Ed Peelen

CRM Class 1

Customer Centricity

> Pre-Industrial Period

• Consumer and producer together

> Industrial Period

• Mass production and consumption: a gap between two worlds

• The role of marketing to bring both worlds together

> A changing interface; drivers of change

• Financial markets, government interference, new economies, information technology, societal trends, new economic laws (‘increasing returns’)

>->Position stakeholders

2

Customer centricity?

3

Shareholder

value

Resources

Productivity

Quality

management

Financial

planning

Financial value

Employee value Customer value

Societal value

Customer Centricity and Stakeholders Classic Grid

Customer Centricity and Stakeholders ‘Real World’ Stakeholder Grid

Value chain

Stakeholders

Customers

Suppliers

Employees

Shareholders

Society

Engaging

platform

Mutual value

Communication

Reflection

Honesty,

Transparency Ramaswamy and Prahalad

•7-7-2014

The essentials of co creation

> Consumers and managers have plenty of alternatives to choose from

> Therefore we do not need to search for in-depth value (and not for more alternatives; product differentiation)

> The value of creating together, on a specific moment, in a specific context

> Traditional point shifts where consumers detracts value from a supplier; focus on the entire value chain

> No outsourcing or shifting of activities from supplier to consumer

> Quality of co creation depends on the infrastructure that facilitates interactions

Ramaswamy and Prahalad

•7-7-2014

Prosumer

> Roughly 25% of the population that behaves differently,

• consciously purchases new products,

• lives on information,

• appreciates contact with suppliers and

• wants to have influence on suppliers

> Powered by internet, media fragmentation (rising influence of their word-of-mouth communication), globalization (global influence)

•Some history

•7-7-2014 •© ICSB Marketing en Strategie

Building blocks

>Dialogue: empathy, understanding the emotional, social and cultural context of experiences. The forming of thematic communities.

>Access: not ownership!

>Risk assessment

>Transparency

> Prahalad and Ramaswamy (2004)

The value is in the individual, not in the service

Event

Context

event

Personal

relevance

Involvement

An irregular heartbeat at 11 o’clock in the morning at home

Versus an irregular heartbeat downtown in the middle of the night

Individual

consumer

Ramaswamy and Prahalad

Doing it together… • launch Nov 04 - March 05

• 30,000/80.000 models uploaded

• LDD 1.2 million total downloads

• 5% Royalty paid to winners

• 3 products launch July 2005

• Planning next generation

How does CRM fit in this all?

Gartner CRM hype cycle

© ICSB, Adviesbureau voor Marketing en Strategie

>Definition Gartner Group

“A business strategy that combines skilled customer-facing personnel, optimal processes and enabling technologies to balance enterprise revenues and profits with maximum customer satisfaction”.

Definition CRM

IT allows you to develop individual relations

on a large scale at low costs

Course objectives

>Understand co-creative enterprise and (S)CRM

>How to formulate a customer (CRM) strategy

>Understand the consequences of co-creation and CRM for the organization, marketing and IT

>Be able to formulate a roadmap towards the implementation of CRM

CRM described

> Mass marketing

> Market (segment)

> One way

> Market share

> Product orientation

> Satisfaction and transactions

> Rules of thumb

> Interactive marketing

> Segment and individual

> Two way

> Customer share/value

> Customer centric solutions

> Loyality and relations

> ‘Accountable’

16

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18

CRM Vision and Strategy

Co-operation within organization

CRM Processes

CRM Technology

CRM Metrics

Communication

CRM described building blocks

Relationship mgt Customer knowledge

CRM Building blocks: Vision - Customer Advocacy

>Act as an advocate for your customer in the organization

• Principle: Customer success is priority #1!

• Useful principle?

• Preconditions: transparency (crystal clear)

• Consequences?

CRM Building blocks: Co-operation within organization

Sales Support Techrep (optional)

Product Management

Vice President Aircraft Services

Aircraft Services Account Support

Product Management

Vice President Material Support

Material Support Account Support

Product Management

Vice President Component Maintenance

Component Maintenance Account Support

Product Management

Vice President Technical Services

Technical Services Account Support

Account Manager

Replenish

stock Payment

Read and

save

Monitor

value

Sell

Order Drink

Check:

date

Monitor

collection

Stock

Wine adm. Wine info

Order info

Catalogue/newsletter

Payment

Delivery

Wine for

sale

Order

Take on three of the ten customer activities with a greater

degree of accuracy - Le Caveau

CRM Building blocks: Communication

CRM Building block: Communication

+ -

Supplie

r initia

ted

+ -

Consu

mer

initia

ted

50%

Profile, secude, expert

behavior

Facilitate, be transparant

and open

Time

CRM Communication: customer journey

Eigenomgeving/lifes

tyle: met mode,

telco’s, F&B etc.

•Blad/magazine

•Posters/flyers

•SMS/MMS

•Internet

•Vrienden, familie of

community

Ticketbox (free

record)

•Programma

toesturen per

post/SMS/MMS,

internet

•Kortingen op …

•Lid van bijv.

community

•Lid van

blad/magazine

•Free gadget van

sponsor

Eigen omgeving

•Bekijken

internetsite (info,

partypics, recencies

eerdere edities)

•Kopen/draaien

muziek o.i.d.

•Kopen kleding etc.

•Kapper

•Veroer/verblijf

Vervoer/mobiliteit

•Verschillende

vervoersmodaliteiten (OV,

eigen vervoer)

•Samen of alleen

•Radio (updates)

•SMS/MMS (updates)

•Bewegwijzering (posters

etc.)

•Podia onderweg?

Key

•Eten en drinken

•merchandise en

accessoires

•Artiest(en)/groep(e

n)/act/show/

•Faciliteiten

(toiletten, internet,

oplaadpunten etc.)

•Veiligheid/crowd

management

Eigen omgeving

•CD/DVD

•Blad

•Internet (partypics,

recencies)

•SMS/MMS

•Radio/TV

•Vrienden, familie of

community

Purchase

ticket

Prepare Going to

event

Participating Afterwards

Organisator

Back

home

Vervoer/mobiliteit

•Verschillende

vervoersmodaliteiten

(OV, eigen vervoer)

•Samen of alleen

•Radio (updates)

•SMS/MMS (updates)

•Bewegwijzering (posters

etc.)

•Podia onderweg?

•Verblijfsaccommodatie

•Afterparty/borrels etc.

Orientation

Bron: Europen Centre for the Experience Economy

mailing 80% 25% 50% 33% database ‘order’ Negotiate F2face call

standard

1 3 6 24 30 100

script Sales man

competencies: how good are we in executing these steps?

CRM

Processes: optimalization

CRM Technology

• Data:

• Masterdata, databases/mart/warehouse,

• Applications: call center, internet, sales force automation, content management, software for analysis, campaign management

• Service oriented architecture

o 1 suite (Siebel/Oracle, Epiphany) versus a pallet of applications

CRM metrics: dashboard Continuous Monitoring & Analysis – Opportunity & Threat Detection

Purpose of your CRM dashboard (phase 1):

Track performance to various goals via related success metrics

Helps achieve goals by showing which contribution metrics drive behind performance levels

Improve your ability to anticipate future changes in performance levels

Purpose of your CRM dashboard (phase 2):

Expand scope to be not just evaluation tool, but a projection tool

Monitor the dashboard regularly!

Dashboard is constantly changing.

Summarized

Customer centric organization

> From mass marketing to interactive marketing; co creative effort

> From product focused to solution oriented

> New pricing models

> From transaction focused to relation oriented

> Process synchronization

> Steer on customer success

> Organizing around customers: customer ownership

> Branding customer solutions

> Facilitating and interconnecting infrastructure