customer relationship - maturity model · customer relationship - maturity model august 2014 ......
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Customer Relationship - Maturity Model
August 2014
Source Video:
http://www.ventanaresearch.com/webinars/CRM/webinar_replay/index.aspx?id=2596
Research based of 150 companies
The maturity of the organisation was examined from the perspective of its
People
Processes
Information
Technology
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Research findings shows that 44% of companies surveyed still treat Customer Relationships in the
same way as they have done for years as a tactical strategy, and see no reason to change.
Figure 1.1 - Relationship ranking of companies surveyed
Figure 1.1 goes on to say that this does not say these companies are right or wrong, but the research
shows that more 50% of companies surveyed have started to adopt more innovative processes
people and technologies to help them build better customer relationships. It showed that 12% could
be seen as innovative as they use the latest techniques, people, processes and technologies and
have trained and incentivised their employees to use these.
Breaking these findings down into the four components of innovation you can see the Innovative
group seem to be focusing efforts on process innovation (in red) than are the other three groups.
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Figure 1.2 – Areas of Innovation effort by group
In conjunction with a series of survey questionnaires the companies were surveyed as to their
Customer focus. Whilst all considered themselves to be customer focused, the Innovative group had
the highest ranking in relation to the specifics of Customer relations than all other groups.
Figure 1.3 – Customer focused ranking by group
This demonstrated there was a strong relationship between innovation and being truly customer
focused.
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The research also shows the more mature companies use a cross functional team reporting to the
senior management who are responsible for the consistence of service through each of the business
units. 19% used a cross functional team another 19% used a single individual.
Creating a single view of customer, not with silo’s of information retained in separate business
functions, organisations can easily have 20 plus systems managing customer data, and the logistics,
costs and resources required to manage that across the enterprise is a struggle for most companies.
The consequence is of course that organizations are at risk of giving the customer inconsistent
quality and content of services as they interact with the organization through different channels.
The second challenge for organizations is to be able to provide personalisation of services.
Customers are individuals and expect to be treated as such, and with the technologies available in
this day, the experiences of being provided with personalized service by other companies has
created expectations of minimum levels of service that your customers will expect to receive. This
trend has continued through 2012 to 2015 to the point where personalized service is today no
longer a competitive point of differentiation, but “table stakes” for customer recruitment, product
or service selection and customer retention. Further these expectations are in themselves also
changing as the more progressive companies seek to create further efficiencies through continuous
improvement, and will continue to refine and improve customer loyalty.
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State of Customer Relationship Maturity
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Pulling these 3 together to give personalized services
Most highly used is interaction handling processes (78%).
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To provide effective services the company needs accurate, and up to date information behind any
interaction with the customer.
Today it’s not enough for CRM to be a shared pool of interaction and informational and transactional
data. The notion of “one view” of the customer emerged in the late-1990s was based on the
assumption that workers can and would choose to access databases to gain insights while providing
service which in today’s environment where customer service expectations are higher and there are
more technologically enabled touch points we know to be a flawed assumption. To leverage
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technology and empower workers the analysis must be done prior to the customers contact, so the
customers, workers and the technology based systems can leverage accepted organizational
assumptions and norms presented information, manage processes and interactions to maintain high
levels of customer service. In practice this could be as simple as icons and indicators to explain
status or head off frustration that are presented to the customer on line or to the call centre
operator in a clear and cognitive manner. Data analytics is used to build this information and
manage the customers journey as they move towards high levels of customer satisfaction and trust
with their supplier. The result is a set of information no longer referred to as a single view of the
customer but the “voice of the customer” and contains information relevant to continued delivery of
and improvement in high levels of customer service.
Customers appear to be using Social media mostly for marketing, mostly for publishing slides, videos
as customer resources and for new information.
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This part of the survey shows that companies are not taking into account the personas (social media
influence ratings) of people when responding to social media posts. Companies are beginning to
escalate response when people of influence respond, but for the remaining majority response rates
are inconsistent.
Steps
Collect data, find out what people are saying about you (social media analytics)
Then U can decide how to provide service through social media
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Conclusion
In recent years Customer relationship might have been overshadowed by newer technologies from
Social media and mobile communications as companies strived to understand how the newer
technologies would effect their operations, but its importance is no less relevant today than when it
first appeared in the 90’s. The difference today is of course the advances in technology and
customer expectations mean that Customer relationship Management is more a continuous
improvement practice that a project to introduce new capabilities. Today it requires the skilful use
of People, Information, Processes and Technologies to be effective.
Organizations who believe the role of analytics is only to provide tactical or performance
information are missing the point, and excluding themselves from the advantages of using analytics
to leverage technologies. For an organization to mature it must embrace continuous improvement
practices and recognise customer relationships maturity is a journey not a destination.