Let’s 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

and …. what success (might) look like ? This Session 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 What business outcomes have we achieved as a result of implementing new systems and processes? and …. what success (might) look like ? This presentation covers: Background: What is CRM and why we felt the need to embrace a formal CRM approach in the context of the challenges we are facing as a Region. CRM Implementation The processes, disciplines and tools which have been developed for Customer Management What some of the key changes have been – particularly in the behaviour and attitudes of STCs and BDMs THE SEASAP Experience The experience so far What success will ultimately look like And finally future directions. Do not attempt to address tools, processes, etc David Twine, Singapore

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 Struggling after two years of NED program to attract clients to identify “hooks” to channel clients to market to define our value proposition High share of ‘difficult’ markets in SEASAP Customer Relationship Management began to be considered in response to the first two years of the NED program and it was realised that we needed to focus more on customers and opportunities. We didn’t have the right customers. There was no real process of deciding who were our customers; And no way of determining the worth of our customer base to the region We engaged a consultant, Macquarie Marketing Group to assist us in identifying a process of segmenting our customers to increase their delivery of opportunities The first workshops occurred in mid 2003, using Bangkok as the trial post Initial Roll out of the program commenced in Nov-Dec 2003 Full implementation commenced in the second quarter of 2004/05. David Twine, Singapore

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 didn’t 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 Customer Relationship Management began to be considered in response to the first two years of the NED program and it was realised that we needed to focus more on customers and opportunities. We didn’t have the right customers. There was no real process of deciding who were our customers; And no way of determining the worth of our customer base to the region We engaged a consultant, Macquarie Marketing Group to assist us in identifying a process of segmenting our customers to increase their delivery of opportunities The first workshops occurred in mid 2003, using Bangkok as the trial post Initial Roll out of the program commenced in Nov-Dec 2003 Full implementation commenced in the second quarter of 2004/05. David Twine, Singapore

What did we set out to achieve? Objectives evolved into this ….. Supply Push and Opportunity Pull Faster, more effective, matching of “Supply Push” through expansion of customer base positioning to service significant growth in clients Increase “Opportunity Pull” led results across all markets and … 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 This is core business infrastructure applied by all sales oriented businesses Supply Push and Opportunity Pull Faster, more effective, matching of “supply push” through expansion of customer base (reacting to anticipated tidal wave of clients over horizon) Increase “opportunity pull” led results across all markets Better knowledge of industry and dynamics to deliver greater value to clients in a sustainable way = . And in the process deliver ….. Improve conversion rates on opportunities (though better alignment of resources to match profile Australian capability. Alignment – customer-client sourcing Significantly increase regional efficiency – EI outcomes pp Database of customers …. operational effectiveness David Twine, Singapore

What did we set out to achieve? Objectives evolved into this ….. And in the process deliver ….. improved conversion rates on opportunities - though better alignment of resources to match Australian capability significantly increased efficiency – i.e. export deals achieved per staff member secure aggregation of market / customer knowledge & information via database of customers This is core business infrastructure applied by all sales oriented businesses Supply Push and Opportunity Pull Faster, more effective, matching of “supply push” through expansion of customer base (reacting to anticipated tidal wave of clients over horizon) Increase “opportunity pull” led results across all markets Better knowledge of industry and dynamics to deliver greater value to clients in a sustainable way = . And in the process deliver ….. Improve conversion rates on opportunities (though better alignment of resources to match profile Australian capability. Alignment – customer-client sourcing Significantly increase regional efficiency – EI outcomes pp Database of customers …. operational effectiveness David Twine, Singapore

“Supply Push” perspective 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? Who could forget !! Recall March Executive last year and our revision of the NE delivery schedule for the remainder of the doubling campaign ….. David Twine, Singapore

Death ‘n Taxes … sure …. but what about Customers? 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 (no’s), increase effectiveness (conversion) Must get better at growing & managing ever increasing Customer base & growing pool of opportunities Hence enhanced Customer management – critical But recall what I said before …. We did not have the right customers No real process of deciding who were our customers No way of determining the worth of our customer base, let alone knowing how to manage it effectively. David Twine, Singapore

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 Key issue was the need to find more opportunities for the expected increase in new clients. A process was needed to develop a significant customer base which could deliver more opportunities to clients. Segmentation of customers was developed on the premise of their potential delivery of opportunities to Austrade. This determined the level of resources which were allocated to our customers The concept of a customer base segmented by number of opportunities over time frame was developed by the staff themselves. Image problems. Hard to compete with US, UK, NZ etc Kabul, Dhaka, Port Moresby - not front of mind ‘Security’ issues – bombings, travel advisories, Other issues’ - tsunamis, avian flu, political flavour BUT nothing attracts a client more than a live deal, a qualified opportunity (more than just a prospect) Increasing “Opportunity Pull” across all markets, especially the David Twine, Singapore

Market Opportunities can achieve KPIs The Jakarta Experience (not quite CRM) Transactions from Market Opportunities Bali Bombing 18% 17% 25% 48% 56% 53% 83% 78% 82% 82% 75% 52% 47% 44% A number of you will have seen me use this slide before. The example of Jakarta reinforced the concept of pursuing marketing opportunities to increase KPIs The Post lost the majority of its clients after September 2001 and October 2002. It relied on opportunities to keep its workload and results up. It worked well. These results however came from sheer hard work and intense effort by the team. It was not CRM … it is an example of the importance of market opportunities. But it was intense one to one (client to customer) activity. It was not effective customer management …. And thus not really scaleable or sustainable. 22% 18% Q1 (Jul-Sep 02) Q3 (Jan-March 03) Q1 (Jul-Sept 03) Q3 (Jan-Mar 04) Q2 (Oct-Dec 02) Q4 (Apr-Jun 03) Q2 (Oct-Dec 03) Q4 (Apr-3 June 04) Market opportunities delivered by Post Other services delivered by Post David Twine, Singapore

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 Key issue was the need to find more opportunities for the expected increase in new clients. A process was needed to develop a significant customer base which could deliver more opportunities to clients. Segmentation of customers was developed on the premise of their potential delivery of opportunities to Austrade. This determined the level of resources which were allocated to our customers The concept of a customer base segmented by number of opportunities over time frame was developed by the staff themselves. David Twine, Singapore

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 So, what does CRM entail ? At the front end …. it is customer recruitment. A simple three stage process Develop a clear overview of the market place – THE CUSTOMER UNIVERSE - eg the number of companies; location; size; attractiveness to Australian exporters. Analyse the market place into attractive segments through a detailed qualification process. From attractive market segments, contact and recruit companies for market opportunities. David Twine, Singapore

Genuine Customer Growth and Loyalty 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 you’ve got them …. retain & grow them Genuine Customer Growth and Loyalty So, what does CRM entail ? At the front end …. it is customer recruitment. A simple three stage process Develop a clear overview of the market place – THE CUSTOMER UNIVERSE - eg the number of companies; location; size; attractiveness to Australian exporters. Analyse the market place into attractive segments through a detailed qualification process. From attractive market segments, contact and recruit companies for market opportunities. David Twine, Singapore

Once you’ve got ‘em …. Retaining and growing customers Genuine understanding of customers challenges, needs, drivers and opportunities Tailoring of value Proposition, customer Sales and Customer Effective customer management management skill and prospect processes, and 'value segmentation optimisation adds' customer segments Retain and grow customers Optimisation of But once we’ve got them -> we need to keep and grow them …. Key components of retaining and growing customers: Understanding of customer’s business Segmentation of customers Application of Austrade value proposition to customers Matching BDM efforts to opportunities provided by the customer Well developed sales skills. resources to match opportunities Genuine Customer Growth and Loyalty David Twine, Singapore

What business outcomes have we achieved as a result of implementing new systems and processes? This presentation covers: Background: What is CRM and why we felt the need to embrace a formal CRM approach in the context of the challenges we are facing as a Region. CRM Implementation The processes, disciplines and tools which have been developed for Customer Management What some of the key changes have been – particularly in the behaviour and attitudes of STCs and BDMs THE SEASAP Experience The experience so far What success will ultimately look like And finally future directions. David Twine, Singapore

CRM – Quantitative Outcomes Results so far – very encouraging… 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 This is core business infrastructure applied by all sales oriented businesses David Twine, Singapore

CRM – Quantitative Outcomes (2) Results so far encouraging… 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 This is core business infrastructure applied by all sales oriented businesses David Twine, Singapore

Underpinning productivity gains EI outcomes per person 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) You will recall from last year that in the interests of FOCUS and SIMPLIFYING our mission as well as to drive us towards Superior Performance, I introduced the SEASAP Mantra of “Superior Performance = one EI per person per month”. Or 12 EIs per marketing person for the year. Concept being: Get that right and everything else falls into place! So how did we go? We finished the previous year – 03-04 – with an efficiency of 6.5 Client Successes per marketing officer. 04-05: well we didn’t make 12 – unfortunately. In terms of total transactions we achieved 11.1 per person, but after duplication is removed – from multiple success of the same client - we closed the year at 10.7, which correlates to a conversion efficiency or productivity gain year on year of over 63%. Ultimately you are the judge, but I think my team has done an outstanding job in delivering such an outcome for the companies we represent. Of course, that’s not the end of it. The rationale for keeping the messages about our mission simple, crisp and clear remains as important as ever, so there will be an evolution of the SEASAP Mantra for the year ahead which I will talk more about later. David Twine, Singapore

Customer Database - moving from tacit to systemised customer knowledge 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! This is core business infrastructure applied by all sales oriented businesses David Twine, Singapore

Industry gains - deeper knowledge, and closer onshore / offshore alignment Better understanding of market & market segmentation along industry lines resulting in: Stronger industry team results Growth in client sustainability outcomes 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. This is core business infrastructure applied by all sales oriented businesses David Twine, Singapore

CRM – other outcomes / benefits 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 doesn’t matter: Suva and Singapore This is core business infrastructure applied by all sales oriented businesses David Twine, Singapore

Consistency Predictability Rigour Efficiency of Effort Passion Keys to CRM success are also an element of the success! Sales Team Leadership Prioritisation Consistency More time with S1 and S2 customers Behaviours & Attitude Predictability Rigour Coaching & sustained follow-up Discipline Efficiency of Effort Apply CRM approach Accountability reporting performance agreements But, I would also put it another way ….. For anyone who has had anything to do with Sales – with or without a CRM program – the keys to success of sales team leadership are: Consistency Predictability Rigour Efficiency of Effort Discipline Passion Passion Discipline Time management Avoid distractions / low value activity David Twine, Singapore

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

SEASAP 2005-06 Focus. Discipline. Results. Celebration. 1:1:1 1:1:5 one Export Deal per person per month (*) one buyer visit per BDM, minimum of 5 EIs * Counted on all staff count not just marketing staff. EIs only, does not include OI count

Supplementary Slides David Twine, Singapore

     Delivering the business objectives we set out to achieve …. Faster, more effective, matching of “supply push” Increase “opportunity pull” across all markets Better industry alignment – customer-client sourcing Improve conversion rates on opportunities Significantly increase organisational (regional) efficiency – Export Deal outcomes    This is core business infrastructure applied by all sales oriented businesses  David Twine, Singapore

What we set out to achieve … Basic Drivers 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 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” This is core business infrastructure applied by all sales oriented businesses David Twine, Singapore

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 didn’t 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 Customer Relationship Management began to be considered in response to the first two years of the NED program and it was realised that we needed to focus more on customers and opportunities. We didn’t have the right customers. There was no real process of deciding who were our customers; And no way of determining the worth of our customer base to the region We engaged a consultant, Macquarie Marketing Group to assist us in identifying a process of segmenting our customers to increase their delivery of opportunities The first workshops occurred in mid 2003, using Bangkok as the trial post Initial Roll out of the program commenced in Nov-Dec 2003 Full implementation commenced in the second quarter of 2004/05. David Twine, Singapore

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

What does CRM entail? Customer Recruitment Understand our market place Analyse market place to identify attractive segments, industries and companies So, what does CRM entail ? At the front end …. it is customer recruitment. A simple three stage process Develop a clear overview of the market place – THE CUSTOMER UNIVERSE - eg the number of companies; location; size; attractiveness to Australian exporters. Analyse the market place into attractive segments through a detailed qualification process. From attractive market segments, contact and recruit companies for market opportunities. Identify and recruit attractive companies for Australian Clients David Twine, Singapore

Once customer base is identified ... Customer Management Prioritise attractive segments, industries and companies Apply best practice customer management processes to regional customers And once you’ve identified your customer base or customer pool; Simple three step process. Segment customers based on number of opportunities provided. Work with customers following agreed customer management processes; ie calling patterns; senior management involvement. Seek Australian clients for opportunities and convert. Provide ‘push/pull’ sales opportunities for Australian companies David Twine, Singapore

Once you’ve got them …. Retaining and growing customers Genuine understanding of customers challenges, needs, drivers and opportunities Tailoring of value Proposition, customer Sales and Customer Effective customer management management skill and prospect processes, and 'value segmentation optimisation adds' customer segments Retain and grow customers Optimisation of But once we’ve got them -> we need to keep and grow them …. Key components of retaining and growing customers: Understanding of customer’s business Segmentation of customers Application of Austrade value proposition to customers Matching BDM efforts to opportunities provided by the customer Well developed sales skills. resources to match opportunities Genuine Customer Growth and Loyalty David Twine, Singapore

Key Benefits of a formal CRM program ….. 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 doesn’t matter: Suva and Singapore This is core business infrastructure applied by all sales oriented businesses David Twine, Singapore

CRM Implementation David Twine, Singapore

Our CRM Methodology Customer CRM Application of corporate business strategy Sales Strategy (KPI Strategy) Customer and market segmentation Optimum products and services (Value proposition) Deep understanding of Customers and Markets Customer CRM Organisational service performance Defined customer service standards The CRM methodology developed and adopted by SEASAP has a number of key components All of these components are continually being refined and implemented within SEASAP. Initial focus has been on customer and market segmentation; Austrade value proposition; defined customer service standards; structure and resources; and customer management processes, disciplines and tools. On-going effort includes sales skills training; consideration of a customer survey process; sales leadership. Customer friendly systems Tailored structure, correct resources and portfolio planning Sales leadership Optimisation of people skills and focus Customer management Processes, disciplines and tools David Twine, Singapore

Keys to CRM Success Prioritisation Coaching & sustained follow-up More time with S1 and S2 customers Behaviours & Attitude Coaching & sustained follow-up Discipline Apply CRM approach Accountability reporting performance agreements Along with segmentation, key success factors include strong disciplinary approach to call plans; coaching and sustained follow up, including sales force management; building the high value customer base. Time management is vital – as this becomes integrated into the post’s core business program, BDMs need to allocate their time across clients and customers. Time management Avoid distractions / low value activity David Twine, Singapore

Keys to CRM Success Sales Team Leadership Prioritisation Consistency More time with S1 and S2 customers Behaviours & Attitude Predictability Rigour Coaching & sustained follow-up Discipline Efficiency of Effort Apply CRM approach Accountability reporting performance agreements But, I would also put it another way ….. For anyone who has had anything to do with Sales – with or without a CRM program – the keys to success of sales team leadership are: Consistency Predictability Rigour Efficiency of Effort Discipline Passion Passion Discipline Time management Avoid distractions / low value activity David Twine, Singapore

Segmenting our Customer base Customer and Prospect Segmentation Matrix Number of Opportunities Timeframe 5 or greater 3 - 4 1 - 2 Next 12 months Segment 1 Segment 3 Segment 4 12 – 24 months Segment2 CPSM I have talked about segmentation and prioritisation of our customer base. The segmentation process focuses on high value customers who can deliver multiple opportunities over a short time horizon. S1 customers can deliver much higher yields to Austrade than S3 – hence require more resource time from BDMs. Important for BDMs to manage the entire customer base in the most efficient manner Segmentation of customers has driven behavioural change towards higher yielding customers. Greater than 24 Segment 4 months Managing entire customer base in most efficient manner Segmentation driving behavioural change towards higher yielding customers David Twine, Singapore

Managing, interacting - efficiently Customer Call Plans for BDMs Customer planned contact So, I;ve segmented my customers, how am I going to manage and interact with them in the most time efficient way? A disciplined approach to customer meetings. This template is being used by all posts in the region. Each customer call plan is supported by action plans; collateral and senior management involvement Used as a planning document for interactions – which is being monitored by STCs Reaction: “you want me to call on Joe Bloggs 8 times a year” What are we going to talk about?” Pushes some people outside of their comfort zones. This requires leadership and support. David Twine, Singapore

Monitoring of results at a post level BDM Productivity Total Calls Calls per week Possible calls BDM utliisation prospect calls pa calls pw 8 6 3 240 Smith 2 12 4 100 2.5 42% 140 3.5 Jones 5 18 70 1.8 29% 170 4.3 VJ 9 24 126 3.2 53% 114 2.9 Kattia 45 151 3.8 63% 89 2.2 Ian 145 3.6 60% 95 2.4 14 23 136 Total opportunities 173 Post KPIs - say 50 Conversion 1:5 250 Customer management Detailed planning per BDM of customer calls planned; and BDM workloads by segment. Supported by a spreadsheet developed in the region by TC Ian Davey (Bangkok Post); which once set up, is easy to report against; and has built in reporting mechanisms. This is a key document for sales force meetings, and for resource planning. Low ratio KPI customers vs prospects ? Customer pipeline low ? Low call rate for KPI customers ? David Twine, Singapore

Post Managers Sales Force Management Sales processes are being followed In field coaching BDM productivity Sales Team Management Weekly sales Monthly sales meetings meetings Each STC has received training in sales force management . This training is gradually being implemented across the region. STCs are key drivers of this process in their Posts, and are expected to hold sales meetings with staff on a regular weekly basis. Leadership is critical to success Visual charts and white BDM one to one boards meetings David Twine, Singapore

What drives Staff to find new customers David Twine, Singapore

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

CRM How is the value of Customers measured? Frequency of Buying Value of purchase transactions (sales) Repeat order potential Timeframe Industry networks Commitment to import / buy from Australia Measuring Customer Value Match to Australian industry priorities Nature of their Business e.g. trader Importing experience Delivery of market intelligence Market coverage – single / multi market Events participation Appetite for business & product innovation “Connections” to our Owners / Stakeholders David Twine, Singapore