BuildCollaborativeRelationshipsthatDeliverValueFebruary13,2003Atlanta,Georgia,USABobThompsonCEO,CustomerThinkCorporationFounder,CRMGuru.comCompetingforScarceCustomersSupplyDemandTimeScarceProductsScarceCustomers“Bedistinctorbeextinct”TomPeters“It’sincrediblyarrogantforacompanytobelieveitcandeliverthesamesortofproductthatitsrivalsdoandactuallydobetterforverylong.That’sespeciallytruetoday,whentheflowofinformationandcapitalisincrediblyfast.”MichaelPorterFastCompanyProductLeadershipOperationalExcellenceCustomerIntimacyCRMGreatRelationships=DifferentiationLoyaltyLeadersGrowFaster,SpendLessAverageLoyaltyLeader100%85%050100150200250%CostsAverageLoyaltyLeader100%220%050100150200250%GrowthSource:ReichheldCRMisNotNew…OrisIt?Thetruebusinessofeverycompanyistomakeandkeepcustomers.”--PeterDrucker“CRM=beingsoobsessedwithyourcustomer’ssatisfactionthatyouchangethewayyoudobusiness.”--Dr.JonAntonCRMConfusion!•360-degreeviewofthecustomer•Improvingqualityofcustomerinteraction•Newsoftwaretoolsandtechnologies•Gettingrightdatatorightemployee•Shiftfromproducttocustomerorientation•Buzzwordandmanagementfad!Source:METAGroup/IMTStrategies“CRMmeanscreatingmutualwinswithcustomersandallcompanystakeholders.”--BobThompson“CRMis90%halfmental”YogiBerra,CRMConsultantCustomersDefineaGreatRelationship“Serviceandvaluejustforme”“Personal”“Responsiveandproactive”“Win/Win”“Asksquestions”“Agooddealforthemoney”“Quality,consistentperformanceovertime”“Expertise”“Ahistoryofworkingtogether”“Easytodobusinesswith”Source:CRMGuru.comTheNew4PsRelationshipDrivers•Passion•People•Process•Performance“MarketingMix”ProductPlacePromotionPriceCRMGuruStudy:CRMWorks!PaybackPeriodBenefits(PercentofProjects)•Increasecustomersatisfaction(51%)•Increasecustomeracquisitionrate(50%)•Increaseshare-of-customer(48%)•Decreasecustomerdefectionrate(37%)•Decreasefrontofficestaffingcosts(33%)Investment•33%--lessthan$50,000•24%--$50,000to$250,000•28%--$250,000to$2.5Million•15%--over$2.5MillionSource:CRMGuru.comKeyDriversofSuccess•Customer-centricstrategy:usingcustomersatisfactionandattritiondata,gettingcustomersinvolvedinplanning•Frontlinetrainingandsupport:explainingvalueofCRM,providingtrainingfornewskillsrequired•Organizationalchange:workflowdesign,changingrolesandresponsibilities•Metrics:goalsmeasuredstatistically(80%don’t)Source:CRMGuru.comstudy“TheBlueprintforCRMSuccess”Three-Year“Overnight”Success•Objectives:Servechannelpartnersbetter,sellmore,spendless•Solution:AllegiseBusiness(PRM)–Saved$375,000incommunicationcosts–Increasedrevenue$1millionwithbetterleadmanagement–Improvedpartnerandemployeesatisfaction•LessonsLearned:–Understandyourusers,deliverclearvaluetothem–Plancarefully,buildateam,phasetheimplementation–Establishbaselinemetricsandmeasurementprocess–Communicate,communicate,communicate!Source:LexmarkAreYouListening?“Ifyou’reconstantlygettingfeedbackfromyourcustomers…andyou’rewillingtolisten,youcanmakethemostoftheopportunitiesimplicitinthoseneeds.”MichaelDell,inDirectFromDell“Businessessurviveordeclinebasedontheiremployees’abilitytolisten.Hirethesmartest,bestpeopleyoucanget,orientthemtocustomersatisfactionattheexpenseofallelse,thengetoutoftheirwayandletthemwork.”DougAllred,SVPCustomerAdvocacyforCiscoSystemsSellingThroughComplexChannelsCustomersSellingChannelsDealersMarketplacesOEMsRetailersEtailersResellerEnterpriseEnableCommerceWithsellingpartnersVisibilityofcustomeractivityInfluenceovercustomerexperienceCollaborationwithpartnerbusinessprocessesCRMTechnologyEvolutionCRMMaturityPotentialCompetitiveAdvantageLowHighAutomateStreamlineinternalsalesandserviceprocesses.Moreofthesame,donefasterandcheaper.SFA,CallCenterSingleChannelCollaborateEngagecustomersandpartnersforwin/win/winEnablemany-to-manyrelationshipnetworksC-BizSolutionsCollaborativeNetworkInnovateDesigndifferent,moreeffectiveprocessesUsenewchannelsandcustomertouchpointseCRM,PRMMulti-ChannelHigh“TheInternetasasaleschannelrepresentsonlyafractionofitspotentialtobusiness.Therealpotentialliesinitsabilitytotransformrelationshipswiththetraditionalsupplier-vendor-customerchain.”MichaelDellSellerBuyerCRMSCMCollaborativeBusinessWin/WinPhilosophyEnablingSystems=+CollaborationCollaborativeBusiness:MutualBenefitsNow:Point-To-PointRelationshipsSupplierPartnerCustomerManufacturerCRMPRMCRMRelationshipManagement:“Sell-Side”FocusonLifetimeValue,CustomerExperience,Revenue/ProfitGrowthSCMSCMSCMSupplierManagement:“Buy-Side”FocusonCost,CycleTime,ResponsivenessWebServices:EnablingxRMSystems•ANewBreedofWebApplication–Self-contained,self-describing,modularapplications–Canbepublished,located,andinvokedacrosstheWeb–Performsfunctions--simpletocomplicatedprocesses–OtherapplicationscandiscoverandinvokeWebServices:EnablingxRMSystems•ThePotential–Low-costintegrationwithin,andbetween,enterprises–Enablingprocessintegrationbetweentradingpartners–ImprovingperformanceofcollaborativenetworksFuture:OptimizedValueNetworkSuppliersCustomerManufacturerPartnersCollaborativeRelationships:FocusonMutualValue,Profit,Efficiency,IntegratedProcessesGlobalCompetition