Indiana University - Accenture Case Competition 2009

8 Kishen Parikshak | Matt Blair | Zach KostTEAM

Leveraging CRM to Predict Inventory and Increase the

Customer Experience

Accenture’s History

Accenture has been creating custom, enterprise-wide CRM models for 20 years

We have time-tested models that are intuitive, scalable and measurable for exceptional long-term performance

We provide automotive consulting, technology and outsourcing services to leading OEMs and tier one suppliers

Accenture has an exceptional past within the automotive industry.1

Teamed with Accenture to create a single, integrated view of each customer. The result: an

unprecedented ability to understand customers and target marketing messages.

Turned to Accenture to help benchmark performance and create a corporate strategy

for developing new customer service capabilities.

Chose Accenture to make meaningful, long-term

changes to increase service levels and operational efficiency and decrease inventory investment.

Accenture was chosen to help upgrade its service parts and accessories supply chain service to dealers, enabling them to offer customers better service.

Accenture's High Performance Business research confirms that

highly efficient, end-to-end processes differentiate high-

performance businesses in the automotive industry from their

competitors.

CredentialsWe have served 27 of the 35 automotive companies in the Fortune 500.

2

Combine Customer/Dealer Knowledge to Forecast Demand

Attract Customers with Progressive

Marketing SchemesMap Key Dealer Demographics

Implement Siebel CRM Software

InventoryTurnover

HoldingCosts

LOW

CO

ST HIG

HC

APA

BILITY

RecommendationsLeverage capabilities of CRM software to increase company value.

3LO

YALT

YSTR

ATEG

Y

CRM DEALERS CUSTOMERS FORECASTING

StockPrice

Automotive manufacturer-focused frameworks assist in the customization of Siebel to meet CarCo’s specific needs.

Database design incorporates specific application areas for expanding on customer and dealer information.

By using an Oracle product, CarCo will easily be able to integrate CRM with existing ERP software

Siebel CRM SoftwareSiebel is Oracle’s most complete, industry specific CRM suite.

4

Vendors

Manufacturers

Distributors

Dealers

Financiers

Customers

SIEBEL


Current SystemsUpgrading back-office legacy systems into centralized repository.

5

Current State: multiple systems gathering data from dealers• For example, dealers are currently using

spreadsheets for gathering customer data.

Desired State: centralized repository for storing data from all dealers• Gather customer information from dealers

through end-customer contract information


CRM ImplementationCosts will tail-off over the two year implementation period.

6

$400,000

$500,000

$600,000

$700,000

$800,000

$900,000

$1,000,000

$1,100,000 CRM Implementation

2 Year Cost of Implementation:

$17,310,000


Dealer LoyaltyMake dealers more successful by using CRM.

7

Leverage current existing data from legacy systems

Segment market vehicle demand

Offer incentives for low demand vehicles to liquidate

Decreased financing and floorplan costs for dealers


$4,000,000,000

$5,000,000,000

$6,000,000,000

$7,000,000,000

$8,000,000,000

$9,000,000,000

$10,000,000,000

$11,000,000,000

$12,000,000,000 9/

1/20

09

12/1

/200

9

3/1/

2010

6/1/

2010

9/1/

2010

12/1

/201

0

3/1/

2011

6/1/

2011

9/1/

2011

12/1

/201

1

3/1/

2012

6/1/

2012

9/1/

2012

Inventory Reduction

Inventory ReductionOver 3 years, proper forecasting can reduce inventory by 35%.

3 Year Inventory Reduction:

35% = $3.9B

8


Focused Marketing SchemesAttention to marketing will help us cut costs and increase revenues.

9

Proactive Marketing

Customer Retention Initiatives

Return value from using CRM


Proactive MarketingUnderstand your customer and forecast demand through CRM.

10

Use the CRM to study

demographics

Forecast sales to similar

dealerships

Create an efficient

product mix

Relocate products based

on demand

Reach customers efficiently

Add value to CarCo’s

business model


Use a customer loyalty program to retain customers Available to customers who purchase new vehicles Special considerations for trade-in

Retaining Past CustomersA solid relationship with previous customers is critical for cost savings.

11

www.automotive.com/auto-news/02/42239/index.htm

Attract New Customer

Retain Customer>

600%


Retaining Past CustomersA solid relationship with these customers is critical for cost savings.

13

1/5 of our 2.5 million customers per year

If half of those return for a $1000

rebate

CarCospends $250 per year to maintain customers


Retaining Past CustomersRetaining prior customers is more cost efficient.

14

*www.ecademy.com/node/php?id=44965*http://www.business-standard.com/india/news/acquiring-new-customers-vs-retaining-old-customers/203350/

Ave

rage

Bud

get

10 – 15%C

ar C

ost R

even

ue Last Year 92 Billion

Mar

ketin

g A

llotm

ent

At 10% they can spend 9.2 Billion

Aff

orda

ble

Mar

ketin

g This $250 Million a year leaves about 63% of their marketing budget


Combine Customer/Dealer Knowledge to Forecast Demand

Attract Customers with Progressive

Marketing SchemesMap Key Dealer Demographics

Implement Siebel CRM Software

InventoryTurnover

HoldingCosts

LOW

CO

ST HIG

HC

APA

BILITY

RecommendationsLeverage capabilities of CRM software to increase company value.

15LO

YALT

YSTR

ATEG

Y


StockPrice

Implementation TimelineSteps for implementing recommendations over the next three years.

16

Months 1 - 6 Customize and implement at CarCo headquarters using

a software engineering staff of 20 Data cleansing of previously acquired customer

demographic information

Months 6 - 18 Implement and port into individual dealer’s systems

Months 18 - 36 Benefits of demand forecasting will decrease inventory

CRM DEALERS CUSTOMERS FORECASTINGCRM DEALERS CUSTOMERS FORECASTING

Lack of dealer acceptance of Seibel

CRM software.

Risk

Customers providing “dirty data” in loyalty program.

Mitigation

Market forecasting advantages of implementation .

Use effective input controls to manage acceptable answers.

CarCo may misapply acquired customer

information.

Accenture supplies assistance in market analytics and change management.

Prob

abili

ty

Impact

Prob

abili

ty

Impact

Prob

abili

ty

Impact

Risk

Risks / Mitigating FactorsMeasurements of the probability and impact of potential risks.

17


After addressing current issues, expand offering to take advantage of CRM potential.

Long-Term PotentialBy using Siebel, CarCo will be able to later expand it’s CRM offerings.

18

2014+

Scalability Sustainability

2011 - 2014

Dealer E-Purchasing Online Financing

2009 - 2011

Customer Loyalty Inventory Demand Forecasting


8 Kishen Parikshak | Matt Blair | Zach KostTEAM

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Indiana University - Accenture Case Competition 2009

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Transcript of Indiana University - Accenture Case Competition 2009