© Michael Collins 2005-2011

The Blueprint for CRM

An Approach

What Are the Issues?

• Most significant concerns in introducing CRM are: – Getting the specification right– Obtaining buy-in– Achieving full implementation– Using data effectively

• There is also often uncertainty as to what CRM is and what it can mean to any specific organisation

The Business ImperativesThe ability to know:• Which customers are less likely

to stay with you• How to withstand cutbacks for

your products and services• How to reverse the slowdown in

recruitment of new customers• How to improve the value

customers derive from their relationship with you

• How to improve the cost effectiveness of marketing

The Business Imperatives• Customer and other important stakeholder

communication is essential to success • Move to individual conversations – 1 to 1

communications• Staff will need to (appear to) have a good level of

knowledge of the customer to fully engage • Need to capture, organise and disseminate

information to/from touchpoints

Customers have their own view of the relationship

SPECTRUM OF RELATIONSHIPSPECTRUM OF RELATIONSHIP

I need constant contact

I know where you are when I need you

Mail Email Phone Social Media

Committed

ActiveAloof

Ad hoc

Customers have their own view of the relationship

SPECTRUM OF RELATIONSHIPSPECTRUM OF RELATIONSHIP

I need constant contact

I know where you are when I want something

Mail Email Phone Social Network

Ad hoc

AloofActive

Committed

Do you know where each customer is on this scale?

If you don’t have the insight into your customers, how do you hope to

manage the relationship?

How CRM differs from a legacy management system

Legacy management systems • Tend to be business management systems, addressing:

– Orders and Fulfilment– Financials– Fulfilment– Contact management

• Tend to co-exist with other applications created for specific jobs – Functions linked to specific areas of the organisation

• No real ability to address business process• Will work without a strategy of customer management• Restricted reporting rather than analysis and intelligence• No-one sees the whole picture

Customer Relationship Management (CRM) • Business strategy, supported by a computer system that relies on

a universal customer-focused culture • Single 360° view of the relationship based on activities from

across the organisation accessible by anyone in the organisation• Impacts every functional area, not only those that directly relate

to customers• Everyone sees the same information, aware of the customers’

various touchpoints with the organisation• Ability to implement business process and workflows to reflect

the organisation’s ethos• Access to analytics and KPI measurements

How CRM differs from a legacy management system

Strategic Cycle of CRM Analytical CRM

• Market analysis• Data services

• Cleaning and conditioning• Integrate different data sources• Integrate external data

• Customer profiles and segmentation• Behaviour analysis and Modelling

• Measurement and ROI

Operational CRM• Process management• Delivery of information to

touchpoints• Strategic communications

CRM Communication Deliverables

• Direct mail• e-mail• Mobile• Web• Surveys• Social networks

Central Database

The Customer Management Framework

Analysis&

Planning

Information Technology

ReportsOperational & CRM Deliverables

• ‘Textbook’ CRM restricted to operational and analytical elements

The Customer Management FrameworkCompetitive Intelligence

Analysis&

Planning

CommsStrategy

Operational Process

Human Resource and Structure

Information Technology

Customer Experience

Market Intelligence

Impact& Effect

PropositionOfferChannelMedia

Operational CRM & Deliverables

Corporate Culture

• This expanded model incorporates – Personalised up-sell/cross sell activity at the next customer touch point– Fusion of research to fine-tune insight– Measurement of the impact and effect of activity to provide learning– Corporate culture, business process, skills and resources

Applications and Data

Customer Data

Prospect Data

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Management SystemCRM

Are you ready for CRM?

Ask yourself these questions:• Is operational data held in more than one repository?• Do contacts always only receive relevant communications?• Are some being bombarded while others get nothing?• Can we categorise or segment contacts easily and use that segmentation for

selections or react to previous activity?• Can we see a complete communication and response history for any contact? • Can we set and monitor KPIs?

– Do we know if we are meeting targets?– Do we know what marketing activity has worked and what hasn’t and why?

• Can we manage the relationship to the greater benefit to the organisation?• Can we address our customers’ requirements for

– more open relationships– the ability to participate how they want to and manage their own

activities and learning– active empowerment, rather than passive recipients

The Business Case• The best way to support a business case is with real

examples of what could be achieved • Scope the value of pooled data in business

opportunity terms • Bring data from the various repositories into one

database created for the purpose and analyse to demonstrate quantified and evaluated opportunities

• Provides the basis for return on investment and support for the business case for CRM

The Business CaseExample

What is the achievable increase to lifetime value?

What is the customers' purchase behaviour?

Relate the behaviour to segments or profiles

The Business CaseExample

Monetise the opportunity to estimate value

How many will behave like others in their profile?

• Establish a project team to drive the specification process

Promoting Buy-In

Executive Sponsor

SteeringCommittee

CommercialTeam

Sales

Marketing

Finance

HR

BusinessAnalyst

DataIntegration

ProjectManagement

Delivery Team

• Create a steering committee with executive powers to drive from a strategic viewpoint

• Include:– Representatives from the

business – the Finance, Marketing and Sales users, (branches if appropriate)

– Representatives from HR – implications on working practices and business processes

– Representatives from the deliverers

– An executive sponsor who will subscribe whole-heartedly to the vision and find the time to work with the other team members and act as a conduit to the Board

Promoting Buy-In• Don’t take buy-in for granted - good planning is fundamental • Make sure everyone understands what CRM is for your organisation and

what can be achieved

• Aim for an understanding on – why you should proceed – what the challenges will be – what the return is likely to be

• Build a business case to demonstrate payback • Engage a specialist, experienced CRM consultant to facilitate the initial

stages of the process and help build the business case for the investment• Keep proceedings at this stage in business terms and in the context of the

organisation’s business plan, an approach the executive sponsor can align to

Many CRM initiatives have failed to achieve the expected levels of success

Too many organisations have failed to focus on the need for strategy, the business process requirements, the data, commercial and cultural aspects and even the skills of their people

A properly constructed CRM strategy based on defined business requirements that has been bought into by all stakeholders can deliver ROI

Customer Relationship Management

DMC Can Help

• Specialist expert consultants and analysts are on hand to - Help you through the pitfalls of implementing CRM- Direct you through the management framework- Develop your communications strategy- Assist you with specifying your requirements- Deliver customer insight - Help build your business case- Develop the data strategy- Help select technology or leverage existing investment

www.dmcounsel.co.uk