Impact of Animation Tony Bermani

© 2005 Bermani Grafix What Is Happening in the Industry? Who Would Have Thought?

© 2005 Bermani Grafix Key Issues for Discussion What Is the e-Customer Relationship? Six Areas Impacted by e-Business New e-Marketing Opportunities The “New Rules of Customer Engagement” What Is Ahead for Customer Relationships?

© 2005 Bermani Grafix The Evolution of Customer Relationships Customer Satisfaction Time Costs Difficulty Few customer options Customer needs Competitive forces Customer importance

© 2005 Bermani Grafix The Evolution of Customer Relationships Costs Difficulty Few customer options Customer needs Competitive forces Customer importance Customer Satisfaction Time 2005 … … Access to information Ease of implementation Competitive pressures New entrants Scalability Connectivity

© 2005 Bermani Grafix The e-Volution of Customer Relationships Customer Relationship Cost Life Cycle of a Customer Relationship AcquisitionMaintenanceReacquisition

© 2005 Bermani Grafix Ignoring the changes will be fatal Embracing the possibility will be rewarding The e-Volution of Customer Relationships Market Share Time Maximize Satisfaction Continue As-Is Stay With the Pack

© 2005 Bermani Grafix New Touchpoints With the Customer  Direct Selling  Value Chain Extension  e-Marketplaces  e-Trading Floors Sales Force Tele-Sales Agents Distributors Joint Venture and Alliance Partners Customers Will Decide! Traditional Channels Are Being Impacted … … and Are Being Augmented by New e-Channels

© 2005 Bermani Grafix What Is the e-Customer Relationship? To be successful, you must be customer- centric, not product-centric – If you’re not there, you’ve missed the opportunity – If you don’t meet their needs, they have more options than ever before – You can’t force products; you can only make them attractive and available Customer- Centric Your e-Presence The electronic look, feel and touch of your company It’s a Buyer’s Market

© 2005 Bermani Grafix Key Issues for Discussion What Is the e-Customer Relationship? Six Areas Impacted by e-Business New e-Marketing Opportunities The “New Rules of Customer Engagement” What Is Ahead for Customer Relationships?

© 2005 Bermani Grafix e-Business Impacts Every Aspect of Your Customer Relationships Who Who do you develop customer relationships with? Who? When When do you develop customer relationships? When? What What do customers tell you and what do you do with it? What? Where Where are your customer relationships developed? Where? Why Why are customer relationships more important? Why? How How will you meet your changing customer needs? How?

© 2005 Bermani Grafix Anyone with a PC can develop a relationship e-Business Impacts Every Aspect of Your Customer Relationships Who? Every region and every country Not just purchasing as in the past More people in your company will have contact with the customer – Senior Management – Plants – Marketing – Sales Force – Technical community Who Who do you develop customer relationships with?

© 2005 Bermani Grafix You do not have control of this any longer Your customers now set when – 24 hours per day, seven days per week e-Business Impacts Every Aspect of Your Customer Relationships When? At every electronic touch point Increasing frequency Across time and space, globally When When do you develop customer relationships?

© 2005 Bermani Grafix Something new with every click e-Business Impacts Every Aspect of Your Customer Relationships What? Real-time data from your customer on what they need and what their interests are Customized information about each person Tailor your value proposition to match each person’s need at each customer What What do customers tell you and what do you do with it?

© 2005 Bermani Grafix Everywhere! Everywhere! e-Business Impacts Every Aspect of Your Customer Relationships Where? Not just during the visit and the product offering Where Where are your customer relationships developed? – Desktop – At work, at home, on the road – Over the phone – Global reach – every country

© 2005 Bermani Grafix Customers are stronger and more empowered e-Business Impacts Every Aspect of Your Customer Relationships Why? More information makes switching easier Customers tell you what future needs you will have to meet Why Why are customer relationships more important?

© 2005 Bermani Grafix Fast Fast – or you’ll lose it e-Business Impacts Every Aspect of Your Customer Relationships How? Personalized to meet their needs Common and integrated customer experience How How will you meet your changing customer needs?

© 2005 Bermani Grafix Key Issues for Discussion What Is the e-Customer Relationship? Six Areas Impacted by e-Business New e-Marketing Opportunities The “New Rules of Customer Engagement” What Is Ahead for Customer Relationships?

© 2005 Bermani Grafix Learn From the B2C Lessons “Business to Business buyers will become people, too.” — Forrester

© 2005 Bermani Grafix The e-Marketing Opportunity For You Strengthen your chemical brand Tailored offering in product, price and place New promotion opportunities Your Web site look, feel and navigationability Less opportunity for human interface (percent) – More customer self-service – Salespeople move to high-value work – Change in need for customer service Greater impact on revenues Tightened customer bond

© 2005 Bermani Grafix The e-Marketing Opportunity For Your Customer More options More self-service Better service Faster response Lower switching costs

© 2005 Bermani Grafix The e-Marketing Opportunity – WTD? Understand your customers’ behavior changes Listen when they tell you something Ask questions to really understand Things are moving fast … find out what has changed, and assume you don’t know Get Back to Basics

© 2005 Bermani Grafix The e-Marketing Opportunity – WTD? Every electronic interface is an opportunity for collecting real-time marketing data Measure Satisfaction Customer Satisfaction S O N D J F M A M 1

© 2005 Bermani Grafix The e-Marketing Opportunity – WTD? Re-train your customer-facing work force to be e-knowledgeable Train, train, train to: – Be e-savvy – Understand customers’ new needs – Look out for existing competitors’ actions – Look out for new competitors Enable them for value-added activity Study how your compensation model is driving behaviors Enhance Skills

© 2005 Bermani Grafix Key Issues for Discussion What Is the e-Customer Relationship? Six Areas Impacted by e-Business New e-Marketing Opportunities The “New Rules of Customer Engagement” What Is Ahead for Customer Relationships?

© 2005 Bermani Grafix The New Rules of Customer e-ngagement Provide personalized, targeted services Track actions – measure at every touch point Offer an integrated experience Provide hands-free and self-serve options – Ordering – Tracking – Billing Understand and address the lower tolerance for lack of coordination

© 2005 Bermani Grafix Key Issues for Discussion What Is the e-Customer Relationship? Six Areas Impacted by e-Business New e-Marketing Opportunities The “New Rules of Customer Engagement” What Is Ahead for Customer Relationships?

© 2005 Bermani Grafix What Is Ahead? Even higher service expectations The information will become a product New ways of getting information Even more competition and options Even greater need to play by the new rules

© 2005 Bermani Grafix Learn From the B2C Lessons “We are entering the world of the never satisfied customer.” — Bourque

Impact on the Industry