1. Customer Relationship Management (CRM) ATTF Luxemburg
R.J.Claessens&Partners
Helping you through the learning curve

2. The structure of the course
CRM
Introduction
ORGANISATION
MARKETING
ANALYSIS
1_Elements of CRM
2_Customer-supplier
3_Strategy
4_Relationship oriented
1_Customer knowledge
2_Customisation
3_Communication
4_Relationship policy
1_Relationship Data
2_Data mining
3_Data selection
4_Data reporting
SYSTEMS
1_CRM systems
2_Implementation
3_The future
4_Conclusion

3. 1_Elements of CRM

4. 1_Elements of CRM The four cornerstones of the «elements of CRM » are:
Customer knowledge
Relationship strategy
Communication
The individual value proposition

5. 1_Elements of CRM Customer knowledge Segmentation Awareness, Attitude
Usage
Concept
Customer satisfaction
Customer loyalty
Brand Image
Brand equity
Pricing
Advertising

6. 1_Elements of CRM Relationship strategy
A long lasting customer – supplier relationship
The key is not only the stimulation of a transaction
Success is not measured by market share

7. 1_Elements of CRM Communication
The issue is to carry on a dialogue with individual customers
Shifts should be possible between distribution channels

8. 1_Elements of CRM The individual value proposition
The product, service and price are adapted to the individual circumstances
The organisation has to build up the capacity to supply customisation in one form or another

9. 1_Elements of CRM Systems
If a relationship must be maintained with a large group of customers, a portion of which represents a low value to the supplier, the use of IT becomes inevitable.
Integration is therefore a must between front-mid-back office

10. 2_Customer – supplier relationship
Weak relationship
- No reciprocation
Unilateral interaction
Limited topics
Superficial
No mutual interest
No intention of continuity
Few barriers to end
Easy alternatives
Strong relationship -

11. 2_Customer – supplier relationship
Weak relationship
- No reciprocation
Unilateral interaction
Limited topics
Superficial
No mutual interest
No intention of continuity
Few barriers to end
Easy alternatives
Strong relationship
- Reciprocation
No unilateral interaction
Wide range of topics
In depth
Mutual interest
Intention of continuity
Many barriers to end
No easy alternatives

12. 2_Customer – supplier relationship
Loyalty
A commitment to re-buy a product/service in the future, thereby causing repetitive same-brand purchasing, despite influences and marketing efforts from the competition, which might cause a switching behaviour.

13. 2_Customer – supplier relationship
Trust
A willingness to rely on an exchange partner in whom one has confidence
Is the perception of confidence in the exchange partner’s reliability and integrity
Is generated by corporate values!

14. 2_Customer – supplier relationship
The dynamics of a relationship
A relationship cannot be forced, it needs time
Should aim at providing total solutions
A relationship based on consultation
The ability to see the issue through someone else’s eyes
Commitment = f(satisfaction,attractiveness, switching costs)

15. 3_A CRM strategy

16. 3_A CRM strategy The nature of a CRM strategy implies:
Operational excellence
Product leadership
Customer intimacy

17. 3_A CRM strategy Operational excellence
Combination of : price, quality, ease of purchase
Efficiency is rewarded
Team is the key

18. 3_A CRM strategy Product leadership Amaze customers Surprise customers
Ideas are recognised and rewarded

19. 3_A CRM strategy Customer intimacy
The individual matters more than the market
Exceptions are possible
Transactions are subordinate in importance to relationship

20. 3_A CRM strategy enlarge market offensive increase share strategy
defensive
enlarge market
increase share
barriers
satisfaction

21. 3_A CRM strategy
In order to implement a CRM strategy certain conditions must be met:
Quality of products
Position
Logistics
Meeting competition
Countering switching behaviour
Segmentation

22. 4_A relationship oriented organisation

23. 4_A relationship oriented organisation
Assuming you have a CRM strategy:
If you’re not sure what your organization’s CRM strategy is, it is time to define it.
Has the strategy been communicated to both internal and external customers.

24. 4_A relationship oriented organisation
Who is the owner of the major CRM tools currently in use?
Often, this is the IT or information technology group. Other times it’s marketing or sales.
Are they sharing the tools and generating useable data.

25. 4_A relationship oriented organisation
Here’s a checklist of information you should know about your customers:
• Which of your competitors do they also do business with?
What factors influence their purchase decisions? E.g., product quality, price, delivery options, customer service, speed of purchase, long-term relationship

26. 4_A relationship oriented organisation
Here’s a checklist of information you should know about your customers:
• What is the typical life cycle for each of your products and customers? (This tells you when the customer will be ready to buy again.)

27. 4_A relationship oriented organisation
Here’s a checklist of information you should know about your customers:
• How long have they done business with you?
• What do they like most about your company?
• What do they feel you could improve upon?
• How often do they repeat purchase? (How does this compare with the industry norm?)

28. 4_A relationship oriented organisation
The ultimate goal is that individuals within the organisation derive motivation from their collaboration with customers.
Customers with whom providing advice and effort proves to be a waste of time should be referred to competition
It is about an environment in which relationships are rewarded

29. 4_A relationship oriented organisation
A relationship oriented company’s success depends upon senior management’s willingness:
Not to focus too much on short term
Not to be too number crunching
Not to be too risk adverse
Not to be too adverse to progress

30. 4_A relationship oriented organisation
One of the key considerations of CRM is the fact it is a commitment from all layers of the organisation and coincides with the behaviour of all involved, not just the contact person or contact point.
CRM implies a culture of CRM!

31. 4_A relationship oriented organisation
What determines a CRM culture?
Common values and norms (culture)
Ambassadors
Communication
Information HR
Performance measurement

32. 4_A relationship oriented organisation
What determines a CRM culture?
Use customer satisfaction surveys and focus groups to find out both what satisfies and what disappoints your customers.
If you are getting no complains, it means that you are interviewing the wrong people!

33. 4_A relationship oriented organisation
Not all customers are alike & not all require the same service or attention 5%
15%
80%
Team based mgt
Account mgt
Direct
sales

34. 4_A relationship oriented organisation
The role of the CRM system will vary for each of the three types of customers. 80 % is IT sensitive! 5%
15%
80%

35. 4_A relationship oriented organisation
80 % is IT sensitive!
However, people develop relationships, not the IT applications!
At a point in time we are always going back to people!

36. 4_A relationship oriented organisation
The service profit chain
Service
Quality
Employee
satisfation
retention
productivity
External
Value
Customer
satisfaction
loyalty
Profits
Growth
T/O