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Maximizing and Measuring the ROI On Your CRM Investments. Tom Spitale Principal Peppers & Rogers. CRM: Attempting to Cross The Chasm Between Visionaries to Pragmatists. Geoffrey Moore wrote how high-tech companies fail and succeed in crossing the Visionary - to – Pragmatist “chasm”
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Peppers & Rogers
Number of Customers
CRM and 1to1 Marketing
This presentation is for Visionaries in Pragmatist firms, software
marketers selling to Pragmatists…and Pragmatists themselves!
Replace the Hype With Facts
Source: “The Blueprint for CRM Success”, 2002 study by Caribou Lake Customer-1, CRMGuru.com and Mangen Research Associates
But these companies are just getting started on the path of CRM
Survey Was Still “Open” at Time of Slide Publication
Tom Will Summarize the Results To You Now…
You tailor your product, service or interactions
CustomizeTypical Status of a Thus-Far Successful CRM Initiative
Through 2003, achieved benefits have been 78% on a $3.7M investment. Projected ROI, through 2005 is 122%
Our Conclusion: It’s Better Than We Even Thought It Could Be
Gains in Working U.S. Credit Backlog Because Quotes are Handled Faster
Low Degree of
ConfidenceThe Confidence Matrix: Keeping Credibility High
Increased Conversion Rate
Reduced Cycle Time
Average Revenue Per Customer
Increased # of High Probability Opportunities
Increased Customer Satisfaction
Degree of Correlation to Financial Impact
Key To a Successful Study: Get the CFO to “Play” With The Spreadsheet
(strategic value unknown)
Spend no resources on theseThe Next Generation of Measurement: Differentiation and “Customer Equity”
Use 1to1 to keep these customers
...and grow these
The only true competitive advantage comes from understanding of your customer that you have and that your competitors don’t – the more customer needs you learn and fill, the greater the barrier to defection
This information has to come from the customer.
To Take Full Advantage of This, You
Must Move Faster Than a Pragmatist
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