Winning at CRM:New Rules for Business Managers

Jill DychePartner, Baseline Consulting GroupAuthor of The CRM Handbook

Baseline Consulting is a multi-vendor systems integration firm specializing in business

intelligence and CRM

Publications and Sources

Database Programming and DesignWall Street Journal (quote) Oracle Magazine Teradata Magazine Information Week The Chicago Tribune The Washington Times Telephony Magazine Data Management Review DM Direct Newsletter

DS* On-Line Newsletter EAI Journal TDWI Journal of Data Warehousing RealMarket Live! Webcast CIO Magazine/CIO.com Intelligent Enterprise-Intelligent CRM ComputerWorld Intellibusiness.com SearchCRM.comCRMGuru.comCRMToday.com

What Do Your Customers Want?

“…because that’s our policy.”

“They push me to avoid the branches, but when I call I have to explain who I am.”

“I want a king-size bed, non-smoking room already!!!”

“They say they know me, but I’ve had call waiting for 5 years and they still pitch it!”

“Why do I have to be pre-approved? Don’t they know I’m already a customer?”

CRM So Far: The Low-Hanging Fruit

CRM isn’t CRM unless it affects the

customer’s experience

CRM is a program, not a project

CRM should improve ROI and ROC

Technology is means, not an end

The 360-degree view is the holy grail

But…

Are You Closing the Loop?

Are You Acting on the Intelligence?

So What? So What?

Are You Pitching CRM Correctly?

They really think…“We need funding for a proof-of-concept.”

“We need your sponsorship.”

“We’ve invited Vendor x to come and demo their tool.”

“We need to understand your requirements.”

They want me to invest my budget with no understanding of the value.

When execs hear…

I don’t want to bet my job on this new CRM thing!

Oh no! Not another JAD session!”

What for?

CRM Solves Business Problems

Our attrition rate is increasing.Our trouble ticket pipeline is growing.Our salespeople are spending too much time on

paperwork.We don’t know which customers are using which

channels.New campaign responses are down 24% this

quarter.We’re requesting customers’ privacy preferences

but aren’t recording them anywhere!

Are You Aligning CRM With Corporate Strategy?

“If it doesn’t adhere to one of these four objectives, we don’t do it.” –EVP of Retail

Banking

The Four CFMs

Increase revenue per transaction

Increase customer sat

scores

Increase customer acquisition rates

Decrease cost per revenue dollar

Proposed Project

Decrease Costs

Increase customer

value

Increase Customer

Satisfaction Scores

Increase Revenue

per Transaction

Customer Profitability ModelingTarget Marketing/Campaign Management

Customer Segmentation

Channel Analysis

Event-Driven Marketing

Life Stage Marketing

Clickstream Analysis

Cross-Selling/Up-Selling

Delinquency Modeling

Call Center Automation

Customer Lifetime Value

D

D

D

D

D

The CRM Portfolio: An Example

Data Subject Areas

Product

CUSTOMER

Contact

Transaction

Provider

Value Score

Web Session

D&B

ABC

ActivityCampaign

Invoice(SAP)

Contract

SLAEmployee

Data Sources

ETL

CustomerDashboard

Marketing Analysis Platform

Web Traffic Analysis

Profitability and Value Analysis

External Client

Reporting

Sales and Market Share

Analysis

Service Request Mgmt.

Employee Performnce

and Sat Repts

Cust. Care Performance Measurement

Product Cost

Workbench

Enterprise Financial Reporting

Executive Information Dashboard

Consolidated E-Bill

Reporting

Peak Performance

Analysis

Payment Analysis

Workbench

ITO Capacity Planning

Tool

Market Growth

Customer Satisfaction Financial Performance

Do your executives get it?

Do Your Executives Get CRM?

1. Our executives understand that CRM is a “portfolio” of customer-focused projects deployed over time.

2. They understand that even “mature” CRM capabilities need to be supported and refined

3. They know that CRM is a critical means of fulfilling our corporate strategic objectives.

4. They acknowledge that all CRM should be based on a single set of principles and understandings.

5. We’re still educating them.

Have You Achieved the SVT?Customer

Profile

Accounts

Service History

Customer Value Score

Marketing Campaigns

Recent Activities

Events and Alerts

SRMPRM

Campaign Management

Customer Support

Pricing and Configuration

Contact Management

Activity Management

Operational CRM

Analytic CRM

Next Sequential Purchase Analysis

Propensity-to-Buy Modeling

Customer Value

Measurement

Customer Segmentation

Customer Profiling

Campaign Measurement

Prospect Qualification

Customer Satisfaction

Analysis

Risk Scoring

Channel Analysis

Revenue Analysis

Churn Analysis and Prediction

Supplier Evaluation

Partner Contribution Measurement

Workforce Optimization

Enterprise Data

Operational Data:

• ERP• SCM• E-commerce• Billing• Product• Financial• Usage

© The CRM Handbook (Addison Wesley, 2002)

Is Your CRM Ecosystem Improving?

Are You Institutionalizing Customer Intelligence?

“You mean I have to call Bangalore to

modify the campaign list?”

What To Do Now… A Checklist for Success Define and measure success — at the project level!

Integrate market research and CRM

Continue to integrate, track, and analyze customer behaviors

Pursue more advanced analytics (aka: business intelligence)

Integrate your data!Work with your IT department to ensure that new applications share data with

your CRM system(s)Model customer data across business linesAppoint data SMEs from the business side

Close the loop: Make sure to track new customer interactions, requests, preferences, and behaviors—across channels!

Thanks!

Baseline Consulting Group15030 Ventura Blvd, Suite 19-707

Sherman Oaks, CA 91403www.baseline-consulting.com

(818) 906-7638 L.A. Office(800) 747-3709 Toll-FreeData Warehouse Consulting.

CRM Services.

Executive Strategy Sessions.

Technical Staffing.

Business Intelligence.

www.baseline-consulting.com