Presentation is loading. Please wait.

Presentation is loading. Please wait.

CRM a customer marketing case. 2 Example: “EuroTech” a customer marketing case 2,126 active customers 2,126 active customers $ 9,956,000 Revenues $ 9,956,000.

Similar presentations


Presentation on theme: "CRM a customer marketing case. 2 Example: “EuroTech” a customer marketing case 2,126 active customers 2,126 active customers $ 9,956,000 Revenues $ 9,956,000."— Presentation transcript:

1 CRM a customer marketing case

2 2 Example: “EuroTech” a customer marketing case 2,126 active customers 2,126 active customers $ 9,956,000 Revenues $ 9,956,000 Revenues $ 850,000 Profit $ 850,000 Profit Goal: 50% more Profit (without increase in marketing and sales costs) Goal: 50% more Profit (without increase in marketing and sales costs)

3 3 Segment customers in a Customer Pyramid “Top” “Big” “Medium” “Small” “Inactives” Prospects Suspects “Top” “Big” “Medium” “Small” “Inactives” Prospects Suspects Copyright © 2004 Customer Marketing International 1% of Customers 15% of Customers 4% of Customers 80% of Customers

4 4 10% Revenues Observation – I 90% Revenues 21 Top >58, Big 19,000-58, Medium 4,820-19,000 1,701 Small 1-4, Inactive 250 Prospects 1,000 Suspects Copyright © 2004 Customer Marketing International Existing customers deliver ± 90% of revenues

5 5 21 Top >58, Big 19,000-58, Medium 4,820-19,000 1,701 Small 1-4, Inactive 250 Prospects 1,000 Suspects Observation – II 20% of the customers deliver 80% of revenues Copyright © 2004 Customer Marketing International 1% of Customers 24% Revenues 1% of Customers 24% Revenues 15% of Customers 29% Revenues 15% of Customers 29% Revenues 4% of Customers 27% Revenues 4% of Customers 27% Revenues 80% of Customers 20% Revenues 80% of Customers 20% Revenues

6 6 21 Top >58, Big 19,000-58, Medium 4,820-19,000 1,701 Small 1-4, Inactive 250 Prospects 1,000 Suspects Observation – III...and more than 100% of profits Copyright © 2004 Customer Marketing International 114,000 Rev/Cust 45,600 Profit/Cust 114% Profit 114,000 Rev/Cust 45,600 Profit/Cust 114% Profit 9,100 Rev/Cust 1,820 Profit/Cust 74% Profit 9,100 Rev/Cust 1,820 Profit/Cust 74% Profit 31,600 Rev/Cust 9,480 Profit/Cust 139% Profit 31,600 Rev/Cust 9,480 Profit/Cust 139% Profit 1,160 Rev/Cust -522 Profit/Cust -53% Profit 1,160 Rev/Cust -522 Profit/Cust -53% Profit 2,126 Customers 4,680 Rev/Customer 399 Profit/Customer 9% Profit 2,126 Customers 4,680 Rev/Customer 399 Profit/Customer 9% Profit

7 7 21 Top >58, Big 19,000-58, Medium 4,820-19,000 1,701 Small 1-4, Inactive 250 Prospects 1,000 Suspects Observation – IV 5-30% of the SMB customers can move immediately to the top of the pyramid as share of customer is low Copyright © 2004 Customer Marketing International 5-30% are high potentials 5-30% are high potentials

8 8 21 Top >58, Big 19,000-58, Medium 4,820-19,000 1,701 Small 1-4, Inactive 250 Prospects 1,000 Suspects Copyright © 2004 Customer Marketing International + 10 Observation – V A 2% net upwards migration of customers can deliver ,126 Customers No Change 2,126 Customers No Change

9 9...+/- 10% more revenues, a lot more profit, and a much higher ROI Copyright © 2004 Customer Marketing International BeforeAfterDifference% Revenues9,956,00011,306,1001,350, % Profit850,0001,367, , % ROI on CRM19%35%16%+ 84% Active Customers 2,126 00% Bingo!

10 The CRM Strategy to Increase Profits and ROI Copyright © 2004 Customer Marketing International

11 11 1) Get 'em in… “Top” “Big” “Medium” “Small” “Inactives” Prospects Suspects “Top” “Big” “Medium” “Small” “Inactives” Prospects Suspects Copyright © 2004 Customer Marketing International

12 12 2) …move 'em up… “Top” “Big” “Medium” “Small” “Inactives” Prospects Suspects “Top” “Big” “Medium” “Small” “Inactives” Prospects Suspects Copyright © 2004 Customer Marketing International

13 13 3) …and keep them in! Copyright © 2004 Customer Marketing International “Top” “Big” “Medium” “Small” “Inactives” Prospects Suspects “Top” “Big” “Medium” “Small” “Inactives” Prospects Suspects

14 14 Observation – VI An upward migration only happens when customers are very satisfied… 21Top>58,90085Big19,000-58,900319Medium4,820-19,0001,701Small1-4, Inactive 250 Prospects 1,000 Suspects Copyright © 2004 Customer Marketing International

15 15 Observation – VII …even reasonably satisfied customers sometimes defect 21Top>58,90085Big19,000-58,900319Medium4,820-19,0001,701Small1-4, Inactive 250 Prospects 1,000 Suspects Copyright © 2004 Customer Marketing International

16 Product Dissatisfaction 14% Product Dissatisfaction 14% Price9 % Price9 % New personal relation5 % New personal relation5 % Moving3 % Moving3 % Death1 % Death1 % Indifference68 % Indifference68 % Product Dissatisfaction 14% Product Dissatisfaction 14% Price9 % Price9 % New personal relation5 % New personal relation5 % Moving3 % Moving3 % Death1 % Death1 % Indifference68 % Indifference68 % Why industrial customers defect Source: McKinsey Quarterly

17 17 Observation - VIII Marketing, sales and service are charged with influencing customer behaviour… Copyright © 2004 Customer Marketing International 21 Top >58, Big 19,000-58, Medium 4,820-19,000 1,701 Small 1-4, Inactive 250 Prospects 1,000 Suspects Marketing Sales Service Marketing Sales Service

18 18 Observation – IV …but other departments involved with customer processes often have more influence on customers 21 Top >58, Big 19,000-58, Medium 4,820-19,000 1,701 Small 1-4, Inactive 250 Prospects 1,000 Suspects Marketing Sales Service Marketing Sales Service Reception Service Accounts Production Logistics Chauffeurs “Back Office” Reception Service Accounts Production Logistics Chauffeurs “Back Office” Copyright © 2004 Customer Marketing International

19 19 Conclusion Profits come from positive customer performance... ProfitsCustomerPerformance Customer Profitability Customer Behaviour Customer Satisfaction ProfitsCustomerPerformance Customer Profitability Customer Behaviour Customer Satisfaction Copyright © 2004 Customer Marketing International

20 20...but the whole company needs Customer Focus to make it happen! Customer Focus Organization * Information * Communication Customer Focus Organization * Information * Communication Copyright © 2004 Customer Marketing International

21 21 ProfitsCustomerPerformance Customer Profitability Customer Behaviour Customer Satisfaction ProfitsCustomerPerformance Customer Profitability Customer Behaviour Customer Satisfaction Customer Focus Organization * Information * Communication Customer Focus Organization * Information * Communication …the right things happen here! If you do things right here… If you do things right here… Copyright © 2004 Customer Marketing International

22 22 But if you can't measure it, you can’t plan and manage it! ProfitsCustomerPerformance Customer Profitability Customer Behaviour Customer Satisfaction ProfitsCustomerPerformance Customer Profitability Customer Behaviour Customer Satisfaction Customer Focus Organization * Information * Communication Customer Focus Organization * Information * Communication AccountantsAccountants Copyright © 2004 Customer Marketing International ??????


Download ppt "CRM a customer marketing case. 2 Example: “EuroTech” a customer marketing case 2,126 active customers 2,126 active customers $ 9,956,000 Revenues $ 9,956,000."

Similar presentations


Ads by Google