Professional Documents
Culture Documents
Jason C.H. Chen Professor of MIS School of Business Administration Gonzaga University, Washington, U.S.A. Senior Consultant, Taskco.com chen@gonzaga.edu
Presentation topics
Why are companies moving to CRM ? Whats in it for you? 1 to 1principles and best practices Other challenges Where do you go from here?
eBusiness
The strategy of how to automate old business models with the aid of technology to maximize customer value The process of buying and selling over digital media
eCommerce
The process of building, sustaining, and improving eBusiness relationships with existing and potential customers through digital media
eBusiness Processes
WHY Customer Relationship
WHAT
HOW
Applying Technology
Figure 1:Top Executive Priorities Ranked By Percent Citing Issue As Critically Important
Acquisitions 6%
Products in many industries have become commoditized forcing companies to sacrifice margins for sales volume
Presentation topics
Why are companies moving to CRM ? Whats in it for you? 1 to 1 principles and best practices Other challenges Where do you go from here?
ts ns gs ue se s ve n e c r e a du c t i o ve m e n R a t i n Re D o e n h R o st m pr s f a c t i o s C L e n gt r gi n I e tati Sa l e Ma er S y cl t om es C Sa l C us
Source:Insight Technology Group,1998
Our Objectives
Mass
Marketing
Customers Reached
to Marketing
1
Share of Market
Customers Reached
In four words
Presentation topics
Why are companies moving to CRM ? Whats in it for you? 1to1 principles and best practices Other challenges Where do you go from here?
Differentiate
Value: -Actual (current profits) -Strategic (potential value) Needs: -Individual -Segment All customers are not created equal
Interact
Learn more: -Needs -Value -Preferences -Behaviors
Customize
Customer Need Set: -Product -Service -Delivery -Bundles
Marketing
Collections Department
Operations
Other Providers
Internet
Call Center
Works.com is an online office supply retailer that offers customers a master agreement that covers all employees
Broker sees account the way the customer sees the account Picks up where last action/interaction left off Integration across all channels
Customer A
Customer A Customer A Customer A
Customer A
Marketing
Call Center
The Web
Sales Force
Differentiate
Customers have different values to the enterprise
First Tier
Second Tier
Third Tier
Fourth Tier
Fifth Tier
First Tier
Second Tier
Third Tier
Fourth Tier
Fifth Tier
Fire Them?
MVCs
MGCs
Inbound queries through a call center MVC Routes to Designated Call Request for Center Agent directly Caller A service after VRU identifies MVC and their need MGC Request for Caller B service Routes to general split agent after VRU Migrator or BZ Request for Caller C service VRU prompts to go to web site for info access
Rules of interaction
1. 2. 3.
4.
5.
Conversation is a consensual act Neither party in control Feedback results in behavior changes by everyone in your organization Each interaction picks up where last left off across al channels Dont ask too much: use drip irrigation
Benefits of Interaction
Uncovers
Needs (so you can sell more) (Dis)Satisfaction Risk of defection Complaints
Makes you smarter about the customer each time Helps build barriers to exit
Hold times and call abandonment rates Ratio of complaints handled on first call Percentage of inquiries generating leads Share-of-customer data gathered
Review the metrics list which metrics are efficient vs. effective? Which ones support Learning Relationships?
What are the implications when you off load support the web? How does the call center change
Also analyze related data on millions of Capital One customers Pick from 50 options on whom to notify
Remember and pass along 25 pieces of info related to this particular customer
Prepare service rep to make customized product offer at end Predict what this of call individual may want
Contact
Call Time: Unlimited Loyalty Offer: Yes CO-Browse Education: Xsell,poss ABC value a service,e.g.,Advice
Resolution
Response type: Customers desired channel E-mail Response Time: Immediate Resolution Cost: open-ended
Diamond (1-2%)
Wait Time: <10secs Trade Wait Time: Virtual None CSA: Best Available high skill(H:M;M:M) Wait Time: <30secs Trade Wait Time: Almost None CSA: Average(M:M;M:M)
Call Time: Not limited Loyalty Offer: Situational Education: Advanced Site features product upsell
Response type: Customers desired channel E-mail Response Time: 4 hours Resolution Cost: <$150 with no escalation Response type: e-mail or web E-mail Response Time: 12 hours Resolution Cost: <$30 with no escalation(Behavioral incentives) Response type: e-mail or web E-mail Response Time: 18 hours Resolution Cost: Avoid monetary resolution
Pearl
Call Time: <4minutes Loyalty Offer: Situational Education: New product/Services or self sufficiency Trade: More $ for broker assisted Call Time: <3 minutes Loyalty Offer: No Education: Self-sufficiency Other: Pay for service Trade more $ for broker assisted
Wait Time: <2-3min Trade Wait Time: Very Low CSA: New Hire, Temp(L:L )
Customize
Reward customers for collaborating with you by tailoring whatever you possibly can for them: service, fees, billing, delivery, terms, product - Low cost - High efficiency - Based on individual customer preferences
12% APR
custom configurations (7776 unique options) The more modules,the greater your ability to customize.
Sample Package
Base Product (full bundle) Follow Me Messaging Yellow Page Web Site 50 Wireless Minutes E-Payment Professional Svs 2 hr
Product/Service Features Communications bundle(wireless,LD,Local,Internet Access, High Speed Data) Mobility package(Messaging,Professional Services,Yellow Pages) Integration across all modes of communication Value proposition A fully integrated,easy to use and manage package Communications and related services that support your need to be mobile and accessible Pricing Full-bundle discount(mobile magnet) Add ons for specific needs Single bill Channel Web access with easy connection to toll-free specialized reps Single point of contact
4.
5. 6. 7.
Demonstration that you know the customer (pre-filled out forms) Remembering transactions, history Remembering specific preferences Using knowledge to deliver individual satisfaction Marking it EASY to be a customer Anticipating needs Delivering
Presentation topics
Why are companies moving to CRM? Whats n it for you? 1to1 Principles and best practices Other challenges Where do you go from here?
Infrastructure
Change hurts
1. 2.
3. 4.
5.
Start small Expand gradually, culture changes take time Dont forget about training Hold people accountable for the right things Measure and reward the right things!
Sales
Identify and track the right infor
- Sales forces automation Spend the right time and effort on MVCs, MGCs, and BZs Drip irrigation, never asking the same thing Change behavior based on feedback
Differentiate
Interact
Customize
Call center
Move from cost center to profit center Sell more to customers (Increase SOC) Support for complicate products Ancillary services (Increase loyalty) Pre-qualify leads Low-cost market research Improve Complaint discovery and tracking Practice IDIC
Presentation topics
Why are companies moving to CRM? Whats in it for you? 1to1 principles and best practices Other challenges Where do you go from here?
2.
3. 4. 5.
6.
7.
8. 9. 10.
Get senior management buy-in Encourage them to establish your multi-disciplinary team Develop short and long term plans Help them start Small, Light Campfires Bring in Strategy/Change Management/Training coaches Help decode IT and marketing Needs and Languages Evaluate and prioritize projects. Look for a couple of Quick Wins Document success, share across the company Start scaling the solution, Test, pilot, Test! Improve on plans and keep going!
Cost-effective 1to1
Below zeros Number of members Differentiate by value Roll out 1 to 1 initiatives based on member value
Member Value
2.
3. 4. 5.
6.
7. 8. 9.
10.
Work on your database! Ask one question at each interaction Develop a strategy for your BZs Figure out who you really want to do business with Find out why some customers who are buying less this year Make those touch point improvements! Check out your VRU again Improve complaint handling Customize what you can, economically Ask your best customers what you can do differently/better for them (DO IT)