Hosted by How BI and CRM Can Work

Hosted by How BI and CRM Can Work for you Sheryl Kingstone, Program Manager, CRM Strategies, The Yankee Group

Hosted by Agenda v The State of Traditional CRM v Customer Centric CRM--Rethinking CRM From the Outside v Conclusions and Recommendations

Hosted by Businesses Initiate CRM Projects for a Variety of Reasons l The essence of customer relationship management is to balance the following desires: • Increase revenue through differentiated products and • • services Decrease sales, marketing and service costs through better execution Enhance the customer experience for improved loyalty l Many CRM implementations have done very little to meet the top goals and objectives of the many businesses l Effective implementations of CRM are critical to the success of just about every company l Customers, after all, are any company’s most important asset

Hosted by Technology Executives Are Realigning IT Resources Accordingly… 2004 Versus 2003 IT Budget Allocation: Enterprise are allocating more IT spending to edges of the enterprise at the expense of foundational, core and other internally facing technologies. Source: The Yankee Group 2003 Edge of the Enterprise Survey

Hosted by The State of the CRM in Organizations CRM remains important, but current initiatives are being reevaluated and alternative approaches are being considered more seriously Priority to be more customer centric and understanding behavior and needs is leading to fewer failures around many CRM projects, but disillusionment remains Leveraging and integrating existing IT investments and focusing on more digestible projects and implementations

Hosted by The Shortcomings of Traditional CRM: Too much M and not enough C and R Customer: Internally focused deployments in silos are not customer-centric Relationship: Limited customer-centric processes and in-context information didn’t enhance the relationship or improve loyalty Management: Only management-level employees can leverage operational data

Hosted by Traditional CRM Implementations do Little to Improve the Quality of Customer Care l Businesses that do not prioritize customer centricity as a necessary initiative will see a negative impact on corporate performance • high customer churn • low customer satisfaction • plummeting employee moral • decrease in market share • increase in cost through fragmented business processes l Happy customers buy more than unhappy ones and they do so for a much longer period of time l Unhappy customers cannot only decrease future wallet share, but also inhibit the growth for potential new customers

Hosted by Marketing and Analytics Are Critical for Customer-Centric CRM Past Siloed applications for sales and service Tactical marketing automation Disconnected campaign activity Basic personalization Query-driven analysis Current or historical reporting Departmental CRM Present Semi-integrated enterprise application Data-driven marketing 360 -degree view of operational customer data Analytical-based decisioning Combining current with historical Operational CRM Future Near real-time blended enterprise Role/contextual driven interactions Dynamic navigation and content based on analytic infrastructure Predictive and proactive notification Quantitative and qualitative real-time decisioning Customer Centric CRM Customer-Centric CRM requires all business processes throughout the extended enterprise be optimized around customer lifecycle care

Hosted by Delivering on Customer-Centric CRM l Shift focus from internal fragmented processes towards a seamless 360 -degree view of customer -facing processes aligned with every customer, partner and employee l Leverage customer data for differentiation to improve customer satisfaction, retention, loyalty and corporate performance l Integrate CRM metrics and key performance indicators into an overarching customer strategy to optimize business processes and make better decisions on both a tactical and strategic level

Hosted by A Natural Extension of CRM Initiatives l Many enterprises value their CRM initiatives but don’t understand how to maximize the value of their CRM investments. • More than 75% of enterprises have a CRM strategy as well as the • necessary data for a 360 -degree view of the customer CLC builds upon current CRM initiatives by delivering high value information across the customer relationship lifecycle using the 360 -degree view l Customer-centric companies use every customer touch -point to stimulate interest, close business, satisfy a need or demonstrate commitment to the relationship. It ensures that every customer contact produces value. • Improve revenue by targeting customers specific desires and • • increasing customer wallet share Reduce costs through more efficient and effective execution since not all customers are created equal Enhance the customer experience by providing differentiated products and services

Hosted by The Driver of Business Intelligence & Analytics l Significant investments in operational systems have delivered value primarily through automation and efficiency l Focus shifting toward gaining insight from those systems l Explosive growth in data volumes and data source proliferation l Insight and predictive analytics necessary to derive next level of value from these investments l Maximum value created by implementing insight and predictive directly into business processes

Hosted by Stages of Analytics 4. Dynamic 3. Performance 2. Exploratory 1. Transactional § § Query-based Reports Flat data with point in time information, inventory status and revenue breakdown § OLAP § Historically “what if” analysis based on multiple dimensions? § Analytical § What do I do next based on known facts and various recommended options? § Predictive § What do I do now based on pervasive real-time data?

Hosted by Effectiveness of Data Warehousing and & Analytics

Hosted by The Good: We Have the Data and Analysis The majority have the necessary data and ability to analyze the information ……….

Hosted by The Bad: Companies Have Data, but Lack Actionable Information The larger the organization, the more data and analysis is being leveraged. Manufacturing organizations were less advanced than other verticals such as banking and telecommunications.

Hosted by The Ugly: Critical Data Still Locked away Investments in the 360 -degree view have not increased efficiency We still have too many places to find information We cannot efficiently get the right information at the right time

Hosted by Analytics Powers Customer-Centric CRM l Smart businesses understand that the only way to offer profitable, differentiated services and products is to better understand their customers l By gaining insight into both individual customers and target market segments, these companies can boost sales and optimize business performance

Hosted by Analytics and Business Intelligence Increases Sales and Profitability l Improve pipeline visibility and forecast accuracy l Align sales personnel and resources with largest potential opportunities l Enable fact-based selling l Optimize product and pricing mix l Match optimal product/offer to customer segment or individual customer l Maximize share of wallet with realtime information and recommendations

Hosted by Increase Marketing Effectiveness and ROI l Tailor marketing offers based on projected customer value to expand future revenues l Identify product and market opportunities l Increase the lifetime value of your most important customers l Identify high potential customer segments or groups l Deliver dynamic, real-time offers based on customer behavior l Measure and improve lead to sales acceptance & closure l Measure campaign effectiveness based on true success metrics

Hosted by Retain and Maximize Value of Existing Customers l Achieve operational efficiency by managing to key service performance metrics l Increase customer loyalty and lifetime value by tailoring service levels l Track customer satisfaction by product, segment and cost to serve l Increase customer satisfaction and decrease costs by predicting service issues l Maximize installed base revenues through identification & intervention of customers about to churn l Turn service calls into sales opportunities through enhanced cross-selling

Hosted by SAP CRM 4. 0 Come of Age for CRM l SAP Sales

Hosted by SAP CRM 4. 0 Come of Age for CRM l SAP Marketing

Hosted by SAP CRM 4. 0 Come of Age for CRM l SAP Customer Interaction Center

Hosted by SAP Summary l SWOT Summary

Hosted by Technology, Data and Processes Create the Foundation Technology Foundation Actionable Insight • Customer-facing • Seamless beyond corporate boundaries • Rea- time analytics Quality Data • Value-added information • Consistent Process Efficiency Profit & Competitive Advantage • Real-time across all channels Performance Effectiveness People/Process • KPI’s and metrics aligned w/corporate goals • Differentiated products and services • Seamless processes

Hosted by True 360° View of Customer Interactions Cross Receive Channel, in Real-Time Marketing Promotion Service Inquiry Browse Site, Request Information Sales Rep Contact Re-order Online Track Order Shipment Receive Notification of Fulfilled Order In-Person Meeting Approve Quote, Place Order

Hosted by Success Demands Integrated Insight l Without integration across corporate and departmental boundaries, business can’t answer these questions: • • • Which prospects look like my most profitable customers? Which promotions produced the most qualified leads? Which products are the most profitable over 3 -5 years? Which customers are likely to respond to which new product offering? What product and service mix will increase customer satisfaction and reduce churn?

Hosted by Case Study—Real Time Visibility

Hosted by Case Study—An Optimized Process

Hosted by Case Study—Focus on Customer Experience

Hosted by Recommendations l Dialogue is not simply more effective automation and integration of basic analytics and marketing campaign processes. • Effective dialogue must incorporate some planned campaign activity as a starting point and more situational sequences of messages. Each interaction contributes to a more dynamic customer profile and a more productive set of subsequent interactions. l Meticulous data-management technology and processes is critical to success. • The famous line “garbage in, garbage out” fits perfectly. It is critical to ensure the integrated view of the customer is not only consistent across the entire organization. l Closed-loop programs are critical to reduce marketing waste, but only deliver “short term” ROI. • • Even the most impressive closed-looped marketing ROI figures do not guarantee long- term business success. Understanding revenue growth and market position requires long term analysis of brand balanced against acquisition and retention.

Hosted by Recommendations l Enterprises must put an end to business as usual and optimize the CRM investment around the customer lifecycle. • Customer-centric CRM optimizes the customer experience across sales, marketing and service interactions. With effective CRM, customer relationships can be appropriately managed to maximize revenue and lifespan while keeping operational costs low. l Sales must create strategic account plans across all departments based on customer-facing qualitative and quantitative metrics that can be analyzed against corporate goals. • In a customer-centric company, the sales department is aligned with strategic customers and prospects. The tools maximize sales efficiency (such as ease of use and integrated productivity tools) as well as sales effectiveness tools that help guide and optimize each interaction.

Hosted by Recommendations l Marketing must have real-time analysis for creating a profitable and enhanced customer experience both online and through assisted channels such as contact center. • Marketing needs to incorporate a combination of planned campaign activity as a start, and more situational sequences of messages where greater understanding of the customer is achieved through channel- and contextspecific interactions to optimize any cross-sell opportunities. l Service must deliver higher customer satisfaction at a lower cost by improving agent productivity and effectiveness. • It’s critical to provide guidance and in-context information not only through improved customer selfservice, but also through assisted service channels such as customer service representatives. Customers and the employees need to get at the right information at the right time to maximize the profitability of each interaction.

Hosted by Thank You! Sheryl Kingstone, Program Manager, CRM Strategies skingstone@yankeegroup. com