bgs customer relationship management chapter 4 organization and crm chapter 4 organization and crm...
TRANSCRIPT
BGSCustomer Relationship
Management
BGSCustomer Relationship
ManagementChapter 4
Organization and CRM
Chapter 4Organization and CRM
Thomson Publishing 2007 All Rights Reserved
IntroductionMultiple Dimensions
• Business dimension• Technological dimension• People dimension• Time dimension
IntroductionMcKinsey Study
• Ten organizational characteristics fall into three distinct categories: structure, skills, and processes
• Structure– Manage trade-offs around critical roles and
resource access– Centrally located analytical experts– Cross-function integration– Quick access to multiple customer
opportunities
IntroductionMcKinsey Study
• Skills– Priority on customer analytics and
insights across key decision makers– Carefully balanced core CRM skill sets– Skill gaps identified and filled quickly
IntroductionMcKinsey Study
• Processes– Customer-specific metrics and
scorecards embedded into performance evaluations, incentives, and financial plans
– Decision support automated– IT and business reengineered to ensure
responsiveness to customer
The Human Factor
• Leadership– Start small– Customer centric– Across whole organization
• Human Resource Capacity – CRM enablers– CRM users
The Human Factor
• Communication– Solicit feedback before setting
strategy• Feedback dimensions include financial,
people, technology, value chain, competitive environment, and macroenvironmental forces
– Develop “Phase” approach
• Cooperation– Internal– External
The Human Factor
• People – Knowledge base– Skill gaps– Role conflict– Customer selection– Maintain momentum
Organization EnvironmentCulture
• Indicators that may lead to a sub-optimal CRM initiative include:– Reward structure that favors
adherence to hard nonflexible standards
– Production orientated versus marketing orientated
– Leadership from offshore entity– Executive leadership out-of-touch with
customer
Organization EnvironmentCulture
• Indicators that may lead to a sub-optimal CRM initiative include:– Lack of empowerment– Predominately top-down decision
making and information flow– Internal competitive work methodology
and reward systems not aligned with CRM strategy
Organization EnvironmentSize
• Size is not a determinant of an organization’s potential CRM success.
• Different sizes do create different advantages and disadvantages.
• A large organization’s advantage can be a disadvantage for a small organization and its disadvantage an advantage for the smaller organization.
Organization EnvironmentSize
• Large organization advantages– Financial resources or access to those
resources– Economies of scale with respect to
technology and human resources– Potentially deeper levels of CRM
expertise or easier access to that expertise
– Technology and CRM consultative suppliers more ready available
Organization EnvironmentSize
• Large organization advantages– Large customer base can generate
appropriate funding dollars– Large amount of customer and
prospect data can enable more in-depth marketing intelligence
Organization EnvironmentSize
• Large organization disadvantages– Functional structure and silos– Large employee base increases
complexity in CRM training and implementation
– Customer and prospect data may have proliferated throughout the organization with no thoughts to a single view of the customer
– Cost of creating a single accurate view may be prohibitive
Organization EnvironmentStructure
• Functional or “silo”– Can inhibit quick response– Adds complexity to CRM strategy
• Product/Service or brand alignment– Good at collecting customer
information relative to specific brand– May inhibit ability to create a holistic
view across brands
Organization EnvironmentStructure
• Geographic structure challenges– Communication of CRM strategies and
best practices throughout all customer interaction points
– Timely and accurate dissemination of relative customer information from all interaction touch points; ability to process this information quickly with an accurate reverse information flow
Organization EnvironmentStructure
• Geographic structure challenges– Flexibility in changing CRM strategy to
optimize specific geographic opportunities or adjust to geographic nuances, constraints, or opportunities
– Integration of value chain members across geographic boundaries
– Ability to sustain CRM momentum to decentralized employees
Organization EnvironmentStructure
• Geographic structure challenges– Adopt input from decentralized
employees into best practices for same or different areas
– Support organization entities for different time zone customers, including Internet and phone interactions
Organization EnvironmentStructure
• Account management– Heavy customer interaction – Extensive use of CRM-enabling software
• Industry category• Impact on value chain
• Matrix• Can be optimal for CRM
• Structure around customer• Increase in complexity and cost the more
fragmented the customer base
Organization EnvironmentTechnology
• Integration across all areas is desired
• Changes in technology solutions over time
• Impact on current operations if changes made
• Different licenses, leases, or contractual terms for the same or different OEMs
• Organizational silo-based decisions
Organization EnvironmentTechnology
• Budget constraints• Strategic and technical
understanding and leadership• High skill level employee turnover• Resistance to frequent change of
business process caused by rapid technology change
• Merger and acquisition activity complicates the issues
Organization EnvironmentProcess
• Hard versus soft standards• Staffing• Outsourcing functions• Cost constraints• Realistic assessment of required
depth and breadth of desired customer relationship
Value Chain Organization
• Business functions provided by different value chain members have increased in number and complexity
• Rapid changes in technology create:– Pressure to adopt in effort to remain
competitive– Dilemma, as rapid adoption creates
challenges of coordination
Value Chain Organization
• Changes to pull and push strategies need coordination throughout chain
• Business function changes need to be coordinated with technology changes across the chain
Other Considerations
• Knowledge management: The process of transferring captured information into knowledge that can be shared by respective parties within the organization or value chain in an effort to enable CRM efforts
• CRM is a long-term strategy that requires a long-term investment strategy
Summary
Category Stage 1 Stage 2 Stage 3 Stage 4
CRMPlanning
Limitedbudget
Annualplanning within required budget
Planning part of corp. strategy
Value chain inclusion in corp. CRM planning
MarketResearch
None Focus groups, survey
Batch transact-ion analysis
Integrated analysis, including real-time activity
Summary
Category Stage 1 Stage 2 Stage 3 Stage 4
CRMOrientation
Mass market
Segments
Custom-ization by segments
Custom-ization by individual
CRM Channel MGMT.
None Basic internal SLA’s tied to CRM strategy
Basic external SLA’s tied to CRM strategy
Integrated CRM strategy tied to end cust. value proposition
SummaryCategory Stage1 Stage 2 Stage 3 Stage 4
Communica-tion
Disparate
Coordin-ated internally
Coordinated internally with external parameters
Channel- integrated dialogue with end customer
MKTOrganization
Sales orientat-ion
Sales and MKT
Org. coordination across all functions
Value chain member integration
SummaryCategory Stage 1 Stage 2 Stage 3 Stage 4
CRM methodology training
None Sales and MKT
Cross organiza-tional
Value chain coordina-tion
Employee recognition
None tied to CRM
Informal based on “at-a-boys”
Formal based on predefined metrics
Tied directly to internal and external customer satisfaction and loyalty
Summary
Category Stage 1 Stage 2 Stage 3 Stage 4
Customer relationship
None Efficient complaint handling
Hard standards for customer interaction
Empower-ment with soft standards
Technology
Basic and disparate
Internal customer state-of-the-art
External customer state-of-the-art
Value chain integration