CRM的垂直应用R.ppt

1,Building a Business Case for,CRM,2001 Quaero LLC,Naras V.Eechambadi,PhDCEO,2,CRM projects are being eliminated from the corporate agenda,Eighteen percent of respondents abandoned their CRM project last year,Percentage of Companies Abandoning Project/Tools,Project Abandonment RatesSurvey of 450 Senior Executives,2000,42,39,15,17,18,32,Source:Bain and Company,Management Tools 2001,3,Building a comprehensive case for CRM,CRM is Critical to Business SuccessContext Determines Business CaseKey Elements of a Business CaseBarriers to Success Are DauntingResults Are Worth It,2001 Quaero LLC,4,Customer Relationship Management(CRM)Building Blocks,Systematic use of information database of customer information from every interaction analysis of past customer behavior to predict future behavior ability to match offers to customers continuous re-evaluation of offer,transaction and customer over time,To attract and keep customers Next best offer/message Cost-effective acquisition Retention efforts focused on at-risk and most profitable customers Shared information across channels to create consistent communications,Through on-going dialog Internet allows for real-time responses and 1:1 dialog Listening creates sense of intimacy with the customer Predictive models enable customized offers and messages,To create long-lasting,mutually beneficial relationships measure success by customers,not transactions continually re-evaluate,re-assess,upgrade customer relationships profile best customers for acquisition efforts,“Anticipating needs is the holy grail of loyalty marketing.”The Value of Information,Melody Vargas,2001 Quaero LLC,5,CRM Space,u,Call Center,Direct Mail,EPOS,E-CommerceWEB,BehavioralModeling,CallBehavior Analysis,CampaignManagement,CustomerValuation,Segmentationand Profiling,NeedsAnalysis,ProfitabilityAnalysis,WebIntelligence,SalesAnalysis,Sales ForceAutomation,CustomerService,2001 Quaero LLC,E-mail,6,A Customer Conversation is Critical,Source:Forrester Research,Inc.,7,Building a comprehensive case for CRM,CRM is Critical to Business SuccessContext Determines Business CaseKey Elements of a Business CaseBarriers to Success Are DauntingResults Are Worth It,2001 Quaero LLC,8,Context Determines Business Case,Current level of developmentPreparedness for CRMBig Bang vs.small incrementsRisk-Reward scenarios,2001 Quaero LLC,9,Levels of CRM development/readiness,Key Indicators,Immediate Next Steps,Level,2001 Quaero LLC,10,Measures of CRM readiness,“,Do you have permanent cross-,functional teams?,”,“,Do you have a VP-level person responsible,for the overall customer experience?,”,“,How much do you cooperate,with other functions?,”,“,How much do you cooperate,with other divisions?,”,Little,Some,A lot,Don,t know,25%,10%,58%,7%,Little,Some,A lot,Don,t know,None,15%,27%,23%,25%,10%,Yes,No,Don,t know,45%,38%,17%,Yes,No,Don,t know,47%,43%,10%,Percent of 60 Global 2,500 companies interviewed,Source:Forrester Research,Inc.,11,Preparedness for CRM,Who is the champion?Information Intensity of organizationOrganizational DynamicsStructureIncentivesMarketing,Sales,Service,IT interactionIT sophisticationDSSOperational,2001 Quaero LLC,12,Big Bang vs.Small Increments,High Level Executive SponsorshipLevel 3 or 4 companyHigh information intensityFluid organization with customer,focused or enterprise level incentivesSophisticated IT organization with client service orientation,Divisional,channel leadershipLevel 1 or 2 companyLow information intensitySilo base organizations with product,volume incentivesStretched IT department leading the way,Big Bang,Small Increments,2001 Quaero LLC,13,Companies CRM Initiatives Vary Widely,“,How are you going about rolling,out the project?,”,Percent of 40 companies interviewed,None,Synchronize data,Division by division,One major project,Small pieces,45.0%,22.5%,12.5%,5.0%,2.5%,12.5%,“,How long do you expect the project,to take?,”,Percent of 40 companies interviewed,Source:Forrester Research,Inc.,14,Building a comprehensive case for CRM,CRM is Critical to Business SuccessContext Determines Business CaseKey Elements of a Business CaseBarriers to Success Are DauntingResults Are Worth It,2001 Quaero LLC,15,Key elements of the Business Case,Sources of incremental RevenueReductions in CostsHigher ProfitabilityReal but intangible benefitsSustainable Competitive Advantage,Incremental CostsOpportunity CostsExecution RisksBarriers to Success,ROI,+,-,2001 Quaero LLC,16,The Customer is King,Companies invest in CRM primarily to boost customer satisfaction,CRM Objectives Survey of 100 Companies Implementing CRM,March 2001,78%,71%,59%,57%,52%,50%,Source:AMR Research Report,ElectronicCommerce News,16 April 2001,17,Sources of Incremental Revenue,Higher revenues per customer throughbetter product mixcross sellhigher value-based pricingLonger stream of revenues due to higher retentionAcquisition of new customer through word of mouthIDC shows CRM projects yielding 8%incremental revenues in year 1 with a target of 16%within 2 years for large projects(average investment$3.1 million).1998 Insight Technology Group Study saw revenue increases of up to 42%,2001 Quaero LLC,18,Increase Profits$118 million in x years,Millions of Dollars,AddNewCustomers,IncreaseClosureRate,IncreaseRetention,DecreaseLosses fromUnprofitableCustomers,Sub-totalFromCurrentCustomers,Total,*Before project costs,2001 Quaero LLC,19,Summary of Business Needs by Business UnitMost businesses identified prospecting as the top priority,but retention and channel management were critical for some areas.,Capabilities limited by current infrastructure,High,Moderate,Low,Impact,2001 Quaero LLC,20,Reduction in Costs,Lower acquisition costsImproved response time to customer requests for informationReduced cost of buying product/serviceEfficient processes with less re-work1998 Insight Technology Group research indicated that for the successful few(21%of CRM projects which met all expectations)Sales costs decreased by 35%Sell cycle length reduced by 25%Margin improvements of 2%,2001 Quaero LLC,21,Increased Profitability of Households,Millions of Dollars,-$75.9,-$53.5,-$72.8,-$60.2,-$262.4,$66.7,$134.9,$193.0,$218.0,$433.0,$783.0,Range of Annual Household Profitability,%of Customer Base,-$500,-$250-$500,-$100-$250,$0-$100,Subtotal,$0$100,$100$250,$250$500,$500$1000,$1000,Total,1.3,8.2,8.2,26.7,38.9,27.4,14.2,9.5,5.5,3.6,100,2001 Quaero LLC,22,Five Star Customers,Five Star AverageAverage Tenure 12 years 7 yearsAverage Portfolio Balances$59,000$30,000Average Number of Accounts 3.2 Accounts 2.2 Accounts,Number of Services per Five Star,Household,1-Service 29%,6+Services 5%,5-Services 7%,4-Services 14%,3-Services 21%,2-Services 24%,2001 Quaero LLC,23,Whats Wrong with this Relationship?,2001 Quaero LLC,24,Impact of Churn Reduction,Annual revenue differential=$122 million,25,Incremental Costs,Hardware(one time+upgrades)Software(one time+maintenance)Consulting,Development,Systems Integration(internal,external)Hiring,training&retention of skilled usersProgram costsRollout,orientation for enterprise,2001 Quaero LLC,2001 Quaero LLC,26,Key Elements of a Business Case(+),Real but intangible benefitsImproved ability to respond to marketplace changesIncreased customer satisfaction(Insight research saw increase of 20%)Immediate access to order statusSustainable Competitive AdvantageCRM is hard to do enterprise wideProvides barrier to entry hard to replicateLoyal franchise reaps long term rewards,2001 Quaero LLC,27,SessionData,Operational,Knowledge,Channel,DataWarehouse,Campaign Management,Data Mining,CampaignAnalysis,BusinessIntelligenceReporting,Application Server,Transaction Database Server,Marketing Contact Rules Server,Marketing Database Server,Scores,Rulesand Profiles,The“New”Marketing Infrastructure,Legacy Systems,Channel Specific Content Servers,2001 Quaero LLC,28,Marketing-Technology Integration,WEB LOG,Collection,Churn Mgmt,&,Campaign Tracking,Data Store,Inbound Call Center,WEB CHANNEL,IVR,Customer,Activations,Airtime Purchases,Activations,Tech Support,Airtime Purchases,Activations,Customer,Data Warehouse,Incorporates P&L,Metrics,Clarify,Contact,List,Modeling Scores,Cleansed Contact Info,Segmentations,Deact date,triggers,Outbound Calling,Deactivation,Welcome Pkg,Direct Mail,Win Back,Preferred Customer,E-Mail,Deactivations,Promotions,Response Data,Churn Mgmt,Data Store,Rebate,Information,Provides Feeds to,Customer DW&Drives,Data Mining Models,Demographics,Standardized,Contact Info,CASS,Telematch,Reporting&Analysis,System,Redemptions,29,Intelligent E-Mail Program High-Level Technical Process,30,Key Elements of a Business Case(-),Opportunity CostsCompetition could lock up customer baseHigher acquisition costsSelf selecting“bad”customers can devastate economiesExecution RisksTechnology incompatibilityPoor business requirements definitionPoor training/rolloutWeak sponsorship/lack of sustained supportLack of linkages to business and market strategiesBarriers to SuccessPoor user developer interfaceOrganizational misalignmentDysfunctional incentivesLack of clear customer champion,2001 Quaero LLC,31,Building a comprehensive case for CRM,CRM is Critical to Business SuccessContext Determines Business CaseKey Elements of a Business CaseBarriers to Success Are DauntingResults Are Worth It,2001 Quaero LLC,32,Barriers to Success Are Daunting,True CRM requires a multi-channel interface,but customers often encounter a fragmented experience,Companies interact with,customers inconsistently,across channels,Customers want a,consistent high-quality,experience,Fact:,Only 48%of firms,know about a problem before,a customer does,Fact:,Only 43%alter,service based on a,customer,s profitability,Fact:,Only 42%would,sell something during a,service call,Fact:,Only 37%know if,they share a customer,with another division,Fact:,Only 20%know if,a customer has visited,the Web site,Fact:,Only 23%of telephone,agents can see customers,Web activity,Percentage of 60 Global 2,500 companies,Source:Forrester Research,Inc.,33,Barriers to Success,Percent of 50 interviewees from 25 large companies who handle either traditional or on-line channels,Source:Forrester Research,Inc.,Companies want,but dont have a single customer view,34,The major phases of CRM execution are tough,Extracting,synchronizing and delivering dataAligning people and processesOptimization through learning and refining,2001 Quaero LLC,35,“If you can get somebody to shop with you in multiple channels,they will spend more money than if they just shop in one channel”-Jonathan Bulkeley,BarnesandN,7 Habits of Highly Effective CRM,Engaging in two-way conversation with customersObserving and documenting customer interactionsComplete,real-time understanding of the customerSharing customer information with sales and service personnel Sharing decision-making information within the organizationOrganizing internal information around the customerDesigning the organization around the customer,2001 Quaero LLC,36,Amid the hype,it is easy to forget the simple common sense principles at CRMs core,The customer is the core of any successful businessWhat you know can help youYou learn more by listening than by talkingIt helps to think about what you want to accomplish before you try to accomplish itYou manage what you measure Over time,relationships prove their value,2001 Quaero LLC,37,Results Are Worth It,META Group findings reveal 80%of organization report success even though majority(70%)have not integrated across channels.,Retention and Loyalty have dramatic,short-term impact on bottom lineCRM can sustain larger revenue increasesWall Street is watching,IT IS FUN!,2001 Quaero LLC,Naras V.Eechambadi,PhDCEO,