Delivering successful CRM: Mastering the Art over the Science

Transcription

1 Delivering successful CRM: Mastering the Art over the Science CRM within higher education Conrad Funnell 25 April 2012 #UCISACRM

2 Smart t Smart thinking PA Knowledge Limited 2011 Page 2

3 Join our conversation today: #UCISACRM PA Consulting Group is the leading adviser on strategy, business planning, organisational change and operational management to the higher education community. We work with universities, government agencies and others on projects ranging from institutional development to detailed Conrad Funnell is a customer management consultant and helps organisations create and bring to life great customer experience visions through the use of CRM technology. PA Knowledge Limited 2011 Page 3

4 Content 1 Rapid changes in customer expectations 2 Competitive pressures in higher education 3 4 How Developments in Customer Relationship Management can CRM help higher education 5 How 6 Challenges do you secure a successful CRM implementation in CRM implementations PA Knowledge Limited 2011 Page 4

5 Changing attitudes and behaviours, disruptive technologies, and legislation have all contributed to how we must now manage relationships in HE PA Knowledge Limited 2011 Page 5

6 1. Rapid changes in customer expectations PA Knowledge Limited 2011 Page 6

7 Rapid changes in customer expectations Smart technology, co-creation, social media & advocates are changing the landscape of customer relationships in all organisations PA Knowledge Limited 2011 Page 7

8 Rapid changes in customer expectations Customers are now always connected Fully internet ready mobile devices are now the defacto product of choice The number of smartphones sold worldwide in 2011 for the first time exceeded the number of personal computers sold (Business Insider) Just under half of the UK population now owns a smartphone (Worldpanel ComTech) Shipments of tablets will reach 106m tablets in 2012 (IDC) The mobile channel is where people are increasingly spending their time 10% of Google searches are through mobile & 20% are based on current Location (Google) 70% of smartphone users use their device while shopping in-store (Google) By the end of 2013, more people will access the Internet via a mobile device than through a PC (Gartner) Effective mobile channels can make a massive difference Nearly 15% of Paddy Power betting business was through their mobile apps in 2011 Self-service can slash the cost of a customer interaction from as much as $35 on the phone to $0.75 online (Forrester Research Inc.) In 2016, total global mobile application revenue will reach an estimated $46 billion (ABI Research) PA Knowledge Limited 2011 Page 8

9 Rapid changes in customer expectations Customer behaviours and expectations are constantly changing and driving the service revolution Less tolerant, being faster to complain and harder to satisfy Complaint levels are growing and satisfaction across the board is dropping Far more fickle Will no longer accept perceptions of overpricing or lack of focus upon them and will move supplier Customer to customer dialogue has grown Social media and customer forums has huge potential to both build and destroy brands No longer accept branding and marketing for organisations But research their own information to inform their decisions, views of other customers are only a click away All customers are becoming multi-channel users Self-service is leading for transactional contacts and telephone continues as the main channel for complex interactions PA Knowledge Limited 2011 Page 9

10 Rapid changes in customer expectations The complexity of the consumer world is forcing organisations to reconsider basic but tough questions about what they mean to consumers. 8. Are we challenging paradigms of what service stands for in our organisation? 1. Are we where our customers are? 7. Are we transforming complexity into simplicity? 2. Are our customers paying attention to what we re trying to tell them? 6. Are we influencing what matters most to our customers? 3. Are we using channels creatively? 4. Are we relevant for our customers? 5. Are we building a service experience that customers will prefer? PA Knowledge Limited 2011 Page 10

11 Rapid changes in customer expectations Changing customer expectations, driven by new technologies results in three key impacts upon organisations 1. Customer Service is no longer a function. It needs to shake off its cost centre history and become a truly integrated, enterprise-wide, all channel strategy that is deeply embedded in the corporate psyche and business design of the organisation. 2. Channel Fusion is fast becoming the new multichannel. 3. Customer Experience is no longer singular a range of experiences must be designed and fulfilled for a range of customers engaging via a range of channels. PA Knowledge Limited 2011 Page 11

12 2. Competitive pressures in higher education PA Knowledge Limited 2011 Page 12

13 Competitive pressures in higher education The future for university funding, the wider competitive environment for students and research is now fundamentally different from any previous experiences HE sector has faced changes to the future for university funding. This had led to further financial pressures and more intense competition in the sector. We were interested to understand how vicechancellors are responding to the changes experienced by the HE sector since our previous survey, and their expectations for the future. PA Knowledge Limited 2011 Page 13

14 Competitive pressures in higher education Taking positive action: focusing on growth In contrast to our previous survey, when two thirds of respondents were preparing for a period of retrenchment and falling enrolments, 50% now say they are moving forward with strategies for growth, The majority of institutions are taking positive actions in response to the changing HE Environment PA Knowledge Limited 2011 Page 14

15 Competitive pressures in higher education New models of HE: reshaping the university business Most universities are actively seeking to reshape and reposition their operations, by developing new sources of revenue and entering into new business relationships Most universities are working to strengthen their market positioning A number of respondents were keen to emphasise that these moves reflected the unfolding of established long-term strategies and not just reactions to current events. PA Knowledge Limited 2011 Page 15

16 Competitive pressures in higher education As Higher Education becomes available online for free to the independent learner, HE must ensure its efforts are managed in a world class manner Multi-media lectures & content Assignments & Solutions Exams & Solutions Online textbooks PA Knowledge Limited 2011 Page 16

17 Competitive pressures in higher education The Rest of the World is also looking to take advantage of the changes in funding probably even more than before We asked for which institutions respondents most admired for their leadership and innovation in response to changing demands and opportunities, One interesting nomination was for Maastricht University, suggested as an example of an overseas institution responding effectively to changes in UK funding and policy Maastricht is the only institution that has really responded to changes in UK policy and student finance they have gone after our market really aggressively: good for them! PA Knowledge Limited 2011 Page 17

18 3. Developments in Customer Relationship Management PA Knowledge Limited 2011 Page 18

19 Developments in Customer Relationship Management The CRM market place is responding to help organisations think Smart Social Cloud Big Data Bring Your Own Device PA Knowledge Limited 2011 Page 19

20 4. How can CRM help higher education PA Knowledge Limited 2011 Page 20

21 How can CRM help higher education Chasing growth and reshaping operations in the face of disruptive technologies and changing attitudes how does CRM help FE Colleges Other Universities Companies Supplier/Partners International University Research organisations Governments Clients HEA HESA Research Councils Companies Recruitment angels HEFCE BIS QAA HE Players CRM Applicants Staff Applicants current past Applicant Guardians/parents Clients Conference clients Research Councils Charities/ Foundations Companies Research EU Employers Government Graduate careers Industry Doctors Nurses Regional Media Welfare Drug addition Schools & widening participation Clubs Community orgs Parents Students Alumni & donors/potential donors Service clients e.g. IT Accommodation Subject specific Accreditation organisation Royal academy of Engineers PA Knowledge Limited 2011 Page 21

22 5. How do you secure a successful CRM deployment PA Knowledge Limited 2011 Page 22

23 How do you secure a successful CRM deployment Don t set yourself up to join the statistics CRM can offer huge benefits to higher education and help HE combat these threats however this has been a challenge in many other private and public sector organisations over the years. Gartner predicts this annual market is something in the order of $10bn In the past project failure rates amongst adopters of CRM has been up at the 70% level: 2001 Gartner Group: 50% 2002 Butler Group: 70% 2002 Selling Power, CSO Forum: 69.3% 2005 AMR Research: 18% 2006 AMR Research: 31% 2007 AMR Research: 29% 2007 Economist Intelligence Unit: 56% 2009 Forrester Research: 47% #FAIL #CRM PA Knowledge Limited 2011 Page 23

24 How do you secure a successful CRM deployment How do you secure a successful CRM deployment?? By recognising from the outset that CRM is not a technology, but a way of working. A CRM project is therefore a business change project NOT an IT project. PA Knowledge Limited 2011 Page 24

25 How do you secure a successful CRM deployment To deliver the required benefits against such a canvas of change, how should a Higher Education institute go about implementing CRM? 1 Recognise why you are doing it 2 Define what will success look like 3 Define the full scope of change PA Knowledge Limited 2011 Page 25

26 How do you secure a successful CRM deployment 1 Recognise why you are doing it Customer Relationship Management is the art, not the technology. The most successful organisations first of all consider the customer (e.g. Student/Alumni/Business) experience. They have recognised that to deliver an exceptional experience to any of these group, they must first of all define & manage that experience across function or department in a consistent and joined up manner. This requires joined up thinking: what is your Vision, does it link to your organisational vision? you need a Strategy to get you there what other changes are needed the Case for Change - give your organisation the mandate by understanding the need for this change PA Knowledge Limited 2011 Page 26

27 How do you secure a successful CRM deployment 2 Define what will success look like Design from the outside-in Define your Operating Model your customers wont know your organisation or even be too interested in the complexities behind the touch-point they make. What are the processes you need to drive your operating model design these around how your customers want to work with you. Define and create data systems that help drive the customer experience as an integrated experience - your business systems and data must be designed to meet your customer needs. Understand how you will measure success - what KPIs will you use. PA Knowledge Limited 2011 Page 27

28 How do you secure a successful CRM deployment 3 Define the full scope of change Success is a change in business attitude it is not just a change in systems You will need a strong Programme team that is empowered and driven by clear goals. Drive benefits realisation by measuring your investment and successes. Collect the right information & track this back to your business case. Keeping benefits at the heart of your business change will help keep you on track whilst helping to support the change from a top-down view. CRM software is the technology you need but it will give you a headache. If you consider that CRM will impact across many of your functions and departments, the likelihood is that it will need to talk to those systems also. CRM will be need to be core component in a wider enterprise architecture so that you can empower your front line teams. PA Knowledge Limited 2011 Page 28

29 6. Challenges in CRM implementations PA Knowledge Limited 2011 Page 29

30 Likely challenges in implementing CRM Challenges: Cultural challenges Ability of traditional organisations to define future requirements across the end to end service provision Development of processes across functional groups Ability to integrate with other missioncritical applications A clearly defined mandate for change Pace of change vs. constant change Mitigating actions: Identify and engage all stakeholders from the outset Understand the cultural change Define a clear vision for managing all your relationships Build a multi-function programme team to champion across organisation Create an enterprise architecture and build up components over time PA Knowledge Limited 2011 Page 30

31 A final thought and relevant more than ever before the best organization in the world will be ineffective if the focus on customers is lost. First and foremost is the treatment of individual students, alumni, parents, friends, and each other (internal customers). Every contact counts! Kotler and Fox Strategic Marketing for Educational Institutions (1995) PA Knowledge Limited 2011 Page 31

32 Thank you Conrad Funnell CRM Consultant 15 th floor Cobalt Square Birmingham B16 8QG Mobile: To learn more about our survey of vice-chancellors bit.ly/pavcs11 Or visit our homepage PA Knowledge Limited 2011 Page 32

33 PA Knowledge Limited 2011 Page 33