Customer Relationship Development - An Executive Summary

8/2/2019 Customer Relationship Development - An Executive Summary

1/15

CUSTOMER RELATIONSHIP

DEVELOPMENT

A PASSAGE TO CUSTOMER

RELATIONSHIP MANAGEMENT


2/15

CRD Customer Relationship

DEVELOPMENT CRD is a CONSCIOUS Approach to CRM

Organizations adopting this approach haverealized early, and significant returns ontheir investment typically 75% of the

benefit for 25% of the resources.


3/15

LEVERAGING RELATIONSHIPS

A RETAIN and DEVELOP philosophy is nowwidely accepted as the preferred approach tocustomer relationships, in a market offering

consumers MORE product choices throughMORE channels.

Only additional sales of the RIGHT products lead

to INCREASED CUSTOMER PROFITABILITY,whilst firms pursuing the practice ofOVERSELLING are often implementing counterproductive tactics.


4/15

LEVERAGING RELATIONSHIPS.. contd.

The CRD Approach offers the Customer Centric Company:

The THREE DESIRABLE OUTCOMES 1. Excellent Customer Experience 2. Enhanced Customer Retention 3. A Route to realizing Lifetime Value Potential.

This is achieved by CREATING a DIALOGUE withCustomers based on the CONTEXT and CONTENT thatthey find MOST APPROPRIATE.


5/15

LEVERAGING RELATIONSHIPS..contd.

CONTEXT is the ENVIRONMENT in which thecustomer purchases and uses the product. It

embraces many factors, including channel issuesand the circumstances of the customer.

CONTENT concerns itself with theCOMMUNICATIONS and EMVRACES theOVERALL Consumer Proposition, with thePRODUCT or SERVICE at the CORE.


6/15

THE SINGLE VIEW

To create UNIQUE Customer Experiences,a Company must UNDERSTAND its

Customers. The first Step towards achieving this

Understanding is to create a

CONSOLIDATED SINGLE VIEW of theCustomer Relationship.


7/15

THE SINGLE VIEW.contd.

The three critical constituents of the single view are:

1. CUSTOMER INFORMATION used for defining and

describing the Customer, including relevant contactinformation;

2. PRODUCT INFORMATION for describing the nature of theproducts and services that the Customer has with theCompany, and the latest status on each of the accounts or

agreements; 3. RELATIONSHIP INFORMATIONpainting the picture of past

product usage and documented customer activity.


8/15

THE SINGLE VIEW.contd.

Postbanken Sweden used the Single View tocommunicate the CONTEXT and CONTENT ofthe RELATIONSHIP to the CUSTOMER.

This was done through a twice yearlystatement that integrated the Product, Customerand Relationship into ONE SINGLE PIECE-

The Overview = The snapshot. My Mutual Funds

My Current AccountMy Savings

My Loans


9/15

INTELLIGENT DIALOGUE

This is the CAPABILITY to INITIATE and MAINTAIN aDIALOGUE with the CUSTOMER, based on a SHAREDKNOWLEDGE of the products and services that will

realize the full MUTUALLY VALUABLE POTENTIAL OFTHE RELATIONSHIP.

It is about creating COMMUNICATIONS PROCESSES thatare based upon WHAT THE CUSTOMER WANTS TOKNOW AND BUY, instead of WHAT THE COMPANY

WANTS TO TELL THEM ABOUT,AND SELL THEM. This is achieved by BALANCING CONTENT to EACH

CUSTOMERS NEEDS AND PREFERENCES.


10/15

INTELLIGENT DIALOGUE ...CONTD.

Intelligent Dialogue should be Customer Driven: not initiated by product

owners or functions Relevant : based on identified an articulated

customer needs and preferences Continual: albeit varying in intensity, scope and

frequency Adaptive: acknowledging that different

customers have different needs for exchanginginformation.


11/15

INTELLIGENT DIALOGUE ...CONTD.

The classic progression of Dialogue with aCustomer is based on TWO key stages:

Initiation: identifying and making an initial saleto the Customer.

Development: building on the relationship withthe Customer by offering PROACTIVE

RECOMMENDATIONS or ADVICE, resulting inincreased Customer Benefit and a subsequentimprovement in product or service usage.;


12/15

OPPORTUNITY SPOTTING

This is the Capability to Identify and ManageOpportunities for Developing the Relationship tothe BENEFIT OF BOTH PARTIES.

The CRD Statement and Screen- both of whichinclude Information and Dialogue, are at thecore of the Up Selling and Cross SellingStrategy.

They are the window of the Relationship. They are an important Tool for supporting the

Dialogue between Customers and Staff.


13/15

OPPORTUNITY SPOTTING contd.

There are THREE Essential Triggers used tooriginate the Dialogue with a Customer:

Behaviour: The CRD Methodology collects

simple information on channel usage andresponse, thereby establishing CustomerPreferences and Servicing Costs.

Product Usage: Companies must monitor

Product Usage and Key Events and Indicators Potential: guiding all initiatives with Customers

is an understanding of their potential.


14/15

BUILDING A CRD CAPABILITY

This is based on THREE Key Facets.

Firstly, the Goals and Ethos of the Customer RelationshipManagement Revolution are CORRECT.

Secondly,however,many CRM initiatives require largecomplex systems that are expensive to deliver and donot put the Customer at the CORE.

Finally, the CRD approach is to deliver the majority of

the benefits of CRM within a CONTAINABLE PROJECTand TIMESCALE, that also allows for INTEGRATIONWITH FUTURE DEVELOPMENT.


15/15

BUILDING A CRD CAPABILITYCONTD.

Successful CRD Initiatives often use fairlyCOMPACT Development Teams. The Teams

draw from a broad spectrum of competenciesand capabilities within the organization:including Marketing,Communications,CustomerService, IT and Operations.

The Project Manager chosen to steer thedevelopment effort is normally drawn fromwithin Marketing or Customer Communications.

Customer Relationship Development - An Executive Summary

Documents

Transcript of Customer Relationship Development - An Executive Summary