crm actionplan

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CRM IntroductionCRM Introduction

CRM forms a continuous loop of marketing, sales, and service. You can attract new customers while maximizing cross-selling and up-selling opportunities across multichannel sales, marketing and customer service operations.

despina voudouri 2001

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CRM CRM BenefitsBenefits

1. Cross-selling & Up-selling across multiple products

2. Optimise Overall Profitability

3. Use the Web as Revenue Generation

4. Customer Service

5. Campaign Management

6. Activity Management

7. Opportunity Management

8. Expense Reporting

9. Quote Generation despina voudouri 2001

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CRM & Call CentersCRM & Call Centers

CRM technology transform call centers into next-generation contact centers that offer far more sophisticated sales & service capabilities, that demand :

1. Support for all channels of communication

2. Provide intelligent call routing and assignment

3. Offer computer telephony integration

4. Ensures complete e-mail response management

5. Target customer segments using any criteria

6. Measure, monitor, and refine campaign effectiveness

7. Provides 24x7 customer service & supportdespina voudouri 2001

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Customer Focused EconomyCustomer Focused Economy

Physical NetworkPhysical Network

Customer InterfaceCustomer Interface

Service/Product DevelopmentService/Product Development& Maintenance& Maintenance

Operational Support SystemsOperational Support Systems

CustomerCustomer

Physical Network

Customer Care

Service/Product Development& Maintenance

Operational Support Systems

Customer

Old Model: Operations Focus New Model: Customer Focus

Profitability Driver:Network Efficiency

Investment Focus:Network and OSS

Primary Customer Relationship: Billing

Profitability Driver:Lasting Customer Relationships

Investment Focus:Customer Satisfaction

Primary Customer Relationship: Through Multiple Touchpoints

Increase Efficiency =Decrease Cost

Increase Effectiveness =Find-Keep-Develop


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Business ChallengesBusiness Challenges

Customer Selects Channel of CommunicationCustomer Selects Channel of Communication Customers can interact with you using any channel, any Customers can interact with you using any channel, any

time and expect servicetime and expect service Market Conditions Change InstantlyMarket Conditions Change Instantly

Requires advanced marketing automationRequires advanced marketing automation Businesses need to react quickly to maximize profits and Businesses need to react quickly to maximize profits and

maintain relationshipsmaintain relationships Churn and AttritionChurn and Attrition

Customer churn is commonCustomer churn is common Loyalty becomes increasingly more important in a Loyalty becomes increasingly more important in a

competitive economycompetitive economy Automate and Execute Relationship Marketing ProgramsAutomate and Execute Relationship Marketing Programs

Analysis, planning, execution and tracking need to be Analysis, planning, execution and tracking need to be integratedintegrated

Marketing automation techniques need to replicated, Marketing automation techniques need to replicated, enhanced and automatedenhanced and automated

Leverage Customer InformationLeverage Customer Information Prevent Islands of informationPrevent Islands of information Best of breed suite of applications working togetherBest of breed suite of applications working togetherdespina voudouri 2001

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PartnersPartners

Web & EmailWeb & Email

Sales Sales

Call CenterCall Center

CustomersCustomers

CustomerCustomerInformationInformation

Multichannel eBusinessMultichannel eBusiness

MarketingMarketing

Back OfficeBack Office


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Marketing Value PropositionMarketing Value Proposition

Key Benefits Allows companies to establish and maintain profitable customer relationships Drives highly targeted 1:1 marketing campaigns Ensures a seamless dialogue with customers Automates the complete marketing process

Unique Capabilities Compete closed-loop solution across all touch points Synchronize messaging across all communication channels Best-of-breed components in an enterprise class suite Enterprise-class scalability Flexible, open architecture

CRM & Marketing enables organizations to deliver highly targeted marketing campaigns to maximize customer lifetime value


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Increased Service Level ExpectationsIncreased Service Level Expectations

Demanding Consistent Treatment Across All ChannelsDemanding Consistent Treatment Across All Channels Online (Web, newsletters, eMail) and off-line (direct mail)Online (Web, newsletters, eMail) and off-line (direct mail) Phone/wirelessPhone/wireless Call centerCall center Alternate channels (ATM, kiosks)Alternate channels (ATM, kiosks)

Demanding Full Functionality and High PerformanceDemanding Full Functionality and High Performance Intuitive user interface – No patience for learningIntuitive user interface – No patience for learning Knowledge set (FAQ, Knowledge base)Knowledge set (FAQ, Knowledge base) 24 x 7 with no tolerance for long wait times24 x 7 with no tolerance for long wait times

Will Not Accept Organizational Disconnect Will Not Accept Organizational Disconnect Seamless coordination across all disciplinesSeamless coordination across all disciplines

Service, sales, and marketingService, sales, and marketing Synchronized across divisions and product linesSynchronized across divisions and product lines


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Less Receptive to Marketing EffortsLess Receptive to Marketing Efforts

Saturation of Customer “Mail” BoxSaturation of Customer “Mail” Box Number of marketing offers is explodingNumber of marketing offers is exploding Expansion of marketing across all channels Expansion of marketing across all channels Over communication via email and electronic newslettersOver communication via email and electronic newsletters

Often not solicited; frequently not targetedOften not solicited; frequently not targeted Difficult to stopDifficult to stop

No Tolerance for Poor ExecutionNo Tolerance for Poor Execution Inappropriate offersInappropriate offers Inappropriate offer sequenceInappropriate offer sequence Inability to satisfy questionsInability to satisfy questions

Highly Educated CustomersHighly Educated Customers Aggregators and portals provide easy access to Aggregators and portals provide easy access to

alternativesalternatives Sophisticated surfersSophisticated surfers Increased price sensitivityIncreased price sensitivity


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Dis-EquilibriumDis-Equilibrium

• Customer Expectations• Interactive Complexity• Privacy Sensitivity• Increased Competition

• Customer Loyalty• Responsiveness• Brand Equity


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Business Strategy Business Strategy

Maximize Profit by Focusing on Customer Satisfaction and Maximize Profit by Focusing on Customer Satisfaction and RetentionRetention

Engage in a continuous customer dialogue across all Engage in a continuous customer dialogue across all channelschannels

Prioritize resources based on customer value (actual or Prioritize resources based on customer value (actual or potential)potential)

Eliminate conflicting, redundant, and inappropriate offersEliminate conflicting, redundant, and inappropriate offers

Increase Program Velocity and AgilityIncrease Program Velocity and Agility Increase campaign cycle speedIncrease campaign cycle speed Rapid learning and real time decisioningRapid learning and real time decisioning Move from event based marketing to real time “refine and Move from event based marketing to real time “refine and

re-launch”re-launch”

Leverage Rich Customer Information to Improve Decision MakingLeverage Rich Customer Information to Improve Decision Making Provide a single 360 degree customer viewProvide a single 360 degree customer view Across all customer communication channelsAcross all customer communication channels Internal and external systems Internal and external systems


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Why Loyalty is ImportantWhy Loyalty is Important

1.1. It costs 5 to 12 times more to acquire a new customer It costs 5 to 12 times more to acquire a new customer than to keep an existing customerthan to keep an existing customer

2.2. Loyal customers tend to increase their purchases over Loyal customers tend to increase their purchases over timetime

3.3. Long term relationships typically cost less to serveLong term relationships typically cost less to serve

4.4. Loyal customers are the best source of referralsLoyal customers are the best source of referrals

5.5. Loyal customers are generally less price sensitiveLoyal customers are generally less price sensitive

0

20

40

60

80

100

Up to 95% Increase in Profits

5% Increase in Loyalty


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Customer Development ProcessCustomer Development Process

ProspectProspect AcquisitionAcquisition ActivationActivation

RecaptureRecapture

RetentionRetention

Cross-sellCross-sell

Up-sellUp-sell

AdvocateAdvocateLead

GenerationTraffic

Building

ChannelMarketing

Event Marketing

Fulfillment

Loyalty Marketing

Dialogue Marketing

Referral

Marketing

Metrics

Call to closeResponse

rate

Acquisition cost

ROI

Conversion rate

Attrition rateLifetime Value

Incremental

new product sales

Referral rateRFM

(Recency,Frequency, Monetary Value)


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A Typical Database Marketing Campaign PlanA Typical Database Marketing Campaign Plan

1. Understand customer base

2. Identify new target group(s)

3. Marketing Planning

Test and Control

4. Response Analysis

5. Refine/Rollout/Repeat

Market research

Focus groups

OLAP Analysis

Data mining

Profiling

Typical Activities

Data gathering/enhancement

Modeling

Budgeting and forecasts

Campaign development

Fulfillment partners

Data acquisition

Data cleansing

Segment allocation

Program rollout

Profiling

Time series analysis

Promotion density


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Understand Market and Customer

Understand Market and Customer

Supporting the Closed Loop Marketing ProcessSupporting the Closed Loop Marketing Process

Design Campaign

Design Campaign

Measure and Track

Results

Measure and Track

Results

Execute Campaign At All Touchpoints

Execute Campaign At All Touchpoints


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Multistage, Event-Triggered, and Recurring CampaignsMultistage, Event-Triggered, and Recurring Campaigns

Define Audience/ Create Campaign

$Purchase

Thank you email

Trigger ongoing

customer eNewsletter

Real time marketing and offer optimization

Prospect clicks on offer but does not purchase

Trigger Stage 2

Campaign Analysis

Personalized HTML eMail

Personalized Web Offer


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Development Themes Development Themes

Collaborative MarketingCollaborative Marketing

Enterprise Contact ManagementEnterprise Contact Management


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Collaborative MarketingCollaborative Marketing

Maintain the important balance between the need for Maintain the important balance between the need for consistent customer management/messaging and effective consistent customer management/messaging and effective brand building with local know how. Avoid intra-company brand building with local know how. Avoid intra-company competition for the same core asset, the customercompetition for the same core asset, the customer

Distributed Marketing

Corporate developed programs, launched locally (Push)

Maximizes consistence, brand value

Locally executed programs, controlled at Corporate Level (Pull)

Corporate contact management guideline

Consistent suppression rules

List ownership

Collaborative Creative Management Agency, marketing, print shop

Collateral material

Bag tags despina voudouri 2001

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Enterprise Contact ManagementEnterprise Contact Management

Enterprise Contact Management Global rules determining optimal contacts by channel, direction,

frequency, profitability, organization and customer segment Integrated List Ownership managing customer contact conflict Ability to reserve customer for contact across list ownership, segment,

etc … Embedded consumer privacy/preferences

A A new paradigm designed to establish and manage new paradigm designed to establish and manage customer communication in a multi-channel context so customer communication in a multi-channel context so that business units (or departments) are communicating that business units (or departments) are communicating with their customers at the optimal time to avoid with their customers at the optimal time to avoid customer fatigue, customer attrition, conflicting customer fatigue, customer attrition, conflicting messages and intra-company competition for the same messages and intra-company competition for the same core asset, the customer.core asset, the customer.


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“Customer service will become the primary value-added

function in every business”

Bill Gates - Business @ the speed of thought..


crm actionplan

Technology

customer service operations

customer value actual

continuous customer

attrition customer churn

business challenges

degree customer view

expansion of marketing

targeted marketing campaigns