WeekEight

... resulting in a CRM Roadmap showing iterative phase initiatives and project requirements

The Assess & Plan phase can vary depending upon scope but generally executes over a 8-12 week period...


John Tullis

Next Steps

Customer Feedback

Campaign Tracking

Product & Service Strategies

Segmentation & Selection

Segmentation Strategy

Campaign Development, Management

CustomerCampaign & Market

Management

Customer Market Research

DataHarvesting

Data Mining

Customer IntelligenceManagement

Analyze Profile Score Discover

TrendsAffinitiesPatterns Associations

Customer Contact Management

ChannelOptimization

Call CenterStart up &Consolidation

Contact Center: - Telephony Enablement - Call Center Sales & Service Application - Web Enabled Contact Center

Internet Sales/Service

Other Access Channel Enrichment

Mobile Sales& Service Automation

Field Service & Dispatch

ChannelIntegration

Management

PersonalizedInteractionEnrichment

Enterprise Connectivity

Channel Integration Management

Strategy and Vision

CRM Briefing

CVM Assessment

CRM Strategy

CRM Roadmap

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