Building The Customer Centric Enterprise – Beyond Technology
Lisa LoftisIntelligent Solutions, [email protected]
© 2004, Intelligent Solutions, Inc.
The Evolution of CRM
The Past: Where did we start?
The Present: What’s different?
The Future: Where are we going?
© 2004, Intelligent Solutions, Inc.
The Beginning – Product FocusOrganization by product
Billing/account organization
Product profitability
Product volumes
Product capacity utilization
Segmentation to support products
Call centers by product
Customer???
MarketProducts
to theMasses
© 2004, Intelligent Solutions, Inc.
Product Focus Precludes Answers
How many customers do you have?
How many products does each customer own?
Can your best customers contact you effectively and
efficiently?
Can you anticipate the customer’s needs accurately
enough to be in the right
place, at the right time, with the
right product for them?
© 2004, Intelligent Solutions, Inc.
The Evolution of CRM
The Past: Where did we start?
The Present: What’s different?
The Future: Where are we going?
© 2004, Intelligent Solutions, Inc.
The Present – Customer Focus
Customer needs based sales and marketing
Customer segment organization
Customer care centers
Focus on developing lasting relationships
Customer satisfaction measured
Retention key objective TailorProducts
to theCustomer
© 2004, Intelligent Solutions, Inc.
The Evolution of CRM
The Past: Where did we start?
The Present: What’s different?
The Future: Where are we going?
And how do we get there
© 2004, Intelligent Solutions, Inc.
CRM Definition
Customer Relationship Management . . .
Aligning business strategy, organization
structure and culture and customer
information and technology so all customer
interactions can be managed to the
satisfaction of the customer and to the
benefit and profit of the organization.1
1 From the book, Building the Customer-Centric Enterprise, by Imhoff, Loftis & Geiger, John Wiley & Sons, 2001
© 2004, Intelligent Solutions, Inc.
CRM Strategy – Must Be Present
Retention• Identify customers likely to leave & implement
sales and service policies to keep them
Cross-sell• Determine profitable multi-product discounts
and actively promote them
Satisfaction/Risk Management• Tailor credit and collection policies
to total customer value
© 2004, Intelligent Solutions, Inc.
Impact of Organization Structure
What’s best for the customer - what’s best for the
business area
Coordinating cross business area initiatives
• Getting them off the ground
• Arbitrating cost & profit allocations
• Monitoring initiatives
Rounding up business areas that don’t want to play
© 2004, Intelligent Solutions, Inc.
National Communications
Cellular
Long Distance
Customer Care
Distribution
Marketing
Systems
Product DevelopmentProduct
DevelopmentProduct Development
Cable
Customer Care
Marketing
Distribution
Systems
Product DevelopmentProduct
DevelopmentProduct Development
Organization Structure Traditional
© 2004, Intelligent Solutions, Inc.
National Communications
Cellular
Long Distance
Customer Care
Distribution
Marketing
Systems
Product DevelopmentProduct
DevelopmentProduct Development
Cable
Customer Care
Marketing
Distribution
Systems
Product DevelopmentProduct
DevelopmentProduct Development
Customer Management
Customer Portfolio
Customer Management
Customer Portfolio
Organization Structure - Evolving
© 2004, Intelligent Solutions, Inc.
National Communications
Cellular
Long Distance
Customer Care
Marketing
Distribution
Systems
Product DevelopmentProduct
DevelopmentProduct Development
Cable
Customer Care
Marketing
Distribution
Systems
Product DevelopmentProduct
DevelopmentProduct Development
Strategic Operations
Customer Management
Customer Portfolio
Shared Systems
Business Management
Business Intelligence
Business Operations
Organization Structure - Evolved
© 2004, Intelligent Solutions, Inc.
Impact of Culture
How is change originated in your
organization?
• Top down
• Bottom up
• Somewhere in between
Do you have CRM performance objectives and
incentives?
Do your training programs provide CRM skills?
© 2004, Intelligent Solutions, Inc.
Culture Incentives and Objectives
Objective 1 Objective 2 Objective 3
Marketing Increasing
share of
wallet
Movement of
customers
across
segments
Prompting of
service and
sales channels
Service Cross-sales
and
retention
saves
Customer
satisfaction
with service
process
Traditional
measures
adjusted – call
handle time
Sales Cross-sales
and share of
wallet
increases
Customer
satisfaction
with sales
process
Sales and deal
teams factored
into incentives
© 2004, Intelligent Solutions, Inc.
Culture – Cooperation and SharingObjective 1 Objective 2 Objective 3
Marketing Current campaign information actively communicated to all
contact channels
Provides understanding of customer base to
all distribution points
Maintains central solicitation
mechanism – prevents over
solicitation
Service Common customer information shared across all service
channels
Service processes coordinated across
channels
Customer complaint
information provided to
marketing and sales
Sales Sales and deal teams dynamic – product
specialists available as needed
Customer contacts recorded and
shared across all sales channels
Processes and pricing
coordinated across all sales
channels
© 2004, Intelligent Solutions, Inc.
Technology - Customer Information
Customer information should be:
• Elevated to the level of a strategic corporate
asset
• Integrated
• Shared throughout the enterprise
© 2004, Intelligent Solutions, Inc.
We Need To Get From Here…
Management
THE REALITY
?
Operating Data
Marketing Database
Call Center/Telephony
Customer
Product
Product
Customer
Product
Customer
Customer File
Sales Force Automation
Profitability
Product
Customer
Customer
Product
Customer
Product
© 2004, Intelligent Solutions, Inc.
Information Workshop
Meta Data Management
Operation & Administration
Library & Toolbox Workbench
Change Management
Service Management
Data Acquisition Management
Systems Management
Data Acquisition
CIF Data Management
Data Delivery
Information Feedback
API
API
API
API DSI
DSI
TrI
DSI
DSI
Operational Systems
OperationalData Store
Data Warehouse
Exploration Warehouse
Data Mining Warehouse
OLAP Data Mart
Oper Mart
External
ERP
Internet
Legacy
Other
© 2004, Intelligent Solutions, Inc.
StrategicCRM
Applications
OperationalCRM
Applications
Meta Data Management
Data Delivery Data MiningWarehouse
ExplorationWarehouse DSI
DSI
API
API
API
API
Dat
a A
cqu
isiti
on
OperationalSystems
DataWarehouse
API
API
API
API
Dat
a A
cqu
isiti
on
OperationalSystems
OperationalData Store
TrI
DataMart DSI
© 2004, Intelligent Solutions, Inc.
Information Workshop
Meta Data Management
Operation & Administration
Library & Toolbox Workbench
Change Management
Service Management
Data Acquisition Management
Systems Management
Data Acquisition
CIF Data Management
Data Delivery
Information Feedback
API
API
API
API TrI
DSI
TrI
DSI
DSI
Operational Systems
OperationalData Store
Data Warehouse
Exploration Warehouse
Data Mining Warehouse
OLAP Data Mart
Oper Mart
External
ERP
Internal
Legacy
Other
Business Operatio
n
Business Operatio
n
Business IntelligenceBusiness Intelligence
Business ManagementBusiness Management
© 2004, Intelligent Solutions, Inc.
Information Workshop
Meta Data Management
Operation & Administration
Library & Toolbox Workbench
Change Management
Service Management
Data Acquisition Management
Systems Management
Data Acquisition
CIF Data Management
Data Delivery
Information Feedback
API
API
API
API TrI
DSI
TrI
DSI
DSI
Operational Systems
OperationalData Store
Data Warehouse
Exploration Warehouse
Data Mining Warehouse
OLAP Data Mart
Oper Mart
External
ERP
Internal
Legacy
Other
Business IntelligenceBusiness Intelligence
Business ManagementBusiness Management
Operational Systems are the internal and external core systems that run the day-to-day business operations. They are accessed through application program interfaces (APIs) and are the source of data for the data warehouse and operational data store.
© 2004, Intelligent Solutions, Inc.
CRM System IssuesCustomer component - CIF/customer profile• Replacement or integrated component• Where do updates to customer information take place
Transaction systems – CRM account screens• Amount of customization• Degree of integration• Currency of information
Integration with other systems• Investment systems• Other workflow systems
Target users and processes• Branches, call center or both• Tellers, desk staff, other departments• Contact tracking, workflow, sales prompts
© 2004, Intelligent Solutions, Inc.
Front-Line Requirements
Ensuring effective and successful Front Line
utilization of customer information requires:
• Requires accurate data
• Expects minimal additional screens - single screen view
preferred, sized appropriately
• Assumes clearly presented information with intuitive
meanings and uses that deliver noticeable value
• Demands current data – refreshed daily or immediately if
possible
© 2004, Intelligent Solutions, Inc.
Front-Line RequirementsEffective delivery of customer knowledge to Front Line is a
significant effort
• Requires cross organizational team with adequate participation –
appropriate ownership Training, delivery, marketing, IT
• Pre-deployment planning must measure impacts of new information Information utility and clarity
Policies and standards for new information
Positioning of screens and required behavior into transaction flow -
processes
• Clear and effective training programs vital
© 2004, Intelligent Solutions, Inc.
Information Workshop
Meta Data Management
Operation & Administration
Library & Toolbox Workbench
Change Management
Service Management
Data Acquisition Management
Systems Management
Data Acquisition
CIF Data Management
Data Delivery
Information Feedback
API
API
API
API TrI
DSI
TrI
DSI
DSI
Operational Systems
OperationalData Store
Data Warehouse
Exploration Warehouse
Data Mining Warehouse
OLAP Data Mart
Oper Mart
External
ERP
Internal
Legacy
Other
Business Operatio
n
Business Operatio
n
Business IntelligenceBusiness Intelligence
The Operational Data Store is a subject-oriented, integrated, current, volatile collection of data used to support the tactical decision-making process for the enterprise.
© 2004, Intelligent Solutions, Inc.
Contact Centers Brick & Mortar Distribution Centers
• Contact History• Customer Relationship• Customer Needs• Customer Behavior• Customer Preferences
Information
Functions
Sales Service
Campaign Contact
• Prompts• Intelligent Sales• Recommendations• Help
Rules
User Interfaces
Web Access
ODS
Supports comprehensive enterprise wide contact information from all Lob's
Provides client, household and extended relationship views
Provides information at account/product level
Provides or integrates with sales, service and business analysis and management functions
© 2004, Intelligent Solutions, Inc.
Information Workshop
Meta Data Management
Operation & Administration
Library & Toolbox Workbench
Change Management
Service Management
Data Acquisition Management
Systems Management
Data Acquisition
CIF Data Management
Data Delivery
Information Feedback
API
API
API
API TrI
DSI
TrI
DSI
DSI
Operational Systems
OperationalData Store
Data Warehouse
Exploration Warehouse
Data Mining Warehouse
OLAP Data Mart
Oper Mart
External
ERP
Internal
Legacy
Other
Business Operatio
n
Business Operatio
nBusiness ManagementBusiness Management
The Data Warehouse is a subject-oriented, integrated, time-variant, non-volatile collection of data used to support the strategic decision-making process for the enterprise.
© 2004, Intelligent Solutions, Inc.
Information Workshop
Meta Data Management
Operation & Administration
Library & Toolbox Workbench
Change Management
Service Management
Data Acquisition Management
Systems Management
Data Acquisition
CIF Data Management
Data Delivery
Information Feedback
API
API
API
API TrI
DSI
TrI
DSI
DSI
Operational Systems
OperationalData Store
Data Warehouse
Exploration Warehouse
Data Mining Warehouse
OLAP Data Mart
Oper Mart
External
ERP
Internal
Legacy
Other
Business Operatio
n
Business Operatio
nBusiness ManagementBusiness Management
The OLAP (online analytical processing) Data Mart is aggregated and/or summarized data that is derived from the data warehouse and tailored to support the multidimensional requirements of a given business unit or business function.
© 2004, Intelligent Solutions, Inc.
Information Workshop
Meta Data Management
Operation & Administration
Library & Toolbox Workbench
Change Management
Service Management
Data Acquisition Management
Systems Management
Data Acquisition
CIF Data Management
Data Delivery
Information Feedback
API
API
API
API TrI
DSI
TrI
DSI
DSI
Operational Systems
OperationalData Store
Data Warehouse
Exploration Warehouse
Data Mining Warehouse
OLAP Data Mart
Oper Mart
External
ERP
Internal
Legacy
Other
© 2004, Intelligent Solutions, Inc.
Executive Mandate Manager Buy-In
Influence IT approach and structure
Reorganize or establish coordination
function
Set performance objectives
Top-down communication
Directives endorsed and carried out
Cooperation and information sharing
© 2004, Intelligent Solutions, Inc.
Leadership Ability - Required
Active executive sponsor for CRM - imperative
Accountability for CRM is Essential
Ability to migrate organization is required
• Must influence management team
• Must inspire line organization
• Must communicate CRM intentions To organization To business community To public
© 2004, Intelligent Solutions, Inc.
Conclusion
It must be considered that there is nothing more difficult to carry out, nor more doubtful of success, nor more dangerous to handle, than to initiate a new order of things.
Niccolo Machiavelli
The Prince (1513)
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