Working Model to Assist in the Strategic Design of Customer Relationship ManagementRelationship Management

Helena Durán L.MBA Catholic University of LouvainCRM Independent Consultant

Large experience in customer management at the automotive sector (Ford, Subaru, Kia) and at the telecommunications sector(Bellsouth S.A.; Telefónica

Movistar)

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CRMCustomer Relationship Management, A corporate view

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Experience with the brand

Sales Experience

Experience with the product/

Summarized Cycle of the Commercial Relationship with Summarized Cycle of the Commercial Relationship with CustomersCustomers

Ideal ScenarioIdeal Scenario

brand product/service

Switch

Sales Experience

Experience with the product

service

Experience with the brand

Unwanted Scenario Unwanted Scenario

Experience with the brand

Customer Care

Loyalty and Satisfaction Programs,

Experience with the product/

Ideal Development of the Relationship with CustomersIdeal Development of the Relationship with Customers

Programs,Others

Sales Experience

Product/

Service Acquisition

product/

service

Company A Company Z

As a result oftechnology progressthere are similarsimilarsimilarsimilarproductsproductsproductsproducts at comparablecomparablecomparablecomparablepricespricespricesprices in differentmarket segments, then

DIFFERENTIATIONDIFFERENTIATION

market segments, thenthe differentiatingdifferentiatingdifferentiatingdifferentiatingfactor is no longer inthe product but inpeople and in thecompany’s ability oftakingtakingtakingtaking carecarecarecare ofofofof thethethethecustomercustomercustomercustomer

…from Commercialization to Customer Loyalty…from Commercialization to Customer Loyalty

CUSTOMER�S EXPERIENCECUSTOMER�S EXPERIENCE

ü If the product complies its function then ispossible to add accessories or services to it inorder to increase its perceived value.

ü The starting point of the customers’experience is given by the formal andaugmented products’ performance.

üThe decisive experience (facing indifferent or

Topcompany delights the customer

Excellent üThe decisive experience (facing indifferent orlow switching costs) is given by the efficientadministration, both reactive and proactive, ofthe customers’ needs

q If the product fails, any further effort is futile

qAlso, if the client conflict management is weak,the actions aimed at achieving customer loyaltymay become a negative component.

Excellentcompany takes care of the customer

Improvedaugmented product

Basicproduct fulfills

promise

• Inside a company, we are all customers and suppliers at somepoint.

• The general direction of the company is a provider of the board ofdirectors and, at the same time, is customer and supplier ofdifferent management areas

To take into account

• Every business unit plays the role of a customer as well as asupplier in between its own departments and towards the otherunits.

• All this part of the organization may be called the back office ofthe first line. The support of the final customer’s delivery.

• The first line is the face of the company for our end customers.

• Most of customer contacts are made in the first line, so here are thebest “customer profilers“ and those who know best the strengths andweaknesses of our products and services.

• When the organization acknowledges the first line as an internalcustomer, the likelihood of providing a better experience to the endcustomer, increases.

• When the customers information, collected from the different areas, isused as feedback for the organization, the greater it is its ability toused as feedback for the organization, the greater it is its ability todesign more efficient strategies in the different areas.

• If the organization is focused on keeping their customer base, it has acertain chance to increase its perceived value, brand loyalty and ROI.

• …. if not, there will always be someone out there, who will have abetter offer which, if the switching cost is reasonable for thecustomer, will trigger his/her switch.

Board of Directors

General Direction

Finance Unit

Marketing Unit

Operations Unit

ba

ck o

ffic

e

COMPETITION

COMPETITION

COMPETITION

COMPETITION

Internalcustom

ers

A Corporate View

END CUSTOMEREND CUSTOMEREND CUSTOMEREND CUSTOMEREND CUSTOMEREND CUSTOMEREND CUSTOMEREND CUSTOMER

sales and post sales offices

Internal CustomerInternal CustomerInternal CustomerInternal Customer

f r ont of f i ce

COMPETITION

COMPETITION

COMPETITION

COMPETITION

A Corporate View

Value Proposal: Value Proposal: Value Proposal: Value Proposal: Value Proposal: Value Proposal: Value Proposal: Value Proposal: CRM Strategic PlanningCRM Strategic PlanningCRM Strategic PlanningCRM Strategic PlanningCRM Strategic PlanningCRM Strategic PlanningCRM Strategic PlanningCRM Strategic PlanningMain SubjectsMain SubjectsMain SubjectsMain SubjectsMain SubjectsMain SubjectsMain SubjectsMain Subjects

• Evaluation and analysis of the company towards its customer relationship

• Diagnosis• Diagnosis

• Strategic Design

Strategic DesignStrategic DesignStrategic DesignStrategic DesignStrategic DesignStrategic DesignStrategic DesignStrategic DesignSome componentsSome componentsSome componentsSome componentsSome componentsSome componentsSome componentsSome components

• Defining general guidelines of the company in relation to CRM– General objectives, goals by area/unit– Relationship between areas regarding the goals

• Macro Segmentation of the customers’ base– Identification, quantification, characterization and assessment of the segments of

the customer base

• Micro segmentation of the customers base– Needs identification within each segment– Defining and designing the customers’ cycle for each segment– Defining and designing the customers’ cycle for each segment

• Budget and Investment– Assessment on potential revenue by segment – First assessment on the investment needs– Analysis of sales' cost versus retention costs

• Competitive Analysis– Who, What, How, Results– CRM benchmark analysis

• Designing a CRM strategy– Segment objectives, program activities, tools definition (hardware, software),

measurement and evaluation of results program, adjusted budget

• Communication and Implementation of the CRM strategy

Helena Durán L.MBA Catholic University of Louvain

Independent Consultant on CRM Strategic Designhelenaduran0@gmail.comhelenaduran0@gmail.com