sales & marketing ― what’s crm got to do with it? lane michel, partner peppers & rogers...
TRANSCRIPT
Sales & Marketing ―What’s CRM got to do With it?
Lane Michel, PartnerPeppers & Rogers [email protected]
CRM Can Enable Greater Alignment Across all Customer Touch Points
Strategy alignment, not just technology
Guiding principles (1to1, IDIC)
New tools and techniques that bring
Sales & Marketing together
STRATEGY ALIGNMENT,NOT JUST TECHNOLOGY
40,000 customers. What if only 80 matter?
CRM in Four Words…
Treat
Different
Customers
Differently
Ask Yourself: What is your firm’s most unique, non-replicable asset?
Products?
Brand equity?
Sales staff?
Merchandise?
Stores?
Databases and contact centers?
Marketing programs?
… Or customers?
You tailor your product, service or elements associated with it
Customer tellsyou what hewants
FEEDBACK
Saveme
time
The more effort the customer invests, the greaterThe more effort the customer invests, the greatertheir stake in making relationship worktheir stake in making relationship work
Now the customer finds it more convenient to remain Now the customer finds it more convenient to remain loyal, rather than re-teach a competitorloyal, rather than re-teach a competitor
The “Learning Relationship”
— Jack Welch, CEO of GE,outlining his competitive strategy for the 21st Century
“We have only two sources of competitive advantage:
1)the ability to learn more learn more about our customersabout our customers faster than the competition
2)the ability to turn that turn that learning into action faster learning into action faster than the competitionthan the competition.”
Creating a Competitive Advantage
Technology & Tools Enable CRM, but…
CRM tools are only: •as smart and capable as your workforce
•get results when your business processes change to harness customer insight
CRM can’t be installed.
It must be adoptedadopted.
The Four Steps of 1to1 Marketing
IdentifyIdentify customers, individually and addressably
DifferentiateDifferentiate them, by value and needs
InteractInteract with them more cost-efficiently and effectively
CustomizeCustomize information, messages, product and service offering based on learning
GUIDING PRINCIPLES
Cascading Goals:
More profitable growth
Greater share of customer
Differentiated treatment/experience
Analytics on value/needs
Customer knowledge Management
Strategy for Building Customer Knowledge Management
Foundational Layer: Tools, technology, business rules, basic customer identification and address information to build and maintain profiles
Associative Layer: Detailed transactions, complex associations, analytics, predictive values
Transactional Layer: Basic transaction and association information direct and indirect
Intelligence Layer: Customer needs, feedback, unstructured information fields
360º View Achieved Over Time
Start with Core Customer Profile
NEW TOOLS AND TECHNIQUES THAT BRING SALES &
MARKETING TOGETHER
• Customer Value and Needs Analysis• Customer Knowledge Management• 1to1 Marketing Discipline & Pilots
Customer Metrics
Required Capabilities for Marketing
Analysis
Response ActionAction
Insight
Customer Customer DataData
10 High-Value Marketing Processes for 21st Century
•Marketing operations management •Marketing visibility, accountability and value measurement
•Customer and market insight generation
•Customer-value-based segmentation•Portfolio and capacity-based resource allocation
•Product development and introduction
•Customer-needs-based trigger identification
•Orchestrated customization– integrated marketing activities
•Orchestrated cross-channel dialogues•Customer-value-based network management
10 High-Value Marketing Processes for 21st Century
•Marketing operations management •Marketing visibility, accountability and value measurement
•Customer and market insight generation
•Customer-value-based segmentation•Portfolio and capacity-based resource allocation
•Product development and introduction
•Customer-needs-based trigger identification
•Orchestrated customization– integrated marketing activities
•Orchestrated cross-channel dialogues•Customer-value-based network management
Source: Gartner Group
Managed Analytics Overview 1. Gather
Customer Data(both internal and external)
• Contact Information
• Preferences
• Purchasing Behavior
• Customer Interaction
• Demographic and firmographic
• Customer Needs
• Customer Defection
• What products customer will need next
• Look-a-like- - portfolio analysis
• Positive and negative triggers
• Align Marketing & Sales resources to customers based on opportunity
• Develop customized marketing collateral based on customer need
• Offer customized content on Internet based on customer needs
• Design events around, and send invitations to, most valuable customers and look-a-likes
• Feed customer insights to product development
4. Evaluate Response
Increase in customer satisfaction
Incremental customer contribution
Increased customer interaction (e.g., attendance at events)
Decrease in defection rate
Increase in wallet share
Increase in customer loyalty
3. Suggest ProactiveAction
2. Derive Customer Insight
Analysis
Action
Decision-support
Reporting & Feedback
Spend no resources marketing to these
…and grow these.Actual Value
Potential Value
CostsMigrate these
(potential value unknown)
“Migrators”MVCs MGCs BZs
Customer Value Tiers
Use 1to1 to keep these customers
Customer “Needs” Groups in ActionThe trick is to find
customers who “look like” each other in terms of their needs
Goal is to organize strategy and treatments around portfolios of customers with similar needs
Identifying needs-based groups among customers is a first step to differentiating the experiences of individual customers
Defining and Meeting Enhanced Needs Increases Your RelevanceBeyond demographics• Gender, age, geography, income, company size, title
Beyond attitudes • I am status conscious and want to use only the best products• My company uses technology as a competitive advantage and
we are on the leading edge
Needs are unique and behavior-driven• I am an “information-junkie” and a “techie.” I want you to
provide me with as much relevant information about personal electronics as you can.
• I am a “frequent traveler” that spends most of my time driving from one city to the next. I have very little time – how can you save me time?
Basic Addressable Client Needs (B2B example)
Vertical industry
Business event or trigger
Advancement in life cycle
Stated unmet need (feedback)
Relationship growth, issue
Common customer need
Needs are Classified in Different Ways
Shared Needs
Group Needs
Group Needs
Common Needs
Needs common to a large majority of customers
Differentiating Needs
Individual Needs
Needs shared across two or more needs groupsNeeds shared by customers in one needs group
Needs specific to one individual customer
Incre
asin
gly
Rele
vant a
nd Im
pactfu
lIn
tera
ctions D
eep
enin
g In
div
idual
Custo
mer R
ela
tion
ship
…Serves as the Foundation for a Customized Interaction Strategy
Shared NeedsShared Needs
Targeted marketingmessages
Shared Needs
Shared NeedsShared Needs
Needs Group
B
Needs Group
A
Needs Group
C
Needs Group
D
NeedsGroup
E
Customized, Templated Offerings
IndividualizedLearning
Relationships
Mass MarketingCommon Needs
1to1 Marketing Definition
Discipline for the enterprise
Engages the right INDIVIDUAL CUSTOMER
At the right TIME
With the right MESSAGE
In the right WAY
Enabled through CRM tools
To drive more profitable revenue growth
Step 5. Step 5. Execute PlanExecute Plan
•Coordinate activities and timing with Sales
•Ensure baseline measures are in place
•Initiate interactions defined in PLAN
•Monitor responses, feedback
•Refine communications materials as needed based on feedback and responses.
•Coordinate activities and timing with Sales
•Ensure baseline measures are in place
•Initiate interactions defined in PLAN
•Monitor responses, feedback
•Refine communications materials as needed based on feedback and responses.
Step 3. Step 3. FOCUSFOCUS
Review INSIGHT document with Marketing
Review INSIGHT document with Sales
Begin building 1to1 plan by determining who to focus on and what activities need to surround that interaction
Delivery of FOCUS document detailing how marketing can Focus their efforts to support Sales at the selected accounts
Review INSIGHT document with Marketing
Review INSIGHT document with Sales
Begin building 1to1 plan by determining who to focus on and what activities need to surround that interaction
Delivery of FOCUS document detailing how marketing can Focus their efforts to support Sales at the selected accounts
Step 2. Step 2. INSIGHTINSIGHT
•Insight interviews with Marketing and Sales
Review of all Account related external sources such as, Annual Report, Hoovers, Audio Broadcasts, etc.
Identification of all Key contacts and types of interaction
•Delivery of INSIGHT document detailing all relevant and key insights from all sources
•Insight interviews with Marketing and Sales
Review of all Account related external sources such as, Annual Report, Hoovers, Audio Broadcasts, etc.
Identification of all Key contacts and types of interaction
•Delivery of INSIGHT document detailing all relevant and key insights from all sources
Step 4. Step 4. PLANPLAN
Review FOCUS document with Marketing
Review FOCUS document with Sales
•Detail out how to best deliver what messages to achieve the focus activities for each individual
•Delivery of the PLAN document which lays out what has to happen to deliver the right message at the right time in the right way
Review FOCUS document with Marketing
Review FOCUS document with Sales
•Detail out how to best deliver what messages to achieve the focus activities for each individual
•Delivery of the PLAN document which lays out what has to happen to deliver the right message at the right time in the right way
Step 1. Step 1. ITSM ITSM
Messaging Messaging ReviewReview
•Review Current State messaging materials, contacts, vehicles
•Identify gaps in marketing and sales materials and messages
•Account Selection
•Review Current State messaging materials, contacts, vehicles
•Identify gaps in marketing and sales materials and messages
•Account Selection
Define ITSM Interaction StrategyDefine ITSM Interaction Strategy
Build a 1to1 Marketing Pilot
SF TEMPLATING & PLAYBOOKS
Sales Playbook Description
Used by sales in preparation for customer discussions
• Provides clearer view of customer experience in the context of understanding addressable needs groups in the market
• Delivers scripts and “golden questions” to uncover customer needs in context of your ability to meet those needs
• Packages relevant marketing treatments that include optimized product & service offerings for grouping of customer needs
Addressable Needs are Grouped in Different Ways to Make you More Relevant to Customer
Shared Needs
Group Needs
Group Needs
Common Needs
Needs common to a large majority of customers
Differentiating Needs
Individual Needs
Needs shared across needs groups
Needs shared by customers are grouped
Needs specific to one individual customer
Incre
asin
gly
Rele
vant a
nd Im
pactfu
l In
tera
ctions D
eepenin
g In
div
idual
Custo
mer R
ela
tionsh
ip
• Business event or trigger• Advancement in life cycle• Stated unmet need (feedback)• Relationship growth, issue• Common customer need
Delivering the Sales Playbook
Package marketing
collateral for selected needs
groups
Produce Sales Playbook
Define addressableNeeds Groupsby segment
Segment &vertical plan
Customerneeds
research
Sampleaccount
plans
Product /ServiceOffering
Develop Golden Questions & Scripts to fit customers to
defined Needs Groups
Align product/service offer to meet
customer defined need
0% 0% 0% 0% 0%
1 2 3 4 5
What can a 1to1 approach to CRM do for my sales & marketing teams?
1. Better position my company with our customers
2. Replace 1-to-many marketing efforts
3. Drive additional sales
4. Enable greater alignment between Sales and Marketing
5. Doesn't require any more customer information than we have today
Case Study: Bentley Systems
Illustration of using customer needs group to create templated offerings for
Sales Force Effectiveness
Shanghai World Financial Center
Bentley Systems Inc. Background
U.S. leading provider of software for “enterprise engineering modeling”• Annual revenues of $175 million
• 300,000 professional users
• Software manages architecture from design all the way through a structure’s life cycle
Software shares info, automates paper trail• Core product is MicroStation
• CAD program runs on PC
High market share (second in industry, saturated market)
Infrequent sales spikes
Time
RevenueHistorical client
sales
One of Bentley’s Business Challenges
But not only did this product focus make year-to-year growth projections uncertain ... it created numerous pitfalls • Competitors could imitate MicroStation, eroding margins• If market slows, Bentley must either cut margins or costs• If market grows, competitors may create better product• Independent resellers create unstable sales environment
Broaden product line to meet more client needs over time Focus on end-user needs instead of market development• Host industry user conferences• Defined and meet enhanced needs through better
information and data gathering, “Drip Irrigation” through “Golden Questions”
• New products and services to increase revenue from each client
Time
Revenue
Create sources of revenue by meeting more of each client’s needs
Bentley’s Business Solution –Leverage What They Know About Their Customers
Sales Playbook Supported Aligning Sales & Marketing for Customer Growth Effectively shifted focus from market share development to customer
share development• Integrated marketing in front of and behind sales and channel partners
Balance between corporate and sales-level customer relationships
Marketing delivers value to the customer-facing sales force by helping identify needs and interactions with most valuable customers
Benefits are three-fold:• A culture of trust and support that further enables the whole company to
develop deep customer relationships• More effective prioritization of sales efforts• Improved efficiency and relevance of marketing efforts
Result: Alignment of sales and marketing efforts resulted in doubling of revenue and significant decrease in costs
Needs Group 1
Bentley initially devised 11 Bentley initially devised 11 “account use scenarios”“account use scenarios”
Templating the “Sales” Process
ArchitectsArchitects focus on design
aesthetics, price, comfort...
Architectural-engineeringArchitectural-engineering
firms build hospitals,
factories...
EngineersEngineers put a pipeline in the
desert or a bridge across a river...
Needs Group 2
Needs Group 3
Needs Group 4
NeedsGroup 5
Needs Group 6
Needs Group 7
Needs Group 8
Needs Group 9
NeedsGroup 10
Needs Group
11
Using the Templates…Account scenarios derived from grouping of
needs without looking at past transactions
Bentley mapped 85 products and related services to the 11 account scenarios• Descriptions of environment, customer needs and
objectives of the customers within the scenario
Account Manager and Marketing team quickly assembled details on all appropriate product and service “modules” mapped into templates
When a customer or prospect profiles into a scenario, sales and marketing respond together with the matching template
Bentley’s Results
Bentley’s new revenue model
• By moving MVCs to direct sales using sales templates and aligning Marketing behind Sales
• Bentley in FY 2001 achieved growth of 66% to $290M standing out among software vendors in a poor post 9/11 sales environment
