CUSTOMER-CENTRIC TRANSFORMATION: FIVE KEYS TO LEADING SUCCESSFUL CHANGE SUMMARY RESPONSES TO SURVEY QUESTIONS. Thought Leadership Series

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1 CUSTOMER-CENTRIC TRANSFORMATION: FIVE KEYS TO LEADING SUCCESSFUL CHANGE SUMMARY RESPONSES TO SURVEY QUESTIONS Thought Leadership Series 1

2 Customer-Centric Transformation The Survey: Questions and Responses Why this study? Why now? While there is no shortage of studies and perspectives, commenting on the latest offering or reflecting on consumer sentiments, few actually dig into the core of how successful (and not-so-successful) organizations achieve material change with their CRM strategies. Capabilities come and go with the wind; change is fundamental to how organizations win. And organizations that win always have leaders that take them there. Leadership is change. In the first half of 2013, Merkle launched a comprehensive survey of more than 350 leaders within large US enterprises to discover what makes change succeed or fail. In addition to asking them tough questions, we further segmented the respondents by their financials to identify highgrowth vs. low-growth organizations as a likely indicator for winners and laggards. We also asked them to self-identify as to how close they were to the ideal of CRM, in other words, whether or not they were doing a good job implementing a customer-centric business strategy, in their own opinion. Both of these cuts gave us a window into what drove successful change. Which best describes your title or role? 352 respondents completed and analyzed in 1H 2013 US $1 billion in revenue and higher, with about a quarter > $50 B >50% are C-level or above; all are AVP+ Evenly split between b-to-b and b-to-c (25%+ are both) Broad representation across Sales, Operations, Marketing, Finance and IT Cross-industry sample spanning banking, insurance, travel, media, entertainment, communications, retail, and high-tech Which best describes your personal functional alignment? How big is your organization in revenue (US$)? 2

3 Data Results Appendix Q1: Compared to your industry peers, describe your organization s performance over the past 24 months excluding M&A impact. Q3: What are your organization s MOST important customer goals for the next 24 months? Select up to three. Q2: What have been your organization s MOST important customer goals over the past 24 months? Select up to three. n = 832 Q4: Think of your organization s MOST significant initiative from the past 36 months where the goal was to better identify, engage, sell to serve, and/or retain customers based upon their value. The initiative does not have to have been a success for you to select it for your answer. Please remember your choice as we will refer back to it over the next few questions. Which best describes the scope of the initiative? n = 851 STEVE LAVALLE EXECUTIVE VICE PRESIDENT, MANAGEMENT CONSULTING GROUP SLAVALLE@MERKLEINC.COM MERKLE MERKLEINC.COM 2013 MERKLE INC. 3

4 Customer-Centric Transformation Q5: Who made the decision to pursue this initiative? Q6: What were the major organizational responsibilities of the single executive that drove the decision to undertake the initiative you selected? Select all that apply. Q7: What were the major organizational responsibilities of the executives that drove the decision to undertake the initiative you selected? Select all that apply. n = 284 n = 38 n = 419 Q8: In the context of the initiative, to what degree do you agree or disagree with each of the following statements? 4

5 Data Results Appendix Q9: In the context of the initiative, to what degree did your organization perform the following steps as part of your approach? (1 of 2) STEVE LAVALLE EXECUTIVE VICE PRESIDENT, MANAGEMENT CONSULTING GROUP MERKLE MERKLEINC.COM 2013 MERKLE INC. 5

6 Customer-Centric Transformation Q10: In the context of the initiative, to what degree did your organization perform the following steps as part of your approach? (2 of 2) 6

7 Data Results Appendix Q11: Please rate your organization. How well do you think your organization is able to perform the following? Q12: How well do decision makers in your organization understand your customers? Q13: Please rate the employees in your organization. Overall, how well do you think employees are able to perform the following? STEVE LAVALLE EXECUTIVE VICE PRESIDENT, MANAGEMENT CONSULTING GROUP MERKLE MERKLEINC.COM 2013 MERKLE INC. 7

8 Customer-Centric Transformation Q14: Which best describes how senior management regards the use of customer insight in your organization? Q16: Select the activities which you predict will create the greatest value for your organization in Select up to five. Q15: Select the activities creating the greatest value for your organization as of today. Select up to five. n = 1239 Q17: What are the PRIMARY challenges to your organization s ability to identify, engage, sell to, serve and retain customers based upon their value and better than competitors. Select all that apply. n = 1230 n = 754 8

9 Data Results Appendix Q18: Where are customer analytics ROUTINELY performed in your organization? Select all that apply. Q19: Is customer analytics performed by a shared centralized group in your organization? Q20: Where does the centralized customer analytics function sit in your organization? n = 936 n = 327 Q21: To what degree is your organization satisfied with the customer analytics services provided by the centralized group? Q22: Imagine an ideal organization that fully utilizes customer insight to identify, engage, sell to, serve and retain customers based upon their value and better than competitors? How close is your organization the ideal? STEVE LAVALLE EXECUTIVE VICE PRESIDENT, MANAGEMENT CONSULTING GROUP SLAVALLE@MERKLEINC.COM MERKLE MERKLEINC.COM 2013 MERKLE INC. 9

10 Customer-Centric Transformation Q23: To whom does your organization primarily market its products or services? Q25: Which best describes your organization s primary industry? Q24: Which best describes your organization? 10

11 Data Results Appendix Q26: Which are principal geographies where your organization conducts business with customers? Select all that apply. n = 987 STEVE LAVALLE EXECUTIVE VICE PRESIDENT, MANAGEMENT CONSULTING GROUP SLAVALLE@MERKLEINC.COM MERKLE MERKLEINC.COM 2013 MERKLE INC. 11

12 About the Author Steve LaValle Executive Vice President, Management Consulting Group Steve leads Merkle s management consulting efforts across the full breadth of our industries served. He is focused on helping clients successfully change and embed customer insight into their customer strategies, marketing and customer operations. He brings to Merkle a strong background building and leading consulting practices at IBM, PricewaterhouseCoopers Consulting, and AT Kearney. Steve joined Merkle in January 2011 and has more than 25 years of experience in direct marketing and CRM/analytics strategy consulting. He spent over 8 years at IBM Global Business Services, where his most senior level held was Global Leader, Business Analytics and Optimization Strategy Services. Prior to that, he served as Partner for PwC Consulting, AT Kearney and Chadwicks of Boston. He has been published extensively on the topics of CRM and analytics. He is a graduate of Harvard Business School and The Wharton School of the University of Pennsylvania. About Merkle Merkle, a customer relationship marketing (CRM) firm, is the nation s largest privately-held agency. For more than 20 years, Fortune 1000 companies and leading nonprofit organizations have partnered with Merkle to maximize the value of their customer portfolios. By combining a complete range of marketing, technical, analytical and creative disciplines, Merkle works with clients to design, execute and evaluate connected CRM programs. With more than 1,700 employees, Merkle is headquartered near Baltimore in Columbia, Maryland with additional offices in Boston; Denver; Little Rock; Minneapolis; New York; Philadelphia; Pittsburgh; San Francisco; Hagerstown, MD and Shanghai. For more information, contact Merkle at Merkle or visit merkleinc.com linkedin.com/company/merkle facebook.com/merkleinc twitter.com/merklecrm flickr.com/photos/merkleinc youtube.com/user/merklecrm 6/13

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