Module 2: Process Blueprinting Why We are from Mars and our Customers are from Venus A Structured 8-Step Methodology

Transcription

1 November 2009

2 DEAN HERINGTON, Jr. Dean Herington brings over 20 years of CRM Consulting and Training experience to the CRM Industry. He is an established authority in Marketing & Sales Integration with proven experience in helping client organizations leverage technology to optimize their Customer Relationship Management Processes. Mr. Herington has had a privileged career in the CRM Industry, one that has enabled him to participate in pioneering some of today s most advanced Marketing & Sales Process Integration Methodologies. As one of the CRM Industry s early pioneers, he approaches Marketing & Sales Integration as a competitive business Strategy, not as a technology Project. As an industry leading consultant, Mr. Herington works closely with client companies to understand their overall revenue growth strategies and improve sales and marketing effectiveness through the implementation of highly customized Marketing Automation Solutions. Mr. Herington is the Founder of CRM University, the industry s first Professional Certification Program. As Chairman of the Methods & Best Practices Committee for CRMCommunity.org, his visionary leadership has influenced the advancement of the Sales & Marketing Profession by establishing the industry s only Professional Certification Programs on Sales Process Modeling can CRM Results Measurement. In this role he has delivered numerous Keynote Presentations and Seminars at CRM Conferences in throughout the USA and in 7 other countries around the world.

3 CHUCK PATEL Chuck Patel brings over 20 years of experience selling and implementing Business Intelligence & CRM systems. He has developed an approach where he stresses end user involvement throughout the entire process from needs assessment through training and delivery. Prior to joining CHAMPS, Mr. Patel spent 5 years with Sage Software as a Regional Sales Manager responsible for driving sales of Sage SalesLogix CRM. In 1997, Mr. Patel founded Global Technology Partners, Inc. which focused on mid market CRM solutions (SalesLogix, Pivotal, Sieble and Applix) and sales process consulting and successfully sold the business to One, Inc. of Chicago, IL. Mr. Patel earned his BS degree in Management Science from Georgia Institute of Technology, Atlanta. Mr. Patel is President of CHAMPS Software s Business Intelligence Division and has successfully implemented over 150 Business Intelligence & CRM and systems over his tenure. Each one of his projects have delivered significant positive impact in the areas of improving efficiency, reducing costs and increasing the level of insight from a business owner s perspective.

4 Overall Goal: Give you the Process & Tools to Develop a comprehensive Personalization Business Strategy and a Process Blueprint of our Customer Life-Cycle Module 1: Strategy Development Opportunity Cost of Business As Usual Practice Activity: Customer Differentiation Assessment Structured Methodology Module 2: Process Blueprinting Why We are from Mars and our Customers are from Venus A Structured 8-Step Methodology

5 Problem Customer Attrition Telecom industry leader Monthly churn 2.5% vs. 1.8% Share of Customer Mass market retailer Walk-Out rate 25% vs. historic 16% among MVC s Repurchase Rate Leading B2B Marketer Weekly purchase rate 47% vs. 54% Implication s Financial Impacts Revenues down $34MM/Q Earnings down $4.8MM/Q EPS down $.056/Quarter Financial Impacts Revenues down $53MM Operating Margin down $13.3MM EPS down $.035/Quarter Financial Impacts Revenues down $104MM/Q Operating Margin down $29MM/Q EPS down $.08/Quarter Underperformance in Market Valuation

6 Do You Already Have A Customer Segmentation Model Defined?

7 A. How much value skew does your customer base have? 1) Half or more of your long-term profit comes from less than 2% of your customers. C 2) At least half your profit comes from just 5% of your customers. 3) At least half your profit comes from just 10% of your customers. 4) At least half your profit comes from just 20% of your customers. 5) The top 20% of your customers generate less than half of your profit. B. How different are your customers in terms of what they need from you? 1) Virtually every customer we have wants a unique size, color, style, or configuration of the product/service. 2) Our customers want widely different things from our product or service, using what we make in a variety of different ways or for different purposes. 3) Our customers want different things from our product or service, but it is possible to group these customer needs into a few fairly well defined segments. 4) Our customers tend to consume our product or service for the same or similar reasons, although they differ somewhat in things like cost-sensitivity and demand for quality. 5) Our customers tend to want our product configured and delivered in a standard, dependably consistent way, across the board.

8 Plot your answer on the graph, using a combination of each question s letter and the number of your response. After you plot your response, use the key to determine which quadrant your company falls in. H i g h l y D i f f e r e n t i a t e d A 1 I I I I V A 2 C u s t o m e r V a lu a t io n s A 3 I I I A 4 U n i f o r m K e y A 5 B 5 B 4 B 3 B 2 B 1 U n i f o r m H i g h l y D i f f e r e n t i a t e d C u s t o m e r N e e d s Q u a d r a n t I Q u a d r a n t I I Q u a d r a n t I I I Q u a d r a n t I V

9 CRM Strategy Development Best Practices Remain Focused on the Long-Range Vision A Structured & Systematic Approach A Framework for Setting the Strategic Agenda Why A Proven Methodology & A Disciplined Approach is Critical to Success

10 The Long Range Vision Profile Obtain more information about a greater number of your customers PERSONALIZE every interaction, session and marketing campaign SEGMENTATION Understand what different customers are worth and what they want from you Plan how best to INTERACT using customer insight

11 Goal: Obtain more and better information about a great number of your customers and use it to build relationships

12 Goal: Understand what different customers are worth to you and then, what they need from you

13 Goal: Generate more customer feedback less expensively and use it as a competitive advantage from expensive sales people to call center to the even less expensive web site

14 Goal: Reward customers for collaborating with you by customizing your products and services to meet their needs

15

16 Establish simple customer identifiers and set service standards for each MVC Special Contact Center scripts, experienced representatives, special shipping, automatic escalation MGC Dedicated Salesperson, updated customer information, special pricing, creative problem solving, cross-selling and up-selling BZ c.o.d. only shipments, least experienced representatives

17 Strategic Objectives Tools & Goals CRM Strategies Critical Success Factors CRM

18 Operational Objectives Strategic Corporate Objectives Strategic S&M Objectives Strategies Strategies CRM Tools CRM Tools Strategies CRM Tools

19 Document Your Market & Competitive Trends Confirmation of Your Corporate Mission, Vision & Strategic Direction Define A Set of Strategic Objectives Revenue & Market Share New Product Introductions Define Your Customer Segmentation Strategies

20 Analyze Your CRM Processes Gap Analysis Drives Prioritization Identify the Top 5 Administrative Processes Most Cross-Functional & Dysfunctional Processes CRM Process Modeling & Redesign Document Workflow & Information Flow Assess the Quality, Availability & Accessibility of Critical Customer Information

21 Corporate Sponsorship & Leadership Organizational & Process Alignment Skills & Competency Requirements Internal Communications Training & Support Requirements

22 Review Your Customer Life Cycle Blueprints Define the Functional & Information Requirements of Your CRM Processes Assess Existing CRM Tools/Systems Leverage the Internet & Corporate Intranets Document Your Corporate IT Standards and Your Technical Infrastructure Requirements..

23 An Introduction to the Fundamentals of Customer Life-Cycle Process Blueprinting

24 Overall Goal: Give you the Process & Tools to Develop a Process Blueprint of your Customer Life-Cycle What is a Customer Life-Cycle Why We are from Mars and our Customers are from Venus A Structured 8-Step Methodology

25 Six Critical Dimensions of Process Alignment Culture Skills & Competencies Information Customer Life-Cycle Process Model Corporate Strategy Technology Rewards & Compensation

26 MARS & VENUS ANALOGY Attraction Uncertainty Exclusivity Intimacy Engagement Marriage Business Example..

27 Vendor Management BUYING PROCESS Customer ecrm Relationship PROCESS

28 Develop business strategy & define / execute initiatives Customer Buying Process Determine needs / Evaluate requirements alternatives Select solutions & evaluate risk Resolve issues & finalize contracts Implement & evaluate success Sales Process Steps Account Opportunity Sales Execution Planning Planning Create Qualify Develop Prove Negotiate Close Implement Analyze account Define current business Identify new opportunities Prioritize opportunities Validate relationship and coverage Assess opportunity Analyze organizational support, coverage, role and influence Select initial competitive strategy Identify potential sponsor Stimulate interest Reassess opportunity and competitive strategy Sales Process Activities Define sponsor s Define power pain sponsor s pain Create or Create or reengineer vision reengineer vision for sponsor for power sponsor Gain agreement Gain agreement to explore further to explore further Negotiate access Determine to power evaluation criteria Confirm dialogue Suggest next and agree upon steps next steps Confirm dialogue and agree upon Execute next steps Present preliminary solution Conduct review of proposal Ask for the business Issue proposal Receive verbal approval Prepare for final negotiations Reach final agreement next steps Verifiable Outcomes Account Plan Opportunity Plan Interest stimulated Follow Up Letter Evaluation Plan Verbal approval Ts & Cs agreed upon Get necessary documents signed Signed documents Implement solution Measure success criteria Identify potential new opportunities Implementation Plan Business and Strategic Planning Territory Qualified Suspect Qualified Sponsor Qualified Power Decision Due Pending Sale Win 0% 10% 25% 50% 75% 90% 100%

29 CRM Process Small Bus ID Oppty Qualify Oppty Develop Proposal Close Sale Implement / Fulfill Account Management Markets Mid Size Large Bus Enterprise Vertical 1 Vertical 2 Process Process Modeling Modeling Dimensions: Dimensions: Core Core Work Work Activities Activities Define Define optimal optimal process process steps, steps, activities, activities, and and desired desired outputs outputs Define Define process process roles roles and and rules rules of of engagement engagement across across CRMs CRMs Create Create guidelines guidelines for for consistent consistent process process execution execution Define Define potential potential process process differences differences by by segment segment Technical Technical Identify Identify required required information information flows flows Define Define salesforce.com salesforce.com system system functionality functionality requirements requirements Dashboard Dashboard Metrics Metrics Quantify Quantify process process specific specific and and overall overall revenue revenue growth growth ROIs ROIs Develop Develop key key process process metrics metrics and and leading leading indicators indicators

30

31 Customer Life-Cycle Process Blueprinting System TM Develop the Process Blueprint Define Customer s Buying Process Implement the Process Blueprint Define the Stages & Outcomes For Each CRM Define the Core Work Activities for each Stage Define the Information Needs to Support the Sales Processes Define the Stages of the Customer s Buying Process Define the Customer s Key Activities for Each Stage CRM Process Enablers Identify & Baseline CRM Metrics & Reporting Methods Configure System to reinforce Best Practice Selling Activities The Customer Life-Cycle Process Blue Printing Methodology

32

33