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BuildCollaborativeRelationshipsthatDeliverValueFebruary13,2003Atlanta,Georgia,USABobThompsonCEO,CustomerThinkCorporationFounder,CRMGCompetingforScarceCustomersSupplyDemandTimeScarce
ProductsScarce
Customers“Bedistinctorbeextinct”TomPeters“It’sincrediblyarrogantforacompanytobelieveitcandeliverthesamesortofproductthatitsrivalsdoandactuallydobetterforverylong.That’sespeciallytruetoday,whentheflowofinformationandcapitalisincrediblyfast.”
MichaelPorter
FastCompanyProduct
LeadershipOperational
ExcellenceCustomer
IntimacyCRMGreatRelationships=DifferentiationLoyaltyLeadersGrowFaster,SpendLessCostsGrowthSource:ReichheldCRMisNotNew…OrisIt?"Thetruebusinessofeverycompanyistomakeandkeepcustomers.”--PeterDrucker“CRM=beingsoobsessedwithyourcustomer’ssatisfactionthatyouchangethewayyoudobusiness.”--Dr.JonAntonCRMConfusion!360-degreeviewofthecustomerImprovingqualityofcustomerinteractionNewsoftwaretoolsandtechnologiesGettingrightdatatorightemployeeShiftfromproducttocustomerorientationBuzzwordandmanagementfad!
Source:METAGroup/IMTStrategies“CRMmeanscreatingmutualwinswithcustomersandallcompanystakeholders.”--BobThompson“CRMis90%halfmental”YogiBerra,CRMConsultantCustomersDefineaGreatRelationship“Serviceandvaluejustforme”“Personal”“Responsiveandproactive”“Win/Win”“Asksquestions”“Agooddealforthemoney”“Quality,consistentperformanceovertime”“Expertise”“Ahistoryofworkingtogether”“Easytodobusinesswith”Source:CRMGTheNew4PsRelationshipDriversPassionPeopleProcessPerformance“MarketingMix”ProductPlacePromotionPriceCRMGuruStudy: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:CRMGKeyDriversofSuccessCustomer-centricstrategy:usingcustomersatisfactionandattritiondata,gettingcustomersinvolvedinplanningFrontlinetrainingandsupport:explainingvalueofCRM,providingtrainingfornewskillsrequiredOrganizationalchange:workflowdesign,changingrolesandresponsibilitiesMetrics:goalsmeasuredstatistically(80%don’t)Source:CRMGstudy“TheBlueprintforCRMSuccess”Three-Year“Overnight”SuccessObjectives:Servechannelpartnersbetter,sellmore,spendlessSolution:AllegiseBusiness(PRM)Saved$375,000incommunicationcostsIncreasedrevenue$1millionwithbetterleadmanagementImprovedpartnerandemployeesatisfactionLessonsLearned:Understandyourusers,deliverclearvaluetothemPlancarefully,buildateam,phasetheimplementationEstablishbaselinemetricsandmeasurementprocessCommunicate,communicate,communicate!Source:LexmarkAreYouListening?“Ifyou’reconstantlygettingfeedbackfromyourcustomers…andyou’rewillingtolisten,youcanmakethemostoftheopportunitiesimplicitinthoseneeds.”
MichaelDell,inDirectFromDell“Businessessurviveordeclinebasedontheiremployees’abilitytolisten.Hirethesmartest,bestpeopleyoucanget,orientthemtocustomersatisfactionattheexpenseofallelse,thengetoutoftheirwayandletthemwork.”
DougAllred,SVPCustomerAdvocacyforCiscoSystemsSellingThroughComplexChannelsCustomersSellingChannelsDealersMarketplacesOEMsRetailersEtailersResellerEnterpriseEnableCommerceWithselling
partnersVisibilityofcustomer
activityInfluence
overcustomer
experienceCollaborationwithpartner
businessprocessesCRMTechnologyEvolutionCRMMaturityPotentialCompetitiveAdvantageLowHighAutomateStreamlineinternalsalesandserviceprocesses.Moreofthesame,donefasterandcheaper.SFA,CallCenterSingle
ChannelCollaborateEngagecustomersandpartnersforwin/win/winEnablemany-to-manyrelationshipnetworksC-BizSolutionsCollaborative
NetworkInnovateDesigndifferent,moreeffectiveprocessesUsenewchannelsandcustomertouchpointseCRM,PRMMulti-
ChannelHigh“TheInternetasasaleschannelrepresentsonlyafractionofitspotentialtobusiness.Therealpotentialliesinitsabilitytotransformrelationshipswiththetraditionalsupplier-vendor-customerchain.”
MichaelDellSellerBuyerCRMSCMCollaborative
BusinessWin/Win
PhilosophyEnabling
Systems=+CollaborationCollaborativeBusiness:MutualBenefitsNow:Point-To-PointRelationshipsSupplierPartnerCustomerManufacturerCRMPRMCRMRelationshipManagement:“Sell-Side”FocusonLifetimeValue,CustomerExperience,Revenue/ProfitGrowthSCMSCMSCMSupplierManagement:“Buy-Side”FocusonCost,CycleTime,ResponsivenessWebServices:EnablingxRMSystemsANewBreedofWebApplicationSelf-contained,self-describing,modularapplicationsCanbepublished,located,andinvokedacrosstheWebPerformsfunctions--simpletocomplicatedprocessesOtherapplicationscandiscoverandinvokeWebServices:EnablingxRMSystemsThePotentialLow-costintegrationwithin,andbetween,enterprisesEnablingprocessintegrationbetweentradingpartnersImprovingperformanceofcollaborativenetworksFuture:OptimizedValueNetworkSuppliersCustomerManufacturerPartnersCollaborativeRelationships:FocusonMutualValue,Profit,Efficiency,IntegratedProcessesGlobalCompetitionPowerShiftto
CustomersInternetAdoptionInternetStandardsWebServicesTypesofCollaborativeSystemsPeopletoSystems–CRM/PRMPortalsPeopletoPeople–GroupwareSystemtoSystem–E2ECRMEvolutiontoCollaborativeNetworksAutomation
FocusMulti-System
CRMCollaborative
CommerceN-TierChannel
ManagementWorkTeam
CollaborationIntegrated
PortalseCRMCustomer
Relationship
ManagementSell-SideeBusinessPRMEnterpriseChannelsSell-SideCollaborativeeBusinessRelationshipNetworks
ComplexSupportProcessCollaborationatYourServiceWorld’slargestproviderofmobileInternetsoftware;OpenwavecustomersservemorethanhalfofallmobilesubscribersworldwideChallenge:Developerbasegrowingrapidly(100,000+)andsupportvolumesincreasing50%permonthSolution:ePeopleTeamwork70%reductioninaveragetimetoresolutionMultiplesupportproviderscanworktogetherHandledevelopergrowthwithoutincreaseinstaffBusinessProcessesIntegrationVendorPartnerProcess
ConnectorStatusLeadsVendorPartnerProcess
ConnectorStatusOpportunitiesCollaborativeComme
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