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BuildCollaborativeRelationshipsthatDeliverValueFebruary13,2003Atlanta,Georgia,USABobThompsonCEO,CustomerThinkCorporationFounder,CRMGBuildCollaborativeRelationsh1CompetingforScarceCustomersSupplyDemandTimeScarce
ProductsScarce
CustomersCompetingforScarceCustomers2“Bedistinctorbeextinct”TomPeters“Bedistinctorbeextinct”3“It’sincrediblyarrogantforacompanytobelieveitcandeliverthesamesortofproductthatitsrivalsdoandactuallydobetterforverylong.That’sespeciallytruetoday,whentheflowofinformationandcapitalisincrediblyfast.”
MichaelPorter
FastCompanyProduct
LeadershipOperational
ExcellenceCustomer
IntimacyCRMGreatRelationships=Differentiation“It’sincrediblyarrogantfor4LoyaltyLeadersGrowFaster,SpendLessCostsGrowthSource:ReichheldLoyaltyLeadersGrowFaster,S5CRMisNotNew…OrisIt?"Thetruebusinessofeverycompanyistomakeandkeepcustomers.”--PeterDrucker“CRM=beingsoobsessedwithyourcustomer’ssatisfactionthatyouchangethewayyoudobusiness.”--Dr.JonAntonCRMConfusion!360-degreeviewofthecustomerImprovingqualityofcustomerinteractionNewsoftwaretoolsandtechnologiesGettingrightdatatorightemployeeShiftfromproducttocustomerorientationBuzzwordandmanagementfad!
Source:METAGroup/IMTStrategies“CRMmeanscreatingmutualwinswithcustomersandallcompanystakeholders.”--BobThompsonCRMisNotNew…OrisIt?"Thet6“CRMis90%halfmental”YogiBerra,CRMConsultant“CRMis90%halfmental”YogiB7CustomersDefineaGreatRelationship“Serviceandvaluejustforme”“Personal”“Responsiveandproactive”“Win/Win”“Asksquestions”“Agooddealforthemoney”“Quality,consistentperformanceovertime”“Expertise”“Ahistoryofworkingtogether”“Easytodobusinesswith”Source:CRMGCustomersDefineaGreatRelat8TheNew4PsRelationshipDriversPassionPeopleProcessPerformance“MarketingMix”ProductPlacePromotionPriceTheNew4PsRelationshipDrive9CRMGuruStudy:CRMWorks!PaybackPeriodBenefits(PercentofProjects)Increasecustomersatisfaction(51%)Increasecustomeracquisitionrate(50%)Increaseshare-of-customer(48%)Decreasecustomerdefectionrate(37%)Decreasefrontofficestaffingcosts(33%)Investment
33%--lessthan$50,00024%--$50,000to$250,00028%--$250,000to$2.5Million15%--over$2.5MillionSource:CRMGCRMGuruStudy:CRMWorks!Payba10KeyDriversofSuccessCustomer-centricstrategy:usingcustomersatisfactionandattritiondata,gettingcustomersinvolvedinplanningFrontlinetrainingandsupport:explainingvalueofCRM,providingtrainingfornewskillsrequiredOrganizationalchange:workflowdesign,changingrolesandresponsibilitiesMetrics:goalsmeasuredstatistically(80%don’t)Source:CRMGstudy“TheBlueprintforCRMSuccess”KeyDriversofSuccessCustomer11Three-Year“Overnight”SuccessObjectives:Servechannelpartnersbetter,sellmore,spendlessSolution:AllegiseBusiness(PRM)Saved$375,000incommunicationcostsIncreasedrevenue$1millionwithbetterleadmanagementImprovedpartnerandemployeesatisfactionLessonsLearned:Understandyourusers,deliverclearvaluetothemPlancarefully,buildateam,phasetheimplementationEstablishbaselinemetricsandmeasurementprocessCommunicate,communicate,communicate!Source:LexmarkThree-Year“Overnight”Success12AreYouListening?“Ifyou’reconstantlygettingfeedbackfromyourcustomers…andyou’rewillingtolisten,youcanmakethemostoftheopportunitiesimplicitinthoseneeds.”
MichaelDell,inDirectFromDell“Businessessurviveordeclinebasedontheiremployees’abilitytolisten.Hirethesmartest,bestpeopleyoucanget,orientthemtocustomersatisfactionattheexpenseofallelse,thengetoutoftheirwayandletthemwork.”
DougAllred,SVPCustomerAdvocacyforCiscoSystemsAreYouListening?“Ifyou’rec13SellingThroughComplexChannelsCustomersSellingChannelsDealersMarketplacesOEMsRetailersEtailersResellerEnterpriseEnableCommerceWithselling
partnersVisibilityofcustomer
activityInfluence
overcustomer
experienceCollaborationwithpartner
businessprocessesSellingThroughComplexChanne14CRMTechnologyEvolutionCRMMaturityPotentialCompetitiveAdvantageLowHighAutomateStreamlineinternalsalesandserviceprocesses.Moreofthesame,donefasterandcheaper.SFA,CallCenterSingle
ChannelCollaborateEngagecustomersandpartnersforwin/win/winEnablemany-to-manyrelationshipnetworksC-BizSolutionsCollaborative
NetworkInnovateDesigndifferent,moreeffectiveprocessesUsenewchannelsandcustomertouchpointseCRM,PRMMulti-
ChannelHighCRMTechnologyEvolutionCRMMa15“TheInternetasasaleschannelrepresentsonlyafractionofitspotentialtobusiness.Therealpotentialliesinitsabilitytotransformrelationshipswiththetraditionalsupplier-vendor-customerchain.”
MichaelDell“TheInternetasasaleschann16SellerBuyerCRMSCMCollaborative
BusinessWin/Win
PhilosophyEnabling
Systems=+CollaborationCollaborativeBusiness:MutualBenefitsSellerBuyerCRMSCMCollaborative17Now:Point-To-PointRelationshipsSupplierPartnerCustomerManufacturerCRMPRMCRMRelationshipManagement:“Sell-Side”FocusonLifetimeValue,CustomerExperience,Revenue/ProfitGrowthSCMSCMSCMSupplierManagement:“Buy-Side”FocusonCost,CycleTime,ResponsivenessNow:Point-To-PointRelationsh18WebServices:EnablingxRMSystemsANewBreedofWebApplicationSelf-contained,self-describing,modularapplicationsCanbepublished,located,andinvokedacrosstheWebPerformsfunctions--simpletocomplicatedprocessesOtherapplicationscandiscoverandinvokeWebServices:EnablingxRMSys19WebServices:EnablingxRMSystemsThePotentialLow-costintegrationwithin,andbetween,enterprisesEnablingprocessintegrationbetweentradingpartnersImprovingperformanceofcollaborativenetworksWebServices:EnablingxRMSys20Future:OptimizedValueNetworkSuppliersCustomerManufacturerPartnersCollaborativeRelationships:FocusonMutualValue,Profit,Efficiency,IntegratedProcessesGlobalCompetitionPowerShiftto
CustomersInternetAdoptionInternetStandardsWebServicesFuture:OptimizedValueNetwor21TypesofCollaborativeSystemsPeopletoSystems–CRM/PRMPortalsPeopletoPeople–GroupwareSystemtoSystem–E2ECRMTypesofCollaborativeSystems22EvolutiontoCollaborativeNetworksAutomation
FocusMulti-System
CRMCollaborative
CommerceN-TierChannel
ManagementWorkTeam
CollaborationIntegrated
PortalseCRMCustomer
Relationship
ManagementSell-SideeBusinessPRMEnterpriseChannelsSell-SideCollaborativeeBusinessRelationshipNetworks
EvolutiontoCollaborativeNet23ComplexSupportProcessComplexSupportProcess24CollaborationatYourServiceWorld’slargestproviderofmobileInternetsoftware;OpenwavecustomersservemorethanhalfofallmobilesubscribersworldwideChallenge:Developerbasegrowingrapidly(100,000+)andsupportvolumesincreasing50%permonthSolution:ePeopleTeamwork70%reductioninaveragetimetoresolutionMultiplesupportproviderscanworktogetherHandledevelopergrowthwithoutincreaseinstaffCollaborationatYourServiceW25BusinessProcessesIntegrationVendorPartnerProcess
ConnectorStatusLeadsVendorPartnerProcess
ConnectorStatusOpportunitiesBusinessProcessesIntegration26CollaborativeCommerceWorkflowVendorPartner4.Status2.OrderCustomer1.Research3.ConfirmCollaborativeCommerceWorkflo27CollaborativeCommerceTheChallenge
CreateThreeWinnersCustomers:abilitytobuyproductson-linePartners:LeverageexistingrelationshipsEnterprise:EnhancetheMaytagbrandSource:ComergentConsumersRetailersMaytagCommerce
SystemCollaborativeCommerceTheChal28GroupCollaborationNearly80%ofcorporateknowledgeisunstructuredInformation.GartnerGroupSharedWorkspaceCustomersPartnersEmployeesSuppliersGroupCollaborationNearly80%29“Thereisonlyoneboss:thecustomer.Andhecanfireeverybodyinthecompany,fromthechairmanondown,bysimplyspendinghismoneysomewhereelse.”SamWalton
Wal-MartFounderBasicBeliefsRespectfortheIndividualServicetoOurCustomersStriveforExcellence“Thereisonlyoneboss:thec30BuildCollaborativeRelationshipsthatDeliverValueFebruary13,2003Atlanta,Georgia,USABobThompsonCEO,CustomerThinkCorporationFounder,CRMGBuildCollaborativeRelationsh31CompetingforScarceCustomersSupplyDemandTimeScarce
ProductsScarce
CustomersCompetingforScarceCustomers32“Bedistinctorbeextinct”TomPeters“Bedistinctorbeextinct”33“It’sincrediblyarrogantforacompanytobelieveitcandeliverthesamesortofproductthatitsrivalsdoandactuallydobetterforverylong.That’sespeciallytruetoday,whentheflowofinformationandcapitalisincrediblyfast.”
MichaelPorter
FastCompanyProduct
LeadershipOperational
ExcellenceCustomer
IntimacyCRMGreatRelationships=Differentiation“It’sincrediblyarrogantfor34LoyaltyLeadersGrowFaster,SpendLessCostsGrowthSource:ReichheldLoyaltyLeadersGrowFaster,S35CRMisNotNew…OrisIt?"Thetruebusinessofeverycompanyistomakeandkeepcustomers.”--PeterDrucker“CRM=beingsoobsessedwithyourcustomer’ssatisfactionthatyouchangethewayyoudobusiness.”--Dr.JonAntonCRMConfusion!360-degreeviewofthecustomerImprovingqualityofcustomerinteractionNewsoftwaretoolsandtechnologiesGettingrightdatatorightemployeeShiftfromproducttocustomerorientationBuzzwordandmanagementfad!
Source:METAGroup/IMTStrategies“CRMmeanscreatingmutualwinswithcustomersandallcompanystakeholders.”--BobThompsonCRMisNotNew…OrisIt?"Thet36“CRMis90%halfmental”YogiBerra,CRMConsultant“CRMis90%halfmental”YogiB37CustomersDefineaGreatRelationship“Serviceandvaluejustforme”“Personal”“Responsiveandproactive”“Win/Win”“Asksquestions”“Agooddealforthemoney”“Quality,consistentperformanceovertime”“Expertise”“Ahistoryofworkingtogether”“Easytodobusinesswith”Source:CRMGCustomersDefineaGreatRelat38TheNew4PsRelationshipDriversPassionPeopleProcessPerformance“MarketingMix”ProductPlacePromotionPriceTheNew4PsRelationshipDrive39CRMGuruStudy:CRMWorks!PaybackPeriodBenefits(PercentofProjects)Increasecustomersatisfaction(51%)Increasecustomeracquisitionrate(50%)Increaseshare-of-customer(48%)Decreasecustomerdefectionrate(37%)Decreasefrontofficestaffingcosts(33%)Investment
33%--lessthan$50,00024%--$50,000to$250,00028%--$250,000to$2.5Million15%--over$2.5MillionSource:CRMGCRMGuruStudy:CRMWorks!Payba40KeyDriversofSuccessCustomer-centricstrategy:usingcustomersatisfactionandattritiondata,gettingcustomersinvolvedinplanningFrontlinetrainingandsupport:explainingvalueofCRM,providingtrainingfornewskillsrequiredOrganizationalchange:workflowdesign,changingrolesandresponsibilitiesMetrics:goalsmeasuredstatistically(80%don’t)Source:CRMGstudy“TheBlueprintforCRMSuccess”KeyDriversofSuccessCustomer41Three-Year“Overnight”SuccessObjectives:Servechannelpartnersbetter,sellmore,spendlessSolution:AllegiseBusiness(PRM)Saved$375,000incommunicationcostsIncreasedrevenue$1millionwithbetterleadmanagementImprovedpartnerandemployeesatisfactionLessonsLearned:Understandyourusers,deliverclearvaluetothemPlancarefully,buildateam,phasetheimplementationEstablishbaselinemetricsandmeasurementprocessCommunicate,communicate,communicate!Source:LexmarkThree-Year“Overnight”Success42AreYouListening?“Ifyou’reconstantlygettingfeedbackfromyourcustomers…andyou’rewillingtolisten,youcanmakethemostoftheopportunitiesimplicitinthoseneeds.”
MichaelDell,inDirectFromDell“Businessessurviveordeclinebasedontheiremployees’abilitytolisten.Hirethesmartest,bestpeopleyoucanget,orientthemtocustomersatisfactionattheexpenseofallelse,thengetoutoftheirwayandletthemwork.”
DougAllred,SVPCustomerAdvocacyforCiscoSystemsAreYouListening?“Ifyou’rec43SellingThroughComplexChannelsCustomersSellingChannelsDealersMarketplacesOEMsRetailersEtailersResellerEnterpriseEnableCommerceWithselling
partnersVisibilityofcustomer
activityInfluence
overcustomer
experienceCollaborationwithpartner
businessprocessesSellingThroughComplexChanne44CRMTechnologyEvolutionCRMMaturityPotentialCompetitiveAdvantageLowHighAutomateStreamlineinternalsalesandserviceprocesses.Moreofthesame,donefasterandcheaper.SFA,CallCenterSingle
ChannelCollaborateEngagecustomersandpartnersforwin/win/winEnablemany-to-manyrelationshipnetworksC-BizSolutionsCollaborative
NetworkInnovateDesigndifferent,moreeffectiveprocessesUsenewchannelsandcustomertouchpointseCRM,PRMMulti-
ChannelHighCRMTechnologyEvolutionCRMMa45“TheInternetasasaleschannelrepresentsonlyafractionofitspotentialtobusiness.Therealpotentialliesinitsabilitytotransformrelationshipswiththetraditionalsupplier-vendor-customerchain.”
MichaelDell“TheInternetasasaleschann46SellerBuyerCRMSCMCollaborative
BusinessWin/Win
PhilosophyEnabling
Systems=+CollaborationCollaborativeBusiness:MutualBenefitsSellerBuyerCRMSCMCollaborative47Now:Point-To-PointRelationshipsSupplierPartnerCustomerManufacturerCRMPRMCRMRelationshipManagement:“Sell-Side”FocusonLifetimeValue,CustomerExperience,Revenue/ProfitGrowthSCMSCMSCMSupplierManagement:“Buy-Side”FocusonCost,CycleTime,ResponsivenessNow:Point-To-PointRelationsh48WebServices:EnablingxRMSystemsANewBreedofWebApplicationSelf-contained,self-describing,modularapplicationsCanbepublished,located,andinvokedacrosstheWebPerformsfunctions--simpletocomplicatedprocessesOtherapplicationscandiscoverandinvokeWebServices:EnablingxRMSys49WebServices:EnablingxRMSystemsThePotentialLow-costintegrationwithin,andbetween,enterprisesEnablingprocessintegrationbetweentradingpartnersImprovingperformanceofcollaborativenetworksWebServices:EnablingxRMSys50Future:OptimizedValueNetworkSuppliersCustomerManufacturerPartnersCollaborativeRelationships:FocusonMutualValue,Profit,Efficiency,IntegratedProcessesGlobalCompetitionPowerShiftto
CustomersInternetAdoptionInternetStandardsWebServicesFuture:OptimizedValueNetwor51TypesofCollaborativeSystemsPeopletoSystems–CRM/PRMPortalsPeopletoPeople–GroupwareSystemtoSystem–E2ECRMTypesofCollaborativeSystems52EvolutiontoCollaborativeNetworksAutomation
FocusMulti-System
CRMCollaborative
CommerceN-TierChannel
ManagementWorkTeam
CollaborationIntegrated
PortalseCRMCustomer
Relationship
ManagementSell-SideeB
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