Académique Documents
Professionnel Documents
Culture Documents
Action
Percent
Shopped elsewhere
74%
45
32
Other
E.piphany
Acquisition cost
Quarter
Average Customer
Acquisition Cost
Q3 1999
$35
Q4 1999
$71
Q1 2000
$45**
Q2 2000
$40
Source: Aug. 2000 Boston Consulting Group/shop.org
Expectations
Results
Within 1 hr
15%
8%
1-6 hrs
40%
12%
50%
51%
0%
29%
customer retention
Number of Relationships
Re
Pr lati
of on
ita sh
bi ip
lit
y
Current
Current
Customer
Value
Current
Relationship Duration
Who Do we target
What segments are most
profitable
What segments match our Value
Proposition
What is the best segmentation
strategy for us / our industry
Acquisition
Re
e
h
of t
hi p
s
n
latio
Retention
Expansion
10
Sales
Force
Customer
Service
Direct
Mail
Web
Branche
s
11
Why CRM?
Importance of CRM
Scope
Depth
Marketing
Selling
Servicing
Customer Relationship
Strategies
Broadcast
Mail
Field Personnel
Customer Relationship
Agents/Distributors
Structure
Call Center
Retail
Internet
Customer Relationship
Performance
Back Office Process/Systems
13
Service/Usage Revenue
Acquisition
Cost
Cost of Service
Duration of
Relationship
Customer Life Time Value (LTV) is defined by a customers Life Time worth
to the firm and is measured by the net present value (NPV) of the cash flows
generated over the Life Time of the relationship.
14
Acquisition
Retention
Lift/upsell
Likelihood to
Recommend
High
Ownership of Problems
Available at
Convenient Times
Easy to Reach
# of Rings
Low
Low
Total Perceived
Value
Know. Product/Svcs.
Resolution Time
Access to
Live Agents
Courteous
Right Tel. #
Know. About Account
Current Performance
The customer value analysis should be performed for each segment individually. The
perceived importance of price and service drivers can differ significantly by segment.
15
High
Cost of Targeting;
Cost of Acquisition;
Duration of relationship.
16
Capture Customer
The
DataCustomer
and Measure
Results
The CRM
Dynamic
Take
Action
to
Capture
Customer
Enrich
the
Customer
Data and Measure
Relationship
Results
Capture
Build
and Customer
Manage
Data and Measure
Customer
Value
Results
The building blocks of CRM allow an organization to manage this cycle and use the
knowledge on customers to enhance the Life Time value of the customer portfolio.
17
Capture Customer
The
DataCustomer
and Measure
Results
CRM
without an
Integrated
Approach
Take
Action
to
Capture
Customer
Enrich
the
Customer
Data and Measure
Relationship
Results
Capture
Build
and Customer
Manage
Data
and Measure
Customer
Value
Results
All areas must be implemented, to some degree, to effectively manage the customer
relationship. When pieces are implemented in isolation, the benefits are less than
overwhelming.
18
Data
Warehousing
Knowledge
Management
Enabling
Technologies
Customer Touch
Point Integration
EIS
Segmentation
Call Centres
Market
Research
OLAP
Customer
Profitability
Sales Process
Automation
External
Databases
Data Cleansing
Data Mining
e-Business
MetaData
Statistical
Modeling
Organization
People
Deployment and Support
The building blocks of CRM are the things that need to be in place for an effective Customer
Relationship management program
19
ProductPortfolio
External
Data
Census
Product / Service
Preferences
Attitudes
Demographics /
Firmgraphics
Customer
Profile
Campaign
History
Outbound
Contact
Customer
Interactions
Acquisition
Information
Loyalty /
Switching
Migration in
Usage
Customer
Behaviour
Geodemographics
Profitability
Inbound Contact
Segments
Usage Profile
Householding
Base Data
20
Enabling Technologies
21
Call Centre
e-Business
Techniques:Relationshipmarketing,automatedpackagingandpricing,knowledgebasedselling
Increase revenue from your customer base
Customer satisfaction measure
Consultative selling
Responsiveness to market conditions
SalesForceAutomation
Automatic Call Distribution (ACD)
Incoming Call Queuing
Performance Statistics
Integrated Voice Response (IVR)
Automated Inquiry & Transactions
Automated screen pop on agents
screen
Integration with company legacy
platforms
Billing & Meter Reading
Direct Access to Customer Data
CRM
Technologies
22
ElectronicBusiness
CallCentre
Techniques:ACD,IVR,CTI
Techniques:WEBbased
application,emailprocessing
Automated product and service
information
WEB based sales and support
through standard menus and
automated help screens.
WEB based training
Reaching the global market
(Dollars In Millions)
$3,000
$2,744
$2,500
$1,960
$2,000
$1,400
$1,500
$1,000
$1,000
$500
$0
1996
1997
1998
1999
CRM Revenue
23
Process
People
ACD
Marketing / up-selling
Technical support
Product support
Service support
7 x 24 support
CTI
Information
External customer
Internal customer
Sales Force
Support team
Back-office
Technical staff
IVR
Data
Warehouse
24
Data
Warehouse
25
New Rule
Single
Singleproduct
product
Multiple
Multipleproducts
products
and
andcross
crossselling
selling
Backroom
Backroomoperation
operation
Front
FrontOffice
Officeoperation
operation
Stand-alone
Stand-aloneoperation
operation
&&information
information
Distribution
Distributionchannel
channel&&
information
integration
information integration
Minimal
Minimaltechnology
technology
Leading
Leadingedge
edgeand
and
integrated
technology
integrated technology
Reactive
Reactive
Proactive
Proactive
Low
Low skilled
skilledCSRs
CSRs
Multi-skilled
Multi-skilledCSRs
CSRs
Tactical
Tactical
Strategic
Strategic
Enhanced Customer Satisfaction
and Retention Revenue Growth
Lower Cost Distribution
Customer Inquiries
Cost of Business
26
Sales Process Automation (SPA) is the approach for helping organizations dramatically improve their
sales and marketing effectiveness through the reengineering and automation of their sales and
marketing processes, with the ultimate goal of increasing revenues. SPA combines a working
knowledge of the markets best ideas, technologies, and vendors with a practical, relentless focus on
implementation to deliver outstanding shareholder and customer value.
BasicFeatures
Intranet - as an alternative sales channel
Electronic catalog - On-line self served service
ordering
Commission - Effective tracking of performances
and accurate commissioning
Opportunity Management - tools such as
automated customer data analysis and pop-up
screens will assist in up-selling
Competitor Data - effective analysis of competitive
data and automated access for sales force
Contact Management - Effective tracking and
follow-up of leads
Customer Data - Sales people will have a
complete analysis of the customer before their
eyes when attending to a customer. No wait, no
repeated questions, no frustrated customers
27
Improve Forecasts
Current Information
0%
10%
20%
30%
40%
50%
60%
70%
e-Business - Definition
Business Partner
Business
Processes
The Value
Proposition
of
Electronic
Business
Solutions
Integrating
more directly
with the
business
processes of
Business Processes
customers and
partners
Business to Business
Tailoring
products and
services to
customers
needs and
values
Business to Customer
Profiles &
Preferences
Business Partner
Extending key business
applications to clients and
business partners
e-Business
e-Business is
is all
all about
about integrating
integrating the
the internal
internal and
and external
external processes
processes between
between business
business partners
partners and
and
customers.
customers.
29
e-Business - Benefits
Internet technology can improve the level of customer care, while reducing the cost of
maintaining the customer base.
30
e-Business - Architecture
A$X,XXX B$X,XXX
1. Adaptive
Product Offer
Internet
and
World
Wide Web
5. Product
Fulfillment
Pick and pack
Integration/configuration
Customer preferences
Products and availability
Pricing and promotions
Adaptive selling
Build/configure to order
2. Order Capture
and Validation
Order entry
Tax calculation
Validation
Confirmation
Payment
3. Payment
Processing
information
Security
Link with
finance
4. Order
Management
Link with third parties
Create pick list
Consolidate orders
For
For both
both business-to-business
business-to-business and
and business-to-consumer
business-to-consumer sales,
sales, there
there are
are five
five key
key elements
elements to
to
e-Business
e-Business
product
product offer,
offer, order
order capture
capture and
and validation,
validation, payment
payment processing,
processing, order
order
management,
management, and
and product
product fulfillment.
fulfillment.
31
Conclusion
Call Centres
Customer Care Systems
Sales Force Automation
IVR
Data Warehouse
Customer
Management
Systems
Service
Management
Systems
Billing System
Enterprise
Management
Systems
Business
Management
Systems
Network
Management
Systems
OSS
32
33
TES
TEM
CSS
20
in billions
16
12
$1.60
$2.00
4
0
1998
1999
2000
2001
2002
2003
$0.60
= $4.2b up 45% 55-45
Service to Software
Source: GartnerGroup
:
34
Customer
Management
$1.46
Industry Specific
$2.02
Human Resources
$0.83
Supply Chain
$2.02
Manufacturing
$1.52
Financials
53.9%
39.5%
$5.33
265%
$5.49
172%
$1.83
120%
$3.70
83%
$2.53
66%
$2.18
19%
30.0%
22.4%
18.5%
$1.83
6.0%
1998
2001
Based on Forrester Research
35
The consulting market for CRM is a large and growing high margin /
high revenue opportunity in contrast to the shrinking ERP market
36
Ability to Execute
Challengers
Leaders
Clarify
IMA
Onyx
Platinum Software/Clientele
Applix
Remedy/Baystone
Point Information
GWI (a)
Silknet (5)
Astea
ERP
Vendors
(b)
Chordiant (4)
As of 1/99
Niche Players
Visionaries
CustomerSoft
SalesLogix
Royal Blue
Niche Players
As of 1/99
Visionaries
Completeness of Vision
Completeness of Vision
(5) Internet-centric
Leaders
Siebel (6)
Quintus
IBM/CorePoint (1)
Oracle
Challengers
Vantive
Pegasystems (8)
ERP
Vendors
(7)
37
CRM Vendors
Vendor
TRILOGY
38
Siebel 99
Siebel Handheld
Siebel InterActive
Siebel Sales
40
Siebel 99 Product
1100 Screens
110 Reports
41