indiana university - accenture case competition 2009
DESCRIPTION
This is a case recommendation that my team and I put together for a case competition put on by Accenture in 2009. We were given a company overview of a car manufacturer that wanted to get more in-tune with their service centers; we put together a sales presentation to illustrate the company-specific benefits for following through with our solution.TRANSCRIPT
8 Kishen Parikshak | Matt Blair | Zach KostTEAM
Leveraging CRM to Predict Inventory and Increase the
Customer Experience
Accenture’s History
Accenture has been creating custom, enterprise-wide CRM models for 20 years
We have time-tested models that are intuitive, scalable and measurable for exceptional long-term performance
We provide automotive consulting, technology and outsourcing services to leading OEMs and tier one suppliers
Accenture has an exceptional past within the automotive industry.1
Teamed with Accenture to create a single, integrated view of each customer. The result: an
unprecedented ability to understand customers and target marketing messages.
Turned to Accenture to help benchmark performance and create a corporate strategy
for developing new customer service capabilities.
Chose Accenture to make meaningful, long-term
changes to increase service levels and operational efficiency and decrease inventory investment.
Accenture was chosen to help upgrade its service parts and accessories supply chain service to dealers, enabling them to offer customers better service.
Accenture's High Performance Business research confirms that
highly efficient, end-to-end processes differentiate high-
performance businesses in the automotive industry from their
competitors.
CredentialsWe have served 27 of the 35 automotive companies in the Fortune 500.
2
Combine Customer/Dealer Knowledge to Forecast Demand
Attract Customers with Progressive
Marketing SchemesMap Key Dealer Demographics
Implement Siebel CRM Software
InventoryTurnover
HoldingCosts
LOW
CO
ST HIG
HC
APA
BILITY
RecommendationsLeverage capabilities of CRM software to increase company value.
3LO
YALT
YSTR
ATEG
Y
CRM DEALERS CUSTOMERS FORECASTING
StockPrice
Automotive manufacturer-focused frameworks assist in the customization of Siebel to meet CarCo’s specific needs.
Database design incorporates specific application areas for expanding on customer and dealer information.
By using an Oracle product, CarCo will easily be able to integrate CRM with existing ERP software
Siebel CRM SoftwareSiebel is Oracle’s most complete, industry specific CRM suite.
4
Vendors
Manufacturers
Distributors
Dealers
Financiers
Customers
SIEBEL
CRM DEALERS CUSTOMERS FORECASTING
Current SystemsUpgrading back-office legacy systems into centralized repository.
5
Current State: multiple systems gathering data from dealers• For example, dealers are currently using
spreadsheets for gathering customer data.
Desired State: centralized repository for storing data from all dealers• Gather customer information from dealers
through end-customer contract information
CRM DEALERS CUSTOMERS FORECASTING
CRM ImplementationCosts will tail-off over the two year implementation period.
6
$400,000
$500,000
$600,000
$700,000
$800,000
$900,000
$1,000,000
$1,100,000 CRM Implementation
2 Year Cost of Implementation:
$17,310,000
CRM DEALERS CUSTOMERS FORECASTING
Dealer LoyaltyMake dealers more successful by using CRM.
7
Leverage current existing data from legacy systems
Segment market vehicle demand
Offer incentives for low demand vehicles to liquidate
Decreased financing and floorplan costs for dealers
CRM DEALERS CUSTOMERS FORECASTING
$4,000,000,000
$5,000,000,000
$6,000,000,000
$7,000,000,000
$8,000,000,000
$9,000,000,000
$10,000,000,000
$11,000,000,000
$12,000,000,000 9/
1/20
09
12/1
/200
9
3/1/
2010
6/1/
2010
9/1/
2010
12/1
/201
0
3/1/
2011
6/1/
2011
9/1/
2011
12/1
/201
1
3/1/
2012
6/1/
2012
9/1/
2012
Inventory Reduction
Inventory ReductionOver 3 years, proper forecasting can reduce inventory by 35%.
3 Year Inventory Reduction:
35% = $3.9B
8
CRM DEALERS CUSTOMERS FORECASTING
Focused Marketing SchemesAttention to marketing will help us cut costs and increase revenues.
9
Proactive Marketing
Customer Retention Initiatives
Return value from using CRM
CRM DEALERS CUSTOMERS FORECASTING
Proactive MarketingUnderstand your customer and forecast demand through CRM.
10
Use the CRM to study
demographics
Forecast sales to similar
dealerships
Create an efficient
product mix
Relocate products based
on demand
Reach customers efficiently
Add value to CarCo’s
business model
CRM DEALERS CUSTOMERS FORECASTING
Use a customer loyalty program to retain customers Available to customers who purchase new vehicles Special considerations for trade-in
Retaining Past CustomersA solid relationship with previous customers is critical for cost savings.
11
www.automotive.com/auto-news/02/42239/index.htm
Attract New Customer
Retain Customer>
600%
CRM DEALERS CUSTOMERS FORECASTING
Retaining Past CustomersA solid relationship with these customers is critical for cost savings.
13
1/5 of our 2.5 million customers per year
If half of those return for a $1000
rebate
CarCospends $250 per year to maintain customers
CRM DEALERS CUSTOMERS FORECASTING
Retaining Past CustomersRetaining prior customers is more cost efficient.
14
*www.ecademy.com/node/php?id=44965*http://www.business-standard.com/india/news/acquiring-new-customers-vs-retaining-old-customers/203350/
Ave
rage
Bud
get
10 – 15%C
ar C
ost R
even
ue Last Year 92 Billion
Mar
ketin
g A
llotm
ent
At 10% they can spend 9.2 Billion
Aff
orda
ble
Mar
ketin
g This $250 Million a year leaves about 63% of their marketing budget
CRM DEALERS CUSTOMERS FORECASTING
Combine Customer/Dealer Knowledge to Forecast Demand
Attract Customers with Progressive
Marketing SchemesMap Key Dealer Demographics
Implement Siebel CRM Software
InventoryTurnover
HoldingCosts
LOW
CO
ST HIG
HC
APA
BILITY
RecommendationsLeverage capabilities of CRM software to increase company value.
15LO
YALT
YSTR
ATEG
Y
CRM DEALERS CUSTOMERS FORECASTING
StockPrice
Implementation TimelineSteps for implementing recommendations over the next three years.
16
Months 1 - 6 Customize and implement at CarCo headquarters using
a software engineering staff of 20 Data cleansing of previously acquired customer
demographic information
Months 6 - 18 Implement and port into individual dealer’s systems
Months 18 - 36 Benefits of demand forecasting will decrease inventory
CRM DEALERS CUSTOMERS FORECASTINGCRM DEALERS CUSTOMERS FORECASTING
Lack of dealer acceptance of Seibel
CRM software.
Risk
Customers providing “dirty data” in loyalty program.
Mitigation
Market forecasting advantages of implementation .
Use effective input controls to manage acceptable answers.
CarCo may misapply acquired customer
information.
Accenture supplies assistance in market analytics and change management.
Prob
abili
ty
Impact
Prob
abili
ty
Impact
Prob
abili
ty
Impact
Risk
Risks / Mitigating FactorsMeasurements of the probability and impact of potential risks.
17
CRM DEALERS CUSTOMERS FORECASTING
After addressing current issues, expand offering to take advantage of CRM potential.
Long-Term PotentialBy using Siebel, CarCo will be able to later expand it’s CRM offerings.
18
2014+
Scalability Sustainability
2011 - 2014
Dealer E-Purchasing Online Financing
2009 - 2011
Customer Loyalty Inventory Demand Forecasting
CRM DEALERS CUSTOMERS FORECASTING
8 Kishen Parikshak | Matt Blair | Zach KostTEAM
Questions Comments
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| Zach Kost
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