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Build Collaborative Relationships that Deliver Value

Build Collaborative Relationships that Deliver Value. February 13, 2003 Atlanta, Georgia, USA. Bob Thompson CEO, CustomerThink Corporation Founder, CRMGuru.com. Competing for Scarce Customers. Demand. Scarce Customers. Scarce Products. Supply. Time. “ Be distinct or be extinct”

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Build Collaborative Relationships that Deliver Value

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  1. Build Collaborative Relationships that Deliver Value February 13, 2003 Atlanta, Georgia, USA Bob Thompson CEO, CustomerThink Corporation Founder, CRMGuru.com

  2. Competing for Scarce Customers Demand ScarceCustomers ScarceProducts Supply Time

  3. “Be distinct or be extinct” • Tom Peters

  4. Great Relationships = Differentiation ProductLeadership OperationalExcellence “It’s incredibly arrogant for a company to believe it can deliver the same sort of product that its rivals do and actually do better for very long. That’s especially true today, when the flow of information and capital is incredibly fast.” Michael Porter Fast Company CustomerIntimacy CRM

  5. Loyalty Leaders Grow Faster, Spend Less Growth Costs Source: Reichheld

  6. CRM is Not New…Or is It? CRM Confusion! • 360-degree view of the customer • Improving quality of customer interaction • New software tools and technologies • Getting right data to right employee • Shift from product to customer orientation • Buzzword and management fad!Source: META Group/IMT Strategies "The true business of every company is to make and keep customers.” -- Peter Drucker “CRM = being so obsessed with your customer’s satisfaction that you change the way you do business.” -- Dr. Jon Anton “CRM means creating mutual wins with customers and all company stakeholders.” -- Bob Thompson

  7. “CRM is 90% half mental” Yogi Berra, CRM Consultant

  8. Customers Define a Great Relationship “Easy to do business with” “Expertise” “Personal” “Win/Win” “A history of working together” “A good deal for the money” “Responsive and proactive” “Asks questions” “Service and value just for me” “Quality, consistent performance over time” Source: CRMGuru.com

  9. The New 4 Ps Relationship Drivers • Passion • People • Process • Performance “Marketing Mix” • Product • Place • Promotion • Price

  10. CRMGuru Study: CRM Works! Benefits (Percent of Projects) • Increase customer satisfaction (51%) • Increase customer acquisition rate (50%) • Increase share-of-customer (48%) • Decrease customer defection rate (37%) • Decrease front office staffing costs (33%) Investment • 33% -- less than $50,000 • 24% -- $50,000 to $250,000 • 28% -- $250,000 to $2.5 Million • 15% -- over $2.5 Million Payback Period Source: CRMGuru.com

  11. Key Drivers of Success • Customer-centric strategy: using customer satisfaction and attrition data, getting customers involved in planning • Front line training and support: explaining value of CRM, providing training for new skills required • Organizational change: workflow design, changing roles and responsibilities • Metrics: goals measured statistically (80% don’t) Source: CRMGuru.com study “The Blueprint for CRM Success”

  12. Three-Year “Overnight” Success • Objectives: Serve channel partners better, sell more, spend less • Solution: Allegis eBusiness (PRM) • Saved $375,000 in communication costs • Increased revenue $1 million with better lead management • Improved partner and employee satisfaction • Lessons Learned: • Understand your users, deliver clear value to them • Plan carefully, build a team, phase the implementation • Establish baseline metrics and measurement process • Communicate, communicate, communicate! Source: Lexmark

  13. Are You Listening? “Businesses survive or decline based on their employees’ ability to listen. Hire the smartest, best people you can get, orient them to customer satisfaction at the expense of all else, then get out of their way and let them work.” Doug Allred, SVP Customer Advocacy for Cisco Systems “If you’re constantly getting feedback from your customers …and you’re willing to listen, you can make the most of the opportunities implicit in those needs.” Michael Dell, in Direct From Dell

  14. Dealers OEMs Etailers Customers Marketplaces Retailers Reseller Selling Through Complex Channels Enterprise Collaboration with partnerbusiness processes Enable Commerce With sellingpartners Selling Channels Visibility of customeractivity Influenceover customerexperience

  15. CollaborativeNetwork Collaborate Engage customers and partners for win/win/win Enable many-to-many relationship networks Multi- Channel Innovate Design different, more effective processes Use new channels and customer touch points Single Channel C-Biz Solutions Automate Streamline internal sales and service processes. More of the same, done faster and cheaper. eCRM, PRM SFA, Call Center CRM Technology Evolution High Potential Competitive Advantage Low High CRM Maturity

  16. “The Internet as a sales channel represents only a fraction of its potential to business. The real potential lies in its ability to transform relationships with the traditional supplier-vendor-customer chain.” Michael Dell

  17. Collaboration CollaborativeBusiness + Win/WinPhilosophy = EnablingSystems Collaborative Business: Mutual Benefits CRM Buyer Seller SCM

  18. CRM PRM CRM SCM SCM SCM Relationship Management: “Sell-Side” Focus on Lifetime Value, Customer Experience, Revenue/Profit Growth Supplier Management: “Buy-Side” Focus on Cost, Cycle Time, Responsiveness Now: Point-To-Point Relationships Manufacturer Partner Supplier Customer

  19. Web Services: Enabling xRM Systems • A New Breed of Web Application • Self-contained, self-describing, modular applications • Can be published, located, and invoked across the Web • Performs functions -- simple to complicated processes • Other applications can discover and invoke

  20. Web Services: Enabling xRM Systems • The Potential • Low-cost integration within, and between, enterprises • Enabling process integration between trading partners • Improving performance of collaborative networks

  21. Manufacturer Suppliers Customer Partners Collaborative Relationships: Focus on Mutual Value, Profit, Efficiency, Integrated Processes Future: Optimized Value Network Internet Adoption Internet Standards Web Services Global Competition Power Shift to Customers

  22. Types of Collaborative Systems • People to Systems – CRM/PRM Portals • People to People – Groupware • System to System – E2E CRM

  23. Enterprise Channels Relationship Networks Sell-Side Collaborative eBusiness CustomerRelationshipManagement CollaborativeCommerce Multi-SystemCRM PRM Sell-Side eBusiness eCRM N-Tier ChannelManagement IntegratedPortals Work TeamCollaboration Evolution to Collaborative Networks AutomationFocus

  24. Complex Support Process

  25. Collaboration at Your Service • World’s largest provider of mobile Internet software; Openwave customers serve more than half of all mobile subscribers worldwide • Challenge: Developer base growing rapidly (100,000+) and support volumes increasing 50% per month • Solution: ePeople Teamwork • 70% reduction in average time to resolution • Multiple support providers can work together • Handle developer growth without increase in staff

  26. Business Processes Integration Leads Vendor Partner ProcessConnector Status Opportunities Vendor Partner ProcessConnector Status

  27. Collaborative Commerce Workflow Customer 1. Research 3. Confirm 2. Order Vendor Partner 4. Status

  28. Retailers Maytag Commerce System Consumers Collaborative Commerce The ChallengeCreate Three Winners • Customers: ability to buy products on-line • Partners: Leverage existing relationships • Enterprise: Enhance the Maytag brand Source: Comergent

  29. Group Collaboration Nearly 80% of corporate knowledge is unstructured Information. Gartner Group Shared Workspace Customers Suppliers Employees Partners

  30. “There is only one boss: the customer. And he can fire everybody in the company, from the chairman on down, by simply spending his money somewhere else.” Sam WaltonWal-Mart Founder Basic Beliefs • Respect for the Individual • Service to Our Customers • Strive for Excellence

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