customer experience the real crm achieved through bpm

© 2009. All rights reserved. Client X Client LLC 908 542 1134 CLIENTXCLIENT.COM

Michael Hoffman,President Client X Client

•Reduce Costs and Increase Revenue in Every Customer Contact.

Michael R. Hoffman, ClientXClient, [email protected], 908 542-1134

© 2002. All rights reserved. ClientXClient Inc.

Think Like a Customer!

Overview

• Financial Services, Retail, Publishing, Travel, Non-Profit, Education

• Marketing Technology Expert• Customer Infrastructure – Customer Architecture• Advertising – Mail – SFA – Contact Center – Fulfillment –

Customer Service • The Matrix – Creating leverage in each customer contact • Tools to plan and view enterprise • Need background • Need key areas • Target markets vertical expertise



Top Causes of Failure in CRM Today

• Not realizing that functions, jobs, performance and reward systems must change.

• Not thinking big enough. • Don’t believe your vendor – Tools are the easy part. How is you company

going to make this work?• Systems and processes can be CRM’d without buying software and

consulting.• Technology and non-technology systems need to be accessed for their

impact to customer… Think Like a Customer approach.• Limited or no input from the customer’s perspective• Thinking that technology is the solution• Lack of specifically designed, mutually reinforcing processes • Poor-quality customer data and information• Little coordination of multiple departmental initiatives

and projects• No concrete measures for payback and milestones• No view of “What this looks like when its done.” Are we there yet?”



How much is CRM worth?

THE TRUE MEASURE OF CRM IS CHANGE THAT IMPACTS EACH CUSTOMER IN EACH INTERACTION



Increase Yield Per Customer

• Acquisition• Service• Retention• Increase Revenue – Protect and Grow Margin• Expand Revenue Streams• Additional Revenue Streams



3 CONCURRENT CRM DEVELOPMENT AREAS

Per Channel

Cross Channel

Multi-Channel

Offer Management

Customer Value Management

Technology:(Channel & Infrastructure)

Management

+

+

Step 1

CustomerDefinition

Step 2

CustomerValue &

Rank

Step 3

CustomerSegment

ation

Step 1

ChannelPersonalization Assesment

Step 2 Step 3

Optimization& Reporting

Step 4

ObjectivePer

Customer

Step 1

OfferAnalysis

Step 2

OfferDesign XCustomer

Step 3

OfferDesign XChannel

Step 4

Always-OnOffer

Management

ChannelManagementX Ensemble



Reverse Engineer Operational Processes to Reflect Customer Processes:

Acquisition ServiceOperations

From:



CUSTOMER EXPERIENCE MATRIX

Acquisition

Service

Operations



CUSTOMER EXPERIENCE MATRIX

1. A Customer becomes aware of a need2. Customer gathers information regarding filling need3. Customer identifies potential options and sources to satisfy need4. Customer selects product(s), service(s), provider(s) to satisfy need

requirements5. Customer negotiates all aspects of acquiring product or service6. Customer legally commits to product purchase and specifications7. Customer establishes criteria for receipt8. Product or service is delivered to customer 9. Customer accepts or rejects product/service10. Customer pays for product and/or services11. Customer uses product12. Customer cares for product, learns about product13. Customer fixes, repairs, product14. Customer participates in “word of mouth” product/service

community


14 Stages of Customer Experience

1. Awareness

2. Information

3. Identification

4. Selection

5. Negotiation

6. Contract

7. Logistics

8. Delivery

9. Acceptance

10. $ Collection

11. Use

12. Care & Support

13. Repair

14. Community



Direct MailWeb

Outbound Telemarketing

eMailBanner Ads

Portals

WebDirect Mail

CCMVRU

Direct TV3G

PersonalizationeMail

WebCoupon

CCMVRUDTV

Aggregators

Web Personalization

Direct SalesCCM

LoyaltyContinuity

Automated ServiceeMail

CCMWeb Chat

Service Auto.Collaborators

Service AutomationFulfillment

Form SharingWeb CCMChatVoIP

FulfillmentWebCCM

Partners

FulfillmentWeb

eLogistics

FulfillmenteLogistics

eMailS. Alerts

CCM

eCollectionLock BoxeBillingCCM

CCMeMail

Self HelpKnowledgebase

Chat

Direct MailContinuity

eNewsletterWeb CCM

eCRMPortal

14 Stages of Customer Experience

WebContracts

Usage trackingCCM

eLogisticsReturn Processing


Geography

Digital

Store

3rd Party

One-to-One

SEGMENT

Lifetime Value


MarketingAdvertisingPromotionCommunications

Product ManagementDistributionOperationsSales

OperationsDeliveryRetailDistribution

E-BizCommunicationsSalesThird Parties

FinanceProduct ManagementRetail OperationsRe-Seller ManagementSales

Customer SupportOperationsSales

Dysfunction Junction

Geography

Digital

Store

3rd Party

One-to-One



Objectives for Each Interaction

1. Identify Customer

2. Recognize Customer

3. Serve/Resolve Issue

4. Upgrade

5. Extend Offer(s)

6. Grow Relationship

7. Educate

8. Collect Data/Learn

9. Gain Referrals


New Customer “A” Profile• Single Purchase Index: %

• Likelihood of no second purchase

• Projected time to second purchase:

• Remaining time to second purchase:

•

• Propensity to defect next 30 days:





•

• Propensity to buy next 30 days:





•

• Next most likely purchase: (product/service)

• Next most likely purchase category:

• Next most likely purchase channel:

• Next most likely purchased: amount

Tenure:Expected 3 month revenue:Expected 6 month revenueExpected 12 month revenue



Optimize ROI at Each Transaction

Revenue Growth:Up-sell CustomerEnsure customer SatisfactionExtend Customer LifecycleAccelerate Customer Value Maturity

Revenue Enhancement:Sell Prospect /Customer NameSell Customer Information (exclude name)Refer Community/Partner Services/ProductsWarranty Services

Cost Reductions:Invest accordinglyAccelerate resolutionIdentify alternative lower cost solution



Customer Experience Map + Triggers + Enabling Technology

• Differentiated service at every point of contact• Reduced cost through call diversion and improved

responsiveness• Increased revenue through more selling opportunities

and better targeting • Increase retention of best customers• Create additional revenue opportunities through

customization• Better 3rd party relationships• Higher Acquisition hit rates• Higher yield per customer



Customer Viewpoint:

FulfillmentAcquisition

Selection Contract UseCollectionDeliveryLogistics

Services

Support

receive email offer

place order consumereceive & pay bill

receive shipment

product question

CustomerView

CEM stage



Company Viewpoint



Services

Support

receive email offer

place order consumereceive & pay bill

receive shipment

product question

CustomerView

marketing, ecommerce

ecommerce, operations

operationsoperations operationsDepartment

CEM stage

Campaign, eDialog

Web site, Order

BillingShipCustomer Service

System



CRM Viewpoint



Services

Support

receive email offer

place order by phone

consumereceive & pay bill

receive shipment

product question

CustomerView

marketing, ecommerce

Call Center operationsoperations operationsDepartment

CRM BPM stage

Campaign, eDialog

Web site, Siebel

3rd Party Billing

Outsourced PeopleSoftTechnology

cross sell up sell,

survey dataexceed,

resellresell,referral

cut cost,feedback

cross sell, resell

solve, extend, survey

Objective

product, list, email,

content

product, offer,

historyproduct

billing, inserts,

messages

product, survey insert

product, shipping, inserts

history, script, agents

Requirements

promo cost entry cost revenue, bill cost,

entry costship cost

prod cost, promo cost

service costValue

Outsourced



Customer Experience Focus – High ROI Activities

• Protect and Grow High Value Customers – Retention• Identify High Potential Low Yield Customers –

Development• Create Second Purchasers• Build/Support Buyer Communities• Preemptive Retention Campaigns

***AT EACH STAGE FOR RIGHT CUSTOMERS



Description Focus Success

Data Transactions,

raw data ,

operational

Operation efficiency Low error, failure rate, speed of

transaction

Information raw data

reorganized for

reporting,

internal

measurement

Reporting Timely reports, good general

information, trend reports, focus on

variances

Knowledge bench mark

industry, vertical

numbers,

management

performance

numbers - still

internal

Departmental knowledge

sharing, very small part of

business justification

Adoption of measures beyond trends,

use of information in strategic plans,

counts of new customers v.s. product

sales, opportunities for cost reduction

at customer level

Customer

Intelligence

Blend of raw

data tied to

customer,

some

enhancement,

still the purview

of marketing

Discovery, measuring

opportunities, retention,

acquisition, acquisition,

loyalty

Dawn of household/customer level

reporting, non-customer - prospect and

lost customer metrics, Lifetime Value,

Retention Rate, Customer: Prospect:

Channel: Fitness become measured

Market

Wisdom

Customer/prospect

value as

business

performance

metric

Best practices adopted at

lowest cost - efficiency,

marketing automation, human

capital & discovery used to

differentiate, metrics gain

executive & Wall Street

awareness

20% of activities which create 80% of

returns are adopted via new

technology as "best practices" are

systematized, Emphasis shifts to

Customer/market proposition ROI/ROC

optimization; new business

performance metrics


Michael Hoffman,President Client X Client

•CRM Perception and Reality

Michael R. Hoffman, ClientXClient, [email protected], 908 542-1134

Thank You

customer experience the real crm achieved through bpm

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