The Path to Customer Centricity
September 15th, 2011Merkle Inc. featuring Forrester Research
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Today’s Speakers
Steve LaValleEVP Client & Advisory Services, Merkley ,– Focused on driving client value through Merkle services
that embed advanced customer insight into customer strategies, marketing and customer operations.
– Steve has more than 24 years experience in direct marketing and CRM /analytics strategy consulting.
– Prior to joining Merkle, Steve spent over 8 years at IBM Global Business Services where he was Global Leader
@MerkleCRMGlobal Business Services, where he was Global Leader, Business Analytics and Optimization Strategy Services. Prior to that, he served as Partner for PwC Consulting focused on CRM strategy for Fortune 100 g gyorganizations.
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Today’s Speakers
Fatemeh KhatiblooS i A l t F t R hSenior Analyst, Forrester Research– Serves Customer Intelligence Professionals, helping
companies better leverage customer knowledge to improve marketing and business performanceimprove marketing and business performance.
– Her research focuses on overall Customer Intelligence strategies and the CI services landscape, including agencies, analytics providers, MSPs, and consultancies.@fatemehx2 g , y p , ,
– Fatemeh covers the trends and issues around privacy, identity, data portability, and the emerging consumer data economy.
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Today’s Speakers
Chris CraynerSVP Consumer Goods, Travel & Entertainment, Merkle– Focuses on devising innovative solutions for integrated
marketing and customer relationship marketing. – Has developed and led customer marketing strategy,
initiatives and functions for more than 15 years acrossinitiatives, and functions for more than 15 years across multiple industries
– Prior to joining Merkle, Chris was vice president, global customer managed relationships, for Walt Disney Theme @MerkleCRM custo e a aged e at o s ps, o a t s ey e eParks and Resorts, where he was responsible for customer relationship marketing strategies and initiatives worldwide.
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The Path to Customer Centricity
Presented by: Steve LaValleEVP, Client and Advisory Services
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We’ve been on this path to customer centricity for a long time
We’ve been talking about becoming customer centric
f t l t 15
Yet…we still haven’t “cracked the code”for at least 15 years
Acquiring customers is still expensiveexpensive
Attrition still existsAttrition still exists
Profitability is not guaranteed
(2005)(2010)
(1996)
Profitability is not guaranteed
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7
Every time we think we’ve arrived, the target moves
New technologyEscalating UnrelentingNew technology disruptions
Escalating customer
expectations
Unrelenting competition
Demands of customer centricity are not an end state
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Customer centricity changes the profit model
Some other centric Customer centric
ProfitsRevenue CostsMarketing ProfitsRevenue CostsMarketingProfitsRevenue CostsMarketing investment
ProfitsRevenue CostsMarketing investment
Profitable Break even UnprofitableKey:
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The path to centricity is one of little steps, not a giant leap
Bang!Bang!
andMonumental change
Incrementalchange
POC Test program New capability
g g
Pilot 1 Initiative Pilot 2
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C CThe Path to Customer CentricityDriving Change at a Global Company
Case Study Presented by: Chris CraynerSVP Consumer Goods, Travel & Entertainment
© 2010 Forrester Research, Inc. Reproduction Prohibited11
1
About the company and their situation
Large and diverse organizationUS-based company with a global presence
Direct & indirect business models
Goals:• Aggressive growth targets• Aggressive growth targets
• Leverage products across the enterprise and customer base
• Coordination and integration across the brandg
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The company sought to be more customer-centric across a siloed organization
Current State Future State
Traditional product and business unit siloed orientation
Customer centric model to build lifelong
relationships with tsiloed orientation customers
Transform
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The company and the transformation project had many obstacles and challenges to overcome
L d t ff i d i i t
Operational Challenges Initiative Challenges
Large product offering and price point and complicated sales processes and
distribution channels
Quick execution needed despite massive organization
Integrated customer centric view and traditional brand planning approach needed to co-exist
Comprehensive time and cost predictions were needed, but
difficult to obtain
Traditional budgeting and planning processes didn’t support
customer centricity
Balancing adoption of changes with transformation plan
Resistance to change and “not invented here”
New systems required changes in skill sets and technology required
collaboration across the enterprise
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The Approach
Multi-year Transformation Initiative
S
Cross-functional senior governance and
Mission and Vision backed up by a stepwise
and comprehensive Business cases and pilot programs tied to
Vision and Strategy Run the Business –Change the Business
Change Management
gleadership team
proadmap
p p groadmap
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Vision, planning and governance drove the development and roll-out of new customer-centric processes and capabilities
Master Vision and PlanThe executive and
Governance model
Team designThe executive and stakeholder team
involvement was key to success in
establishing new measurement
th d l i th t
Change management and programmethodologies that
either replaced or augmented existing
ones.
and program governance
Integrated customer views and data
Integrated campaigns and triggers
Channel integration and data captureCustomer centric ecosystems and
environments require highly adaptive and
Customer centricg p g gg
Highly integrated system design
Cross-departmental budgeting and financeresponsive technology
and business management
centric capabilities
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Transformational capabilities and processes were the outcome
Call center and web automation capabilities gather and utilize customer preferences, product needs, offer based sales processesChannel Integration
Highly personalized onboarding and trigger programs for new and existing customers match complex brand and product messages to customer needs and preferences – decrease losses and attrition, increase average buy rates
Personalized onboarding and trigger
programs
Customer insights and data drive improved timing and efficiency of broader media spend and understanding of customer behaviors and attitudes
Customer insight leverage
Current and future channels and systems can plug into the new environment
Highly integrated
Support of future channels and systems
Highly integrated system design is focused around the customer
Customer centric approach drove new methodology, processes and cross departmental and business unit collaboration
Highly integrated system
New internal customer processes
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departmental and business unit collaborationprocesses
Outcomes: Measurable Results
Material Increase 40 55% increasein annual revenue contribution fromtransformation initiative
40 – 55% increase in global contribution over control
18-24 monthsTo reach financial goals
Improved Customer Satisfaction Scores
Improved Operating &ROI of 7:1 Improved Operating & Management Model
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Lessons Learned
Changing is harder than building capabilities Take a “stepwise” approachbuilding capabilities
When moving fast, sometimes slow down and regroup
New metrics and insights often challenge long held beliefsslow down and regroup challenge long held beliefs
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Q ti ?Questions?
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Contact
Steve [email protected]
Fatemeh [email protected] forrester com
Chris [email protected]
Twitter: @MerkleCRM Twitter: @MerkleCRMwww.forrester.comTwitter: @fatemehx2
Blog:http://blogs.forrester.com/customer intelligence/
Twitter: @MerkleCRM Twitter: @MerkleCRM
http://blogs.forrester.com/customer_intelligence/
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Th k YThank You
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