Winning at CRM New Rules for Business Managers

Winning at CRM: New Rules for Business Managers Jill Dyche Partner, Baseline Consulting Group Author 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 Design Wall 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 Real. Market Live! Webcast CIO Magazine/CIO. com Intelligent Enterprise-Intelligent CRM Computer. World Intellibusiness. com Search. CRM. com CRMGuru. com CRMToday. com

What Do Your Customers Want? “Why do I have to be pre-approved? Don’t they know I’m already a customer? ” “They say they know me, but I’ve had call waiting for 5 years and they still pitch it!” “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!!!” “…because that’s our policy. ”

CRM So Far: The Low-Hanging Fruit l CRM isn’t CRM unless it affects the customer’s experience l CRM is a program, not a project l CRM should improve ROI and ROC l Technology is means, not an end l The 360 -degree view is the holy grail

But…

Are You Closing the Loop?

Are You Acting on the Intelligence? So What?

Are You Pitching CRM Correctly? When execs hear… They really think… “We need funding for a proof-of -concept. ” They want me to invest my budget with no understanding of the value. “We need your sponsorship. ” “We’ve invited Vendor x to come and demo their tool. ” “We need to understand your requirements. ” I don’t want to bet my job on this new CRM thing! What for? Oh no! Not another JAD session!”

CRM Solves Business Problems üOur attrition rate is increasing. üOur trouble ticket pipeline is growing. üOur salespeople are spending too much time on paperwork. üWe don’t know which customers are using which channels. üNew campaign responses are down 24% this quarter. üWe’re requesting customers’ privacy preferences but aren’t recording them anywhere!

Are You Aligning CRM With Corporate Strategy? Increase customer acquisition rates Decrease cost per revenue dollar “If it doesn’t adhere to one of these four objectives, we don’t do it. ” –EVP of Retail Banking Increase customer sat scores The Four Increase CFMs revenue per transaction

Customer Satisfaction Market Growth Customer Dashboar d Profitabilit y and Value Analysis Data Subject Areas Financial Performance The CRM Portfolio: An Example External Client Reporting Sales and Market Share Analysis Web Sessio n Product Web Traffic Analysis Cust. Care Performanc e Measureme nt Marketing Analysis Platform CUSTOM ER Provide r Value Score Employee Performn ce and Sat Repts Service Request Mgmt. D&B Transacti on Contac t Executive Informati on Dashboar d Enterprise Financial Reporting Consolidat ed E-Bill Reporting Payment Analysis Workben ch Peak Performan ce Analysis Product Cost Workben ch Invoice (SAP) ETL Activity ABC Campaig n Employe e Contra ct SLA Data Sources ITO Capacity Planning Tool

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 Customer Value Score Events and Alerts Accounts Service History Recent Activities Marketing Campaigns

Is Your CRM Ecosystem Improving? Analytic CRM Workforce Optimization Customer Profiling Partner Contribution Measurement Revenue Analysis Customer Segmentation Operational Data: Customer Value Measurement Enterprise Data Supplier Evaluation Operational CRM Activity Management Contact Customer Management Support P Pricing and SRM R Configuration M Campaign Management Channel Analysis Risk Scoring • • ERP SCM E-commerce Billing Product Financial Usage Customer Satisfaction Analysis Campaign Measurement Prospect Qualification Propensity-to-Buy Modeling Churn Analysis and Prediction Next Sequential Purchase Analysis © The CRM Handbook (Addison Wesley, 2002)

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 ü Define and measure success — at the project level! ü Integrate market research and CRM ü Continue to integrate, track, and analyze customer behaviors ü Pursue more advanced analytics (aka: business intelligence) ü Integrate your data! ü Work with your IT department to ensure that new applications share data with your CRM system(s) ü Model customer data across business lines ü Appoint data SMEs from the business side ü Close the loop: Make sure to track new customer interactions, requests, preferences, and behaviors— across channels!

Thanks! Baseline Consulting Group Business Intelligence. Data Warehouse Consulting. CRM Services. Executive Strategy Sessions. Technical Staffing. www. baseline-consulting. com 15030 Ventura Blvd, Suite 19 -707 Sherman Oaks, CA 91403 www. baseline-consulting. com (818) 906 -7638 L. A. Office (800) 747 -3709 Toll-Free