Driving CRM with Customer Intelligence

Transcription

1 Driving CRM with Customer Intelligence Adrian Reynolds EMEA CRM Program Director

2 Agenda The role of Customer Intelligence The Good the Bad and the Competition Summary and Conclusions

3 The Big CRM Myths CRM is about deep, meaningful relationships with customers. Most customers are rarely looking for this kind of relationship - it is very expensive and can be perceived as intrusive. CRM is about maintaining an on-going dialogue. Don t talk if you don t have something relevant to say. CRM is about high quality, customer-focused service. Customer s don t value high quality of service they just expect it.

4 What the Analysts say Three key stages of CRM implementation Operational CRM: Analytical CRM: Collaboration CRM: Track Adjust/Act Analyse Policy Hub Model

5 The role of Customer Intelligence

6 An Integrated customer view How Im portant is a single integrated view of the custom er across the com pany 48% V ery Im portant 44% C ritical 6% Somewhat 2% Not Important Do you currently have a single integrated view of the custom er 52% Not Really 36% Not at all 10% Somewhat 2% Yes Source: Forrester Research

7 The Role of Customer Intelligence Strategic Focus

8 Strategic Focus Focus the Business Focus resources Focus investment Focus on right customer groups services products channels aspects of quality. Customer base is an Asset Communicate objectives to the business

9 Strategic Focus Sample Questions What defines a customer? Who owns the customer? What is the value of the customer asset? What are my key customer groups? How many of my top customers could I lose before making a loss? How much should I invest in different customer groups? What realistic targets should I set to ensure profitability? Would I know if a competitor was stealing my best customers? Could I react appropriately? How much should I invest in my channels? - the internet? Best practice - who is recruiting the best customers

10 The Role of Customer Intelligence Targeting and Positioning

11 Targeting and positioning Techniques Customer profitability analysis Churn/retention analysis Customer behaviour analysis Segmentation and targeting Customer profiling

12 Targeting and positioning Sample Questions How should my segments be defined? Which customers are good candidates for cross or up selling? When should I sell? Which customers are likely to leave? Which customers are more likely to respond? What is the customer potential / life time value? Which communication channel should I use? What s the expected response rate? Can I customise offerings based on needs, preferences and profitability? Which product combinations and product features do customers want?

13 Profitability Segments Do you market to segments? How are segments defined? Risk Business driven segments Business to Business Business to Business Individual Business to Consumer Statistically driven Segments Potential How are customers moving between segments?

14 Today s High Value Customers are tomorrow s? High Value Customers? Churners? Low Value Customers? High Risk Customers? Defaulters? Today s Low value customers are tomorrow s?

15 The Role of Customer Intelligence Operational Effectiveness

16 Operational Effectiveness Techniques Resource forecasting Demand forecasting Skills profiling Service level setting Resource optimisation Deployment of decision support information to the front office Deployment of information to the customer

17 Operational Effectiveness Sample Questions What skills should be available? Can I allocate resources based on customer value? Am I achieving service levels? How should I divide resources across customer groups? What resources should I allocate throughout the day (and night)? How should I divide resources across channels? What capacity should I purchase? Best practice - who is delivering the best service? Which service and channels are being used and by whom?

18 The Role of Customer Intelligence Measurement

19 Measurement Sample Metrics Life-time value Share of customer Retention / Attrition rates Length of relationship Cross-selling ratio Customer profitability Customer value index Customer response rate

20 Measurement Sample Questions How satisfied are our customers with our product/service? How many new customers do I have? How many customers do I have? Is the lifetime value (future potential) of my customer base going up or down? - by how much? What is the rate of customer defection? Which sales/marketing channels are most effective? What was the response rate - How did it compare to target? How many times are my customers being contacted? Which customers are moving between segments? What was the conversion rate - How did it compare to target? How many times has this customer contacted us?

21 Good and bad customers Is data about bad customers brought together with data about good customers? Who calls the call centre repeatedly? Who are heavy user of services? Should I compensate people who complain? 80% of profits from 20% of customers? 80% of costs from 20% of customers? What characterises a good customer? How many good customers do you have? What characterises a bad customer? How many bad customers do you have? Are you recruiting good or bad customers? How many good customers did I recruit last month How many bad customers did I recruit last month How many good customers left last month How many bad customers left last month

22 Encourage good customers Openness of what is required to move up the strata. Freq flyer programmes open, insurance companies open with brokers. Banking and finance more opaque Do you know the differentiation so that you can let the market know.

23 Who are your competitors Organisations that produce similar products? Organisations that produce similar services? Organisations that have a stronger relationship with your customers and prospects?

24 If a competitor was targeting your customers What data would they need? What offer should they make? How would you know? How long would it take you to notice? Not your current best customers but your future best customers. Failure to analyse creates collapse No one has a monopoly on good ideas Speed of response is important

25 Agenda The role of Customer Intelligence The Good the Bad and the Competition Summary and Conclusions

26 CRM Business Flow The Role of Customer Intelligence Aligning investment and resources to market opportunities and requirements Right people, right channel, right time, right offer to build long term mutually beneficial relationships Place the customer at the centre of the decision making process Monitoring success and reporting back to the business to create an agile learning enterprise Copyright 2001, SAS Institute Inc. All rights reserved. Doing things right, deploying resource to match customer demand and value

27 Conclusion Information is a vital component of successful CRM Statistics are not new - testing the frontiers of management not technology A flexible environment is required to handle the different demands Creating a single view of the customer is a process Ignorance is not bliss Good information is difficult to replicate - it is a sustainable competitive advantage A sample of over 60 Questions some simple some involved - Start with the simple that create most

28 Questions?