CRM Customer Resource Management by cx89mEO

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									              CRM
Customer Relationship Management

   Rich DuBose, Arnold Kelly,
   Mellisa Thom and Ben Wylie
Outline
   General elements of CRM
   Spending and trends
   CRM ROI
   Why some company succeed and others fail at CRM
   Industry uses
   12 key applications
   Top 5 providers of CRM
   Mini case studies - Square D and Graybar
   Argosy Gaming case study
   Don’ts of CRM
   Best practices
 CRM Defined
      “CRM is a technology-enabled business
       strategy whereby companies leverage
       increased customer knowledge to build
                                  (1)
       profitable relationships.”

      CRM is first and foremost a business
       strategy, not merely a software package.

(1) A Strategic Framework for CRM, by Patrick Sue and Paul Morin. February 2001
                 Functional Elements of CRM
       Marketing                           Sales              Customer Service
• Market Research               • Sales Automation and      • Customer Inquiry
                                  Management
• Product Development                                       • Customer product
                                • Customer Profiling          support
• Market Assessment
                                • Account Management        • Customer Information
• Market & Customer                                           Management
  Segmentation                  • Opportunity Management
                                                            • Call Center
• Product Lifecycle             • Product, Price, and         Effectiveness
  Management                      Contract Negotiation
                                                            • Trouble Analysis &
• Product Pricing and           • Sales Alignment and         Resolution
  Profitability                   Incentives
                                                            • Billing



                      Customer Relationship Management Solutions


                • Data Warehouse Management and Decision Support
                    • Integrated Customer Management Systems
Marketing Functionality
   "Half the money I spend on advertising is wasted; the
    trouble is I don't know which half." John
    Wanamaker, the department store pioneer, stated in
    1886

   A CRM can greatly enhance a company’s marketing
    efforts in the areas of :
       Market research
       Price planning
       Product development
       Market assessment
       Customer segmentation
       Product lifecycle
Marketing Functionality Cont...
   Example: Hewlett-Packard
       Previously, HP sent out mass emails to update
        customers on sales offers, new products, technical
        support, etc.
       After implementing a CRM, these efforts become
        much more customers specific
       85% of customers said they were satisfied with the
        content of the emails and additional revenue
        increase by $15M
Sales Functionality
   Common functions implemented:
      Provide the sales force with detailed and current
       information, such as:
         Buying preferences

         Pricing

         Inventory levels

         Billing information

      Automate the sales processing activities (SFA).
Sales Functionality Cont...
   Example: Empire Blue Cross and Blue Shield
      Extremely complex and highly manual sales

       process
      33 redundant audit checks and took approximately
       27 days
      On-line quote system developed

      Sales processing steps streamlined and automated
Service Functionality
   CRM can be used to capture such things as:
         Customer’s complaint history

         Outstanding customer services requests

         Billing information

         Customer preferences

         Tracking unresolved issues

   Service representatives are much more prepared to
    service their customers
Service Functionality Cont...

   Example: Marriott International
      Collect data on customer preferences and

       spending
      Data shared by all Marriott Hotels nationwide

      Once you check in they already know your
       smoking preference, which floor you prefer, any
       allergies, complaint history, whether you drink,
       etc.
 Enable Enterprise-wide Information Integration
   Collecting and integrating data from every point in the organization will allow
   customer relationship, life cycle and event information to be analyzed and driven
   through the marketing organization to the front-line, enhancing sales and retention.
                                               Phone
                                               Branch
 Sales                    Front line      Mobile Sales Force                Customer
Support                                        Internet



         Marketing and Sales
                 Support
     Customer demographic and
      purchased services data.
     Marketing campaign tracking
      and offer development
     Customer and profitability
      data matched for service
      development and pricing
     Attrition data for retention
      modeling
     Customer value and preference
      information for customized
      experience.
 Enable Enterprise-wide Information Integration
   Collecting and integrating data from every point in the organization will allow
   customer relationship, life cycle and event information to be analyzed and driven
   through the marketing organization to the front-line, enhancing sales and retention.
                                               Phone
                                               Branch
 Sales                    Front line      Mobile Sales Force                Customer
Support                                        Internet




                                   Back Office Operations
                                   Customer relationship
                                    information and contact
                                    history available for issue
                                    resolution
                                   Information gathering
                                    follow-up or alert
                                    messaging to front line
                                   Rules development for
                                    value-based decisioning
                                    for all product support
 Enable Enterprise-wide Information Integration
   Collecting and integrating data from every point in the organization will allow
   customer relationship, life cycle and event information to be analyzed and driven
   through the marketing organization to the front-line, enhancing sales and retention.
                                               Phone
                                               Branch
 Sales                    Front line      Mobile Sales Force                   Customer
Support                                        Internet




                                                                  Customer Touch Points
                                                                Customer relationship data
                                                                 gathering
                                                                Delivery of customized service
                                                                 delivery or sales offers
                                                                Customer value information
                                                                 available for decisions
                                                                Product information and sales
                                                                 process automation enables
                                                                 effective targeted sales efforts
                                                                Relationship and contact
                                                                 information allows sales reps
                                                                 “know” each customer
Demonstration
                            Worldwide CRM Spending


30,000,000,000

25,000,000,000

20,000,000,000

15,000,000,000

10,000,000,000

 5,000,000,000

                -
                            2001            2002            2003            2004            2005
                                                           Years




Based on report by Aberdeen Group entitled “Worldwide CRM Spending: Forecast and Analysis 2001 - 2005”.
       Forces Driving Spending
           “Only 7% of global companies have reached mature
            CRM deployments, indicating more spending to
            come.” (1)
           According to Gartner Group “CRM remains one of the
            top three, if not number one, business priorities in
            2001.”
           “The average company loses 20% of their customers
            each year and the number is rising.” (2)



(1) Data Warehouse Institute survey. CRM is Anything but Dead CRM Industry. June 2001
(2) Maximizing CRM Performance with Strategic Performance Measurement by James
Brewton
     Forces Driving Spending Cont...
          “It costs up to 10 times as much to acquire a
           new customer as it does to keep an existing
           one.”
          Reasons growth is not higher:
               Hard to prove ROI
               Expensive customization
               High failure rate
               Slow economy has force IT budgets to tighten

Maximizing CRM Performance with Strategic Performance Measurement by James Brewton
       Trends in CRM
          Mobile CRM (mCRM)
               PalmPilots, web phones, and pagers are becoming
                less expensive and more widely used
               Siebel and Sprint recently signed a join venture
                selling wireless CRM
               Domestic businesses are expected to spend $74B
                on wireless service by 2005




Wireless CRM: Strings Attached by Marc Songini Computer World, November 2001
       Trends in CRM Cont...
           Netsourcing - Application Services Providers
            (ASPs)
                ASP work better in smaller organizations - less
                 customization
                CRM applications are the second largest segment
                 of hosting sales, led only by E-commerce
                 applications
                By 2003, Forrester predicts hosted CRM
                 applications will account for almost $2.5 billion in
                 revenue
The Forrester Report by Stacie S. McCullough. December 1999
        CRM ROI




Source: Swift, “Accelerating Customer Relationships: Using CRM and Relationship Technologies
            CRM ROI Cont…
               Possible Returns
                  Up to 10 X’s more costly to generate
                   revenue from new customer than existing
                   customer
                  5% Increase in retention rate can increase
                   company profits by 60-100%
                  6 X’s more costly to service customer
                   through a call center than via the internet
                  Loyal customer referrals generate business
                   at little or no cost

Source: Swift, “Accelerating Customer Relationships: Using CRM and Relationship Technologies”
            CRM ROI Cont…
             Investments
                Upfront costs

                Takes time

                Need to create measuring metrics

             It is marketing rather than sales
             Switching from product focus to
              customer focus
Source: Swift, “Accelerating Customer Relationships: Using CRM and Relationship Technologies”
     Succeeding VS Failing
         Keys to Success
           Managing the data
           Managing the customer

           Business process before implementation

           All levels must buy in

           Flexibility on the company’s side

           Relationship vs database



Source: Rigby, Reichheld and Schefter, “Avoid the Four Perils of CRM”
     Succeeding VS Failing Cont…
         CRM Mistakes
           Implementing CRM before creating a
            customer strategy
           Rolling out CRM before changing your
            organization to match
           Assuming that more CRM technology is

            better
           Stalking, not wooing, customers


Source: Rigby, Reichheld and Schefter, “Avoid the Four Perils of CRM”
     BMC “Learning from Failure”
       BMC Software
            Systems-management software

             provider
            Based in Texas

       Failed Two Times Before Succeeding




Source: Rigby, Reichheld and Schefter, “Avoid the Four Perils of CRM”
     BMC’s Failures
       No research
       No top-management involvement
       Software would change culture




Source: Rigby, Reichheld and Schefter, “Avoid the Four Perils of CRM”
     BMC’s Successes
       Recreated the strategy
       Communicated benefits across the
        company
       Changed the culture not just the process




Source: Rigby, Reichheld and Schefter, “Avoid the Four Perils of CRM”
            Industry Uses
               Airlines
                         AA
                         Aadvantage Frequent Flyer Program
               Banks
                         Barclays
                         Realize profitability of customers
               Car Rental Companies
                         Enterprise
                         ECARS System

Source: Swift, “Accelerating Customer Relationships: Using CRM and Relationship Technologies”
   Enterprise Computer Assisted Rental System
    (Ecars) - introduced in 1992 now supports 1.4
    million transactions logged every hour
       Locates cars, tracks customer preferences,
        measures customer satisfaction ratings
       Uses Enterprise Service Quality Index(ESQI)to
        measure satisfaction - compensation for
        management is tied to results
   Enterprise uses its Automated Rental
    Management System (ARMS) to allow
    insurance companies to access rental
    information
       Allows agent to book reservations, EFT, and
        reporting to support claims processing
       Allows electronic monitoring of repair shop
        progress
                               (CIO Magazine - Nov 2000)
   Gartner’s 12 Key
Application Components
Gartner’s 12 Key Application Components

     Opportunity Management System
      (OMS)
     Sales Configuration System (SCS)
     Partner Relationship Management
      (PRM)
     Interactive Selling Systems(ISS)
                                Gartner Nov 2001
Gartner’s 12 Key Application Components

     Incentive Compensation Management
     Content Management
     E-Service
     Call Management
                              Gartner Nov 2001
Gartner’s 12 Key Application Components

     Field Service and Dispatch(FS/D)
     Personalization
     Data Mart/Analytical
     Campaign Management System

                                 Gartner Nov 2001
Today, for a B2B CRM application suite, three vendors can deliver features
   across all 12 key functionality components: Siebel, Oracle and SAP




                                                               •Gartner Nov 2001
                                                                     Feature ratings are based on the current
                                                                     shipping versions of the following
                                                                     vendors' CRM suite offerings:
                                                                     •Clarify eFrontOffice v.10 by Amdocs
                                                                     (i.e., an agreement for Amdocs to
                                                                     purchase Clarify CRM products from
                                                                     Nortel E-Business is expected to close by
                                                                     February 2002.)
                                                                     •E.5, release 5.5 by E.piphany
                                                                     •Kana iCARE by Kana
                                                                     •Oracle CRM 11i v.5 by Oracle
                                                                     •PeopleSoft 8 CRM by PeopleSoft
                                                                     •SAP CRM 3.0 by SAP
                                                                     •Siebel 2000 by Siebel Systems




The scores in Figure 1 are based on vendors scoring 1 point for a 1/4 circle rating, 2 points for a
1/2 circle, 3 points for a 3/4 circle and 4 points for a full circle with 48 points equal to 100
percent. In the past year, SAP's scores improved the most, followed by Amdocs/Clarify, Siebel,
PeopleSoft then Oracle (see Figure 2). Today, Gartner estimates that Siebel still provides almost
twice as many features as the next closest competitors; and Siebel remains the only vendor to
meet more than 50 percent of the horizontal functionality requirements for a B2B large enterprise
CRM application suite.

                                                                              •Gartner Nov 2001
                 North American CRO Magic
               Quadrant - Gartner March 1, 2002


                                                  CRO stands for customer
                                                  relationship optimization, and it
                                                  is the alleged potential new
                                                  direction for customer
                                                  relationship management
                                                  (CRM). "It's no longer about
                                                  managing your customers," the
                                                  NRF session description stated.
                                                  "It's about strategically investing
                                                  in customer segments that will
                                                  make the most money."
                                                  http://www.computerworld.com/itresources/rcs
                                                          tory/0,4167,STO67518_KEY51,00.html




http://www.gartner.com/reprints/ncr/104847.html
Key CRM Providers
 PeopleSoft
 Siebel
 SAP
 Oracle
 Convergys
   Leading provider of enterprise applications         Headquarters:
    that tie together customers' back-office             Pleasanton, CA
    operations
                                                        2000 revenue: $1.7 billion
   Software addresses such tasks as accounting,
    human resources, manufacturing, and supply          Customers: 4,600
    chain management
                                                        Employees: 8,000
   Services such as consulting, maintenance, and        Worldwide
    training account for about two-thirds of sales
   Customer relationship management software
    has rekindled licensing sales growth and
    helped offset a slowdown in the broader
    enterprise software market, but it has also
    exposed PeopleSoft to more direct
    competition with companies such as Oracle
    and Siebel Systems. (www.hoovers.com)
   World's leading provider of eBusiness             Founded: 1993
    applications software
                                                      2001 revenue: $2.05
   Provides an integrated family of eBusiness         billion
    applications software, enabling
                                                      2001 net income:
    multichannel sales, marketing, and
                                                       $255 million
    customer service systems to be deployed
    over the Web, in call centers, in the field,      Employees: 7,400+
    through reseller channels, and across retail
    and dealer networks
   Sales and service facilities are located in
    more than 32 countries.
   29 Years in the Business of E-Business         2000 Sales (mil.): $5,881
                                                    1-Yr. Sales Growth: 14.3%
   10 Million Users, 44,500 Installations,
    1,000 Partners, and 21 Industry                2000 Net Inc. (mil.):
    Solutions.                                      $596
   Founded in 1972 - recognized leader in          1-Yr. Net Inc. Growth:
    providing collaborative e-business              (1.6%)
    solutions                                      2000 Employees: 24,480
   Headquartered in Walldorf, Germany              1-Yr. Employee Growth:
                                                    12.8%
   World's largest inter-enterprise software
    company, and the world's third-largest
    independent software supplier overall
   Employs over 27,800 people in more
    than 50 countries
   World's leading supplier of software       2001 Sales (mil.): $10,860
    for information management, and the         1-Yr. Sales Growth: 7.2%
    world's second largest independent
    software company                           2001 Net Inc. (mil.):
   Headquartered in Redwood Shores,            $2,561
    California                                  1-Yr. Net Inc. Growth:
   First software company to develop and
                                                (59.3%)
    deploy 100 percent Internet-enabled        2001 Employees: 42,927
    enterprise software across its entire       1-Yr. Employee Growth:
    product line: database, server,
    enterprise business applications, and
                                                3.9%
    application development, and decision
    support tools.
   (CVG) is a provider of   Employees: 46,000
    outsourced billing and   Market Cap (Mil) $ : 5,155.226
    customer management      Complete Financials: Dec 2001
    solutions, which           Updated: 04/05/2002
    encompass activities     Revenues For the FY ended
                               12/31/01, increased 6% to
    such as targeting,         $2.32B.
    acquiring, serving and
                             Net income decreased 27% to
    retaining customers on     $138.8M.
    behalf of its clients.
Mini-Case Studies
   Began in 1902 , is a market-leading supplier of electrical
    distribution, industrial control and automation products
   A new safety switch with the company's new logo, a "D" (for
    Detroit) inside a square became the industry standard and many
    customers began asking for "the square D switches." The
    trademark was developed in 1915 and the name Square D
    Company was formally adopted in 1917. To this day, Square D is
    one of the few companies ever named by its customers.
   On May 24, 1991, Square D Company merged with Schneider
    Electric of Paris, France the world's leading manufacturer of
    electrical distribution and industrial control and automation
    products and systems, and the only manufacturer dedicated to
    the distribution and control of electricity.
                                                   (www.squared.com)
                                   Information Technology
   Web server-enabled equipment for the plant floor
       Equipment, including power monitors and PLCs, can automatically alert
        plant officials to emerging problems by audible alarm or e-mail
       Built-in server technology allows plant personnel to remotely monitor,
        diagnose and correct equipment problems and remotely change set
        points
   E-Way
       Online quote and order management system for distributor network
       Check pricing, stock availability, and obtain shipping information
   Digest Plus Selector
       Online product selection with more than 66,000 part numbers
       Search an electronic version of Square D's catalog based on the electrical
        characteristics of the application
       Generates a bill of materials to send to the distributor of choice for
        pricing and ordering

                         (http://www.controleng.com/archives/news/2000/july/gm0720a.htm)
                               Information Technology
   An employee Intranet
       Powered by an Infoseek Corp. search engine. The site includes
        everything from employee telephone directories to spec-writing tools
        and news on customer-segment marketing activities. Employees can
        access the site remotely
   Customer Information Center
       Uses sophisticated customer relationship management (CRM)
        technology to give technicians instant access to a complete customer
        history, and knowledge management and case management tools to
        access a database of technical solutions to almost any question
       Links customer service representatives and technical experts around the
        country in a virtual technical support center through Soft Phone
        technology from Lucent.
       Extended nationwide in late 1999, the CIC now answers more than
        13,000 calls each week from customers, distributors and employees.

                       (http://www.controleng.com/archives/news/2000/july/gm0720a.htm)
                                   Successful CRM
                                   Implementation
   Began in 1993, after Schneider Electric acquisition
   Reorganized the company’s three basic business units around
    customer segments - Industrial, Residential, Construction, and
    OEM
   Only after internal systems were refocused on the customer did
    Square D start using high-tech applications to upgrade its
    customer-facing processes
   According to Chris Curtis, VP of US marketing, managers were
    taken out of their line jobs for months at a time to understand
    issues involved in implementing the software
   In 1996, $75 million was invested in an order-management
    system that let sales engineers create proposals for customers
    based on what the factory floor could deliver

                                      (Harvard Business Review - Feb 2002)
•World leader in collaborative (CRM) solutions
that increase customer revenue, profitability, and
customer loyalty
•Transformed how organizations support their
customers, partners and associates at more than
500 organizations representing over 100,000
users.
•Relavis eBusinessStreams - CRM automation that
allows an organization to efficiently and effectively
                                                        "A tremendous benefit from using
interact with their customers, prospects, partners
                                                        OverQuota is that we are able to use
and internal associates                                 existing infrastructure for workflow
•Received the 2001 IBM Beacon award for                 communications. We have been using
                                                        Lotus Notes in our worldwide
"Greatest Business Impact," and the 2001 Lotus
                                                        operations since 1998," said Lee
Beacon Award for "Best eBusiness CRM Solution."         Chong Leong, telecommunications
Relavis is honored to have won the Beacon Award         manager, Asia Pacific, Schneider-
seven times                                             Electric.
   In 2001 Graybar selected the mySAP.com(R) e-
    business platform to run its business systems
    applications
       One of the largest ERP projects in U.S. industry
       Will deploy the entire suite of mySAP.com solutions
        including
            mySAP(TM) Customer Relationship Management
            mySAP(TM) Supply Chain Management
            mySAP(TM) Human Resources
            mySAP(TM)Enterprise Portals
            mySAP(TM) Business Intelligence
       Graybar’s new platform will run on IBM hardware
       DeLoitte Consulting is assisting in implementation
   A Fortune 500 service provider of wholesale
    distribution of electrical and comm/data equipment
    and integrated supply services
   Serves contractors, industrial plants, telephone
    companies, power utilities and commercial users
   One of the largest employee-owned companies in the
    US, with approximately 9,500 employees and 275
    stocking locations
   In business 131 years
   Annual sales in 2001 - $4.7 billion
Graybar plans to go live with “just a sliver of mySAP CRM,” Graybar VP
   Beatty D'Alessandro told CRMDaily. “We were advised by our
   implementation partner, SAP and other companies in our industry that
   CRM implementations can be a bear.”
"We seriously considered both companies," (Siebel) Beatty D'Alessandro,
  vice president IT strategy for Graybar Electric, told CRMDaily.com.
  "But in the final analysis we bought the whole mySAP suite."
D'alessandro added: "Our feeling was that a completely integrated solution
   was preferable to a bolt-on (CRM) strategy."
Another consideration, he added, was that SAP appeared to be committing
  a significant amount of corporate resources to its CRM product.
"So, in whatever areas there were perceived inequities between SAP and
   Siebel, it was clear to us that SAP was spending the money to catch up
   with Siebel," D'Alessandro said.


                             (http://www.crmdaily.com/perl/story/16309.html)
Argosy Case Study
Company Overview
CEO: James Perry
Revenue: $595 Million
Stock: NYSE Symbol-AGY
   $40.65

Employees:4,900




                          Source: www.argosycasinos.com
Jeff Poure, MIS Director




          CIO




         CEO
Current System
   Player Tracking System
     Built primarily as accounting/slot system,
      not marketing
     Only provide us with transactional data

            Not customer centric, slot machine is center of
             universe
       Not flexible
            Difficult ad-hoc queries
                                          Source: Argosy Marketing Report 2001
CRM Strategy
Use knowledge of customers profiles
  to develop offers and programs
     which appeal to our most
       profitable customers
                      Source: Argosy Marketing Report 2001
How Argosy’s Goal was Defined
   Committee
     Property Operating Committees
     Executive Committee

     Legal Staff

     Marketing Staff

     MIS Staff (including IT Supplier

      Representation)
                   Source: Interview with Jeff Poure, Argosy Gaming Co. MIS Director
Argosy Partners with NCR Terradata
for CRM Development
   Why NCR?
       “Value Added Supplier”
            Harrahs (1998)
       Application Server Evaluation Model (ADEM)
            Evaluates IT Supplier on the basis of Technology,
             Market Momentum, Best Practice, & Database
            NCR won Technology & Database, and was second
             in Best Practices – Overall highest score
                              Source: Interview with Jeff Poure, Argosy Gaming Co. MIS Director
CRM Application Scope
   7,724 Hours (3+ Man years)
       Only NCR Applications and Database
        Developers time
   Estimated Cost = $849,640
       Not including Software Licenses or Servers
   Two new full time MIS positions
                      Source: Interview with Jeff Poure, Argosy Gaming Co. MIS Director
CRM Application Operation
   Data collection during registration –
    Data Card
       Player Data
            Name
            Address
            SSN
            License No
            Age
            And More!    Source: Interview with Jeff Poure, Argosy Gaming Co. MIS Director
CRM Application Operation
   Data collection during the visit
       Wins / Losses
            Tables vs. Slots
       Preferences / History
            Restaurants
            Smoking vs. Non-Smoking
            Magazines

                            Source: Interview with Jeff Poure, Argosy Gaming Co. MIS Director
CRM Application Operation
 •Prior to CRM Application
      •Archaic Marketing campaigns based on recent nature of ones visit

                              Group A(280+)     Group B(200-279)            Group C(130-199)
Number of Patrons Mailed To             5,821               4,144                       8,205
Number of Patron Coupons                1,973               1,140                       1,511

Mail Response Rate                       34%                 28%                           18%

Slot Patrons                            1,537                 979                         1,301
Table Patrons                             419                 177                           202
Total Patrons                           1,956               1,156                         1,503

Casino Revenue                      $736,376            $218,550                      $205,715
Win Per Patron                          $373                $192                          $136

                                                             Source: Argosy Marketing Report 2001
CRM Application Operation
  •Allows a more granular view at customers
         •Greater Market Segmentation to identify most profitable customers
         •Redirect Resources away from marginal customers
                                                   Female   Unknown   Male       Female Unknown     Total   Total
 Age     Total   Male   Female Unknown Male Slot    Slot      Slot    Table       Table  Table      Slot    Table
 21-24    835    405     417       13      179       311       7       226        106         6      497     338
 25-29    852    423     409       20      191       277       6       232        112        14      494     358
 30-34    934    449     467       18      219       326       12      230        141         6      557     377
 35-39    966    448     496       22      261       377       15      187        119         7      653     313
 40-44   1,043   446     561       36      290       438       20      156        123        16      748     295
 45-49   1,004   403     573       28      254       446       18      149        127        10      718     286
 50-54    958    391     540       27      261       395       20      130        145         7      676     283
 55-59    708    285     403       20      174       298       18      111        105         6      486     222
 60-64    520    216     291       13      137       215       20      79          76         3      362     158
  65+    1,060   399     624       37      209       321       14      190        303         9      558     502
TOTAL    8880    3865    4781     234     2175      3404      150     1690        1357       84      5749    3132


                                                                             Source: Argosy Marketing Report 2001
    CRM Application Operation
   Better understanding of Customers and Revenue
    Sources
       Customer Lifetime Value = CONFIDENTIAL
       Identification of most profitable customers
            40 to 50 + Years Old with disposable income and time –
             retirement age
       Average player spends $25-$30 a time and comes
        frequently, at least once a week…seeking social setting
       80 percent of Argosy’s Revenue comes from slot
        machines
                                               Source: Argosy Marketing Report 2001
CRM Application Operation
   Rewards Programs
       Customized for individual market segments
            Right Offer, Right Customer, Right Time, Right Decision
            Targeted mailings
       Based of points
   Incentive Programs


                                             Source: Argosy Marketing Report 2001
Implementation
   Argosy is implementing CRM
    Package in two phases
     Phase I – June 4, 2001 to October 4, 2001
     Phase II – October 5, 2001 – June 8, 2002




                    Source: Interview with Jeff Poure, Argosy Gaming Co. MIS Director
Property Implementation Timeline
Phase I

  October 2001,                February 2002,                     March 2002,
 Lawrenceburg, IN              Sioux City, IA                      Alton, IL




              December 2001,                                     March 2002,
               Riverside, KS                                   Baton Rouge, LA




                                      Source: Interview with Jeff Poure, Argosy Gaming Co. MIS Director
    Implementation
   Phase I Criteria for Success
       Have increased ability to view, analyze and act upon
        detail player data down to the transaction level by
        individual player, player segments or groupings.
       Develop and agree to a methodology and calculation
        for the “Lifetime Value” of a player.
       Have the ability to analyze and evaluate Argosy
        customers’ hotel, restaurant, entertainment, and offer
        preferences at the customer level.



                             Source: Interview with Jeff Poure, Argosy Gaming Co. MIS Director
    Implementation
   Phase I Criteria for Success - cont.
       Capture and maintain customers’ needs and
        preferences for the purpose of determining
        offers/programs, which will appeal to out most
        profitable customers.
       Increase analytical capabilities to drive more complex
        segmentation and communication strategies for the
        purpose of increasing customer trips/rate-of-pay,
        frequency of visits, and for finding new/profitable
        opportunities.
       Ability to have a unified/consistent customer reward
        program across the enterprise.
                             Source: Interview with Jeff Poure, Argosy Gaming Co. MIS Director
Is Phase I a Success?
“Yes, this phase has been considered a success. It(the
  CRM package) has given us the ability to more
  efficiently identify our key customers, anticipate their
  needs and respond to them quickly.”

  “…the application has allowed us to better serve our
  customers”

  “…give us the ability to improve customer retention”
                                   -Jeff Poure, MIS Director
      Don’ts of CRM
       Data is ignored
       Politics rule
       IS organization and business users do
        not work together
       No plan exists
       CRM is implemented for the enterprise,
        not the customer
Source: Gartner, “Seven Key Reasons Why CRM Fails – And How to Avoid Them”
      Don’ts of CRM Cont…
        Flawed process is automated
        No attention is paid to skill sets




Source: Gartner, “Seven Key Reasons Why CRM Fails – And How to Avoid Them”
CRM Best Practices
CRM Best Practices consists of the
following:
      Customer Involvement
      Involve the correct sources early to develop
       CRM Strategy
      Understanding of Information Technologies
       place
      CRM Organizational Culture
      Incremental Implementation
     CRM Best Practice
Customer Involvement
   Focus Groups
       Prior to, during, and after CRM implementation
   Customer Survey
       If Feedback being passed to Top Management is being acted
        on, then change will happen
   Concentrate on your customer Lifecycle value
       Which Customers repay investment?
       Which Customers just take up resources and should be
        considered competitors?
   Segmentation Analysis

                                                 Source: www.CRM-forum.com
  CRM Best Practices
Involve the “Right” People
     Marketing
         Provide means of determining our customers?
     Business Strategists
         What are our organizational goals (i.e. growth)?




                                          Source: www.CRM-forum.com
                CRM Best Practices
        Involve the “Right” People
                    “Value-Added” IT Suppliers (If required)
                         Practical experience in CRM
                         CRM experience in same/similar industry
                                Can provide knowledge of CRM application(s) to allow
                                 Marketing and Business strategists to evaluate the
                                 opportunities
                    To often companies allow technology vendors
                     to dictate the manner they manage customers
                     because the vendor has implemented CRM
                         CRM is to be customized, not for software but for
                          strategy
Source: “Avoid the Four Perils of CRM,” Darrell K. Rigby, Frederick F. Reichheld, Phil Schefter; Harvard Business Review, Feb 2002
         CRM Best Practices
        Involve the “Right” People
            Involve TOP MANAGEMENT from the start
                  For CRM to be successful, Top Management must…
                        Clearly communicate a vision for the future of the organization
                         that indicates the benefits of CRM
                        The will power to make CRM work across functional boundaries
            Without Top Management participation or a
             Strong Top Management
                  A common result is that a strong-willed committee
                   member will shape the final implementation that will
                   address their desires and not the organizations as a
                   whole
Source: “Avoid the Four Perils of CRM,” Darrell K. Rigby, Frederick F. Reichheld, Phil Schefter; Harvard Business Review, Feb 2002
    CRM Best Practices
Implementation
   Should not expect to be able to
    implement CRM in one major
    undertaking
       Implement CRM in increments
           Each Increment should have…
             • Its own business case
             • Measures of success
             • Evaluation of how customers perceive the results of
               this step
                                               Source: www.CRM-forum.com
    CRM Best Practices
   While Top Management successful within ones
    organization, employees make CRM successful
    with your customers
       Companies serious about CRM tie employee
        incentives to customer indicators such as retention
        and satisfaction. The more serious a firm is about
        CRM, the sooner they will adjust the compensation
        plan.
       No less than 100 percent user buy in is acceptable..



                                           Source: www.CRM-forum.com
Conclusion
What must we understand?
   Expect a continuing evolution of CRM
      As it evolves, customers will become more and

       more familiar with what it can do for them
   If we an organization adopts CRM they must
    understand that the strategy will not be delivered by
    IT alone
   The primary CRM objective is to improve the
    interface between an organization and its’ clients. In
    doing so, for a CRM initiative to be successful
    substantial re-organization of the organization
    dealing with customers may occur
                                        Source: www.CRM-forum.com
QUESTIONS


        ???

								
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