Lets talk about Customer Relationship Management The experience so far across South Asia, South East...

Let’s talk about Customer Let’s talk about Customer Relationship Management Relationship Management

The experience so far across South Asia, The experience so far across South Asia, South East Asia and PacificSouth East Asia and Pacific

David TwineExecutive Director

Singapore, Australia, Middle East and Europe - 2007

This Session

1. What did we set out to do from a business perspective?

– why we felt the need to embrace a formal CRM approach in the context of challenges we face

2. What business outcomes have we achieved as a result of implementing new systems and processes?

and …. what success (might) look like ?

David Twine, Singapore

Background situation and contextEarly issues and drivers

• Struggling after two years of new exporter program

• High share of ‘difficult’ markets in SEASAP

• Burning-out existing small, loyal customer base

Initially set out to increase:

• Client Attraction – Sought to increase volume of clients we are relevant to (value proposition)– Identify “hooks” to channel clients to market

• Servicing Capacity– If successful, significantly increase our capacity to process and match

clients with customers


Background situation and contextEarly issues and drivers – cont.

• Develop (client) VPs around the idea that “nothing sells better than a live opportunity and a real deal”

• We didn’t have the right customers to meet supply

• Treated all customers and “relationships” equally

• No formal process of deciding who were our key customers – commercial value vs relationship value

• No way of determining worth or value of customer base

Hence, need for more focus and strategic approach towards customers and market opportunities


Supply Push Supply Push andand Opportunity Pull Opportunity Pull

1. Faster, more effective, matching of “Supply Push” through expansion of customer base

– positioning to service significant growth in clients

2. Increase “Opportunity Pull” led results across all markets

and … and …

3. Better knowledge of industry and dynamics to deliver:– greater value to clients in a sustainable way– eg: sustainability/migration, brand management, EI$– more effective alignment in client-customer sourcing

1. What did we set out to achieve?Objectives evolved into this …..


And in the process deliver …..

4. improved conversion rates on opportunities - though better alignment of resources to match Australian capability

5. significantly increased efficiency – i.e. export deals achieved per staff member

6. secure aggregation of market / customer knowledge & information via database of customers

1. What did we set out to achieve?Objectives evolved into this …..


Why CRM? “Supply Push” perspective

Remember the doubling objective?

CLIENTS

• This year – we have a ‘breather’ with deal target for new exporters:

– 04-05: ~35% increase YoY (was to be 87%!)

– 05-06: ~65% increase YoY

– 06-07: ~72% increase YoY

• BUT, no increase in resources. Implication: Increase efficiency (numbers), Increase effectiveness (conversion)

• Implications for CUSTOMERS? David Twine, Singapore

CUSTOMER relationships – doubling? trebling?

• Two issues:

– Where are they going to come from?

– How are we going to manage them?

• BUT, no increase in resources. Implication: Increase efficiency (no’s), increase effectiveness (conversion)

• Must get better at growing & managing ever increasing Customer base & growing pool of opportunities

• Hence enhanced Customer management – critical

Death ‘n Taxes … sure…. but what about Customers?


The “Opportunity Pull” perspectivePlenty of ugly ducklings …

• Image problems. Hard to compete with attraction of low-risk (perceived) & relative familiarity of US, UK, NZ markets etc

• Kabul, Dhaka, Port Moresby - not front of mind

• ‘Security’ - bombings, travel advisories, terrorism

• Tsunamis, avian flu, ‘political flavour’

• Also “small image” markets

BUT nothing attracts a client more than a “live deal”, a qualified opportunity

Enhanced Customer management – critical to increase “Opportunity

Pull” - especially ‘difficult’ markets


Market Opportunities can achieve KPIs The Jakarta Experience (not quite CRM)

Transactions from Market Opportunities

22%22%

75%75%

82%82% 83%83%

52%52%44%44% 47%47%

82% 78%

25%18% 17%

48%56% 53%

18%18%

Q1 (Jul-Sep 02)Q2 (Oct-Dec 02)

Q3 (Jan-March 03)Q4 (Apr-Jun 03)

Q1 (Jul-Sept 03)Q2 (Oct-Dec 03)

Q3 (Jan-Mar 04)Q4 (Apr-3 June 04)

Market opportunities delivered by Post Other services delivered by Post

Bali Bombing


Enhanced Customer ManagementCRM defined

• “ALL CUSTOMERS ARE NOT CREATED EQUAL” - not all are of same value, need to be treated differently

• Strategically increasing the frequency, level and quality of engagement with, and understanding of, customers

• Engaging efficiently, commensurate with the value they bring to our clients

CRM – is about understanding our customers, tailoring CRM – is about understanding our customers, tailoring the way we service them in order to increase the the way we service them in order to increase the number of opportunities for Clientsnumber of opportunities for Clients


What does CRM entail?

Customer Recruitment

• Understand market place

• Identify:

– growth trends, developments

– attractive - segments, industries, companies

– and recruit high value companies for Austrade / Australian clients


What does CRM entail?

Customer Management• segment customers – by market, industry, BDM, opportunities

• genuine understanding of customer challenges, needs, drivers and opportunities

• identify opportunity / buying potential and tailor value proposition

• Implement call plans. Optimise resources to match opportunities / customer “value”

Once you’ve got them …. retain & grow them

Genuine Customer Growth and LoyaltyDavid Twine, Singapore

Once you’ve got ‘em …. Retaining and growing customers

Ret

ain

and

gro

w c

usto

mer

s

Sales and Customer management skill optimisation

Optimisation of resources to match

opportunities

Effective customer and prospect segmentation

Genuine understanding of customers

challenges, needs, drivers and opportunities

Genuine Customer Growth and Loyalty

Tailoring of value Proposition, customer

management processes, and 'value

adds' customer segments


What business outcomes have we achieved as a result of implementing

new systems and processes?


• KPIs attributable to Customer strategy: – First Year: 80-100 client conversions (2004)– push-pull balance varies by market – SEASAP

regional target 40% (from opening position of 3-5%)

• Year on Year Growth:– Qualified Customer Base: 30-40% (regional av. but

from small base) – Qualified Market Opportunities: 15-20% – Some markets much higher, but not possible

consistently across all industry segments

CRM – Quantitative OutcomesResults so far – very encouraging…


• Conversion rates on Market Opportunities between

– now 10-18% (previously 3-5%)

• Buyer visits:

– 2004-05: 25-30 visits from S1/S2 customers

– Increasing high yield events – 15-20 export deals from some events

– 05-06: targeting 60-70 export deals – CRM enabled

CRM – Quantitative Outcomes (2)Results so far encouraging…


03-04:03-04: 6.5 export deals / BDM 6.5 export deals / BDM

04-05: 10.7 export deals / BDM04-05: 10.7 export deals / BDM

05-06:05-06: 15 15 export deals / BDMexport deals / BDM(target)(target)06-07: 06-07: 20 20 export deals / BDMexport deals / BDM(target)(target)

Underpinning productivity gainsEI outcomes per person


• more than 5000 customers in database (cf: HKTD)

• enables events tailored to customers and maximize value for clients through targeted customers (eg: BCA)

• aggregation of customer knowledge / intelligence

• security - customer knowledge retained when BDMs leave

• gone are boxes of business cards!

Customer Database - moving from tacit to systemised customer knowledge


Better understanding of market & market segmentation along industry lines resulting in:

1. Stronger industry team results

2. Growth in client sustainability outcomes

3. With MDSs, much stronger alignment between client and customer sourcing:

= strong/direct correlation between top 10 SEASAP industries and AO client pool industries

= more productive management / deployment of Post resources to match profile / mix of clients in the pipeline in Australia – now ~80% match

= major efficiency gains.

Industry gains - deeper knowledge, and closer onshore / offshore alignment


• Cultivates stronger sales & marketing / deal-making culture - more acute focus on how we add value to clients and customers

• Provides the process, disciplines and tools for STCs/TCs to manage sales teams; allocate resources and drive behavioral change

• helps stimulate staff and capability “refresh”

• Better forecasting capability and “pipeline management”

• Catalyst for development of new online tools to enabling faster commute of market opportunities to colleagues in Australia (and ultimately clients and allies)

• “The SEASAP Way” - helping build one regional team through consistency and shared purpose

• Not a “project”: ongoing, repeatable, consistent, scaleable. Size doesn’t matter: Suva and Singapore

CRM – other outcomes / benefits


Keys to CRM success are also an element of the success!Sales Team Leadership

Behaviours & AttitudeBehaviours & Attitude

Prioritisation

Discipline

Time management

Coaching & sustained follow-up

More time with S1 and S2 customers

Apply CRM approach

Avoid distractions / low value activity

Accountability• reporting• performance agreements

Consistency

ConsistencyPredictabilityPredictability

RigourRigour

DisciplineDiscipline

PassionPassionPassionPassionEfficiency of EffortEfficiency of Effort


CRM Vision What does success look like?

Enabling us to be more efficient and effective, with a fixed resource base, to:

– grow and manage our customer base

– increase quality & quantity of market opportunities

– increase conversion rates

– increase client attraction

Which in turn will position us to treble KPIs in three years and meet and deliver any challenge (not just the doubling objective) put to us by our stakeholders, now or in the future.

Elevated commercial acumen and confidence of team.


1:1:1 1:1:5

SEASAP 2005-06Focus. Discipline. Results. Celebration.

* Counted on all staff count not just marketing staff. EIs only, does not include OI count

one Export Deal per person per month (*)

one buyer visit per BDM, minimum of 5 EIs

Supplementary Slides


1. Faster, more effective, matching of “supply push”

2. Increase “opportunity pull” across all markets

3. Better industry alignment – customer-client sourcing

4. Improve conversion rates on opportunities

5. Significantly increase organisational (regional) efficiency – Export Deal outcomes

Delivering the business objectives we set out to achieve ….


1. Client Attraction

Sought to increase volume of clients that we have relevance to.

– Identification of “hooks” that will channel clients to market

– Value proposition issue - nothing sells better than a live opportunity / deal

2. Servicing Capacity:If successful, significantly increase our capacity to process and match clients with customers

Develop VP around the idea that nothing sells better than a live opportunity / “real deal”

1. What we set out to achieve …Basic Drivers


Why CRM? – “Supply Push”Faster, more effective, matching of “supply push”

• Struggling after two years of new exporter program

• High share of ‘difficult’ markets in SEASAP

• Burning-out existing small, loyal customer base

• We didn’t have the right customers to meet supply

• Treated all customers and relationships equally

• No formal process of deciding who were our key customers – commercial value vs relationship value

• No way of determining worth or value of customer base

• Hence, need for more focus on customers and opportunities


Ealy days but this is an example of what we are looking at ….


Understand our market place

Analyse market place to identify attractive segments,

industries and companies

Identify and recruit attractive companies for

Australian Clients

What does CRM entail? Customer Recruitment


Apply best practice customer management processes to

regional customers

Once customer base is identified ... Customer Management

Prioritise attractive segments, industries and companies

Provide ‘push/pull’ sales opportunities for Australian

companies


Once you’ve got them …. Retaining and growing customers

Ret

ain

and

gro

w c

usto

mer

s

Sales and Customer management skill optimisation

Optimisation of resources to match

opportunities

Effective customer and prospect segmentation

Genuine understanding of customers

challenges, needs, drivers and opportunities

Genuine Customer Growth and Loyalty

Tailoring of value Proposition, customer

management processes, and 'value

adds' customer segments


• Management process that empowers and supports Austrade business objectives

• Provides the process, disciplines and tools that will allow Post Managers to manage sales teams; allocate resources and drive behavioral change

• Focus Posts on developing Customer opportunities - Client conversions. Identification & elimination of non-value activities

• Not a project: ongoing, repeatable, consistent, scaleable

• Size doesn’t matter: Suva and Singapore

Key Benefits of a formal CRM program …..


CRM Implementation


Our CRM Methodology

SalesStrategy

(KPI Strategy)

Customer and market segmentation

Deep understanding of Customers and Markets

Defined customer service standards

Tailored structure, correct resources and portfolio planning

Sales leadershipOptimisation of people

skills and focus

Customer friendly systems

Organisational service performance

Optimum products and services

(Value proposition)

Customer managementProcesses, disciplines

and tools

Application of corporate

business strategy

Customer CRM


Keys to CRM Success


Prioritisation

Discipline

Time management



Apply CRM approach




Keys to CRM SuccessSales Team Leadership


Prioritisation

Discipline

Time management



Apply CRM approach



Consistency

ConsistencyPredictabilityPredictability

RigourRigour

DisciplineDiscipline

PassionPassionPassionPassionEfficiency of EffortEfficiency of Effort


CP

SM

Customer and Prospect Segmentation Matrix

Number of Opportunities Timeframe 5 or greater 3 - 4 1 - 2 0

Next 12 months Segment 1

12 – 24 months Segment2

Segment 3

Segment 4

Greater than 24 months

Segment 4

Segmenting our Customer base

• Managing entire customer base in most efficient manner

• Segmentation driving behavioural change towards higher yielding customers


Cus

tom

er p

lan

ned

cont

act

Customer management

tools

Application Segment

1

Segment

2

Segment

3

Segment

4

Team visit 1 1 - -

BDM 8 6 3 -

ABDM 4 4 - -

STC/TC 1 1 - -

Face to face customer visits –

per annum

RD 1 - -

Phone calls as needed

as needed

as needed

as needed

News letter 2 2 2 -

Directory 1 1 - -

Collateral

Corporate Gift 1 1 1 -

One to one 2 2 - -

Australia Day 2 2 1 -

Entertainment

Christmas gift 1 1 1 -

Managing, interacting - efficiently Customer Call Plans for BDMs


Cus

tom

er m

anag

emen

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S1 S2 S3 Total CallsCalls per

weekPossible

callsBDM

utliisation

Possible prospect calls pa

Possible prospect calls pw

8 6 3 240BDMSmith 2 12 4 100 2.5 240 42% 140 3.5Jones 5 0 18 70 1.8 240 29% 170 4.3

VJ 3 9 24 126 3.2 240 53% 114 2.9Kattia 4 2 45 151 3.8 240 63% 89 2.2

Ian 0 0 45 145 3.6 240 60% 95 2.414 23 136

Total opportunities 173Post KPIs - say 50Conversion 1:5 250

Customer pipeline

low ?

Low call rate for KPI customers ?

Low ratio KPI customers vs prospects ?

Monitoring of results at a post levelBDM Productivity


Post Managers Sales Force Management

Sales processes are being followed

Monthly sales meetings

Weekly sales meetings

Visual charts and white boards

BDM one to one meetings

BDM productivity In field coaching

Sales TeamSales TeamManagementManagement


What drives Staff to find new customers

What drives you to find new Customers

0

1

2

3

4

5

6

7

8

9

10

Americas NEA EMEA

Region

Ran

k 1-

10 Client requests

Emerging industry opportunites

Focussed CRM campaign at your post


CRMThe value of Customer Relationships Much more than transactional or ‘quantitative’ outcomes

Market intelligence

Credibility with ClientsSource of market

validation

Access to networks

Events participation

Press exposure

Introductions

Marketing Channels

Expertise &knowledge

Market Opportunities / KPIs

DistributionChannels

Credibility for Clients

Value of Value of Customer Customer

RRelationshipselationships

Value of Value of Customer Customer

RRelationshipselationships

High-Yield Buyer Visits


CRMHow is the value of Customers measured?

Commitment to import / buy

from Australia

Nature of their Business e.g. trader

Market coverage – single / multi

market

Value of purchase transactions (sales)

Events participation

Industry networks

Delivery of market intelligence

TimeframeRepeat order

potential

Importing experience

Frequency ofBuying

“Connections” to our Owners / Stakeholders

Match to Australian industry priorities

Measuring Measuring

Customer Customer

ValueValue

Measuring Measuring

Customer Customer

ValueValue

Appetite for business& product innovation


Lets talk about Customer Relationship Management The experience so far across South Asia, South East...

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Transcript of Lets talk about Customer Relationship Management The experience so far across South Asia, South East...