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Lets talk about Customer Relationship Management The experience so far across South Asia, South East Asia and Pacific David Twine Executive Director Singapore,

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Presentation on theme: "Lets talk about Customer Relationship Management The experience so far across South Asia, South East Asia and Pacific David Twine Executive Director Singapore,"— Presentation transcript:

1 Lets talk about Customer Relationship Management The experience so far across South Asia, South East Asia and Pacific David Twine Executive Director Singapore, Australia, Middle East and Europe - 2007

2 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

3 Background situation and context Early 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 David Twine, Singapore

4 Background situation and context Early issues and drivers – cont. Develop (client) VPs around the idea that nothing sells better than a live opportunity and a real deal We didnt 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 David Twine, Singapore

5 Supply Push and 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 … 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 ….. David Twine, Singapore

6 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 ….. David Twine, Singapore

7 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

8 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 (nos), 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? David Twine, Singapore

9 The Opportunity Pull perspective Plenty 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 David Twine, Singapore

10 Market Opportunities can achieve KPIs The Jakarta Experience (not quite CRM) Transactions from Market Opportunities 22% 75% 82% 83% 52% 44% 47% 82% 78% 25% 18% 17% 48% 56% 53% 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 PostOther services delivered by Post Bali Bombing David Twine, Singapore

11 Enhanced Customer Management CRM 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 the way we service them in order to increase the number of opportunities for Clients David Twine, Singapore

12 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 David Twine, Singapore

13 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 youve got them …. retain & grow them Genuine Customer Growth and Loyalty David Twine, Singapore

14 Once youve got em …. Retaining and growing customers Retain and grow customers Sales andCustomer management skill optimisation Optimisation of resources to match opportunities Effective customer and prospect segmentation Genuine understanding of customers challenges, needs, driversand opportunities Genuine Customer Growth and Loyalty Tailoring of value Proposition, customer management processes, and 'value adds' customer segments David Twine, Singapore

15 What business outcomes have we achieved as a result of implementing new systems and processes? David Twine, Singapore

16 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 Outcomes Results so far – very encouraging… David Twine, Singapore

17 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… David Twine, Singapore

18 03-04: 6.5 export deals / BDM 04-05: 10.7 export deals / BDM 05-06:15 export deals / BDM (target) 06-07: 20 export deals / BDM (target) Underpinning productivity gains EI outcomes per person David Twine, Singapore

19 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 David Twine, Singapore

20 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 David Twine, Singapore

21 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 doesnt matter: Suva and Singapore CRM – other outcomes / benefits David Twine, Singapore

22 Keys to CRM success are also an element of the success! Sales Team Leadership Behaviours & Attitude Behaviours & 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 Predictability Rigour Discipline PassionPassion Efficiency of Effort David Twine, Singapore

23 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. David Twine, Singapore

24 1:1:1 1:1:5 SEASAP 2005-06 Focus. 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

25 Supplementary Slides David Twine, Singapore

26 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 …. David Twine, Singapore

27 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 David Twine, Singapore

28 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 didnt 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 David Twine, Singapore

29 Ealy days but this is an example of what we are looking at …. David Twine, Singapore

30 Understand our marketplace Analysemarket place to identify attractive segments, industries and companies Identify and recruit attractive companies for Australian Clients What does CRM entail? Customer Recruitment David Twine, Singapore

31 Apply best practicecustomer management processes to regional customers Once customer base is identified... Customer Management Prioritise attractive segments, industries andcompanies Provide push/pull sales opportunities for Australian companies David Twine, Singapore

32 Once youve got them …. Retaining and growing customers Retain and grow customers Sales andCustomer management skill optimisation Optimisation of resources to match opportunities Effective customer and prospect segmentation Genuine understanding of customers challenges, needs, driversand opportunities Genuine Customer Growth and Loyalty Tailoring of value Proposition, customer management processes, and 'value adds' customer segments David Twine, Singapore

33 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 doesnt matter: Suva and Singapore Key Benefits of a formal CRM program ….. David Twine, Singapore

34 CRM Implementation David Twine, Singapore

35 Our CRM Methodology Sales Strategy (KPI Strategy) Customer and market segmentation Deep understanding of Customers and Markets Defined customer service standards Tailored structure, correct resources and portfolio planning Sales leadership Optimisation of people skills and focus Customer friendly systems Organisational service performance Optimum products and services (Value proposition) Customer management Processes, disciplines and tools Application of corporate business strategy Customer CRM David Twine, Singapore

36 Keys to CRM Success Behaviours & Attitude Behaviours & 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 David Twine, Singapore

37 Keys to CRM Success Sales Team Leadership Behaviours & Attitude Behaviours & 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 Predictability Rigour Discipline PassionPassion Efficiency of Effort David Twine, Singapore

38 CPSM 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 David Twine, Singapore

39 Customer planned contact Managing, interacting - efficiently Customer Call Plans for BDMs David Twine, Singapore

40 Customer management Customer pipeline low ? Low call rate for KPI customers ? Low ratio KPI customers vs prospects ? Monitoring of results at a post level BDM Productivity David Twine, Singapore

41 Post Managers Sales Force Management Sales processes are being followed Monthly sales meetings Weekly sales meetings Visual charts andwhite boards BDM one to one meetings BDM productivity In field coaching Sales Team Management David Twine, Singapore

42 What drives Staff to find new customers David Twine, Singapore

43 CRM The value of Customer Relationships Much more than transactional or quantitative outcomes Market intelligence Credibility with Clients Source of market validation Access to networks Events participation Press exposure Introductions Marketing Channels Expertise & knowledge Market Opportunities / KPIs Distribution Channels Credibility for Clients Value of Customer R elationships Value of Customer R elationships High-Yield Buyer Visits David Twine, Singapore

44 CRM How 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 Timeframe Repeat order potential Importing experience Frequency of Buying Connections to our Owners / Stakeholders Match to Australian industry priorities MeasuringCustomerValueMeasuringCustomerValue Appetite for business & product innovation David Twine, Singapore


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