building the customer centric enterprise – beyond technology lisa loftis intelligent solutions,...

Building The Customer Centric Enterprise – Beyond Technology

Lisa LoftisIntelligent Solutions, [email protected]

mailto:[email protected]

© 2004, Intelligent Solutions, Inc.

The Evolution of CRM

The Past: Where did we start?

The Present: What’s different?

The Future: Where are we going?


The Beginning – Product FocusOrganization by product

Billing/account organization

Product profitability

Product volumes

Product capacity utilization

Segmentation to support products

Call centers by product

Customer???

MarketProducts

to theMasses


Product Focus Precludes Answers

How many customers do you have?

How many products does each customer own?

Can your best customers contact you effectively and

efficiently?

Can you anticipate the customer’s needs accurately

enough to be in the right

place, at the right time, with the

right product for them?


The Present – Customer Focus

Customer needs based sales and marketing

Customer segment organization

Customer care centers

Focus on developing lasting relationships

Customer satisfaction measured

Retention key objective TailorProducts

to theCustomer






And how do we get there


CRM Definition

Customer Relationship Management . . .

Aligning business strategy, organization

structure and culture and customer

information and technology so all customer

interactions can be managed to the

satisfaction of the customer and to the

benefit and profit of the organization.1

1 From the book, Building the Customer-Centric Enterprise, by Imhoff, Loftis & Geiger, John Wiley & Sons, 2001


CRM Strategy – Must Be Present

Retention• Identify customers likely to leave & implement

sales and service policies to keep them

Cross-sell• Determine profitable multi-product discounts

and actively promote them

Satisfaction/Risk Management• Tailor credit and collection policies

to total customer value


Impact of Organization Structure

What’s best for the customer - what’s best for the

business area

Coordinating cross business area initiatives

• Getting them off the ground

• Arbitrating cost & profit allocations

• Monitoring initiatives

Rounding up business areas that don’t want to play


National Communications

Cellular

Long Distance

Customer Care

Distribution

Marketing

Systems

Product DevelopmentProduct

DevelopmentProduct Development

Cable

Customer Care

Marketing

Distribution

Systems



Organization Structure Traditional



Cellular

Long Distance

Customer Care

Distribution

Marketing

Systems



Cable

Customer Care

Marketing

Distribution

Systems



Customer Management

Customer Portfolio

Customer Management

Customer Portfolio

Organization Structure - Evolving



Cellular

Long Distance

Customer Care

Marketing

Distribution

Systems



Cable

Customer Care

Marketing

Distribution

Systems



Strategic Operations

Customer Management

Customer Portfolio

Shared Systems

Business Management

Business Intelligence

Business Operations

Organization Structure - Evolved


Impact of Culture

How is change originated in your

organization?

• Top down

• Bottom up

• Somewhere in between

Do you have CRM performance objectives and

incentives?

Do your training programs provide CRM skills?


Culture Incentives and Objectives

Objective 1 Objective 2 Objective 3

Marketing Increasing

share of

wallet

Movement of

customers

across

segments

Prompting of

service and

sales channels

Service Cross-sales

and

retention

saves

Customer

satisfaction

with service

process

Traditional

measures

adjusted – call

handle time

Sales Cross-sales

and share of

wallet

increases

Customer

satisfaction

with sales

process

Sales and deal

teams factored

into incentives


Culture – Cooperation and SharingObjective 1 Objective 2 Objective 3

Marketing Current campaign information actively communicated to all

contact channels

Provides understanding of customer base to

all distribution points

Maintains central solicitation

mechanism – prevents over

solicitation

Service Common customer information shared across all service

channels

Service processes coordinated across

channels

Customer complaint

information provided to

marketing and sales

Sales Sales and deal teams dynamic – product

specialists available as needed

Customer contacts recorded and

shared across all sales channels

Processes and pricing

coordinated across all sales

channels


Technology - Customer Information

Customer information should be:

• Elevated to the level of a strategic corporate

asset

• Integrated

• Shared throughout the enterprise


We Need To Get From Here…

Management

THE REALITY

?

Operating Data

Marketing Database

Call Center/Telephony

Customer

Product

Product

Customer

Product

Customer

Customer File

Sales Force Automation

Profitability

Product

Customer

Customer

Product

Customer

Product


Information Workshop

Meta Data Management

Operation & Administration

Library & Toolbox Workbench

Change Management

Service Management

Data Acquisition Management

Systems Management

Data Acquisition

CIF Data Management

Data Delivery

Information Feedback

API

API

API

API DSI

DSI

TrI

DSI

DSI

Operational Systems

OperationalData Store

Data Warehouse

Exploration Warehouse

Data Mining Warehouse

OLAP Data Mart

Oper Mart

External

ERP

Internet

Legacy

Other


StrategicCRM

Applications

OperationalCRM

Applications


Data Delivery Data MiningWarehouse

ExplorationWarehouse DSI

DSI

API

API

API

API

Dat

a A

cqu

isiti

on

OperationalSystems

DataWarehouse

API

API

API

API

Dat

a A

cqu

isiti

on

OperationalSystems


TrI

DataMart DSI






Change Management

Service Management


Systems Management

Data Acquisition

CIF Data Management

Data Delivery


API

API

API

API TrI

DSI

TrI

DSI

DSI

Operational Systems


Data Warehouse



OLAP Data Mart

Oper Mart

External

ERP

Internal

Legacy

Other

Business Operatio

n

Business Operatio

n

Business IntelligenceBusiness Intelligence

Business ManagementBusiness Management






Change Management

Service Management


Systems Management

Data Acquisition

CIF Data Management

Data Delivery


API

API

API

API TrI

DSI

TrI

DSI

DSI

Operational Systems


Data Warehouse



OLAP Data Mart

Oper Mart

External

ERP

Internal

Legacy

Other


Business ManagementBusiness Management

Operational Systems are the internal and external core systems that run the day-to-day business operations. They are accessed through application program interfaces (APIs) and are the source of data for the data warehouse and operational data store.


CRM System IssuesCustomer component - CIF/customer profile• Replacement or integrated component• Where do updates to customer information take place

Transaction systems – CRM account screens• Amount of customization• Degree of integration• Currency of information

Integration with other systems• Investment systems• Other workflow systems

Target users and processes• Branches, call center or both• Tellers, desk staff, other departments• Contact tracking, workflow, sales prompts


Front-Line Requirements

Ensuring effective and successful Front Line

utilization of customer information requires:

• Requires accurate data

• Expects minimal additional screens - single screen view

preferred, sized appropriately

• Assumes clearly presented information with intuitive

meanings and uses that deliver noticeable value

• Demands current data – refreshed daily or immediately if

possible


Front-Line RequirementsEffective delivery of customer knowledge to Front Line is a

significant effort

• Requires cross organizational team with adequate participation –

appropriate ownership Training, delivery, marketing, IT

• Pre-deployment planning must measure impacts of new information Information utility and clarity

Policies and standards for new information

Positioning of screens and required behavior into transaction flow -

processes

• Clear and effective training programs vital






Change Management

Service Management


Systems Management

Data Acquisition

CIF Data Management

Data Delivery


API

API

API

API TrI

DSI

TrI

DSI

DSI

Operational Systems


Data Warehouse



OLAP Data Mart

Oper Mart

External

ERP

Internal

Legacy

Other

Business Operatio

n

Business Operatio

n


The Operational Data Store is a subject-oriented, integrated, current, volatile collection of data used to support the tactical decision-making process for the enterprise.


Contact Centers Brick & Mortar Distribution Centers

• Contact History• Customer Relationship• Customer Needs• Customer Behavior• Customer Preferences

Information

Functions

Sales Service

Campaign Contact

• Prompts• Intelligent Sales• Recommendations• Help

Rules

User Interfaces

Web Access

ODS

Supports comprehensive enterprise wide contact information from all Lob's

Provides client, household and extended relationship views

Provides information at account/product level

Provides or integrates with sales, service and business analysis and management functions






Change Management

Service Management


Systems Management

Data Acquisition

CIF Data Management

Data Delivery


API

API

API

API TrI

DSI

TrI

DSI

DSI

Operational Systems


Data Warehouse



OLAP Data Mart

Oper Mart

External

ERP

Internal

Legacy

Other

Business Operatio

n

Business Operatio

nBusiness ManagementBusiness Management

The Data Warehouse is a subject-oriented, integrated, time-variant, non-volatile collection of data used to support the strategic decision-making process for the enterprise.






Change Management

Service Management


Systems Management

Data Acquisition

CIF Data Management

Data Delivery


API

API

API

API TrI

DSI

TrI

DSI

DSI

Operational Systems


Data Warehouse



OLAP Data Mart

Oper Mart

External

ERP

Internal

Legacy

Other

Business Operatio

n

Business Operatio

nBusiness ManagementBusiness Management

The OLAP (online analytical processing) Data Mart is aggregated and/or summarized data that is derived from the data warehouse and tailored to support the multidimensional requirements of a given business unit or business function.






Change Management

Service Management


Systems Management

Data Acquisition

CIF Data Management

Data Delivery


API

API

API

API TrI

DSI

TrI

DSI

DSI

Operational Systems


Data Warehouse



OLAP Data Mart

Oper Mart

External

ERP

Internal

Legacy

Other


Executive Mandate Manager Buy-In

Influence IT approach and structure

Reorganize or establish coordination

function

Set performance objectives

Top-down communication

Directives endorsed and carried out

Cooperation and information sharing


Leadership Ability - Required

Active executive sponsor for CRM - imperative

Accountability for CRM is Essential

Ability to migrate organization is required

• Must influence management team

• Must inspire line organization

• Must communicate CRM intentions To organization To business community To public


Conclusion

It must be considered that there is nothing more difficult to carry out, nor more doubtful of success, nor more dangerous to handle, than to initiate a new order of things.

Niccolo Machiavelli

The Prince (1513)


Questions

building the customer centric enterprise – beyond technology lisa loftis intelligent solutions,...

Documents

customer whats

customer information

customer interactions

present customer focuscustomer

customer centric enterprise

customercentric enterprise

total customer value

right product