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CustomerRelationshipManagement--AWinningCustomerStrategySeminarpresentationApril2004©SiemensICMMP;April2004;ConfidentialPage2Agenda•CustomerRelationshipManagementPresentation8:00-9:15•Break9:15-9:30•Case1–SanFabianSupplyCompany9:30-10:30•Case2–SoloMobilePhoneCompany10:30-12:00©SiemensICMMP;April2004;ConfidentialPage3WhatisCRMinyourmind?•Whatiscustomerrelationshipmanagement?•WhatdoesCRMbringtocompanies?•AsurveyonseniormarketingexecutivesatFortune1000companiesindicatesawidespreadfrustrationaboutthereturnonCRMinvestmentsCRMinnotatechnologyterm,butinstead,astrategydrivenholisticmanagementapproachSource:BoozAllenHamiltonSurvey,2001©SiemensICMMP;April2004;ConfidentialPage4CRMisacustomer-andvalue-basedmanagementapproachtoincreasethecompanyvalueCustomerRelationshipManagementisacustomer-andvalue-basedcompanyorientationwiththegoalofbuildingupandfullybenefitingfromlastingandprofitablecustomerrelationshipsthroughholisticandindividualizedmarketing,salesandserviceconceptsusingstate-of-the-arttechnologiesCRMdefinition•Identifyingthetopcustomersandexploitingthemaximumshareoftheirexpensebudgets•Raisingtheefficiencyofcustomermanagement•Establishingcustomerloyaltyandlifetimerelationships•FullyexploitingthepotentialcustomersegmentsbyacquiringnewcustomersTherebyincreasingthecompanyvalueCRMobjectives©SiemensICMMP;April2004;ConfidentialPage5CustomerRelationshipManagementdiffersfromclassicalmarketinginmanywaysTraditionalmarketingCustomerrelationshipmanagementObjectivesGeneratesalesCreatealoyalcustomerFocusAcquisitionphaseTotalcustomerlife-cycleTimeframeShorttermMediumtolongtermPerformanceindicatorsMarketshare,salesShareofwallet,customerprofitability,customervalueCustomerknowledgeDemandsfromcustomersegmentsIndividualpreferencesandneedsProductStand-aloneproductIntegrationofproductsandservicesPriceGeneraldiscountsPricedifferentiationonthebasisofcustomerloyaltySaleschannelsTraditionalsaleschannels(multi-level)Disintermediation,multichannelmanagementCommunicationUnidirectionalcommunicationInteractivedialogwithcustomersandcommunities,24hrs./7dayavailability©SiemensICMMP;April2004;ConfidentialPage6CRMistheholisticapproachtoacustomer-valuebasedcompanyorientation–fourenablerssetuptheframe...CreateGainUnderstandRetainORGANIZATIONSTRATEGYCULTURECRM-Strategy•Holisticapproach/top-managementissue•Definitionoftargetsegmentsandcustomers•Value-basedprioritizationOrganizationandprocesses•Customer-orientedstructuresandprocesses•Customerprocess/touchpointinnovation•OrganizationalanchoringoftheCRMresponsibilityTECHNOLOGYTechnology•Systemintegration•Useofe-technologies•Selectionofsystem/technologypartnersCultureandchangemanagement•Consolidatingthecustomervalueorientation•Managementprocessesandincentivesystems•ContinuouschangemanagementandimprovementprocessesCustomervalueCRMenablers©SiemensICMMP;April2004;ConfidentialPage7CRMcreateslastingstrategiccompetitiveadvantagesUnderstandmarketsandcustomersCreatesuperiorcustomeroffersRetainprofitablecustomersGainprofitablecustomers•Buildingupsuperiorcustomerknowledge•Identifyingtargetsegmentsanddevelopingtargetcustomerspecificmarketing,salesandserviceconcepts•Focusingonthehighest-valuecustomers•Raisingtheentrybarriersforcompetitorsbybuildinguplastingrelationshipswiththecustomers•Developingalearningrelationshipinlong-termcustomerrelationships•Raisingtheentrybarriersforcompetitorsthroughspecificproductandserviceoffers•Highercompetitivebarriersbycoveringallsaleschannels•Loweringconflictpotentialthroughtheproactiveintegrationofthevariouschannels•Raisingcustomers'costsofchangingsuppliersbycoveringallneedsCreateGainUnderstandRetainORGANIZATIONSTRATEGYCULTURETECHNOLOGYCustomervalue©SiemensICMMP;April2004;ConfidentialPage8Marketing-MixarecoreelementsofcustomerrelationshipstrategyMarketing-MixTargetMarketproductplacepricepromotionMarketing-Mixprovidesadecision-makingmethodfordecidinghowtomanagethecustomerrelationship•Differentiatedproducttargetingdifferentcustomersegment•Productcustomization:design,function,packaging•Servicelevel•Pricestrategy:e.g.chargepricepremiumforvaluablecustomersegment•Paymentterms•Specialdiscounts•SelectofMarketingCommunicationvehicletobetterreachtargetcustomer:TVads,PR,Sponsorship•Eventsforvaluablecustomers•VIPclub•Effectivechannelstrategy:one-to-onevisit,callcenter,stores…•Variouschannelcombinationtomoreefficientlyservetargetcustomers©SiemensICMMP;April2004;ConfidentialPage9ThethreemainapplicationareasofCRMCRMcomponentsCollaborativeCRMcampaignmanagementAutomaticallydistributionERP-integrationCustomerserviceDataMining/DataWarehouse•Purchaseprobability•Forecasting•Customersegmentation•Cross-selling-potential•Regional-purchase-behaviorChannel-managementFace-to-FaceCall-CenterBrief/FaxWeb/Mail©SiemensICMMP;April2004;ConfidentialPage10TherearequiteafewobstaclestoeffectivelyapplyCRMLackofmarketingfundamentals•Lackofclearvaluepropositionandfailuretotargetcustomers•Technologyisintroducedbeforecompaniesmastermarketingfundamentals•RelianceonmassmarketingPoordataquality•Incompleteinformation•Inaccurateinfo